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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 06/26/2019REG ULA R BO A RD MEET IN G J une 26, 2019 - 5:30 PM 31111 Greenspot Road, Highland, C A 92346 AG E N D A "In order to comply with legal requirements for posting of agenda, only those items filed with the District C lerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors". C A LL TO O RD ER P LED G E O F A LLEG IA N C E RO LL C A LL O F BO A RD MEMBERS P U B L I C C O MME N T S Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the C hairman of the Board. Under the State of C alifornia Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. T he matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. AGE N D A - T his agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. 1.Approval of Agenda 2.AP P RO VAL O F C ON SE N T C AL E N D AR All matters listed under the C onsent C alendar are considered by the Board of Directors to be routine and will be enacted in one motion. T here will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the C onsent C alendar. a.Approve the J une 12, 2019 regular board meeting minutes b.May 2019 Disbursements: Accounts payable disbursements for the period include check numbers 254140 through 254304, bank drafts, and A C H Payments in the amount of $5,744,051.44 and $501,804.26 for payroll. c.Financial Statements for May 2019 D I SC U SSI O N AN D P OS SI B L E AC T I O N I T E MS 3.Consider Disposition of Surplus Property 4.Consider Landscaping Services Agreement 5.Consider Resolution 2019.08 to Approve the Operating and C apital Budgets for Fiscal Year 2019-20 RE P O RT S 6.Board of Directors' Reports 7.General Manager/C EO Report 8.Legal C ounsel Report 9.Board of Directors' Comments AD J O U RN P LEAS E NO T E: Materials related to an item on this agenda s ub mitted to the Board after dis trib utio n of the agend a pac ket are available for p ublic ins p ectio n in the Dis tric t's o ffice lo cated at 31111 G reens pot R d., Highland, during no rmal b usines s hours . Also, s uc h d o cuments are available o n the Dis tric t's web s ite at www.eas tvalley.o rg sub ject to s taff's ab ility to post the d o cuments b efo re the meeting. P urs uant to G overnment C o d e S ec tion 54954.2(a), any reques t fo r a d is ab ility-related mo dific ation or ac commod ation, inc luding auxiliary aids or s ervic es , that is s ought in order to participate in the abo ve- agendized p ublic meeting s hould b e d irected to the Dis tric t C lerk at (909) 885-4900 at leas t 72 hours prior to said meeting. 1 Minutes 06/12/2019 sma Draft pending approval EAST VALLEY WATER DISTRICT June 12, 2019 REGULAR BOARD MEETING MINUTES The Chairman of the Board called the meeting to order at 5:30 p.m. Ms. Antrim led the flag salute. PRESENT: Directors: Carrillo, Coats, Goodrich, Smith ABSENT: Director Morales STAFF: John Mura, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Justine Hendricksen, District Clerk; Shayla Antrim, Senior Administrative Assistant LEGAL COUNSEL: Jean Cihigoyenetche GUEST(s): Members of the public INTRODUCTION OF NEWLY HIRED EMPLOYEE The General Manager/CEO introduced new employee Rocky Welborn, Senior Engineer to the Board. PUBLIC COMMENTS Chairman Carrillo declared the public participation section of the meeting open at 5:33 p.m. There being no written or verbal comments, the public participation section was closed. APPROVAL OF AGENDA M/S/C (Coats-Goodrich) that the June 12, 2019 agenda be approved as submitted. APPROVE THE MAY 15, 2019 SPECIAL BOARD MEETING MINUTES M/S/C (Smith-Coats) that the Board approve the May 15, 2019 special board meeting minutes as submitted. APPROVE THE MAY 22, 2019 REGULAR BOARD MEETING MINUTES M/S/C (Smith-Coats) that the Board approve the May 22, 2019 regular board meeting minutes as submitted. 2 Minutes 06/12/2019 sma DIRECTORS’ FEES AND EXPENSES FOR MAY 2019 M/S/C (Smith-Coats) that the Board approve the Directors’ fees and expenses for May 2019 as submitted. REVIEW DRAFT BUDGET FOR FY 2019-20 The Chief Financial Officer presented the draft FY 2019-20 Budget to the Board; he stated that the draft FY 2019-20 Budget was presented to the Community Advisory Commission for review and feedback. 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 stated that $60,000,000 of the total wastewater capital improvement projects will be funded from the California Waterboards loan and grant proceeds for the construction of the Sterling Natural Resource Center. For information only. BOARD OF DIRECTORS’ REPORTS Director Coats reported on the following: May 23 he attended the Enhanced Recharge in the Santa Ana River Basin Dedication event; June 3 he attended the Community Advisory Commission on Water Policy meeting; June 4 he attended San Bernardino Valley Municipal Water District Board meeting; June 5 he participated in two conference calls with the California Special District Association’s Committees: Member Services Committee and Professional Development Committee; and June 11 he met with the General Manager/CEO to discuss District business. Vice Chairman Smith reported on the following: May 23 he attended the Enhanced Recharge in the Santa Ana River Basin Dedication event; June 6 he met with the General Manager/CEO to review the agenda; and June 12 he attended the San Bernardino Valley Water Conservation District Board meeting. Director Goodrich reported on the following: May 23 he attended the Enhanced Recharge in the Santa Ana River Basin Dedication event; June 1 he attended the Highland Chamber of Commerce “Evening Under the Stars” event held at the District; and June 5 he monitored the San Bernardino City Council meeting via online video. Chairman Carrillo reported on the following: May 23 he attended the Enhanced Recharge in the Santa Ana River Basin Dedication event; June 1 he attended the Highland Chamber of Commerce “Evening Under the Stars” event held at the District; and June 6 he met with the General Manager/CEO to review the agenda. Information only. 3 Minutes 06/12/2019 sma GENERAL MANAGER/CEO REPORT The General Manager/CEO thanked staff for covering in his absence. He stated that he will be attending California Special District’s Associations’ General Manager Leadership Summit where Ms. Kerrie Bryan, Human Resources and Safety Risk Manager, will be presenting a breakout session on “Employee Recruitment and Retention Strategies that Work”. The General Manager/CEO informed the Board of the following: • June 18 at 3:30 pm the District will be holding the Finance and Human Resources Committee meeting. • On June 22, the District will distribute free high efficiency toilets to qualifying customers. The event will be held at the headquarters and end once all supplies have been distributed. Information only. LEGAL COUNSEL REPORT No report at this time. BOARD OF DIRECTORS’ COMMENTS Director Coats thanked everyone for attending the Board meeting. Chairman Carrillo thanked the Chief Financial Officer for his presentation and welcomed the District’s new Senior Engineer. Information only. ADJOURN The meeting adjourned at 6:22 p.m. ___________________________ Chris Carrillo, Board President __________________________ John Mura, Secretary B OAR D AG E N D A S TAF F R E P O RT Agenda Item #2.b. Meeting Date: June 26, 2019 C ons ent Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: May 2019 Dis b urs ements: Ac c ounts p ayab le d is b urs ements fo r the period includ e check numb ers 254140 through 254304, bank d rafts , and A C H P ayments in the amo unt o f $5,744,051.44 and $501,804.26 fo r payroll. R E COMME N D AT IO N: S taff rec o mmend s that the Board o f Directo rs (Bo ard ) review and ap prove the Dis trict’s expense dis b urs ements fo r the period May 1, 2019 thro ugh May 31, 2019 in the amount o f $6,245,855.70. B AC KG R O UN D / AN ALYS IS : In the c o ntinued effort to b e fis c ally trans parent, the payment register fo r sup p lies, materials , servic es , and p ayro ll fo r May 2019 is attac hed for review and appro val. T his p roc es s p ro vid es the Board and the pub lic an o pportunity to review the exp ens es o f the Dis tric t. Acc o unts P ayable is p roc es s ed weekly, while p ayro ll is p roc es s ed b i-weekly. I nfo rmatio n to jus tify each expend iture is available through the F inance Department. Ac counts p ayab le dis b urs ements fo r the perio d inc lude c hec k numbers 254140 through 254304, b ank drafts, and AC H P ayments in the amount of $5,744,051.44 and $501,804.26 fo r p ayro ll. S ignificant expenses greater than or equal to $50,000 are further explained b elo w: R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: Brian Tomp kins C hief F inancial O fficer AGE N C Y GOALS AN D OB J E C T IVE S: G oal and O b jec tives I I - Maintain a C o mmitment to S us tainab ility, Trans p arency, and Ac countability a) P rac tic e Transparent and Ac countable F isc al Management R E VIE W B Y O T HE R S : T his agend a item has been reviewed b y the F inanc e Department. F IS CAL IMPAC T S uffic ient fund s have b een b ud geted in the ad o p ted F Y 2018-19 Bud get. ATTAC H M E NTS: Description Type M ay 2 019 P ayment Register Backup Material PAYMENT REGISTER MAY 1, 2019 - MAY 31, 2019 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/1/2019 254140 TRISHA MURPHY 8.54 5/1/2019 254141 ALFRED TROY HODGES 7.73 5/1/2019 254142 ANTHONY B JACKSON 135.04 5/1/2019 254143 FRANK COSER 8.39 5/1/2019 254144 OPENDOOR LABS, INC. 45.64 5/1/2019 254145 LE HANG NGUYEN 39.31 5/1/2019 254146 Mary-Ann Schmidt 375.00 5/2/2019 254147 AMERICAN FIDELITY ASSURANCE COMPANY (FSA) 1,387.62 5/2/2019 254148 ANTHESIS 4,108.25 5/2/2019 254149 AT&T 156.73 5/2/2019 254150 AT&T 323.22 5/2/2019 254151 COLONIAL LIFE, PREMIUM 582.66 5/2/2019 254152 DENTAL HEALTH SERVICES 320.40 5/2/2019 254153 DIB'S SAFE & LOCK SERVICE 309.36 5/2/2019 254154 DIRECTV 241.97 5/2/2019 254155 EVERSOFT, INC 212.53 5/2/2019 254156 FIRST CHOICE SERVICES 58.00 5/2/2019 254157 FLEETCREW, INC. 1,119.90 5/2/2019 254158 GARY YOUNG 533.75 5/2/2019 254159 GLOBAL EQUIPMENT COMPANY, INC 1,752.19 5/2/2019 254160 INLAND WATER WORKS SUPPLY CO 321.10 5/2/2019 254161 K & L HARDWARE 288.68 5/2/2019 254162 KELLY ASSOCIATES MANAGEMENT GROUP LLC 4,775.00 5/2/2019 254163 NASSAU LIFE INSURANCE COMPANY 66.74 5/2/2019 254164 SO CAL GAS 14.30 5/2/2019 254165 SO CAL OCCUPATIONAL HEALTH SERVICES 35.00 5/2/2019 254166 SOUTHERN CALIFORNIA EDISON COMPANY 5,314.49 5/2/2019 254167 STAPLES BUSINESS ADVANTAGE 541.02 5/2/2019 254168 THE SHERWIN WILLIAMS CO. 545.36 5/2/2019 254169 UNIFIRST CORPORATION 681.27 5/8/2019 254171 AM CONSERVATION GROUP, INC 1,777.95 5/8/2019 254172 ANTHESIS 4,103.50 5/8/2019 254173 APPLEONE EMPLOYMENT SERVICE 498.96 5/8/2019 254174 BURRTEC WASTE (GROUP) INDUSTRIES, INC. 346.85 5/8/2019 254175 BURRTEC WASTE (GROUP) INDUSTRIES, INC. 126.48 5/8/2019 254176 BURRTEC WASTE (GROUP) INDUSTRIES, INC. 126.48 5/8/2019 254177 CITY OF HIGHLAND 4,455.00 5/8/2019 254178 CULLIGAN OF ONTARIO 97.00 5/8/2019 254179 DANIELS TIRE SERVICE, INC 2,043.11 5/8/2019 254180 DIB'S SAFE & LOCK SERVICE 9.72 5/8/2019 254181 EXPERIAN 209.68 5/8/2019 254182 EYE MED VISION CARE 1,327.52 5/8/2019 254183 HATFIELD BUICK 379.77 5/8/2019 254184 HIGHLAND COMMUNITY NEWS 29.95 PAYMENT REGISTER MAY 1, 2019 - MAY 31, 2019 Page 1 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/8/2019 254185 INLAND WATER WORKS SUPPLY CO 8,251.65 5/8/2019 254186 K & L HARDWARE 8.61 5/8/2019 254187 MARLINK 1,084.71 5/8/2019 254188 MC CROMETER INC 1,527.14 5/8/2019 254189 SO CAL GAS 332.71 5/8/2019 254190 SOUTH COAST A.Q.M.D. 265.96 5/8/2019 254191 STAPLES BUSINESS ADVANTAGE 573.72 5/8/2019 254192 SUNSCREEN WINDOW TINTING 2,450.00 5/8/2019 254193 UNIFIRST CORPORATION 635.53 5/8/2019 254194 UNITED TOWING SERVICE, INC 550.00 5/8/2019 254195 VALERO MARKETING & SUPPLY COMP 12,379.96 5/15/2019 254196 LORI BARNES 83.42 5/15/2019 254197 BRECKENRIDGE PROPERTY FUND 2016 LLC 279.39 5/15/2019 254198 FYAD ENTERPRISES INC. 141.08 5/15/2019 254199 LOUIS CARR 44.43 5/15/2019 254200 CRISTINA MASSENZO 41.61 5/15/2019 254201 EPIC CONSTRUCTION 1,522.68 5/15/2019 254202 R & I COMMUNICATION INC. 1,497.13 5/15/2019 254203 ALL AMERICAN ASPHALT 362.96 5/15/2019 254204 XIAOQI SONG 703.59 5/15/2019 254205 MARIA GODINEZ 27.07 5/15/2019 254206 JOSE SOLANO 35.11 5/15/2019 254207 PAMELA BIBLE 186.25 5/15/2019 254208 RICHARD GARCIA 198.60 5/15/2019 254209 ROBIN OHANA 324.00 5/15/2019 254210 RONALD BONE 119.10 5/15/2019 254211 AMERICAN FIDELITY ASSURANCE COMPANY (FSA) 1,387.62 5/15/2019 254212 AUTO ZONE 6.45 5/15/2019 254213 BURGESS MOVING & STORAGE 1,500.75 5/15/2019 254214 BURRTEC WASTE (GROUP) INDUSTRIES, INC. 1,563.93 5/15/2019 254215 CITY OF SAN BERNARDINO, PUBLIC WORKS DEPT 1,121.96 5/15/2019 254216 DONEGAN TREE SERVICE 2,400.00 5/15/2019 254217 FEDERAL EXPRESS CORPORATION 72.46 5/15/2019 254218 FIRST CHOICE SERVICES 437.01 5/15/2019 254219 FLEET MANAGEMENT DEPARTMENT 242.19 5/15/2019 254220 HATFIELD BUICK 98.27 5/15/2019 254221 HIGHLAND COMMUNITY NEWS 3,150.00 5/15/2019 254222 K & L HARDWARE 62.16 5/15/2019 254223 KELLY ASSOCIATES MANAGEMENT GROUP LLC 6,047.50 5/15/2019 254224 KONICA MINOLTA 618.16 5/15/2019 254225 LOWE'S 603.89 5/15/2019 254226 NATIONAL AUTO FLEET GROUP, CHEVROLET OF WATSONVILLE 31,048.27 5/15/2019 254227 SOUTHERN CALIFORNIA EDISON COMPANY 108,865.45 5/15/2019 254228 STANTEC CONSULTING SERVICES, INC. 12,970.00 5/15/2019 254229 STAPLES BUSINESS ADVANTAGE 466.40 5/15/2019 254230 UNIFIRST CORPORATION 365.21 5/15/2019 254231 UNITED PARCEL SERVICE, INC. 77.63 5/15/2019 254232 WESTBROOK FENCE, INC 5,900.00 5/15/2019 254233 BALFOUR BEATTY INFRASTRUCTURE, INC 1,290,000.00 5/15/2019 254234 BALFOUR BEATTY INFRASTRUCTURE, INC 1,496,750.00 5/15/2019 254235 BALFOUR BEATTY INFRASTRUCTURE, INC 600,000.00 5/20/2019 254236 CAEATFA 10,000.00 PAYMENT REGISTER MAY 1, 2019 - MAY 31, 2019 Page 2 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/21/2019 254237 JONATHAN PALOMINO 77.39 5/21/2019 254238 TBMM LYNWOOD DRIVE PARTNERS, LLC 2,586.26 5/21/2019 254239 REAL ESTATE AND NOTARY SERVICES 96.45 5/21/2019 254240 JMJNJ PEREZ LLC 82.09 5/21/2019 254241 MARGARITA LOPEZ 49.75 5/21/2019 254242 GINGER VALENTINE 42.11 5/21/2019 254243 DONALD BRADY 23.22 5/21/2019 254244 LINH T PHAM 82.09 5/21/2019 254245 RICARDO ENRIQUEZ 106.83 5/21/2019 254246 SONIA CUARENTA 26.38 5/21/2019 254247 ONLINE RESOURCES CORPORATION 152.76 5/22/2019 254248 AIR CHIEF, INC. 476.94 5/22/2019 254249 AMERICAN FIDELITY ASSURANCE COMPANY 1,830.18 5/22/2019 254250 ANTHESIS 2,237.75 5/22/2019 254251 APPLEONE EMPLOYMENT SERVICE 506.69 5/22/2019 254252 AT&T 49.69 5/22/2019 254253 CHEM-TECH INTERNATIONAL INC 8,937.88 5/22/2019 254254 FIRST CHOICE SERVICES 283.25 5/22/2019 254255 GEORGE LEPINS, BELOW ZERO 6,500.00 5/22/2019 254256 GOODMAN DISTRIBUTION INC 77.30 5/22/2019 254257 GRANT FARM 5,868.75 5/22/2019 254258 INLAND WATER WORKS SUPPLY CO 6,128.80 5/22/2019 254259 K & L HARDWARE 6.41 5/22/2019 254260 METROPOLITAN LIFE INS CO 115.80 5/22/2019 254261 PETAS CAR CARE- KEVIN KOHRELL 853.57 5/22/2019 254262 PETTY CASH 64.58 5/22/2019 254263 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 659,278.05 5/22/2019 254264 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 17,888.16 5/22/2019 254265 SO CAL GAS 15.29 5/22/2019 254266 STERLING WATER TECHNOLOGIES, LLC 1,391.25 5/22/2019 254267 U.S. BANCORP SERVICE CENTER 27,116.04 5/22/2019 254272 UNIFIRST CORPORATION 1,021.96 5/22/2019 254275 YARDLEY ORGILL CO. INC. YO FIRE 638.15 5/29/2019 254276 DENISE CROWLEY 475.00 5/29/2019 254277 DANIELA PEREZ 110.61 5/29/2019 254278 TBI PROPERTIES 123.22 5/29/2019 254279 CHERYL K MOOREN 6.91 5/29/2019 254280 JORGE OROZCO 16.50 5/29/2019 254281 CALIFORNIA CAPITAL INC 96.85 5/29/2019 254282 BRECKENRIDGE PROPERTY FUND 2016 LLC 371.57 5/29/2019 254283 AMAZON.COM, LLC 3,735.40 5/29/2019 254284 AMERICAN FIDELITY ASSURANCE COMPANY (FSA) 1,387.62 5/29/2019 254285 ANTHESIS 1,737.00 5/29/2019 254286 APPLEONE EMPLOYMENT SERVICE 1,055.12 5/29/2019 254287 AT&T 323.54 5/29/2019 254288 AT&T 156.81 5/29/2019 254289 CALIFORNIA-NEVADA SECTION, AWWA 50.00 5/29/2019 254290 COMPUTERIZED EMBROIDERY COMPANY, INC 2,385.59 5/29/2019 254291 DENTAL HEALTH SERVICES 320.40 5/29/2019 254292 EVERSOFT, INC 212.53 5/29/2019 254293 K & L HARDWARE 74.47 5/29/2019 254294 KEISHA MURPHY 119.50 5/29/2019 254295 MOBILE OCCUPATIONAL SERVICES, INC 89.00 PAYMENT REGISTER MAY 1, 2019 - MAY 31, 2019 Page 3 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/29/2019 254296 ORANGE COUNTY COASTKEEPER, INC 1,500.00 5/29/2019 254297 SOUTH COAST A.Q.M.D. 132.98 5/29/2019 254298 SOUTH COAST A.Q.M.D. 265.96 5/29/2019 254299 SOUTHERN CALIFORNIA EDISON COMPANY 7,397.37 5/29/2019 254300 SWRCB-DWOCP 70.00 5/29/2019 254301 THE HOME DEPOT PRO 1,060.24 5/29/2019 254302 TYLER TECHNOLOGIES, INC 69,724.04 5/31/2019 254303 SANTA ANA REGIONAL WATER QUALITY CONTROL BOARD 34,356.00 5/31/2019 254304 SANTA ANA REGIONAL WATER QUALITY CONTROL BOARD 10,000.00 BANK DRAFTS 5/1/2019 DFT0003314 CALPERS/ DEFERRED COMPENSATION 16,924.60 5/1/2019 DFT0003315 CALPERS/ MEDICAL 86,994.80 5/1/2019 DFT0003316 CALPERS/ RETIREMENT 39,000.62 5/1/2019 DFT0003320 STATE DISBURSEMENT UNIT 2,442.47 5/3/2019 DFT0003313 CA SDI Tax 2,212.71 5/3/2019 DFT0003317 Federal Payroll Tax 23,511.68 5/3/2019 DFT0003318 Medicare 6,742.56 5/3/2019 DFT0003319 Social Security 137.02 5/3/2019 DFT0003321 State Payroll Tax 8,963.76 5/3/2019 DFT0003324 MERCHANT BANKCD 290.27 5/8/2019 DFT0003325 PayNearMe, Inc. 264.67 5/10/2019 DFT0003335 FORTE, ACH DIRECT INC, ACH FEES 4,225.71 5/10/2019 DFT0003337 TRANSFIRST DISCOUNT 12,417.45 5/15/2019 DFT0003328 CALPERS/ DEFERRED COMPENSATION 17,269.84 5/15/2019 DFT0003329 CALPERS/ RETIREMENT 39,120.25 5/15/2019 DFT0003333 STATE DISBURSEMENT UNIT 2,442.47 5/15/2019 DFT0003336 PayNearMe, Inc. 262.68 5/17/2019 DFT0003327 CA SDI Tax 2,218.66 5/17/2019 DFT0003330 Federal Payroll Tax 23,548.37 5/17/2019 DFT0003331 Medicare 6,759.78 5/17/2019 DFT0003332 Social Security 136.82 5/17/2019 DFT0003334 State Payroll Tax 9,010.55 5/22/2019 DFT0003339 CA SDI Tax 11.73 5/22/2019 DFT0003340 Federal Payroll Tax 55.73 5/22/2019 DFT0003341 Medicare 34.00 5/22/2019 DFT0003342 State Payroll Tax 18.40 5/22/2019 DFT0003343 CBB 2,467.97 5/22/2019 DFT0003344 PayNearMe, Inc. 206.96 5/23/2019 DFT0003357 VERIFONE INC 22.00 5/29/2019 DFT0003348 CALPERS/ DEFERRED COMPENSATION 17,324.06 5/29/2019 DFT0003349 CALPERS/ RETIREMENT 39,120.23 5/29/2019 DFT0003355 STATE DISBURSEMENT UNIT 2,442.47 5/29/2019 DFT0003356 PayNearMe, Inc. 117.41 5/31/2019 DFT0003350 CA SDI Tax 2,423.54 5/31/2019 DFT0003351 Federal Payroll Tax 25,146.47 5/31/2019 DFT0003352 Medicare 7,339.52 5/31/2019 DFT0003353 Social Security 1,098.14 5/31/2019 DFT0003354 State Payroll Tax 9,785.61 5/31/2019 DFT0003358 PayNearMe, Inc. 65.67 ACH PAYMENTS 5/2/2019 10005747 ADVANTAGE FLEET WASH, INC 325.00 PAYMENT REGISTER MAY 1, 2019 - MAY 31, 2019 Page 4 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/2/2019 10005748 APPLIED MAINTENANCE SUPPLIES & SOLUTIONS LLC 155.78 5/2/2019 10005749 BARRY'S SECURITY SERVICES, INC 3,468.92 5/2/2019 10005750 CALIFORNIA SPECIAL DISTRICTS 65.00 5/2/2019 10005751 CAROL CALES 503.05 5/2/2019 10005752 DANGELO CO INC 4,239.96 5/2/2019 10005753 DANIEL DAVIS 501.20 5/2/2019 10005754 DAVID HERNANDEZ 391.92 5/2/2019 10005755 ELISEO OCHOA 493.62 5/2/2019 10005756 EVWD EMPLOYEES EVENTS ASSOC 368.92 5/2/2019 10005757 FERGUSON ENTERPRISES, INC. 31,201.66 5/2/2019 10005758 FRONTIER COMMUNICATIONS 57.47 5/2/2019 10005759 GARY STURDIVAN 609.28 5/2/2019 10005760 GERALD SIEVERS 609.28 5/2/2019 10005761 GOLDEN STATE LABOR COMPLIANCE, LLC 4,750.00 5/2/2019 10005762 GORDON GRANT 523.40 5/2/2019 10005763 HAAKER EQUIPMENT COMPANY 5,434.62 5/2/2019 10005764 JEREMY SUBRIAR 275.00 5/2/2019 10005765 JOSE MILLAN 2,750.00 5/2/2019 10005766 LEGEND PUMP AND WELL 15,873.06 5/2/2019 10005767 LINCOLN NATIONAL LIFE INS CO. 2,142.08 5/2/2019 10005768 MCMASTER-CARR 78.20 5/2/2019 10005769 MICHAEL HENDERSON 594.16 5/2/2019 10005770 MIKE MALONEY 647.10 5/2/2019 10005771 MUSICK, PEELER & GARRETT LLP 14,314.86 5/2/2019 10005772 QUINN COMPANY 6,927.04 5/2/2019 10005773 REBECCA KASTEN 533.61 5/2/2019 10005774 REDLINE MOBILE FLEET SERVICE & REPAIR 1,206.36 5/2/2019 10005775 SAFETY COMPLIANCE COMPANY 200.00 5/2/2019 10005776 SCHUBERT ENTERPRISES INC 220.00 5/2/2019 10005777 SOUTHERN CALIFORNIA EDISON 600.00 5/2/2019 10005778 SUPERIOR AUTOMOTIVE WAREHOUSE, INC. 166.58 5/2/2019 10005779 TK CONSTRUCTION/ KIRTLEY CONSTRUCTION INC 213,501.48 5/2/2019 10005780 VISTA PAINTS 155.87 5/2/2019 10005781 VULCAN MATERIALS CO/ CALMAT CO 696.44 5/2/2019 10005782 WAXIE SANITARY SUPPLY 137.88 5/2/2019 10005783 WIRELESS GUYS, INC. 10,480.52 5/2/2019 10005784 ZENON ENVIRONMENTAL CORP. 25,151.76 5/8/2019 10005785 ADS LLC 1,600.00 5/8/2019 10005786 ADVANTAGE FLEET WASH, INC 350.00 5/8/2019 10005787 APPLIED MAINTENANCE SUPPLIES & SOLUTIONS LLC 787.68 5/8/2019 10005788 ASBCSD 37.00 5/8/2019 10005789 B&A BLAIS & ASSOCIATES INC 2,700.00 5/8/2019 10005790 BARRY'S SECURITY SERVICES, INC 1,746.67 5/8/2019 10005791 CINTAS CORPORATION (FIRST AID) 163.46 5/8/2019 10005792 CLEARFLY COMMUNATIONS 1,332.11 5/8/2019 10005793 CLINICAL LAB OF S B 5,157.00 5/8/2019 10005794 CORELOGIC SOLUTIONS INC. 360.50 5/8/2019 10005795 COUNTY OF SAN BERNARDINO, RECORDER- CLERK 192.00 5/8/2019 10005796 DOCUSIGN, INC. 18,515.00 5/8/2019 10005797 EXCEL LANDSCAPE, ICN 3,650.00 5/8/2019 10005798 FERGUSON ENTERPRISES, INC. 6,465.00 5/8/2019 10005799 FRONTIER COMMUNICATIONS 49.58 5/8/2019 10005800 INFOSEND, INC 51,954.35 PAYMENT REGISTER MAY 1, 2019 - MAY 31, 2019 Page 5 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/8/2019 10005801 JC LAW FIRM 33,510.00 5/8/2019 10005803 LESLIE'S POOL SUPPLIES, INC. 186.91 5/8/2019 10005804 MANAGED MOBILE, INC. 2,271.34 5/8/2019 10005805 MCMASTER-CARR 24.18 5/8/2019 10005806 MILLER SPATIAL SERVICES LLC 4,320.00 5/8/2019 10005807 MINUTEMAN PRESS OF RANCHO CUCAMONGA 111.22 5/8/2019 10005808 NATIONAL CONSTRUCTION RENTALS 158.49 5/8/2019 10005809 NEPTUNE TECHNOLOGY GROUP INC. 24,133.92 5/8/2019 10005810 PARKHOUSE TIRE, INC 198.44 5/8/2019 10005811 PLUMBERS DEPOT INC. 280.80 5/8/2019 10005812 QUINN COMPANY 726.43 5/8/2019 10005813 QUINTANA, WATTS & HARTMANN LLC 4,200.00 5/8/2019 10005814 RICHARD BECERRA 134.47 5/8/2019 10005815 RICHARD E. DANZEY JR. 300.00 5/8/2019 10005816 SCN, SECURITY COMMUNICATION NETWORK, INC 285.00 5/8/2019 10005817 SWIFTCOMPLY US OPCO, INC 3,825.00 5/8/2019 10005818 TK CONSTRUCTION/ KIRTLEY CONSTRUCTION INC 22,686.42 5/8/2019 10005819 UNDERGROUND SERVICE ALERT 401.83 5/8/2019 10005820 VERIZON WIRELESS 4,554.09 5/8/2019 10005822 VULCAN MATERIALS CO/ CALMAT CO 1,365.00 5/15/2019 10005823 AIRGAS, USA LLC 192.45 5/15/2019 10005824 ANTHONY'S IRRIGATION 5,265.00 5/15/2019 10005825 BARRY'S SECURITY SERVICES, INC 1,746.67 5/15/2019 10005826 CINTAS CORPORATION (FIRST AID) 232.05 5/15/2019 10005827 CLIFF'S PEST CONTROL 323.00 5/15/2019 10005828 DANGELO CO INC 541.82 5/15/2019 10005829 DIMENSION DATA NORTH AMERICA 6,565.00 5/15/2019 10005830 DNG-DIGITAL NETWORKS GROUP, INC. 9,028.57 5/15/2019 10005831 EVWD EMPLOYEES EVENTS ASSOC 373.92 5/15/2019 10005832 EXCEL LANDSCAPE, ICN 8,931.40 5/15/2019 10005833 FRONTIER COMMUNICATIONS 523.75 5/15/2019 10005834 GENESIS INDUSTRIAL SUPPLY, INC 405.36 5/15/2019 10005835 INFOBOND, INC 470.00 5/15/2019 10005836 INFOSEND, INC 38,957.30 5/15/2019 10005837 INLAND MARKETING GROUP, IMG JEFF WHITMAN 160.00 5/15/2019 10005838 J COMM, INC. 11,079.70 5/15/2019 10005839 LEGEND PUMP AND WELL 22,381.35 5/15/2019 10005840 MINUTEMAN PRESS OF RANCHO CUCAMONGA 5,134.44 5/15/2019 10005841 MONTROSE ENVIRONMENTAL GROUP, INC. 1,578.58 5/15/2019 10005842 PATTON'S SALES CORP 17.90 5/15/2019 10005843 PLUMBERS DEPOT INC. 10,472.48 5/15/2019 10005844 QUINN COMPANY 369.51 5/15/2019 10005845 RBC RESOURCES 6,580.00 5/15/2019 10005846 SHRED-IT US JV LLC 128.76 5/15/2019 10005847 SUPERIOR AUTOMOTIVE WAREHOUSE, INC. 7.22 5/15/2019 10005848 VULCAN MATERIALS CO/ CALMAT CO 713.34 5/22/2019 10005849 ADCOMP SYSTEMS 319.29 5/22/2019 10005850 ADVANTAGE FLEET WASH, INC 300.00 5/22/2019 10005851 ALEX LARIOS-RIVAS 128.50 5/22/2019 10005852 ALLIED REFRIGERATION INC. 217.71 5/22/2019 10005853 ASHOK K. DHINGRA, AKD CONSULTING 6,582.44 5/22/2019 10005854 BACKFLOW PREVENTION DEVICE INSPECTIONS INC 617.22 5/22/2019 10005855 BARRY'S SECURITY SERVICES, INC 1,746.67 PAYMENT REGISTER MAY 1, 2019 - MAY 31, 2019 Page 6 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/22/2019 10005856 BOOT BARN, INC 882.85 5/22/2019 10005857 BUCHALTER NEMER 718.50 5/22/2019 10005858 CALGON CARBON CORPORATION 315.00 5/22/2019 10005859 EXCEL LANDSCAPE, ICN 206.58 5/22/2019 10005860 FERGUSON ENTERPRISES, INC. 1,107.11 5/22/2019 10005861 FMB TRUCK OUTFITTERS, INC 914.52 5/22/2019 10005862 FRONTIER COMMUNICATIONS 646.58 5/22/2019 10005863 HIGHLAND AREA CHAMBER 400.00 5/22/2019 10005864 INLAND DESERT SECURITY & COMMUNICATIONS, INC 570.10 5/22/2019 10005865 JONATHAN PEEL 177.50 5/22/2019 10005866 JOSE MILLAN 2,750.00 5/22/2019 10005867 LESLIE'S POOL SUPPLIES, INC. 44.88 5/22/2019 10005868 MANAGED MOBILE, INC. 358.16 5/22/2019 10005869 MCCRAY ENTERPRISES 2,431.23 5/22/2019 10005870 MCMASTER-CARR 363.75 5/22/2019 10005871 ORION SYSTEMS INTEGRATORS LLC 2,000.00 5/22/2019 10005872 PATTON'S SALES CORP 801.45 5/22/2019 10005873 QUINN COMPANY 83.11 5/22/2019 10005874 RAFTELIS FINANCIAL CONSULTANTS, INC 15,822.35 5/22/2019 10005875 SULZER ELECTRO-MECHANICIAL SERVICES (US) INC. 465.00 5/22/2019 10005876 SUPERIOR AUTOMOTIVE WAREHOUSE, INC. 100.62 5/22/2019 10005877 USA BLUE BOOK 1,318.56 5/22/2019 10005878 VULCAN MATERIALS CO/ CALMAT CO 3,791.44 5/29/2019 10005879 AMANDA PARRILLA, ROXS WITH A TWIST 380.00 5/29/2019 10005880 ASBCSD 58.00 5/29/2019 10005881 B&A BLAIS & ASSOCIATES INC 1,804.24 5/29/2019 10005882 BARRY'S SECURITY SERVICES, INC 5,811.15 5/29/2019 10005883 CINTAS CORPORATION (FIRST AID) 167.67 5/29/2019 10005884 EVWD EMPLOYEES EVENTS ASSOC 403.92 5/29/2019 10005885 FRONTIER COMMUNICATIONS 57.47 5/29/2019 10005886 GENESIS INDUSTRIAL SUPPLY, INC 575.72 5/29/2019 10005887 GRAINGER 85.63 5/29/2019 10005888 HAAKER EQUIPMENT COMPANY 384.35 5/29/2019 10005889 JAMIE LEON 107.00 5/29/2019 10005890 JOSE MILLAN 120.00 5/29/2019 10005891 MIKE J. ROQUET CONSTRUCTION INC 43,540.35 5/29/2019 10005892 MILLER SPATIAL SERVICES LLC 2,810.00 5/29/2019 10005893 MINUTEMAN PRESS OF RANCHO CUCAMONGA 160.78 5/29/2019 10005894 MSC INDUSTRIAL SUPPLY CO/ SID TOOL CO, INC 334.53 5/29/2019 10005895 MUSICK, PEELER & GARRETT LLP 2,810.50 5/29/2019 10005896 NATIONAL CONSTRUCTION RENTALS 158.49 5/29/2019 10005897 PAMELA FRENCH TIMELESS PLAQUES $ AWARDS 499.46 5/29/2019 10005898 PLUMBERS DEPOT INC. 2,230.64 5/29/2019 10005899 PLUS 1 PERFORMANCE 38.10 5/29/2019 10005900 S & J PLUMBING, INC. 1,378.00 5/29/2019 10005901 SCHUBERT ENTERPRISES INC 220.00 5/29/2019 10005902 SOLARWINDS, INC. 7,991.00 5/29/2019 10005903 SUPERIOR AUTOMOTIVE WAREHOUSE, INC. 136.64 5/29/2019 10005904 USA BLUE BOOK 316.85 5/29/2019 10005905 WAXIE SANITARY SUPPLY 258.71 TOTAL 5,744,051.44$ PAYMENT REGISTER MAY 1, 2019 - MAY 31, 2019 Page 7 of 7 R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: Brian Tomp kins C hief F inancial O fficer B OAR D AG E N D A S TAF F R E P O RT Agend a Item #2.c. Meeting Date: June 26, 2019 C ons ent Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: F inanc ial S tatements fo r May 2019 R E COMME N D AT IO N: S taff recommends that the Board o f Direc tors (Board ) ac cept and file the attached financial s tatements as o f, and fo r the perio d end ed, May 31, 2019. B AC KG R O UN D / AN ALYS IS : Inc luded herewith fo r the Board’s review is a summary of Eas t Valley Water Dis trict’s financial res ults , as o f May 31, 2019. AGE N C Y GOALS AN D OB J E C T IVE S: G oal and O b jec tives I I - Maintain a C o mmitment to S us tainab ility, Trans p arency, and Ac countability a) P rac tic e Transparent and Ac countable F isc al Management R E VIE W B Y O T HE R S : T his agend a item has been reviewed b y the F inanc e Department. F IS CAL IMPAC T T here is no fis cal imp ac t as s oc iated with this agend a item. ATTAC H M E NTS: Description Type M ay 2 019 Financial Statement Monthly Backup Material M ay 2 019 Financial Statements Backup Material FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 2019 page | 1 The following is a highlight summary of the District’s financial results as of May 31, 2019. Please note all values presented are in millions. Statement of Net Position Total assets at May 31, 2019 are $214.85 million. CLASSIFICATION WATER WASTEWATER DISTRICT TOTAL Cash and Investments $ 30.77 $ (4.88) $ 25.89 Utility Plant, Net 110.11 19.16 129.27 Other Assets 18.04 41.65 59.69 Current Liabilities 5.93 1.29 7.22 Long Term Liabilities 52.88 25.65 78.53 Beginning Net Position 90.37 27.75 118.12 Change in Equity 9.75 1.24 10.99 Total Net Position $ 100.12 $ 28.99 $ 129.11 Cash and Investments are $25.89 million for the month of May, a decrease of $3.62 million from the prior month. During the month of May, the District released progress payments for the construction cost incurred for the SNRC. As of May 31, 2019, the Wastewater Funds Cash and Investments is negative $4.88 million. This amount includes a negative $7.68 million Cash and Cash Equivalents, $1.85 million Investments, and $2.39 million in Restricted Cash and Cash Equivalents. Finance staff has reached out to the State Water Resources Control Board (SWRCB) and confirmed that they had in fact received our most recent Disbursement Request. According to the SWRCB, our reimbursement request was approved however, they are currently experiencing delays in processing all their disbursements due to their new accounting system. They were unable to give us an exact timeframe of when we will receive payment. The District will continue to show $8.49 million in Due From other Governments for construction costs incurred for the SNRC. FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 2019 page | 2 $0 $5 $10 $15 $20 $25 $30 $35 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, 2019 of 4.43 to 1, with 2 to 1 being an indication of sound financial condition. Statement of Revenues & Expenses Operating results are presented in three ways in the attached financial statements for the period ending May 31, 2019. 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. FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 2019 page | 3 Total Revenues & Expenses through May 31, 2019 are summarized below (in millions): WATER WASTEWATER DISTRICT TOTAL Revenue $ 24.90 $ 12.53 $ 37.43 Expense 15.15 11.29 26.44 Water Sales for the month ending May 31, 2019 were $1.40M; $305K over staff projections for the month and $1.01M over 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, 2019 page | 4 Water Sales by Customer Class The table below shows the District’s water sales for the month of May 2019 by customer class. All customer classes came in below projections. CUSTOMER CLASS ACTUAL PROJECTION $ CHANGE % CHANGE Residential 788,152$ 412,000$ 376,152$ 91% Multi-Family 280,381 224,000 56,381 25% Commercial 124,981 75,000 49,981 67% Irrigation 209,240 55,000 154,240 280% Total $1,402,754 $ 766,000 $ 636,754 83% The following table displays customer class by tier for the month of May 2019. CUSTOMER CLASS TIER ACTUAL PROJECTION $ CHANGE % CHANGE Residential Tier 1 366,150$ 260,000$ 106,150$ 41% Residential Tier 2 350,872 61,000 289,872 475% Residential Tier 3 71,130 91,000 (19,870) -22% Multi-Family Tier 1 158,345 130,000 28,345 22% Multi-Family Tier 2 89,246 25,000 64,246 257% Multi-Family Tier 3 32,790 69,000 (36,210) -52% Commercial Tier 1 82,595 60,000 22,595 38% Commercial Tier 2 9,756 7,000 2,756 39% Commercial Tier 3 32,630 8,000 24,630 308% Irrigation Tier 2 134,306 25,000 109,306 437% Irrigation Tier 3 74,934 30,000 44,934 150% Total $ 1,402,754 $ 766,000 $ 636,754 83% FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 2019 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 in Revenue over last year. Water consumption decreased 37.98 million gallons of water (501K HCF) more than in May of 2018. $- $0.5 $1.0 $1.5 $2.0 $2.5 5/31/2018 5/31/2019 M i l l i o n s Comparative Monthly Water Revenue (Water Sales & Meter Charges) Meter Tier 1 Tier 2 Tier 3 Total -$1,612,357 Total -$1,661,487 FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 2019 page | 6 Water Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Water Fund operating cost centers for FY 2017-18 and FY 2018-19. FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 2019 page | 7 Wastewater Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Wastewater Fund operating cost centers for FY 2017-18 and FY 2018-19. WATER WASTEWATER DISTRICT TOTAL Assets: Current Assets: 01 Cash and Cash Equivalents 22,187,626.75$ (9,128,162.30)$ 13,059,464.45$ 02 Investments 3,226,960.34 1,853,883.65 5,080,843.99 03 Accounts Receivable, Net 4,212,813.93 276,400.83 4,489,214.76 04 ‐Interest Receivable 5,951.06 3,377.19 9,328.25 14*05 Other Receivables 335,331.16 - 335,331.16 06 Due from other Governments 16,144.57 8,493,000.00 8,509,144.57 08 Inventory 341,426.25 6,721.16 348,147.41 09 Prepaid Expenses 97,301.47 11,513.08 108,814.55 30,423,555.53 1,516,733.61 31,940,289.14 Non-Current Assets: 10 Restricted Cash and Cash Equivalents 5,356,946.35 2,389,323.55 7,746,269.90 11 Capital Assets not being Depreciated 9,591,497.92 31,789,592.35 41,381,090.27 13 Capital Assets, Net 110,113,802.83 19,161,539.15 129,275,341.98 125,062,247.10 53,340,455.05 178,402,702.15 Total Assets:155,485,802.63 54,857,188.66 210,342,991.29 Deferred Outflow Of Resources 24*Deferred Charge on Refunding 120,546.13 - 120,546.13 25 Deferred Outflows - Pensions 3,316,376.79 1,073,353.21 4,389,730.00 158,922,725.55 55,930,541.87 214,853,267.42 Current Liabilities: 22 Accounts Payable and Accrued Expenses 1,946,450.97 29,959.97 1,976,410.94 23 Accrued Payroll and Benefits (18,683.10) - (18,683.10) 15 Customer Service Deposits 1,545,208.15 - 1,545,208.15 16 Construction Advances and Retentions 106,000.00 1,000,750.00 1,106,750.00 17 Accrued Interest Payable 395,073.92 53,743.75 448,817.67 18 Current Portion of Compensated Absences 273,181.99 79,391.90 352,573.89 19 Current Portion of Long-Term Debt 1,682,222.05 122,958.00 1,805,180.05 5,929,453.98 1,286,803.62 7,216,257.60 Non-Current Liabilities: 20 Compensated Absences, less current portion (102,080.82) 357,362.37 255,281.55 28 Net Pension Liability 8,923,234.92 2,678,563.08 11,601,798.00 21 Long Term Debt, Less Current Portion 43,621,532.11 22,125,066.78 65,746,598.89 27 Other Liabilities 1,173.64 359,885.40 361,059.04 Deferred Inflows Of Resources 26 Deferred Inflows - Pensions 436,011.87 127,507.13 563,519.00 52,879,871.72 25,648,384.76 78,528,256.48 58,809,325.70 26,935,188.38 85,744,514.08 31 Equity 90,368,264.90 27,754,122.81 118,122,387.71 90,368,264.90 27,754,122.81 118,122,387.71 Tot Total Revenue 24,895,293.61 12,534,600.56 37,429,894.17 Tot Total Expense 15,150,158.66 11,293,369.88 26,443,528.54 9,745,134.95 1,241,230.68 10,986,365.63 100,113,399.85 28,995,353.49 129,108,753.34 158,922,725.55$ 55,930,541.87$ 214,853,267.42$ Unaudited As of May 31, 2019 Combining Schedule of Net Position Total Equity and Current Surplus (Deficit): Total Assets and Deferred Outflows of Resources: Total Current Assets: Total Non-Current Assets: Total Liabilities, Equity and Current Surplus (Deficit): Total Total Beginning Equity: Equity: Revenues Over/Under Expenses Total Current Liabilities: Total Non-Current and Deferred Inflows of Resources: Total Liabilities and Deferred Inflows of Resources: Page 1 of 8 ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 1,402,753.97$ 14,757,212.15$ 15,800,000.00$ -$ -$ -$ 15,800,000.00$ 1,042,787.85$ 42 Meter Charges 752,920.85 8,258,013.11 8,960,000.00 - - - 8,960,000.00 701,986.89 43 Penalties 53,039.98 531,888.44 452,000.00 2,413.06 38,686.25 164,000.00 616,000.00 45,425.31 44 Wastewater System Charges - - - 394,626.49 4,267,254.63 4,680,000.00 4,680,000.00 412,745.37 45 Wastewater Treatment Charges - - - 734,753.58 7,900,226.07 8,233,000.00 8,233,000.00 332,773.93 46 Other Operating Revenue (2,213.59) 357,880.54 21,000.00 2,050.00 11,725.00 - 21,000.00 (348,605.54) 47 Non Operating Revenue 2,554.91 409,099.61 375,000.00 - 67,623.00 88,000.00 463,000.00 (13,722.61) 48 Gain or Loss on Disposition - 581,199.76 - - 249,085.61 - - (830,285.37) 56 Benefits - - - - - - - - 68 Depreciation - - - - - - - - Revenue Total: 2,209,056.12 24,895,293.61 25,608,000.00 1,133,843.13 12,534,600.56 13,165,000.00 38,773,000.00 1,343,105.83 - - - - - Expense by Category 51 Labor 521,475.30 4,165,073.88 4,865,400.00 140,686.45 1,117,751.34 1,457,600.00 6,323,000.00 1,040,174.78 56 Benefits 143,501.04 2,022,732.35 2,183,300.00 37,505.12 536,511.07 647,700.00 2,831,000.00 271,756.58 63 Contract Services 340,754.03 2,989,869.79 3,854,600.00 800,732.42 8,881,539.57 9,406,400.00 13,261,000.00 1,389,590.64 65 Professional Development 7,462.25 146,114.34 282,600.00 2,746.58 58,800.35 115,400.00 398,000.00 193,085.31 53 Overtime 37,440.49 306,034.97 289,200.00 5,709.26 27,749.41 59,800.00 349,000.00 15,215.62 62 Materials and Supplies 93,067.42 1,640,326.48 1,677,800.00 17,866.73 210,347.79 175,200.00 1,853,000.00 2,325.73 64 Utilities 159,294.94 1,766,875.74 2,376,523.89 11,367.87 93,865.72 200,900.00 2,577,423.89 716,682.43 52 Temporary Labor 1,442.53 27,217.98 - 618.24 11,664.84 - - (38,882.82) 67 Other 6,963.28 323,720.83 358,000.00 2,897.11 137,809.59 153,000.00 511,000.00 49,469.58 54 Standby 3,352.00 29,520.81 33,000.00 548.00 4,855.20 2,000.00 35,000.00 623.99 61 Water Supply - 186,703.40 1,067,000.00 - - - 1,067,000.00 880,296.60 71 -Debt Service - 2,945,968.09 4,046,000.00 - 312,475.00 312,000.00 4,358,000.00 1,099,556.91 81 -Capital Improvement 27,343.40 2,516,405.28 3,550,000.00 1,613,975.70 21,327,144.22 430,000.00 3,980,000.00 (19,863,549.50) 82 -Capital Outlay 43,867.11 327,368.87 950,576.11 19,028.51 116,192.46 175,000.00 1,125,576.11 682,014.78 83 -Accounting Income Add back - (4,243,774.15) - (1,633,004.21) (21,543,336.68) - - 25,787,110.83 Expense Total: 1,385,963.79 15,150,158.66 25,534,000.00 1,020,677.78 11,293,369.88 13,135,000.00 38,669,000.00 12,225,471.46 Total Surplus (Deficit): 823,092.33$ 9,745,134.95$ -$ 113,165.35$ 1,241,230.68$ -$ -$ -$ Unaudited Revenue and Expense Budget-to-Actual by Category Month Ended May 31, 2019 WATER WASTEWATER DISTRICT WIDE Page 2 of 8 ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 1,402,753.97$ 14,757,212.15$ 15,800,000.00$ -$ -$ -$ 15,800,000.00$ 1,042,787.85$ 42 Meter Charges 752,920.85 8,258,013.11 8,960,000.00 - - - 8,960,000.00 701,986.89 43 Penalties 53,039.98 531,888.44 452,000.00 2,413.06 38,686.25 164,000.00 616,000.00 45,425.31 44 Wastewater System Charges - - - 394,626.49 4,267,254.63 4,680,000.00 4,680,000.00 412,745.37 45 Wastewater Treatment Charges - - - 734,753.58 7,900,226.07 8,233,000.00 8,233,000.00 332,773.93 46 Other Operating Revenue (2,213.59) 357,880.54 21,000.00 2,050.00 11,725.00 - 21,000.00 (348,605.54) 47 Non Operating Revenue 2,554.91 409,099.61 375,000.00 - 67,623.00 88,000.00 463,000.00 (13,722.61) Revenue Total: 2,209,056.12 24,895,293.61 25,608,000.00 1,133,843.13 12,534,600.56 13,165,000.00 38,773,000.00 1,343,105.83 Progra 1000 - Board of Directors 10,847.44 120,632.55 235,900.00 4,594.47 50,843.12 101,100.00 337,000.00 165,524.33 Progra 2000 - General Administration 73,165.28 698,150.06 880,600.00 27,805.94 279,894.97 377,400.00 1,258,000.00 279,954.97 Progra 2100 - Human Resources 34,389.07 583,169.17 693,000.00 14,738.19 248,271.50 297,000.00 990,000.00 158,559.33 Progra 2200 - Public Affairs 44,453.78 457,009.50 571,000.00 40,249.67 504,548.20 571,000.00 1,142,000.00 180,442.30 Progra 2300 - Conservation 16,708.19 889,374.27 1,093,000.00 - - - 1,093,000.00 203,625.73 Progra 3000 - Finance 77,864.22 711,176.64 792,000.00 34,037.82 300,171.45 339,000.00 1,131,000.00 119,651.91 Progra 3200 - Information Technology 48,410.68 563,747.86 706,300.00 20,747.33 243,226.65 302,700.00 1,009,000.00 202,025.49 Progra 3300 - Customer Service 141,811.02 1,079,829.25 1,357,900.00 33,864.52 329,812.31 428,100.00 1,786,000.00 376,358.44 Progra 3400 - Meter Service 29,828.77 238,200.58 283,000.00 5,127.80 14,131.47 - 283,000.00 30,667.95 Progra 4000 - Engineering 58,401.12 726,788.53 1,064,700.00 24,570.73 325,685.76 456,300.00 1,521,000.00 468,525.71 Progra 5000 - Water Production 261,478.81 2,959,149.23 4,358,423.89 - - - 4,358,423.89 1,399,274.66 Progra 5100 - Water Treatment 52,587.09 637,381.61 848,000.00 - - - 848,000.00 210,618.39 Progra 5200 - Water Quality 34,680.93 342,860.95 434,000.00 - - - 434,000.00 91,139.05 Progra 6000 - Field Maintenance Administration 27,860.94 302,994.12 310,500.00 2,472.61 23,604.59 34,500.00 345,000.00 18,401.29 Progra 6100 - Water Maintenance 279,414.17 2,139,452.11 2,204,000.00 - - - 2,204,000.00 64,547.89 Progra 6200 - Wastewater Maintenance - - - 778,796.58 8,482,783.28 8,996,000.00 8,996,000.00 513,216.72 Progra 7000 - Facilities Maintenance 79,928.93 657,195.14 742,000.00 20,625.16 171,742.29 219,000.00 961,000.00 132,062.57 Progra 7100 - Fleet Maintenance 42,922.84 497,079.00 413,100.00 13,046.96 106,179.29 95,900.00 509,000.00 (94,258.29) Progra 8000 - Capital 71,210.51 1,545,968.09 8,546,576.11 - 212,475.00 917,000.00 9,463,576.11 (18,081,977.81) Total Surplus (Deficit):823,092.33$ 9,745,134.95$ -$ 113,165.35$ 1,241,230.68$ -$ -$ -$ Revenue and Expense Budget-to-Actual by Program Month Ended May 31, 2019 Unaudited WATER WASTEWATER DISTRICT WIDE Page 3 of 8 ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 1,402,753.97$ 14,757,212.15$ 15,800,000.00$ -$ -$ -$ 15,800,000.00$ 1,042,787.85$ 42 Meter Charges 752,920.85 8,258,013.11 8,960,000.00 - - - 8,960,000.00 701,986.89 43 Penalties 53,039.98 531,888.44 452,000.00 2,413.06 38,686.25 164,000.00 616,000.00 45,425.31 44 Wastewater System Charges - - - 394,626.49 4,267,254.63 4,680,000.00 4,680,000.00 412,745.37 45 Wastewater Treatment Charges - - - 734,753.58 7,900,226.07 8,233,000.00 8,233,000.00 332,773.93 46 Other Operating Revenue (2,213.59) 357,880.54 21,000.00 2,050.00 11,725.00 - 21,000.00 (348,605.54) 47 Non Operating Revenue 2,554.91 409,099.61 375,000.00 - 67,623.00 88,000.00 463,000.00 (13,722.61) 48 Gain or Loss on Disposition - 581,199.76 - - 249,085.61 - - (830,285.37) 56 Benefits - - - - - - - - 68 Depreciation - - - - - - - Revenue Total: 2,209,056.12 24,895,293.61 25,608,000.00 1,133,843.13 12,534,600.56 13,165,000.00 38,773,000.00 1,343,105.83 Program: 1000 - Board of Directors - - - 51 Labor 5,151.12$ 49,015.99$ 73,500.00$ 2,207.62$ 21,006.85$ 31,500.00$ 105,000.00$ 34,977.16$ 56 Benefits 3,792.29 44,353.18 45,500.00 1,625.28 19,008.56 19,500.00 65,000.00 1,638.26 62 Materials and Supplies - 314.82 700.00 - 134.93 300.00 1,000.00 550.25 63 Contract Services - 13,253.10 77,700.00 - 5,679.90 33,300.00 111,000.00 92,067.00 65 Professional Development 1,904.03 13,695.46 38,500.00 761.57 5,012.88 16,500.00 55,000.00 36,291.66 Program: 1000 - Board of Directors Total: 10,847.44 120,632.55 235,900.00 4,594.47 50,843.12 101,100.00 337,000.00 165,524.33 Program: 2000 - General Administration - - - 51 Labor 35,710.13 282,619.32 354,900.00 15,304.38 120,726.02 152,100.00 507,000.00 103,654.66 53 Overtime 257.69 1,819.19 2,100.00 110.44 779.66 900.00 3,000.00 401.15 56 Benefits 12,761.31 179,594.82 189,000.00 3,425.98 59,561.00 81,000.00 270,000.00 30,844.18 62 Materials and Supplies 614.76 1,982.87 5,600.00 263.47 849.81 2,400.00 8,000.00 5,167.32 63 Contract Services 22,150.45 163,349.61 250,600.00 7,985.55 68,499.48 107,400.00 358,000.00 126,150.91 64 Utilities 171.74 1,951.93 2,100.00 73.60 836.54 900.00 3,000.00 211.53 65 Professional Development 1,499.20 66,832.32 76,300.00 642.52 28,642.46 32,700.00 109,000.00 13,525.22 Program: 2000 - General Administration Total: 73,165.28 698,150.06 880,600.00 27,805.94 279,894.97 377,400.00 1,258,000.00 279,954.97 Program: 2100 - Human Resources - - - - 51 Labor 16,689.10 131,179.94 156,800.00 7,152.50 56,219.97 67,200.00 224,000.00 36,600.09 52 Temporary Labor - - - - - - - - 53 Overtime 150.91 1,707.14 2,100.00 64.67 731.62 900.00 3,000.00 561.24 56 Benefits 4,650.05 65,688.16 72,800.00 1,992.86 29,034.63 31,200.00 104,000.00 9,277.21 62 Materials and Supplies 143.46 2,841.67 11,900.00 61.49 1,217.87 5,100.00 17,000.00 12,940.46 63 Contract Services 5,738.00 40,921.10 63,700.00 2,459.13 17,537.58 27,300.00 91,000.00 32,541.32 64 Utilities 26.61 343.47 700.00 11.40 147.16 300.00 1,000.00 509.37 65 Professional Development 231.05 20,345.38 28,000.00 99.03 5,625.59 12,000.00 40,000.00 14,029.03 67 Other 6,759.89 320,142.31 357,000.00 2,897.11 137,757.08 153,000.00 510,000.00 52,100.61 Program: 2100 - Human Resources Total: 34,389.07 583,169.17 693,000.00 14,738.19 248,271.50 297,000.00 990,000.00 158,559.33 Month Ended May 31, 2019 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Page 4 of 8 ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended May 31, 2019 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 2200 - Public Affairs - - - - 51 Labor 27,172.36 212,163.14 196,500.00 17,418.75 135,908.12 196,500.00 393,000.00 44,928.74 52 Temporary Labor - - - - - - - - 53 Overtime 1,744.01 7,579.80 3,500.00 1,630.29 7,053.34 3,500.00 7,000.00 (7,633.14) 56 Benefits 5,104.13 69,583.53 66,000.00 4,741.34 62,263.76 66,000.00 132,000.00 152.71 62 Materials and Supplies 428.74 19,503.71 94,500.00 428.74 120,659.35 94,500.00 189,000.00 48,836.94 63 Contract Services 9,704.35 134,405.04 176,000.00 15,730.35 157,336.54 176,000.00 352,000.00 60,258.42 64 Utilities 160.17 4,014.76 14,000.00 160.18 11,335.40 14,000.00 28,000.00 12,649.84 65 Professional Development 140.02 9,759.52 20,500.00 140.02 9,991.69 20,500.00 41,000.00 21,248.79 Program: 2200 - Public Affairs Total: 44,453.78 457,009.50 571,000.00 40,249.67 504,548.20 571,000.00 1,142,000.00 180,442.30 Program: 2300 - Conservation - - - - 51 Labor 13,626.40 109,304.10 98,000.00 - - - 98,000.00 (11,304.10) 52 Temporary Labor - - - - - - - - 53 Overtime 2,821.61 6,019.31 3,000.00 - - - 3,000.00 (3,019.31) 56 Benefits 3,080.46 30,053.59 27,000.00 - - - 27,000.00 (3,053.59) 62 Materials and Supplies (12,259.34) 677,994.58 728,000.00 - - - 728,000.00 50,005.42 63 Contract Services 9,275.63 62,380.30 210,000.00 - - - 210,000.00 147,619.70 64 Utilities 113.43 839.09 22,000.00 - - - 22,000.00 21,160.91 65 Professional Development 50.00 2,783.30 5,000.00 - - - 5,000.00 2,216.70 Program: 2300 - Conservation Total: 16,708.19 889,374.27 1,093,000.00 - - - 1,093,000.00 203,625.73 Program: 3000 - Finance - - - - 51 Labor 54,540.38 386,902.72 455,000.00 23,345.78 165,545.17 195,000.00 650,000.00 97,552.11 52 Temporary Labor - 11,467.32 - - 4,914.53 - - (16,381.85) 53 Overtime 334.04 8,619.88 3,500.00 143.16 3,694.17 1,500.00 5,000.00 (7,314.05) 56 Benefits 13,582.64 196,940.32 181,300.00 6,517.24 79,114.62 77,700.00 259,000.00 (17,054.94) 62 Materials and Supplies 271.40 2,133.44 7,700.00 116.31 1,056.33 3,300.00 11,000.00 7,810.23 63 Contract Services 7,623.00 95,413.14 120,400.00 3,267.00 41,952.87 51,600.00 172,000.00 34,633.99 64 Utilities 69.01 1,366.84 2,800.00 29.57 585.79 1,200.00 4,000.00 2,047.37 65 Professional Development 1,443.75 8,318.57 20,300.00 618.76 3,307.97 8,700.00 29,000.00 17,373.46 67 Other - 14.41 1,000.00 - - - 1,000.00 985.59 Program: 3000 - Finance Total: 77,864.22 711,176.64 792,000.00 34,037.82 300,171.45 339,000.00 1,131,000.00 119,651.91 Program: 3200 - Information Technology - - - - 51 Labor 24,480.85 191,611.64 233,800.00 10,491.77 82,119.31 100,200.00 334,000.00 60,269.05 52 Temporary Labor - - - - - - - - 53 Overtime - - - - - - - - 56 Benefits 4,586.87 56,581.92 76,300.00 1,965.72 25,228.95 32,700.00 109,000.00 27,189.13 62 Materials and Supplies 3,213.97 33,462.76 24,500.00 1,377.42 14,981.98 10,500.00 35,000.00 (13,444.74) 63 Contract Services 14,838.92 273,681.40 350,700.00 6,359.54 117,292.06 150,300.00 501,000.00 110,026.54 64 Utilities 374.55 3,492.34 3,500.00 160.52 1,496.73 1,500.00 5,000.00 10.93 65 Professional Development 915.52 4,917.80 17,500.00 392.36 2,107.62 7,500.00 25,000.00 17,974.58 Program: 3200 - Information Technology Total: 48,410.68 563,747.86 706,300.00 20,747.33 243,226.65 302,700.00 1,009,000.00 202,025.49 Page 5 of 8 ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended May 31, 2019 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 3300 - Customer Service - - - - 51 Labor 26,043.40 239,525.70 333,200.00 11,161.41 102,653.72 142,800.00 476,000.00 133,820.58 52 Temporary Labor 1,442.53 15,750.66 - 618.24 6,750.31 - - (22,500.97) 53 Overtime 1,341.83 4,020.27 3,500.00 575.06 1,722.93 1,500.00 5,000.00 (743.20) 56 Benefits 8,491.80 150,571.22 179,900.00 3,639.24 65,693.39 77,100.00 257,000.00 40,735.39 62 Materials and Supplies 42.32 1,430.39 5,600.00 18.14 613.03 2,400.00 8,000.00 5,956.58 63 Contract Services 89,125.42 584,597.01 713,200.00 11,393.50 118,059.76 151,800.00 865,000.00 162,343.23 64 Utilities 14,948.27 78,152.62 110,700.00 6,406.40 33,493.97 48,300.00 159,000.00 47,353.41 65 Professional Development 172.06 2,217.27 11,800.00 52.53 772.69 4,200.00 16,000.00 13,010.04 67 Other 203.39 3,564.11 - - 52.51 - - (3,616.62) Program: 3300 - Customer Service Total: 141,811.02 1,079,829.25 1,357,900.00 33,864.52 329,812.31 428,100.00 1,786,000.00 376,358.44 Program: 3400 - Meter Service - - - - 51 Labor 22,225.95 161,358.25 178,000.00 4,239.25 10,820.57 - 178,000.00 5,821.18 53 Overtime 172.14 2,985.11 10,000.00 172.13 860.68 - 10,000.00 6,154.21 56 Benefits 4,508.30 65,427.66 80,000.00 716.42 2,150.22 - 80,000.00 12,422.12 62 Materials and Supplies 1,960.75 2,614.58 5,000.00 - - - 5,000.00 2,385.42 63 Contract Services 884.38 4,806.30 8,000.00 - 300.00 - 8,000.00 2,893.70 64 Utilities 77.25 1,008.68 2,000.00 - - - 2,000.00 991.32 65 Professional Development - - - - - - - - Program: 3400 - Meter Service Total: 29,828.77 238,200.58 283,000.00 5,127.80 14,131.47 - 283,000.00 30,667.95 Program: 4000 - Engineering - - - - 51 Labor 43,401.71 426,153.98 494,900.00 18,600.77 182,637.41 212,100.00 707,000.00 98,208.61 52 Temporary Labor - - - - - - - - 53 Overtime - 1,255.98 1,400.00 - 538.25 600.00 2,000.00 205.77 56 Benefits 10,132.36 160,155.02 184,100.00 4,421.94 70,442.39 78,900.00 263,000.00 32,402.59 62 Materials and Supplies - 2,569.57 17,500.00 - 797.91 7,500.00 25,000.00 21,632.52 63 Contract Services 3,090.50 83,073.98 203,700.00 1,324.50 66,696.17 87,300.00 291,000.00 141,229.85 64 Utilities 1,734.31 46,970.37 137,200.00 205.42 1,688.52 58,800.00 196,000.00 147,341.11 65 Professional Development 42.24 6,609.63 25,900.00 18.10 2,885.11 11,100.00 37,000.00 27,505.26 Program: 4000 - Engineering Surplus Total: 58,401.12 726,788.53 1,064,700.00 24,570.73 325,685.76 456,300.00 1,521,000.00 468,525.71 Program: 5000 - Water Production - - - - 51 Labor 74,954.08 587,353.76 649,000.00 - - - 649,000.00 61,646.24 53 Overtime 1,464.68 18,269.30 61,000.00 - - - 61,000.00 42,730.70 54 Standby 1,680.00 13,798.00 15,000.00 - - - 15,000.00 1,202.00 56 Benefits 19,098.21 278,921.05 292,000.00 - - - 292,000.00 13,078.95 61 Water Supply - 186,703.40 1,067,000.00 - - - 1,067,000.00 880,296.60 62 Materials and Supplies 11,535.20 160,929.27 284,000.00 - - - 284,000.00 123,070.73 63 Contract Services 48,669.77 390,629.27 381,000.00 - - - 381,000.00 (9,629.27) 64 Utilities 103,501.87 1,317,443.79 1,594,423.89 - - - 1,594,423.89 276,980.10 65 Professional Development 575.00 5,101.39 15,000.00 - - - 15,000.00 9,898.61 Program: 5000 - Water Production Total: 261,478.81 2,959,149.23 4,358,423.89 - - - 4,358,423.89 1,399,274.66 Page 6 of 8 ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended May 31, 2019 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 5100 - Water Treatment - - - - 51 Labor 25,975.35 205,042.22 214,000.00 - - - 214,000.00 8,957.78 53 Overtime 4,220.14 35,128.33 25,000.00 - - - 25,000.00 (10,128.33) 56 Benefits 6,617.59 90,925.69 95,000.00 - - - 95,000.00 4,074.31 62 Materials and Supplies 1,858.96 128,048.90 165,000.00 - - - 165,000.00 36,951.10 63 Contract Services 1,022.40 65,464.25 149,000.00 - - - 149,000.00 83,535.75 64 Utilities 12,892.65 112,772.22 200,000.00 - - - 200,000.00 87,227.78 Program: 5100 - Water Treatment Total: 52,587.09 637,381.61 848,000.00 - - - 848,000.00 210,618.39 Program: 5200 - Water Quality - - - - 51 Labor 18,909.61 151,292.32 168,000.00 - - - 168,000.00 16,707.68 53 Overtime 515.20 4,831.26 15,000.00 - - - 15,000.00 10,168.74 56 Benefits 4,273.43 86,374.81 66,000.00 - - - 66,000.00 (20,374.81) 62 Materials and Supplies 1,406.18 20,368.69 18,000.00 - - - 18,000.00 (2,368.69) 63 Contract Services 9,513.75 78,076.36 159,000.00 - - - 159,000.00 80,923.64 64 Utilities - 1,575.79 2,000.00 - - - 2,000.00 424.21 65 Professional Development 62.76 341.72 6,000.00 - - - 6,000.00 5,658.28 Program: 5200 - Water Quality Total: 34,680.93 342,860.95 434,000.00 - - - 434,000.00 91,139.05 Program: 6000 - Field Maintenance Administration - - - - 51 Labor 18,852.24 148,033.73 159,300.00 1,252.05 9,882.24 17,700.00 177,000.00 19,084.03 52 Temporary Labor - - - - - - - - 53 Overtime - 1,346.32 18,000.00 - - 2,000.00 20,000.00 18,653.68 54 Standby 1,672.00 15,722.81 18,000.00 548.00 4,855.20 2,000.00 20,000.00 (578.01) 56 Benefits 5,145.39 116,167.30 81,000.00 454.77 6,788.78 9,000.00 90,000.00 (32,956.08) 62 Materials and Supplies 175.24 2,102.52 2,700.00 19.48 63.52 300.00 3,000.00 833.96 63 Contract Services 72.24 2,056.52 900.00 8.04 185.75 100.00 1,000.00 (1,242.27) 64 Utilities 1,517.21 12,372.94 18,900.00 168.58 1,374.76 2,100.00 21,000.00 7,252.30 65 Professional Development 426.62 5,191.98 11,700.00 21.69 454.34 1,300.00 13,000.00 7,353.68 Program: 6000 - Field Maintenance Administration Total: 27,860.94 302,994.12 310,500.00 2,472.61 23,604.59 34,500.00 345,000.00 18,401.29 Program: 6100 - Water Maintenance - - - - 51 Labor 93,672.17 729,531.50 925,000.00 - - - 925,000.00 195,468.50 53 Overtime 20,912.54 198,975.30 130,000.00 - - - 130,000.00 (68,975.30) 56 Benefits 31,330.39 345,276.91 454,000.00 - - - 454,000.00 108,723.09 62 Materials and Supplies 76,104.86 476,558.74 241,000.00 - - - 241,000.00 (235,558.74) 63 Contract Services 52,939.21 375,609.66 454,000.00 - - - 454,000.00 78,390.34 64 Utilities 4,455.00 13,500.00 - - - - - (13,500.00) Program: 6100 - Water Maintenance Total: 279,414.17 2,139,452.11 2,204,000.00 - - - 2,204,000.00 64,547.89 Program: 6200 - Wastewater Maintenance - - - - 51 Labor - - - 23,485.86 185,985.45 290,000.00 290,000.00 104,014.55 53 Overtime - - - 1,511.08 7,190.54 45,000.00 45,000.00 37,809.46 56 Benefits - - - 5,997.73 92,019.13 146,000.00 146,000.00 53,980.87 62 Materials and Supplies - - - 12,992.53 38,935.46 36,000.00 36,000.00 (2,935.46) Wastewater Treatment - - - 734,753.58 7,900,226.07 7,610,000.00 7,610,000.00 (290,226.07) 63 Contract Services - - - 55.80 258,426.63 869,000.00 869,000.00 610,573.37 Program: 6200 - Wastewater Maintenance Total:- - - 778,796.58 8,482,783.28 8,996,000.00 8,996,000.00 513,216.72 Page 7 of 8 ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended May 31, 2019 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 7000 - Facilities Maintenance - - - - 51 Labor 11,958.27 87,364.49 102,600.00 5,124.96 36,844.17 44,400.00 147,000.00 22,791.34 53 Overtime 3,656.61 13,301.62 10,500.00 1,567.10 5,700.60 4,500.00 15,000.00 (4,002.22) 56 Benefits 3,915.13 47,104.16 55,300.00 1,677.95 20,387.93 23,700.00 79,000.00 11,507.91 62 Materials and Supplies 4,081.73 48,287.13 36,400.00 1,560.02 14,626.87 9,600.00 46,000.00 (16,914.00) 63 Contract Services 48,457.60 377,610.38 383,700.00 7,808.85 61,002.90 75,300.00 459,000.00 20,386.72 64 Utilities 7,859.59 83,527.36 152,800.00 2,886.28 33,179.82 61,200.00 214,000.00 97,292.82 65 Professional Development - - 700.00 - - 300.00 1,000.00 1,000.00 Program: 7000 - Facilities Maintenance Total: 79,928.93 657,195.14 742,000.00 20,625.16 171,742.29 219,000.00 961,000.00 132,062.57 - - Program: 7100 - Fleet Maintenance - - - - 51 Labor 8,112.18 66,621.08 72,900.00 901.35 7,402.34 8,100.00 81,000.00 6,976.58 53 Overtime - 1,883.30 2,700.00 - 209.24 300.00 3,000.00 907.46 56 Benefits 2,279.78 37,305.87 36,000.00 263.98 4,086.09 4,000.00 40,000.00 (1,391.96) 62 Materials and Supplies 3,489.19 59,182.84 29,700.00 1,029.13 16,410.73 3,300.00 33,000.00 (42,593.57) 63 Contract Services 17,648.41 244,542.37 153,000.00 9,586.58 68,343.86 67,000.00 220,000.00 (92,886.23) 64 Utilities 11,393.28 87,543.54 113,400.00 1,265.92 9,727.03 12,600.00 126,000.00 28,729.43 65 Professional Development - - 5,400.00 - - 600.00 6,000.00 6,000.00 Program: 7100 - Fleet Maintenance Total: 42,922.84 497,079.00 413,100.00 13,046.96 106,179.29 95,900.00 509,000.00 (94,258.29) - - Program: 8000 - Capital - - - 71 -Debt Service - 2,945,968.09 4,046,000.00 - 312,475.00 312,000.00 4,358,000.00 1,099,556.91 81 -Capital Improvement 27,343.40 2,516,405.28 3,550,000.00 1,613,975.70 21,327,144.22 430,000.00 3,980,000.00 (19,863,549.50) 82 -Capital Outlay 43,867.11 327,368.87 950,576.11 19,028.51 116,192.46 175,000.00 1,125,576.11 682,014.78 83 -Accounting Income Add back (71,210.51) (4,243,774.15) - (1,633,004.21) (21,543,336.68) - - 25,787,110.83 Program: 8000 - Capital Total: - 1,545,968.09 8,546,576.11 - 212,475.00 917,000.00 9,463,576.11 7,705,133.02 Total Surplus (Deficit): 894,302.84$ 9,745,134.95$ -$ 113,165.35$ 1,241,230.68$ -$ -$ -$ Page 8 of 8 B OAR D AG E N D A S TAF F R E P O RT Agenda Item #3. Meeting Date: June 26, 2019 Dis c ussion Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: C o ns id er Dis p o s itio n o f S urplus P ro p erty R E COMME N D AT IO N: S taff is recommending that the Bo ard o f Directo rs authorize the dispos ition of surp lus property. B AC KG R O UN D / AN ALYS IS : T he Dis tric t maintains a fleet of vehic les that are es s ential to maintaining o p erations thro ugho ut the s ervic e area. In rec ent years , s taff has b een working to develop p lans fo r the dis p o s itio n o f vehic les that no lo nger meet its intend ed purpose while acquiring new vehic les that will be a s afe and reliable as s et. As a res ult of this effo rt, staff assesses vehicles needing rep lac ement. T he fo llo wing fo ur vehicles have b een id entified for s urplus rec o mmend ation and auctio n sale: No .Vehic le Details Miles R eason for S urp lus 11 1992 F o rd F 350 with arrow b o ard and crane VI N# 2F DLF 47G 8NC A34544 76,007 Vehicle has reac hed its useful life 36 1990 F o rd F 350 s teak b ed VI N# 2F DLF 47G 0LC A5561 84,368 Vehicle has reac hed its useful life 100 2002 F o rd Explorer VI N# 1F MZU73W 32UC 44205 76,619 Vehicle has reac hed its useful life 108 2000 C hevro let 2500 truc k 1G BG C 24RYR 221672 129,845 Vehicle has reac hed its useful life R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: P atrick K. Milro y O p erations Manager All o f thes e vehic les have b een replac ed with new purc hases that have been incorporated into the Dis trict’s fleet. T hese units have reac hed their us eful life and wo uld req uire extens ive maintenanc e if they were to be kep t as ac tive or reserve vehic les for Distric t s taff. In p revio us years the Distric t has donated vehicles to loc al community-b ased o rganizations . Bas ed on the c urrent cond itio n o f the vehicles , s taff recommends the vehic le above be s o ld at auc tion rather than d o nated. T his will help to o ffs et the purc hase p rice o f future vehicles, while avoid p rovid ing a lo cal o rganizatio n with a vehic le that op erates at les s than the Dis tric t’s s tandards . S taff will continue to c o nsider the po tential o f s urplus vehic le do natio ns in the future. AGE N C Y GOALS AN D OB J E C T IVE S: G oal and O b jec tives I V - P romo te P lanning, Maintenanc e and P res ervation of Distric t R es o urces b ) Enhanc e P lanning Effo rts that R es p o nd to F uture Demand s R E VIE W B Y O T HE R S : T his agend a item has been reviewed b y O perations, Ad minis tration, and P ub lic Affairs s taff. F IS CAL IMPAC T F und s have been b udgeted for replacement of vehic les in F is cal Year 2018-19. ATTAC H M E NTS: Description Type Surplus P roperty P resentation P resentation Disposition of Surplus Property June 26, 2019 2 Unit #11 •1992 Ford F350 with arrow board and crane •VIN# 2FDLF47G8NCA34544 •76,007 miles 3 Unit #36 •1990 Ford F350 steak bed •VIN# 2FDLF47G0LCA5561 •84,368 miles 4 Unit #100 •2002 Ford Explorer •VIN# 1FMZU73W32UC44205 •76,619 miles 5 Unit #108 •2000 Chevrolet 2500 truck •VIN #1GBGC24RYR221672 •129,845 miles B OAR D AG E N D A S TAF F R E P O RT Agenda Item #4. Meeting Date: June 26, 2019 Dis c ussion Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: C o ns id er Lands c aping S ervices Agreement R E COMME N D AT IO N: S taff is recommending that the Bo ard o f Directo rs authorize the G eneral Manager/C EO to exec ute an agreement with Exc el Lands c ape fo r Dis trict land s c ap ing s ervic es in the amo unt of $162,000 annually for the next three fis cal years . B AC KG R O UN D / AN ALYS IS : T he Dis trict takes p rid e in maintaining the ground s of the headquarters as well as its 40 ad d itio nal s ites . It is the District’s responsibility to the c o mmunity and staff to ensure all sites are kep t c lean and well-groo med to ensure a s afe and aes thetically p leas ing environment fo r all who s tep foot o n o ur gro unds. Due to the ab undance o f Dis tric t o wned and op erated s ites , the Distric t determined over twenty years ago that c o ntrac ting fo r land s c ap e servic es wo uld be mo s t cos t effective and save a s ignific ant amo unt o f time versus in- ho use land s caping. T he Dis tric t’s c urrent lands cape c ontrac t expires on June 30, 2019. In preparation o f this c o ntrac t exp iratio n, s taff advertis ed R eq ues t fo r P ro p osals (R F P ) for land s caping s ervic es on the Dis tric t’s web site. S taff rec eived o ne p ropos al from Exc el Land sc ap e, the Dis tric t’s current c ontrac ting s ervice. Exc el p rovid ed a reas o nab le q uo te, and s taff has b een extremely p leased with their s ervices o ver the p as t s ix years and wis hes to c o ntinue this relatio ns hip. AGE N C Y GOALS AN D OB J E C T IVE S: G oal and O b jec tives I V - P romo te P lanning, Maintenanc e and P res ervation of Distric t R es o urces b) Enhance P lanning Efforts that R espond to F uture Demands R E VIE W B Y O T HE R S : T his agend a item has been reviewed b y O perations, Ad minis tration, and P ub lic Affairs s taff. F IS CAL IMPAC T R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: P atrick K. Milro y O p erations Manager F IS CAL IMPAC T F und s have been b udgeted for Land sc ap e S ervic es in F is c al Year 2019-20. B OAR D AG E N D A S TAF F R E P O RT Agenda Item #5. Meeting Date: June 26, 2019 Dis c ussion Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: C o ns id er R es o lution 2019.08 to Ap p rove the O p erating and C ap ital Budgets for F isc al Year 2019- 20 R E COMME N D AT IO N: S taff rec o mmend s that the Board o f Directors (Board ) ado p t R esolution 2019.08 appro ving the O perating and C ap ital Budgets for fisc al year (F Y) 2019-20. B AC KG R O UN D / AN ALYS IS : T he F Y 2019-20 O p erating and C ap ital Budgets have been developed to c o ntinue to provide high quality water d elivery and wastewater collectio n s ervices to Dis tric t ratep ayers . In d evelop ing the fisc al plan fo r next year, staff remained foc us ed on key issues . At the s ame time, staff ensured that expenditures d irec tly correlate to Agency G o als and O bjectives . T he operating budget is p res ented by p rogram, eac h having s tated goals and o b jectives fo r the up coming fis cal year that align with Agenc y G o als , and eac h ac companied b y funding requests to s upport tho s e o b jec tives . T he C apital Bud get s p ecific ally identifies equip ment s c hed uled fo r replac ement o r upgrade, and projec ts fro m the C ap ital Impro vement P ro gram (C I P ) d esignated as high p rio rity d ue to age and c o nditio n or having ins uffic ient capac ity to meet anticipated growth. Revenues: As dis c us s ed during the Bo ard wo rks hop o n May 15, 2019, to tal revenue projec ted for F Y 2019-20 is $39,200,000, a 4% increas e o ver revenue p ro jec ted for the prior year. F acto rs affec ting revenue p ro jec tions includ e: F inal Inc rement o f P hase 3 C ommodity R ate Adjus tment S lightly mo re aggres s ive revenue p ro jec ts b ased o n his torical water cons ump tion usage Increas e to Interest Inc ome d ue to pro jected market yield P rojec ted revenues are s ummarized in the c hart b elow: Expenses: T he Dis trict ac counts for all operating expens es at the p ro gram level. Each program is evaluated on an annual b as is to d etermine its effectivenes s. As a result, s o me p ro grams may b e redefined o r enhanc ed, in o rder to ens ure that the pro grams are run effec tively and with a high level of ac countability. F Y 2019-20 p ro gram exp ens es are b ud geted $29,969,000, a 3% increas e c o mp ared to the p rio r fis cal year. To tal p rogram expens es are pres ented b y c os t typ e b elo w: Capital Outlay: T he C apital O utlay Bud get is an effo rt to plan for the rep lacement of vehic les and equip ment. T he o b jec tive is to s tand ardize the replacement proc es s in ord er to c reate a managed sys tem of p urc has ing and funding c ap ital eq uip ment, thereby allo wing the Dis trict to ac c urately plan and budget fo r future need s . T he cost o f independent s tudies enc ompas s ing long-term infras tructure planning and c o s t o f s ervic e rate s tud ies , are als o includ ed in C ap ital O utlay. T he F Y 2019-20 C apital O utlay Bud get totals $1,528,000 and inc ludes a c o mbination of equip ment purchases, investments in technology, and p lanning s tudies as s ummarized in the tab le b elo w: Capital Improvement P rogram: T his year ’s p roposed C apital Improvement P ro gram bud get totals $63,730,000 and fo cuses on multip le key issues inc lud ing water q uality, s ystem maintenance, and water s upply p rovid ed by the p ro p osed S terling Natural R es o urce C enter (S N R C ). T he C I P bud get is fully funded utilizing $3,325,000 fro m o perating revenue, $60,000,000 from G rants and Lo ans , and $405,000 from unres tricted (encumb ered) reserves . A summary of the C I P b udget for 2019-20, b y p ro jec t typ e, is s ho wn in the follo wing tab le: T he Mid-year b ud get review cond uc ted in F eb ruary o f each year will allow the Distric t to measure actual revenue against revenue projectio ns and determine whether exc es s revenue, if any, are s uffic ient to fund additional p rojec ts . Debt S ervice: T he Dis tric t will pay d eb t servic e on s ix debt instruments in F Y 2019-20. Both water and was tewater revenues are p ledged as sec urity for revenue b o nd s , while o nly water revenues are pledged fo r repayment of exis ting lo ans . A p reliminary calc ulation based o n b udget numbers has res ulted in F Y 2019-20 debt s ervice c o verage o f 211%, well in exc es s of the 120% required b y bond d o cuments. Debt s ervic e payments sc heduled fo r F Y 2019-20 are s hown in the following tab le: Budget Funding: C urrent year water and was tewater rate revenue will p ay fo r all 2019-20 o p erating exp ens e, fo r d ebt s ervice on Dis tric t deb t, and will contrib ute to ward the c urrent year c apital bud get, whic h includes c apital o utlay, and year o ne of the multi-year c ap ital improvement p ro gram. In add ition to rate revenue, the c apital b ud get will also be funded by withd rawal from the R ep lacement R es erve es tablished in 2018-19, and b y grants and proceeds from lo w interes t s tate lo ans . T he table b elo w d isplays exp end iture typ es includ ed in the 2019-20 b udget, and the funding sources availab le to p ay thos e exp end itures : Conclusion: S taff has ded icated a s ignific ant amo unt o f time to the c areful evaluatio n o f revenue and p ro gram exp enditures , to develo p a bud get that will p ro vide s uffic ient funding to meet the needs of the community, c red itors , and other stakeho lders . T hroughout the c o ming year, s taff will clos ely monito r revenues versus p rogram s p ending, and propos e adjustments as nec es s ary to ens ure the Distric t’s fis c al sus tainability. R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: Brian Tomp kins C hief F inancial O fficer AGE N C Y GOALS AN D OB J E C T IVE S: G oal and O b jec tives I I - Maintain a C o mmitment to S us tainab ility, Trans p arency, and Ac countability a) P rac tic e Transparent and Ac countable F isc al Management R E VIE W B Y O T HE R S : T his agend a item has b een reviewed b y all dep artments , the C ommunity Advis o ry C o mmis sion, and was pres ented as an information only item at the June 12, 2019 Board meeting. F IS CAL IMPAC T T he F Y 2019-20 O perating Budget is b alanced, and the C ap ital Bud get is fully funded with the presumptio n that the F inal Budget Appro val for the S terling Natural R es ourc e C enter will b e finalized b y the S tate early in F Y 2019-20. ATTAC H M E NTS: Description Type P resentation P resentation Draft Budget 2 019-20 Backup Material Resolution 201 9.08 Resolution Lette r FY 2019-20 OPERATING & CAPITAL BUDGETS June 26, 2019 DISTRICT-WIDE GOALS Optimize Infrastructure Systems •Finish the consolidation of the NFWC •Begin negotiations with the Tres Lagos Mutual Water Company Financial Stability with Full Understanding of Operational Complexities •Begin developing a resource list for execution of the 5-Year Plan •Develop a long-term staffing and maintenance plan •Conduct a water and wastewater rate study Protect Organizational Investments •Begin updating the District’s Succession Plan •Facilitate communication training •Cultivate external partnerships Maximize the District’s Position •Cultivate relationships with development through a business-friendly culture •Conduct a feasibility study for a water treatment plant on the east end of the service area •Evaluate the potential of constructing a digester as a phase of the SNRC Have Others See the District as a Premier Agency •Complete the preliminary design of the CHEF building, establish a fundraising budget and commence that effort •Support and encourage the Board of Directors involvement in regional activities and workshops 2 Water Sales $15,900,000 Meter Charges $8,980,000 Wastewater Collection $4,648,000 Wastewater Treatment $8,665,000 Other $1,007,000 3 DISTRICT-WIDE REVENUES FISCAL YEAR 2019-20 TOTAL REVENUES $39,200,000 ________________________ REVENUE CONSIDERATIONS •Final Increment of Phase 3 Commodity Rate Adjustment •Slightly More Aggressive Revenue Projections Based on Historical Water Consumption Usage •Increased Interest Income to Reflect Projected Market Returns Employment Services $10,551,000 Water Cost $1,067,000 Contract Services $5,958,000 Other Operating $693,000 Wastewater Treatment $8,665,000 Power Cost $1,700,000 Materials $1,335,000 Debt Service $4,378,000 Capital Expenditures $4,853,000 4 DISTRICT-WIDE EXPENSES FISCAL YEAR 2019-20 TOTAL EXPENSES $39,200,000 ________________________ EXPENSE CONSIDERATIONS •Acceleration of AMI Installations •In-House Pipeline Replacements •Rehabilitation of Existing Water Tanks •Amortization of Long-Term Pension Obligations •SNRC Final Budget Approval 5 WATER FUND FISCAL YEAR 2018-19 WATER BUDGET $25,635,000 ____________________ BUDGET HIGHLIGHTS •Groundwater Council •AMI •Plant 134Water Sales $15,900,000 Meter Charges $8,980,000 Other Charges $755,000 SOURCE OF REVENUE Operations $17,549,000 Debt Service $4,066,000 Capital Expenditures $4,020,000 EXPENDITURES / OTHER USES Wastewater Collection $4,648,000Wastewater Treatment $8,665,000 Other Charges $252,000 SOURCE OF REVENUE Operations $12,420,000 Debt Service $312,000 Capital Expenditures $833,000 EXPENDITURES / OTHER USES 6 WASTEWATER FUND FISCAL YEAR 2018-19 WASTEWATER BUDGET $13,565,000 ____________________ BUDGET HIGHLIGHTS •Sterling Natural Resource Center •Public Outreach 7 PROGRAM EXPENDITURE SUMMARY DESCRIPTION WATER FUND WASTEWATER FUND TOTAL Colu mn1 PRIOR YEAR CHANGE Governing Board $ 179,900 $ 77,100 $ 257,000 $ 337,000 -24% General Administration 912,800 391,200 1,304,000 1,258,000 4% HR/Risk Management 716,800 307,200 1,024,000 990,000 3% Public Affairs 1,054,200 385,800 1,440,000 1,142,000 26% Conservation 589,000 - 589,000 1,093,000 -46% Finance 874,600 374,400 1,249,000 1,131,000 10% Information Technology 652,400 279,600 932,000 1,009,000 -8% Customer Service 1,238,200 376,800 1,615,000 1,786,000 -10% Meter Services 295,000 - 295,000 283,000 4% Engineering 1,085,700 465,300 1,551,000 1,521,000 2% 8 PROGRAM EXPENDITURE SUMMARY DESCRIPTION WATER FUND WASTEWATER FUND TOTAL Colu mn1 PRIOR YEAR CHANGE Water Production Administration 579,000 - 579,000 494,000 17% Source of Supply 2,994,000 - 2,994,000 2,791,000 7% Pumps & Boosters 652,000 - 652,000 727,000 -10% Transmission & Distribution 442,000 - 442,000 366,000 21% Water Treatment 870,000 - 870,000 848,000 3% Water Quality 461,000 - 461,000 434,000 6% Water Maintenance 391,500 43,500 435,000 345,000 26% Maintenance Administration 2,317,000 - 2,317,000 2,204,000 5% Wastewater Maintenance - 814,000 814,000 763,000 7% Wastewater Treatment - 8,665,000 8,665,000 8,233,000 5% Facilities Maintenance 806,500 191,500 998,000 961,000 4% Fleet Maintenance 437,400 48,600 486,000 509,000 -5% Total $17,549,000 $ 12,420,000 $29,969,000 $29,225,000 3% 2010 Bonds $2,580,000 2013 Bonds $585,000 SRF Loans $254,000 US Bank Loan $454,000 SBVMWD Loan $505,000 FY 2019 -20 PAYMENTS -$4,358,000 9 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 10 OPERATING BUDGET SUMMARY DESCRIPTION WATER FUND WASTEWATER FUND TOTAL Revenue Sales & Services $ 24,880,000 $ 13,313,000 $ 38,193,000 Other Charges 471,000 200,000 671,000 Interest & Miscellaneous Revenue 284,000 52,000 336,000 Total Revenue $ 25,635,000 $ 13,565,000 $ 39,200,000 Expenditures Operations $ 17,549,000 $ 12,420,000 $ 29,969,000 Debt Service 4,066,000 312,000 4,378,000 Capital Expenditures 4,020,000 833,000 4,853,000 Reserve Contributions - - - Total Expenditures $ 25,635,000 $ 13,565,000 $ 39,200,000 11 CAPITAL BUDGET FUNDING SUMMARY DESCRIPTION WATER FUND WASTEWATER FUND TOTAL Capital Outlay $ 895,000 $ 633,000 $ 1,528,000 Capital Improvement Program 3,530,000 60,200,000 63,730,000 Total Expenditures 4,425,000 60,833,000 65,258,000 Operating Revenue 4,020,000 833,000 4,853,000 Reserves 405,000 - 405,000 SRF Loan Funding - 60,000,000 60,000,000 Total Sources $ 4,425,000 $ 60,833,000 $ 65,258,000 12 AUTHORIZED POSITIONS •Total Full-Time Positions: 67 •Part-Time Temporary Positions: 3 •Repurposed Positions •Public Affairs Manager BUDGETDraft FISCAL YEAR 2019-20 HIGHLAND, CALIFORNIA 1 EAST VALLEY WATER DISTRICT TRANSMITTALLETTER WILL BE PLACED HERE AFTER ADOPTION 12FISCAL YEAR BUDGET 2019-20 INTRODUCTION 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 a 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 Plan, District-Wide Goals, 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 2019-20 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 2019-20 Budget is organized into the following summary programs: • Governing Board • General Administration • 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 13 EAST VALLEY WATER DISTRICT 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 chain of command 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 2018-19. • Significant Changes: This section identifies causes of significant changes to program funding. • Levels of Service: This section links key performance indicators to the Agency 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. 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. GFOA DISTINGUISHED BUDGET AWARD & CSMFO EXCELLENCE AWARD The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award and the California Society of Municipal Finance Officers presented the Excellence 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 and CSMFO to determine its eligibility for another award. 13 EAST VALLEY WATER DISTRICT California Society of Municipal Finance Officers Certificate of Award Excellence Award Fiscal Year 2018-2019 Operating Budget Presented to the East Valley Water District For meeting the criteria established to achieve the CSMFO Excellence Award in Budgeting January 4, 2019 Margaret Moggia Sara Roush, Chair CSMFO President Recognition Committee Dedicated Excellence in Municipal Financial Reporting 14FISCAL YEAR BUDGET 2019-20 BUDGET FINANCIAL INFORMATION East Valley Water District operates on a fiscal year, or budget time period, that begins on July 1 and ends June 30. The columns typically presented are: FY 2016-17 Actuals FY 2017-18 Budget FY 2018-19 Projected FY 2019-20 Budgeted Amount Change % CHANGE Three years of financial information are presented to facilitate user analysis. FY 2017-18 Actuals Actual financial information for FY 2017-18 as reported in the Comprehensive Annual Financial Report. The actual financial information is reported in the budget document on a budgetary basis. FY 2018-19 Budget The FY 2018-19 Budget was adopted by the Governing Board on June 27, 2018 and may also include any adjustments approved by the Governing Board at the Mid-Year Budget Review. FY 2018-19 Projected The FY 2018-19 Projected column reflects the FY 2018-19 Budget in addition to any budget amendments approved by the Governing Board during the fiscal year. The FY 2018-19 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 2019-20 Budgeted This column initially reflects the FY 2019-20 Proposed Budget submitted by the General Manager/CEO. After the Governing Board reviews and approves the FY 2019-20 Budget, the information in the FY 2019-20 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. 15 EAST VALLEY WATER DISTRICT Statistical/Supplemental Information EVWD 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. 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 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 San Bernardino Valley Municipal Water District (Valley District). The District anticipates using all of the allocated North Fork Shares to be used for groundwater replenishment. Not only will this help to contribute to healthy basin level, it will offset the District’s cost obligation toward the Groundwater Council. 0%Santa River Ana(Surface Water) 20%Imported fromNorthern California(Surface Water) 80%Bunker Hill Basin(Groundwater) 16FISCAL YEAR BUDGET 2019-20 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 2018, East Valley Water District successfully received authorization for reorganization to include wastewater treatment authority by the Local Agency Formation Commission (LAFCO). This allows for the District to construct and ultimately operate facilities to treat wastewater collected from within its service area. EVWD is preparing to construct the Sterling Natural Resource Center (SNRC) 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 create a drought-proof recycled water supply which will result in hundreds of millions of gallons of water stored for use in dry years for beneficial reuse higher in the Santa Ana River watershed. The SNRC will also provide an opportunity for potential new and/ or enhanced riparian and aquatic habitats in City Creek. This project broke ground in late 2018 with construction completion anticipated in early 2022. 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 to 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 less than 200 units under construction in FY 2019-20. 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 has 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. 2017-18 Graduation Rates  89.5% from RUSD  88.7% from SBCUSD  87.7% County of San Bernardino  87.3% State of California $49,060EVWD $41,027 City of San Bernardino $55,130 City of Highland $57,156County ofSanBernardino $63,783CaliforniaAverage *Income information retrieved from census.gov. 17 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, City of San Bernardino Police Department, and San Manuel Department of Public Safety. Fire protection services are provided by the California Department of Forestry and Fire 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 education, mental health services, public administration, rail, health care, public safety, casinos, transportation, and construction. 16,600,000 Average Gallons of Water Produced Daily28,977,000 Maximum Gallons of Potable Water Stored 6,000,000 Gallons of Sewage Conveyed Daily The District serves a population of over 102,000 FireHydrantsFlushed 625 ValvesExercised 1,500 30.1 Service Area 246 Leaks Repaired ActiveGroundWater Wells 15 Manual & 10,000 AMI AutomaticMeters ReadMonthly 13,000 Samples Collected 3,700 Miles ofSewer Monitored 74 Miles ofSewer Cleaned177Miles of Sewer Main 214 Miles of Water Main 300 Established 1954 sq. mi. 18FISCAL YEAR BUDGET 2019-20 DISTRICT VISION 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. 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. Through a series of meetings with staff at all levels of the organization, a Five-Year Work Plan has been prepared with an emphasis on the elements needed to clearly look to the future. This effort is designed to consider general policy direction and highlight priority projects that allows for the consideration of specific tasks necessary for implementation. The District now has a series of guiding elements that have established varying degrees of direction for operational and planning decisions. The Strategic Plan includes: the District Vision, Core Values, Agency Goals and Objectives, Five- Year Work Plan, Annual District-Wide Goals, Program Goals, and Individual Goals. 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 CommunityTHROUGH INNOVATIVE LEADERSHIP &World ClassPUBLIC SERVICE 19 EAST VALLEY WATER DISTRICT RATEPAYERS SR. ADMINISTRATIVE ASSISTANT DIRECTOR OF STRATEGIC SERVICES HUMAN RESOURCES/ RISK & SAFETY MANAGER OPERATIONS MANAGER DIRECTOR OF ENGINEERING & OPERATIONS Organzainal Char SR. ADMINISTRATIVE ASSISTANT HUMAN RESOURCES/ ADMINISTRATIVE INTERN PUBLIC AFFAIRS SPECIALIST PUBLIC AFFAIRS MANAGER CONSERVATION COORDINATOR SR. ADMINISTRATIVE ASSISTANT CREATIVE SERVICES REPRESENTATIVE PUBLIC AFFAIRS REPRESENTATIVE SPECIAL EVENTS WATER PRODUCTION SUPERVISOR WATER QUALITY COORDINATOR FIELD SERVICES SUPERVISOR SR. TREATMENT PLANT OPERATOR FACILITY MAINTENANCE COORDINATOR FACILITY MAINTENANCE WORKER I SR. WATER PRODUCTION OPERATOR WATER PRODUCTION OPERATOR III WATER PRODUCTION OPERATOR II WATER QUALITY TECHNICIAN ADMINISTRATIVE ASSISTANT SR. FIELD SERVICES WORKER FIELD SERVICES WORKER III FIELD SERVICES WORKER II FIELD SERVICES WORKER I EQUIPMENT MECHANIC III STOREKEEPER/ BUYER METER READER II METER READER I GENERAL MANAGER/CEODISTRICT CLERK GOVERNING BOARD (5) (4) (2) (3) (5) (2)(2) 20FISCAL YEAR BUDGET 2019-20 CHIEF FINANCIAL OFFICER INFORMATION TECHNOLOGY MANAGER LEGAL COUNSEL SENIOR ENGINEER SR. ENGINEERING TECHNICIAN ENGINEERING TECHNICIAN II SR. ADMINISTRATIVE ASSISTANT BUSINESS SERVICES MANAGER ACCOUNTANT SR. ACCOUNTING TECHNICIAN ACCOUNTING TECHNICIAN I SR. ADMINISTRATIVE ASSISTANT SR. CUSTOMER SERVICE REPRESENTATIVE NETWORK ADMINISTRATOR INFORMATION SYSTEMS TECHNICIAN CUSTOMER SERVICE REPRESENTATIVE III CUSTOMER SERVICE REPRESENTATIVE II CUSTOMER SERVICE REPRESENTATIVE I RECEPTIONIST (2) (2) Management General StaffExecutive Management Elected Officials LEGEND 21 EAST VALLEY WATER DISTRICT PROGRAM STRUCTURE East Valley Water District has built a world-class team of individuals committed to the Agency Vision and Core Values. The Organizational Chart reflects the current 67 authorized positions in relation to the chain of command structure. It is important to note that the District fosters a collaborative work environment which encourages communication and cooperation between different programs. A more detailed look at staffing can be viewed within each individual Program. The District currently has 17 programs, which are overseen by various members of the Executive Management Team. This table, reflects the organizational structure based on Program oversight. Ratepayers Board of Directors General Manager/CEO District Clerk Director of Strategic Services Director of Engineering & Operations Chief Financial Officer Information Technology Manager Human Resources/Risk & Safety Manager Operations Manager Administration Public Affairs Engineering Finance Information Technology Human Resources Meter Services Conservation *Operations Customer Service Water Production *Information Technology Water Treatment Water Quality Water Maintenance Wastewater Maintenance Facilities Maintenance Fleet Maintenance PR O G R A M S * This program is overseen by a director position but managed by a member of the executive team. 22FISCAL YEAR BUDGET 2019-20 Strategic Plan 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. 23 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY 24FISCAL YEAR BUDGET 2019-20 FINANCIALSUMMARY An in-depth District-Wide overview of the FY 2019-20 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; 25 EAST VALLEY WATER DISTRICT • Capital Replacement Reserves – minimum of 100 percent of depreciation expense for the preceding year; • Emergency Reserves – 2 percent of the total value of Plant and Equipment. DEBT POLICY The District has adopted a policy regarding the utilization of debt. Standards established in this policy require: • An equitable allocation of capital costs/charges between current and future system users; • Minimum rate volatility. In addition, the District confines long-term borrowing to capital 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 Process The budget reflects direction from the Governing Board as established by the District Vision and communicated to District staff through various meetings and workshops. The purpose of this budget document is to communicate the District’s financial priorities with citizens, local businesses, creditors, rating agencies, other local agencies and stakeholders, and District staff. The Fiscal Year 2019-20 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 2019-20 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 five-year work plan 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 has adopted a Five-Year Plan establishing a series of long-term objectives that link management and staff work efforts to the District’s Strategic Plan. Objectives in the Five-Year plan have estimated completion dates ranging from 3 to 20 years and present the core of work efforts to which District financial and human resources will be dedicated. The Five-Year Plan will be revised as objectives are completed, or as emerging issues dictate that a significant, previously unidentified objective should replace an existing objective. 26FISCAL YEAR BUDGET 2019-20 District-wide goals established with the annual budget are taken directly from the Five-Year Plan, and usually define incremental steps from the long-term objectives that will be completed during the upcoming fiscal year. All District-wide goals, also referred to as GM goals as they are part of the General Manager / CEO’s annual performance evaluation, are adopted as program goals in one or more of the District’s Programs. 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 District-wide goals when possible, and allows program employees to propose / establish individual goals that support the District’s long-term goals and vision. Program goals and objectives are presented by program managers to the Board of Directors and public at a public workshop in April. 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 The final budget document is assembled, including projected revenues, expenditures, and funding of all goals and objectives proposed by program managers if possible. The document is presented to the East Valley Water District Governing Board at the first regular meeting in June for discussion. Barring any revisions or corrections, the budget is agaendized at the second Board meeting in June for adoption. 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 spending to determine whether realized revenue has exceeded revenue projections to the extent that additional program services or capital projects can be proposed, and to determine whether transfers between budget line items are necessary to ensure that budget limitations are not exceeded. Requests for budget adjustments are submitted by program managers to Executive Management for review, who then forward the requested adjustments to Finance for incorporation into proposed budget amendments to be presented to the Board of Directors at a Mid-Year Budget Review in February. When possible, adjustments have no net effect on the original budget balance unless additional revenue is available. However, if revenue shortfalls or unanticipated costs are realized, and transfers between line items cannot meet the projected deficit, a recommendation to defer capital projects or draw on reserves is usually required to meet the shortfall. All proposed changes are presented to the Governing Board at a Mid-Year budget review. District Vision Adopt Budget Monitor Programs & Adjust as Necessary Develop Program Goals & Objectives 5-Year Work Plan Establish Performance Indicators & Estimate Costs STAKEHOLDER INPUT THROUGHOUT PROCESS 27 EAST VALLEY WATER DISTRICT Date Activity June 26, 2019 FY 2019-20 Budget Adoption November 13, 2019 First Quarter Budget Review at Public Board Meeting January 20, 2020 Budget Meeting to Distribute Worksheets to Management Staff February 12, 2020 FY 2019-20 Mid-Year Budget Review at Public Board Meeting March 9, 2020 FY 2020-21 Capital Outlay and Capital Improvement Program Planning Meeting March 23, 2020 FY 2020-21 New Position Requests Due to Finance March 23, 2020 FY 2020-21 Capital Outlay and Capital Improvement Project Requests Due to Finance March 30, 2020 FY 2020-21 Program Budget Requests Due to Finance April 15, 2020 FY 2020-21 Proposed Goals and Objectives Workshop at Public Board Meeting April 23, 2020 FY 2020-21 Capital Outlay and Capital Improvement Program Budget Review with Managers and General Manager/CEO May 12, 2020 Meet with CAC to present and discuss proposed program goals and objectives and revenue projections for FY 2020-21 May 20, 2020 FY 2020-21 Revenue Projection Workshop at Public Board Meeting May 29, 2020 FY 2020-21 Budget Complete with all Revisions June 10, 2020 FY 2020-21 Budget Workshop at Public Board Meeting June 24, 2020 FY 2020-21 Budget Adoption at Public Board Meeting CURRENT AND PROPOSED BUDGET CYCLE CALENDAR 28FISCAL YEAR BUDGET 2019-20 Basis of Budgeting The District’s financial records are kept in accordance with Generally Accepted Accounting Principles (GAAP) for governmental enterprise funds. Therefore, 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 because it does not allow discrete presentation of some significant uses of current financial resources. In these cases, GAAP is not followed, and instead those uses of current resources are shown as expenditures rather than as a reduction to a previously recorded liability, or a capitalized cost. Exceptions to GAAP used for the District’s budget presentation are as follows: • Compensated absence expense reflects the change in related accrued liabilities during the accounting period on the GAAP basis, but for budget purposes expense includes anticipated leave time to be used and/or cashed by employees during the fiscal year. • Principal payments on Long Term Debt are applied to reduce the outstanding liability on a GAAP basis; shown as a current expenditure on a Budget basis. • Capital Outlay and Construction costs are capitalized and expenses over the useful life of the asset on a GAAP basis; shown as a current expenditure on a Budget basis. • Depreciation is recorded annually to expense the cost of a capital asset over its useful life on a GAAP basis but is not contemplated on the Budget basis. • Interest payments related to financing for the cost of a capital asset during construction are capitalized on the GAAP basis but are reported as a current 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 to the net pension liability in accordance with Governmental Accounting Standards Board Statement No. 68. Fund Structure GAAP requires that East Valley Water District, a California special district, account for its activities as a single, governmental enterprise fund. The activities of enterprise funds closely resemble those of ongoing businesses for 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 CUSTOMER USE COLLECTION & CONVEYANCE WATER FUND WASTEWATER FUND WASTEWATER DISCHARGE WATER RECLAMATION FACILITIES EVWD OPERATIONS 29 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. Wastewater Treatment revenue and expenses are a simple pass-through to the City of San Bernardino. Treatment fees are billed to District customers along with other District fees and charges and are based on rates adopted by the San Bernardino City Council. All treatment fees collected are remitted to the City on a monthly basis and do not contribute to the District’s operations and maintenance expenses. However, for budget purposes, wastewater treatment expense is shown as a separate line item in the Wastewater Maintenance program. 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 Collection Charges Investment/ Other Income Wastewater Treatment Charges Wastewater Treatment Expense Wastewater Capital Expenditures & Debt Service FUND STRUCTURE District Operations & Maintenance Programs 30FISCAL YEAR BUDGET 2019-20 Program Water Fund Wastewater Fund Total 1000 Governing Board $ 179,900 $ 77,100 $ 257,000 2000 General Administration 912,800 391,200 1,304,000 2100 Human Resources/Risk Management 716,800 307,200 1,024,000 2200 Public Affairs 1,054,200 385,800 1,440,000 2300 Conservation 589,000 - 589,000 3000 Finance 874,600 374,400 1,249,000 3200 Information Technology 652,400 279,600 932,000 3300 Customer Service 1,238,200 376,800 1,615,000 3400 Meter Services 295,000 - 295,000 4000 Engineering 1,085,700 465,300 1,551,000 5000 Water Production Administration 579,000 - 579,000 5000-51 Source of Supply 2,994,000 - 2,994,000 5000-52 Pumps & Boosters 652,000 - 652,000 5000-54 Transmission & Distribution 442,000 - 442,000 5100 Water Treatment 870,000 - 870,000 5200 Water Quality 461,000 - 461,000 6000 Maintenance Administration 391,500 43,500 435,000 6100 Water Maintenance 2,317,000 - 2,317,000 6200 Wastewater Maintenance - 814,000 814,000 6300 Wastewater Treatment - 8,665,000 8,665,000 7000 Facilities Maintenance 806,500 191,500 998,000 7100 Fleet Maintenance 437,400 48,600 486,000 TOTAL $ 17,549,000.00 $ 12,420,000.00 $ 29,969,000 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. Below is a table illustrating the Fund/Program relationship for the current fiscal year: 31 EAST VALLEY WATER DISTRICT Budget Summary The budget for fiscal year 2019-20 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 $39,200,000 in revenue during 2019-20 and has developed a budget plan to allocate $29,969,000 toward funding of program operations, $4,378,000 toward the amortization of outstanding debt, and $4,824,000 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 2019-20 Total REVENUE/SOURCES Water Sales / Wastewater Collection Charges $ 15,900,000 $ 4,648,000 $ 20,548,000 Wastewater Treatment Charges - 8,665,000 8,665,000 Water System (Meter) Charges 8,980,000 - 8,980,000 Other Charges and Income 755,000 252,000 1,007,000 TOTAL REVENUE/SOURCES 25,635,000 13,565,000 39,200,000 OPERATING EXPENSES Employment Expenses 8,563,900 2,277,100 10,841,000 Water Costs 1,067,000 - 1,067,000 Contracted Wastewater Treatment - 8,665,000 8,665,000 Power Costs 1,700,000 - 1,700,000 Materials & Supplies 1,193,200 141,800 1,335,000 Contract Services 4,729,250 1,228,750 5,958,000 Other Operating Expenses 295,650 107,350 403,000 TOTAL OPERATING EXPENSES 17,549,000 12,420,000 29,969,000 OTHER USES Debt Service 4,066,000 314,000 4,380,000 Capital Outlay 870,000 631,000 1,501,000 Capital Improvement Program 3,150,000 200,000 3,350,000 TOTAL OTHER USES 8,086,000 1,145,000 9,231,000 TOTAL OPERATING EXPENSES/OTHER USES 25,635,000 13,565,000 39,200,000 TOTAL NET SURPLUS/(DEFICIT)$ - $ - $ - 32FISCAL YEAR BUDGET 2019-20 Revenue Summary Revenue projections are key to determining the amount of financial resources available to support District programs and other obligations, therefore, projections are developed early in the budget process and then presented to the District’s Board of Directors in early May. East Valley Water District receives 97% 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 revenue categories based on rates: • Water Sales • Meter Charges • Wastewater Collection • Wastewater Treatment • Other Charges REVENUE HISTORY AND FORECAST (IN MILLIONS) 24.5 26.1 25.4 24.9 25.4 25.9 12.8 13.4 13.3 13.3 13.6 13.8 5.0 10.0 15.0 20.0 25.0 30.0 FY 2016-17 FY 2017-18 FY 2018-19Estimated FY 2019-20Projected FY 2020-21Projected FY 2021-22Projected Wastewater Revenue Water Revenue 40%Water Sales 23%Meter Charges 22%WastewaterTreatment 3%Other Charges/Revenue 12%WastewaterCollection 33 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, water rates, and occasionally drought conditions. The recent 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. As a result, no significant number of new customer accounts have been built into projections for the 2019-20 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 2019-20 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 2019-20. FY 2016-17 Actual FY 2017-18 Actual FY 2018-19 Projected FY 2019-20 Budgeted Tier 1 3,662,249 3,734,469 3,648,586 3,548,000 Tier 2 2,489,442 2,552,470 2,416,045 2,434,000 Tier 3 915,395 1,270,186 1,160,033 1,011,000 TOTAL 7,067,087 7,557,125 7,224,664 6,993,000 The District adopted Water Budget based rates, along with rate adjustments phased over three years, at a public hearing held in March of 2015. Phases 1 and 2 of the rate adjustments were implemented as scheduled in July of 2015 and 2016, however, phase 3 adjustments were only partially (one-half) implemented in July 2017 because revenue projections for FY 2017-18 showed that the entire phase 3 adjustment was not needed. 34FISCAL YEAR BUDGET 2019-20 The District transformed its rate structure from a flat rate to water budget tiered rates in FY 2015-16. No rate adjustment was needed again for FY 2018-19; however, the District will implement the final increment of phase 3 rate adjustments during fiscal year 2019-20, with an effective date of January 1, 2020. The rate adjustments to each tier price will be approximately 6% and are projected to increase sales revenue by approximately $350,000. Based on the projection of water sales in volume, and the tier rates that will be effective throughout the year, the District has projected water sales of $15.9 million for FY 2019-20. The graph below shows water sales trends for four years and the current year projection. Additional information about water rates is available in the Water Fund section of this document. Water Sales $11,927,523 $14,537,867 $15,900,000$16,347,378 $16,268,902 $2M $4M $6M $8M $10M $12M $14M $16M Tier 1 Tier 2 Tier 3 FY 2015-16Actual FY 2016-17Actual FY 2017-18Actual FY 2018-19Projected FY 2019-20Budgeted 35 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 2015 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 became effective July 1, 2016. Meter charge revenue is projected to remain the same for fiscal year 2019-20 as there will be no rate adjustments, and there will not be a significant number of new customer connections due to development. Some temporary accounts have been set up to record water usage through hydrant meters, usually associated with isolated construction projects, but just a small percentage of monthly charges for these accounts are included in revenue projections. For this reason, actual charges usually exceed projections by $15 to $25 thousand. Meter Charges 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. $8,980,000$9,001,470$8,943,223$8,944,652 $8,063,077 $1M $2M $3M $4M $5M $6M $7M $8M $9M FY 2015-16Actual FY 2016-17Actual FY 2017-18Actual FY 2018-19Projected FY 2019-20Budgeted 36FISCAL YEAR BUDGET 2019-20 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 difference 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 $500K $1M $1.5M $2M $2.5M $3M $3.5M $4M $4.5M $5M Single Family Residential Multi-Family / Commercial FY 2015-16Actual FY 2016-17Actual FY 2017-18Actual FY 2018-19Projected FY 2019-20Budgeted $4,286,594 $4,703,439 $4,668,923 $4,647,667 $4,648,000 37 EAST VALLEY WATER DISTRICT WASTEWATER TREATMENT CHARGES Rates for these charges are established by the City of San Bernardino Municipal Water Department (City), which is currently contracted to treat all wastewater generated by District customers. The District bills customer within its service area at City established rates, receives customer payments, and then remits collected treatment revenues to the City at the end of each month. 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% becoming effective July 1, 2017 Wastewater treatment rates for fiscal year 2019-20 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 2019-20 are $8,665,000. Wastewater Treatment Charges Wastewater treatment charges are collected on behalf of the City of San Bernardino Municipal Water Department. $7,165,655 FY 2015-16Actual FY 2016-17Actual FY 2017-18Actual FY 2018-19Projected FY 2019-20Budgeted $7M $7.3M $7.6M $7.9M $8.2M $8.5M $8.8M $8,129,944 $8,697,671 $8,666,031 $8,665,000 38FISCAL YEAR BUDGET 2019-20 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 2019-20 projection for these charges is $1,007,000, which is calculated using adopted fees and an estimate of the number of occurrences for each type of fee based on historical trends. 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. EXPENDITURE SUMMARY $300,000InvestmentIncome $360,000DisconnectNotice Charge 26.9%Employment Services 12.4%Capital Expenditure 11.2%DebtService 4.3%PowerCosts 1.6%OtherOperating 2.7%WaterCosts 18.8%Materials/ContractServices 22.1%ContractedWastewaterTreatment $115,000DelinquentFees $115,000DelinquentFees $89,000MiscellaneousRevenue $70,000ReconnectFees 39 EAST VALLEY WATER DISTRICT EMPLOYMENT EXPENSES Employment expenses include salaries and benefits paid for 67 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 fiscal year 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 2019-20, 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 cafeteria health insurance plan, and worker’s comp and Medicare insurance. Overall, benefits are expected to increase by 22% for FY 2019-20. 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. District paid costs related to the retirement plan are projected to increase 12% as the District implements a 15-year, level pay funding plan to address unfunded pension liabilities; this plan was adopted to replace a 25-year amortization schedule created by PERS. While the 15-year plan requires higher initial annual contributions, the shorter amortization period is projected to save the District $3.5 million. In prior years, the District had made additional payments of $350 thousand and $500 thousand in fiscal years 2015-16 and 2017-18, respectively. 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 increased 9% for 2019, affecting both District and employee contributions to healthcare costs accordingly. Workers compensation premiums are projected to increase approximately 8% as the District’s rates and experience modifier continue to be negatively impacted by three significant claims by past and current employees. FY 2015-16Actual FY 2016-17Actual FY 2017-18Actual FY 2018-19Projected FY 2019-20Budgeted $8,709,178 $8,759,213 $9,782,191 $9,849,000 $10,841,000 $2M $4M $6M $8M $10M $12M Salaries Benefits 40FISCAL YEAR BUDGET 2019-20 WATER COSTS The District anticipates customer demand for approximately 16,050 acre-feet, or 5.23 billion gallons, of water during the 2019-20 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 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 2019- 20 is projected to be $445,000. The GC assessment replaced a pumping assessment paid to the San Bernardino Valley Water Conservation District prior to fiscal year 2018-19. • Surface Water – stockholder assessments paid to the North Fork Water Company (NFWC) on Company shares owned by the District. 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 6,588 shares and projects that the assessment will be $18 per share and has budgeted $122,000 accordingly. • Purchased Water – paid to the San Bernardino Valley Municipal Water District to buy State Project water at $126 per acre foot (AF) when available. Due to heavy snow and rainfall in Northern California during the last two winters plenty of water is available from the State Water Project, therefore, the District has budgeted $500,000 to purchase up to 3,968 acre-feet of imported water in 2019-20. Total water costs associated with these three sources are projected to be $1,067,000 for fiscal year 2019-20. Water Costs $200K $400K $600K $800K $1M $1.2M FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19Projected FY 2019-20Budgeted Purchased Water Groundwater Conservation District Groundwater Council Surface Water $471,251 $1,309,459 $1,272,000 $803,301 $186,803 41 EAST VALLEY WATER DISTRICT CONTRACTED WASTEWATER TREATMENT As outlined in the discussion about wastewater treatment charges, the District has budgeted $8,665,000 for the cost of contracted wastewater treatment in fiscal year 2019-20. 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 through 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, energy conservation measures implemented by the District in 2014 have helped to insulate the District from rising power costs. Further, the District completed the installation and commissioning of a hydroelectric generation facility at the District’s surface water treatment Plant 134 in 2018. The hydroelectric generator utilizes the force of water turned out from a state water project pipeline, supplying water to the Plant 134, to produce power for running the plant. However, state project water quality has been poor as a result of recent droughts in California, limiting the amount of state water that can be taken by Plant 134, and limiting the use of the hydroelectric generator. Total District power costs were $1.66 million in fiscal year 2018-19 and, based on the above, are expected to be about the same for 2019-20. Accordingly, projected power costs for fiscal year 2019-20 are $1.7 million. Power Costs Wastewater treatment charges are collected on behalf of the City of San Bernardino Municipal Water Department. $500K $1M $1.5M $2M FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19Projected FY 2019-20Budgeted Wells Boosting Treatment $1,648,965 $1,535,223 $1,749,726 $1,663,720 $1,700,000 42FISCAL YEAR BUDGET 2019-20 MATERIALS & SUPPLIES Materials costs include chemicals for treatment, small tools and parts for distribution system repairs, small office tools and general office supplies. Materials costs are budgeted to decrease 5% in 2017-18 as the prior year budget included a significant earmark for the replacement of street cutting and trenching tools. Program Services Description FY 2018-19 Projected FY 2019-20 Budgeted Governing Board General Office Supplies $ 1,000 $ 1,000 Administration General Office Supplies 8,000 6,000 HR Desk, Office Supplies, Software 17,000 10,000 Public Affairs Promo Items, Events & Emergency Supplies 189,000 166,000 Conservation Educational Materials, Books, Workshop Items 28,000 28,000 Finance Auditing, Banking, Software 11,000 11,000 Information Technology Computer Supplies 35,000 37,000 Customer Service Lobby Materials, Office Supplies 8,000 9,000 Meter Services Hydration Supplies, Repellents 5,000 5,000 Engineering Small Tools, Plotter Supplies 25,000 23,000 Production Hand Tools, Lubricants, Electrical Supplies, Chemicals 284,000 299,000 Water Treatment Tools, Lab Supplies, Chemicals 165,000 165,000 Water Quality Test & Repair Kits, Chemicals 18,000 18,000 Water Maintenance Inventory Items, Fill Materials 246,000 304,000 Wastewater Maintenance Tools, Degreaser, Insecticides, Manhole Covers 36,000 36,000 Facilities Maintenance Paint Supplies, Hardware, Tools, Signs 41,000 56,000 Fleet Maintenance Large Equipment Repairs 158,000 161,000 TOTAL $ 1,278,000 $ 1,335,000 43 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 includes the following: Significant variances between prior year contact services costs and projections for 2019-20 include: • Public Affairs costs have increased to support the production of informational videos for display on the District’s website. • A $500,000 decrease in direct customer rebates for turf removal and other conservation efforts. • Funding for a cybersecurity assessment and continued work on data analytics. • Prior year water quality costs included a 5 year update to the regional watershed survey. • A $100,000 increase in the budget for street repairs necessary after field crews complete a water main repair due to incrased permit and asphalt costs. Program Services Description FY 2018-19 Projected FY 2019-20 Budgeted Governing Board CEO Evaluation and Election Expenses $ 111,000 $ 11,000 Administration Legislative, Legal Consultants 363,000 342,000 HR Safety Consultants, OPEB 312,000 309,000 Public Affairs Printing, Emergency Training 380,000 416,000 Conservation Community Events, Demo Garden, Direct Installation of Water Efficient Irrigation Timers 931,000 417,000 Finance Auditing, Banking, Software 176,000 153,000 Information Technology GIS, Data Management, Cybersecurity 506,000 433,000 Customer Service Billing, Collections, Pmt Processing, Software Support 1,024,000 1,029,000 Meter Services Uniforms 10,000 10,000 Engineering Surveying, Engineering, Software, Permits 487,000 485,000 Production SCADA Updates, Inspections, Valve Maintenance 405,000 450,000 Water Treatment Filtration Media Replacement, Software Maintenance 149,000 194,000 Water Quality Lab Fees, Software Maintenance 161,000 164,000 Water Maintenance Leak Detection, Asphalt Repair 476,000 444,000 Wastewater Maintenance Manhole Insect Treatment, Collection Pipeline Spot Repairs 246,000 247,000 Facilities Maintenance Security, Janitorial, Landscaping, Equipment Repairs, 670,000 673,000 Fleet Maintenance Large Equipment Repairs, Maintenance Service 374,220 181,000 TOTAL $ 6,570,000 $ 5,958,000 44FISCAL YEAR BUDGET 2019-20 OTHER OPERATING EXPENSES Other Operating Expenses budgeted for FY 2019-20 total $403,000 and include professional development, memberships & dues, licensing, meeting expenses, employee recognition and education assistance. 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, and collaboration with other agencies responsible for delivering similar service to its ratepayers. The following chart show the allocation of Other Operating Expenses budgeted for FY 2019-20: $221,000Insurance $48,000Meetings$25,000EmployeeRecognition $11,000EducationAssistance $200,000ProfessionalDevelopment $118,000Memberships& Dues 45 EAST VALLEY WATER DISTRICT Outstanding Debt East Valley Water District’s debt service payments in 2019-20 will be $4,378,000 on total outstanding debt of $46,888,000 as of June 30, 2019. The District issues debt for the purpose of building and improving capital assets, and to refund/ refinance previously issued debt when interest rates and other circumstances make it financially prudent. 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. District policy prohibits the issuance of long-term debt to fund operating activities. TYPES OF DEBT Revenue Bonds: Revenue bonds are issued to finance the construction or upgrade of water and wastewater facilities. Debt service is payable out of water and wastewater system net revenue. • 2010 Refunding Revenue Bonds: Issued • 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%. • 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%. Current payments are interest only, with principal amortization scheduled to begin in fiscal year 2021-22. State Water Resources Control Board Loans: SWRCB loans are utilized to finance the construction or upgrade to clean drinking water or recycled water projects. Debt service is payable out of water and wastewater system net revenue. • Treatment Plant 134: borrowed to finance upgrades to treatment technology at the District’s Plant 134. The total loan outstanding is $6,568,167 bearing interest at 0%. • Sterling Natural Resource Center: borrowed as primary funding for water recycling plant known as the Sterling Natural Resource Center. Total loan requested is $148.3 million with $11.3 million drawn down to date. Interest on the loan is 1.8% and annual debt service on the full loan will be approximately $6.82 million annually. The debt service on this loan is not included in the following tables. State Water Resources Control Board Loans– Assessment Districts: Loan agreements signed in support of the State’s consolidation of mutual water companies with failing water infrastructure within the District’s service area. District is responsible for ensuring payment on the state loans which is payable from assessments on property formerly served by the water companies. • Arroyo Verde & Eastwood Farms: borrowed to fund installation of new water distribution system connected to the District’s water supply facilities. Loans outstanding total $423,196 and bear interest at 0%. Other Loans – Subordinate: Financing agreements signed with equipment vendors, installers, or construction project managers for the purchase or installation of equipment with useful lives of 20 year or less. Repayment periods are 10 years and debt service payments are paid out of energy cost savings. • 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%, • SBVMWD Loan: borrowed from the San Bernardino Valley Municipal Water District (Valley District), the region’s State Water Project (SWP) contractor, for the construction of an SWP turnout and hydro-electric generation facility leading to the District’s treatment plant - Plant 134. Loan principal outstanding of $3,010,000 bears interest at the LAIF apportionment rate, currently 2.55%. Debt service is payable over 10 years out of water net revenue and energy cost savings. 46FISCAL YEAR BUDGET 2019-20 IMPACT OF CURRENT DEBT LEVELS A schedule of 2019-20 debt service payments, by issue, is shown in the following schedule. Schedule of FY 2019-20 Debt Service Payments (By Issue) As shown above, debt service for fiscal year 2019-20 on all outstanding debt is $4,378,000 - this amount represents 11.2% of the District’s total budget. 2019-20 is the fourth 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 does directly impact the number of Capital Projects that can be funded by operating revenues. The following table presents District debt level ratios compared to 2015 Southwest Regional medians reported reported by Fitch ratings. WATER FUND WASTEWATER FUND Debt Issue Principal Interest Principal Interest Total 2010 Refunding Revenue Bonds $ 1,475,000 $ 993,000 $ 105,000 $ 7,000 $ 2,580,000 2013 Revenue Bonds - 385,000 - 200,000 585,000 DWR Loan-Treatment Plant 234,000 - - - 234,000 DWR Loans - Assessment Districts 20,000 - - - 20,000 US Bank Loan 406,000 48,000 - - 454,000 SBVMWD Loan 430,000 75,000 - - 505,000 TOTAL $ 2,565,000 $ 1,501,000 $ 105,000 $ 207,000 $ 4,378,000 Ratio Fitch Median EVWD Outstanding debt per customer (21,252 accounts)$1,634 $2,206 All-in debt service as % of gross revenue (1)26%14% (1) Gross revenue does not include wastewater treatment charges which are a pass-through to the City of San Bernardino Municipal Water Department Schedule of Total Debt Service WATER FUND WASTEWATER FUND Fiscal Year Principal Interest Principal Interest Total 2019-20 $ 2,565,000 $ 1,501,000 $ 105,000 $ 207,000 $ 4,378,000 2020-21 2,639,000 1,418,000 110,000 203,000 4,370,000 2021-22 2,138,000 1,352,000 105,000 198,000 3,793,000 2022-23 2,193,000 1,290,000 110,000 192,000 3,785,000 2023-24 2,248,000 1,225,000 115,000 187,000 3,775,000 2024-29 6,690,000 5,285,000 665,000 839,000 13,479,000 2030-34 6,362,000 4,275,000 835,000 665,000 12,137,000 2035-39 7,677,000 2,954,000 1,050,000 460,000 12,141,000 2040-44 9,717,000 1,128,000 1,330,000 174,000 12,349,000 2045-46 234,000 - - - 234,000 TOTAL $ 42,463,000 $ 20,428,000 $ 4,425,000 $ 3,125,000 $ 70,441,000 47 EAST VALLEY WATER DISTRICT FUTURE DEBT LEVELS The addition of the DWR Loan for the Sterling Natural Resource Center will substantially increase the District’s annual debt service requirement. Contractual payments on this loan will begin one year after Completion of Construction, which is scheduled for January 2022. As noted in other discussions about the fiscal impact of the SNRC in this document, wastewater treatment services are currently provided by the City of San Bernardino and payments under that contract shown as Wastewater Treatment operating expense. When the SNRC is operational, Wastewater Treatment payments to the City will be replaced with labor, materials, and other direct treatment costs, and debt service. The graph below presents total debt service on existing debt, and future SNRC loan payments, through maturity. Total Debt Service 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 FY 2048 -49 $1M $2M $3M $4M $5M $6M $7M $8M $9M $10M Recycled WaterWater Fund Wastewater Fund 48FISCAL YEAR BUDGET 2019-20 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 CAPACITY AND DEBT SERVICE COVERAGE The District has no policy limitation, and there is no 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 test determines the amount of additional debt that may be issued by calculating the amount of net revenue available for additional debt service payments. The Revenue Bond documents, as well as loan agreements with the Department of Water Resources and US Bank, require that the District maintain a debt coverage ratio equal to 1.2 or 120 percent of annual debt service. The FY 2019-20 proposed operating budget provides the net revenue to debt ratios shown in the table below. Debt Coverage Ratio Water Fund Wastewater Fund Total REVENUE Sales and Services $ 24,880,000 $ 13,313,000 $ 38,193,000 Other Charges 471,000 200,000 671,000 Interest & Miscellaneous Revenue 284,000 52,000 336,000 TOTAL REVENUES 25,635,000 13,565,000 39,200,000 OPERATING EXPENSES Programs 17,549,000 12,420,000 29,969,000 TOTAL OPERATING EXPENSES 17,549,000 12,420,000 29,969,000 NET REVENUE 8,086,000 1,145,000 $9,231,000 Annual Debt Service 4,066,000 312,000 4,378,000 Debt Coverage Ratio 1.99 3.67 2.11 Net Revenue in excess of annual debt service (excess coverage) provides funding for the District’s CIP and contributions to Replacement Reserves. 49 EAST VALLEY WATER DISTRICT Fund Equity (Net Position) As discussed in a previous section, EVWD operates water and wastewater enterprise activities, the District does not have governmental or non-major enterprise activities as part of its operational structure. For financial reporting purposes, each of the District’s activities report Equity, the excess of assets over liabilities, as Net Position. Also for financial reporting purposes, Net Position is reported in three distinct classifications: • Net Position Invested in Capital Assets • Restricted Net Position, and • Unrestricted Net Position. Net Position Invested in Capital Assets maintains a running balance of resources spent on the acquisition and construction of capital assets, less outstanding long-term debt and net of depreciation of those capital assets over time. This classification of Net Position does not include reserve funds that are available for appropriation and is therefore not considered as part of the budget process. Restricted Net Position includes unspent proceeds from issuance of long-term debt and developer paid capacity fees. These funds are available for appropriation but only as defined by contractual agreement with bondholders and other creditors, or by studies adopted by the District that state the purpose and amount of capacity fees to be collected from developers. Debt proceeds are used only for projects specifically stated in debt agreements, and capacity fees are used only for construction of projects that expand the capacity of the District’s infrastructure or to pay debt on expansion projects that have already been built. Accordingly, appropriations from Restricted funds will appear in the District’s capital budget. Unrestricted Net Position is the residual after the balances in the other two classifications of Net Position have been determined. The District has the most flexibility in determining how Unrestricted Net Position may be appropriated, and the Board of Directors has done so by establishing a Reserve Policy. That policy establishes three unrestricted funds, and has defined their purpose, order of priority for funding, target levels, and uses. Those designated funds are the: • Operating Fund • Capital Replacement Fund • Rate Stabilization Fund The Operating Fund has the highest priority and is funded first out of any excess of revenue over expenditures at the end of each fiscal year. When the Operating Fund has reached its target level of 180 days operating expenses, excess funds are applied to the Capital Improvement Funds up to $10 million. Any remainder is transferred to the Rate Stabilization Fund. If all funds have been fully funded, the remainder reverts to the Operating Fund. The District’s Board of Directors may take action to transfer balances between the Unrestricted Fund designations. The following graph, illustrates the changes in Unrestricted Net Position for the past five years and forecasted balances for 2019-20. Operating Fund Water Enterprise Capital Replacement Fund Rate Stabilization Fund Operating Fund Wastewater Enterpise Capital Fund Rate Stabilization Fund Debt Proceeds Unrestricted Funds Capacity Fees Restricted Funds 50FISCAL YEAR BUDGET 2019-20 Changes in Unrestricted Fund Balances WATER OPERATING FUND 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 the Water Operating Fund Balance. 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 2019-20. At the end of the 2017-18 fiscal year, as part of the 2018-19 budget process, the District transferred $3 million to fund the Water Capital Replacement Reserve in order to ensure, initially, that funds would be designated for a five-year project to replace filtration membranes in the District’s surface water treatment plant. The 2019-20 water enterprise budget does not project any additions to the Water Operating Reserve. The table below 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. WASTEWATER OPERATING FUND In FY 2012-13 the District began drawing on unrestricted reserves to a 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. The unrestricted fund was also negatively impacted in 2014-15 by GASB 68 for the amount of $1.75 million. A cost of service analysis for both water and wastewater utility rates is being conducted into 2019-20 to identify rate adjustments needed, if any, to maintain essential utility services, and maintain adequate unrestricted fund balance levels. Summary Of Unrestricted and Restricted Funds The table below provides beginning balances, increases and decreases, and ending balances for unrestricted water and wastewater reserve balances, available for appropriation, for the past five years, and projections for the 2019-20 budget year. $2M $4M $6M $8M $10M $12M Water Operating Fund Water Replacement Fund Wastewater Operating Fund FY 2015-16ActualFY 2015-16Actual FY 2016-17Actual FY 2017-18Actual FY 2018-19Projected FY 2019-20Budgeted $4,861,232 $7,539,722 $5,789,742 $6,786,369 $8,141,879 $10,067,982 $2,595,000 $2,190,000 $1,706,085 $1,656,550 $10,067,982 $1,656,550 $3,000,000$3,029,546 $1,761,323 51 EAST VALLEY WATER DISTRICT 2015-16 Actual 2016-17 Actual 2017-18 Actual 2018-19 Projected 2019-20 Budgeted WATER OPERATING FUND Beginning Fund Balance $ 4,861,232 $ 5,789,742 $ 6,786,369 $ 8,141,879 $ 10,067,982 Revenue 22,358,720 24,954,835 27,296,029 26,653,103 25,635,000 Operating/Non Operating Expenditures (16,685,330) (16,291,186) (17,714,108) (17,751,000) (19,050,000) Capital Expenditures (2,873,963) (3,097,378) (2,645,333) (4,411,000) (4,020,000) Debt Principal Payments (1,870,917) (1,926,956) (2,581,078) (2,565,000) (2,565,000) Interfund Sale of Land - (2,642,688)--- Transfer to Capital Replacement Fd - - (3,000,000)-- ENDING FUND BALANCE 5,789,742 6,786,369 8,141,879 10,067,982 10,067,982 WATER CAPITAL REPLACEMENT FUND Beginning Fund Balance - - - 3,000,000 2,595,000 Transfer from Operating Fd -- 3,000,000 -- Capital Expenditures --- (405,000) (405,000) ENDING FUND BALANCE - - 3,000,000 2,595,000 2,190,000 RESTRICTED WATER CAPACITY FEES Beginning Fund Balance 2,074,498 1,627,295 1,659,546 1,705,664 1,868,997 Fees Collected 184,387 32,251 46,118 163,333 230,820 Debt Issued ----- Capital Expenditures (631,590)---- ENDING FUND BALANCE 1,627,295 1,659,546 1,705,664 1,868,997 2,099,817 WASTEWATER OPERATING FUND Beginning Fund Balance 7,539,722 1,761,323 2,029,652 1,706,085 1,656,560 Revenue 11,643,042 12,432,000 13,475,015 13,651,000 13,565,000 Operating/Non Operating Expenditures (10,669,773) (11,816,048) (13,171,144)(12,300,525)(12,627,000) Capital Expenditures (6,661,668) (2,895,311) (532,438) (1,300,000) (833,000) Debt Principal Payments (90,000) (95,000) (95,000) (100,000) (105,000) Interfund Sale of Land - 2,642,688 --- ENDING FUND BALANCE 1,761,323 2,029,652 1,706,085 1,656,560 1,656,560 RESTRICTED WASTEWATER CAPACITY FEES Beginning Fund Balance $ 76,269 $ 528,599 $ 698,889 $ 982,889 $ 1,283,616 Fees Collected 452,330 170,290 284,000 300,727 177,150 52FISCAL YEAR BUDGET 2019-20 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 District’s operating budget. It helps determine whether financial resources will be available to achieve the Districts long term goals and objectives, and to contribute to capital programs and reserve levels. 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. Long-Term Priorities 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 50 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 • Digesters will provide new revenue streams (energy sales, tipping fees) that will help ensure fiscal sustainability • Manage and Identify Methods to Conserve Natural Resources • Actively Seek Alternative Supply Resources • Pursue Alternative Funding Sources Debt Issued $ -$ -$ -$ -$ - Capital Expenditures ----- ENDING FUND BALANCE 528,599 698,889 982,889 1,283,616 1,460,766 ENDING BALANCE - ALL FUNDS $ 9,706,959 $ 11,174,456 $ 15,536,517 $ 17,472,155 $ 17,475,125 53 EAST VALLEY WATER DISTRICT Goal Assumption Link to District Goals & Objectives Find / Utilize Additional 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 Meet Water Quality Standards • SRF Funding Will Be Available to Upgrade Treatment Processes for Imported Water High in Organics • Develop Projects and Programs to Ensure Safe and Reliable Services 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 through fiscal year 2017-18. An updated cost of service analysis will be completed in fiscal year 2019-20 for both water and wastewater rates will be reviewed by an independent financial consultant in fiscal year 2017-18. Any rates adjustments proposed by the consultant will be considered in accordance with requirements under California Proposition 218. • Water Sales are projected to grow $500,000 or 3.5% 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 incentivize consumers to use water efficiently. • Meter Charge revenue is expected to grow by $100,000 between FY 2020 and FY 2024 due to the increase in customer accounts mentioned above. When the District completes construction on the Sterling Natural Resource Center (SNRC) in January of 2022, it will mark the beginning of wastewater treatment and water recycling operations for the District, and the collection of the related revenue. Beginning in 2022 the District will adopt and collect its own wastewater treatment rates in support of SNRC operations and debt service. The District will also sell recycled water produced by the SNRC to the San Bernardino Valley Municipal Water District under a Local Resource Program (LRP) established recharge the Bunker Hill Groundwater Basin. Under the LRP, the District and other recycled water producers will be reimbursed $173 per acre foot of water used for recharge. The District anticipates that the SNRC will produce 6,000 acre-feet of reclaimed water each year, resulting in annual revenue of $1.26 million. Operating Cost Forecast Operating costs for the District include salaries and benefits, maintenance and operation of the water distribution and wastewater collection systems, contract services and materials and supplies. Costs also include monthly payments to the City of San Bernardino for wastewater treatment services through December 2021. In January 2022 the SNRC will begin operations and contract payments to San Bernardino will be replaced by staff and direct operating costs related to this new water recycling enterprise. Accordingly, operating costs will increase Employment Expenses Salaries are one of the largest costs for the District and are adjusted in accordance with a memorandum of understanding (MOU) with employees – a new three-year MOU, which became effective in July 2017, included 54FISCAL YEAR BUDGET 2019-20 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 make up two-thirds of total benefit costs and have two components – Normal Cost, and payments against the pension plan’s Unfunded Accrued Liability (UAL). Normal Cost contributions are currently 12.805% of payroll, increasing to 13.6% for fiscal years 2020-21 through 2024-25. UAL payments are $1,165,981 per year for fifteen years, beginning with fiscal year 2019- 20. Other benefit costs include are projected to increase 5% per year. 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 6 months prior to completion so staff can be trained on treatment processes. Contracted Wastewater Treatment Contracted treatment is expected to increase less than 1% per year through December 2021. Thereafter, monthly payments to the City averaging more than $550,000 per month, or $8.6 million annually, will cease. However, part of the agreement for dissolution of the agreement with the City was that the District will continue to pay the City $700,000 annually to assuage the effects of the loss of revenue for the District. Settlement payments will continue for 10 years. Power Costs The District has tried to insulate itself and ratepayers from significant increases in the cost of electricity by implementing energy conservation measures, installing a hydro-electric generation facility, and at the future Sterling Natural Resource Center, constructing digesters to convert methane gases, resulting from treatment processes, into energy. The District plans to build the digesters with enough capacity to power the entire SNRC plant and produce excess energy for sale back to Edison. The available capacity in the planned digesters will allow the SNRC to accept food waste from refuse haulers, while charging a tipping fee that will contribute to the financial success of the plant. Materials and Supplies In general, materials and supplies are expected to increase 2% per year with inflation and will be approximately $1.4 million annually until completion of the SNRC when the cost of chemicals and other consumables will increase by approximately $1 million for SNRC operations. Other Contracted Services Other Contracted Services such as maintenance on existing facilities, consulting, customer bill generation and printing are currently at $6.0 million annually and are expected to increase 2 % annually until the opening of the SNRC. When that facility opens and is operational, maintenance costs are expected to increase $550 thousand due to the extensive equipment involved in treatment operations, and removal and hauling of waste residuals will add $1 million per year to contract services. 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 2021, to $10.6 million in FY 2022. A schedule of future debt service, including on the State Revolving Fund loan from the State of California Waterboards, is shown on page 46 of this document. Revenue Funded Capital Expenditures Forecast Revenue funded capital project spending is projected to average $4.0 million over the next five years. Projects included in the forecast are discussed in the five-year Capital Improvement Program section of this budget. 55 EAST VALLEY WATER DISTRICT Five Year Forecast – FY 2020 through FY 2024 The following financial forecast is presented to provide a general understanding of how long-term goals will affect operating revenue and expenditures over the next five years. FORECAST FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 REVENUE Water Sales / Wastewater Collect $ 20,548,000 $ 21,250,000 $ 21,435,000 $ 21,460,000 $ 21,495,000 Wastewater Treatment 8,665,000 8,665,000 8,665,000 8,736,500 8,823,865 LRP Revenue - - 519,000 1,038,000 1,044,000 Meter Fees 8,980,000 9,005,000 9,030,000 9,055,000 9,080,000 Power Offset, Energy Sales, Tipping Fees - - 2,701,260 6,246,544 6,273,584 Other Operating Charges 673,000 997,000 1,162,080 1,158,482 1,154,911 Investment Income 300,000 150,000 295,500 378,488 565,750 Capacity Fees 407,970 315,360 315,360 315,360 315,360 Other Income 34,000 50,000 50,000 50,000 50,000 TOTAL REVENUE 39,607,970 40,432,360 44,173,200 48,438,374 48,802,470 EXPENDITURES Labor & Benefits 10,841,000 11,229,098 12,352,745 13,044,976 13,405,969 Water Costs 1,067,000 1,067,000 1,067,000 1,067,000 1,067,000 Contracted Wastewater Treatment 8,665,000 8,665,000 4,625,000 - - Power Costs 1,700,000 1,700,000 2,805,000 3,907,520 3,907,520 Materials and Supplies 5,958,000 5,987,790 6,917,729 8,217,945 8,303,798 Contract Services 1,335,000 1,342,384 1,849,812 2,365,847 2,383,450 Other Operating Expenses 403,000 405,552 943,122 1,202,848 1,220,647 Debt Service 4,380,000 4,370,000 3,803,000 7,196,000 10,594,740 Capital Outlay 1,501,000 950,000 950,000 1,650,000 1,650,000 Capital Improvement Program 3,755,000 3,775,000 2,835,000 4,209,000 4,278,000 TOTAL EXPENDITURES 39,605,000 39,491,824 38,148,407 42,861,136 46,811,124 CHANGE IN EQUITY 2,970 940,536 6,024,793 5,577,238 1,991,346 BEGINNING FUND EQUITY 17,472,155 17,475,125 18,415,661 24,440,454 30,017,693 ENDING FUND EQUITY $ 17,475,125 $ 18,415,661 $ 24,440,454 $ 30,017,693 $ 32,009,038 56FISCAL YEAR BUDGET 2019-20 CONSOLIDATEDFINANCIAL SCHEDULE Overview of revenues and other financing sources and expenditures FY 2017-18 Actuals FY 2018-19 Budget FY 2018-19 Projected FY 2019-20 Proposed Amount Changed % Change REVENUES 4100 Water Sales $ 17,063,891 $ 15,100,000 $ 16,342,378 $ 15,900,000 $ 800,000 5% 4200 Meter Charges 9,001,556 8,960,000 8,943,223 8,980,000 20,000 0% 4301 Penalties 490,022 544,000 609,500 560,000 16,000 3% 4400 WW Collection Charges 4,668,923 4,630,000 4,647,667 4,648,000 18,000 0% 4500 WW Treatment Charges 8,697,671 8,233,000 8,666,031 8,665,000 432,000 5% 4605 Other Operating Charges 393,485 121,000 159,500 113,000 (8,000)-7% 4701 Interest Income 221,359 220,000 135,000 300,000 80,000 36% 4703 Energy Incentives/ Rebates - - - - - 4704 Miscellaneous Revenue 42,973 40,000 50,000 34,000 (6,000)-15% TOTAL REVENUES $ 40,579,880 $ 37,848,000 $ 39,553,299 $ 39,200,000 $ 1,352,000 4% Consolidated Financial Summary 57 EAST VALLEY WATER DISTRICT FY 2017-18 Actuals FY 2018-19 Budget FY 2018-19 Projected FY 2019-20 Proposed Amount Changed % Change EXPENSES – OPERATING BY PROGRAM 1000 Governing Board $ 143,374 $ 337,000 $ 337,000 $ 257,000 $ (80,000)-24% 2000 General Administration 1,913,699 1,258,000 1,258,000 1,304,000 46,000 4% 2100 HR/Risk Management 795,726 990,000 990,000 1,024,000 34,000 3% 2200 Public Affairs 799,931 1,142,000 1,142,000 1,440,000 298,000 26% 2300 Conservation 573,864 593,000 1,090,000 589,000 (4,000)-1% 3000 Finance 1,214,112 1,131,000 1,131,000 1,249,000 118,000 10% 3200 Information Technology 1,008,444 1,009,000 1,009,000 932,000 (77,000)-8% 3300 Customer Service 1,710,060 1,786,000 1,786,000 1,615,000 (171,000)-10% 3400 Meter Services 331,014 283,000 283,000 295,000 12,000 4% 4000 Engineering 1,795,489 1,521,000 1,521,000 1,551,000 30,000 2% 5000 Water Production Admin 486,443 494,000 494,000 579,000 85,000 17% 5000-51 Source of Supply 2,082,113 2,791,000 2,791,000 2,994,000 203,000 7% 5000-52 Pumps & Boosters 634,761 727,000 727,000 652,000 (75,000)-10% 5000-54 Trans & Distribution 444,211 366,000 366,000 442,000 76,000 21% 5100 Water Treatment 934,586 848,000 848,000 870,000 22,000 3% 5200 Water Quality 370,852 434,000 434,000 461,000 27,000 6% 6000 Maintenance Admin 328,360 345,000 345,000 435,000 90,000 26% 6100 Water Maintenance 1,986,925 2,204,000 2,204,000 2,317,000 113,000 5% 6200 Wastewater Maintenance 761,667 763,000 763,000 814,000 51,000 7% 6300 Wastewater Treatment (Pass-through) 8,697,671 8,233,000 8,233,000 8,665,000 432,000 5% 7000 Facilities Maintenance 817,061 961,000 961,000 998,000 37,000 4% 7100 Fleet Maintenance 584,168 459,000 509,000 486,000 27,000 6% SUBTOTAL OPERATING EXPENSES 28,414,531 28,675,000 29,222,000 29,969,000 1,294,000 5% EXPENSES – OTHER Debt Service 4,691,477 4,315,000 4,315,000 4,378,000 63,000 1% Capital Outlay 955,888 611,000 611,000 1,095,000 484,000 79% Capital Improvement 4,866,293 4,287,000 4,345,000 3,758,000 (529,000)-12% Transfer to Reserves 1,651,691 - 1,121,299 - - - Transfer from Reserves - (40,000) (61,000) - 40,000 -100% SUBTOTAL OTHER EXPENSES 12,165,349 9,173,000 10,331,299 9,231,000 58,000 1% NET $ - $ - $ - $ - $ - - 58FISCAL YEAR BUDGET 2019-20 FY 2017-18 Actuals FY 2018-19 Budget FY 2018-19 Projected FY 2019-20 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 6,839,132 $ 6,323,600 $ 6,323,000 $ 6,590,000 $ 266,400 4% 5102 Temporary Labor 2,592 - - - - - 5103 Overtime 327,434 352,000 352,000 352,000 - 0% 5104 Standby 37,319 35,000 35,000 35,000 - 0% 5200 Benefits 3,168,613 2,828,000 2,828,000 3,574,000 746,000 26% PERSONNEL TOTAL 10,375,090 9,538,600 9,538,000 10,551,000 1,012,400 11% WATER SUPPLY 6101 Purchased Water 129,977 500,000 500,000 500,000 - 0% 6102 Replenishment 185,060 445,000 445,000 445,000 - 0% 6103 Water Assessment 118,312 122,000 122,000 122,000 - 0% WATER SUPPLY TOTAL 433,349 1,067,000 1,067,000 1,067,000 - 0% OPERATING EXPENSES 6201 Materials & Supplies 578,638 722,000 722,000 765,000 43,000 6% 6202 Tools 26,167 40,000 40,000 53,000 13,000 33% 6203 Office Supplies 24,157 41,000 41,000 42,000 1,000 2% 6204 Chemicals 270,976 350,000 350,000 350,000 - 0% 6205 Conservation Rebates 241,312 200,000 700,000 195,000 (5,000)-3% 6301 Contract Services 2,823,478 2,876,000 2,926,000 2,676,000 (200,000)-7% 6302 Banking Services 278,839 326,000 326,000 326,000 - 0% 6303 Printing & Publishing 92,499 289,000 289,000 327,000 38,000 13% 6304 Legal Services 597,019 256,000 256,000 256,000 - 0% 6305 Treatment Services 8,697,671 8,233,000 8,233,000 8,665,000 432,000 5% 6306 Rents & Leases 17,096 15,000 15,000 15,000 - 0% 6307 Uniforms 64,560 72,000 71,000 91,000 19,000 26% 6308 Billing Services 54,598 52,000 52,000 52,000 - 0% 6309 Shut Off Notice Services 321,681 359,000 359,000 359,000 - 0% 6310 Street Services 317,436 400,000 400,000 325,000 (75,000)-19% 6311 Landscape Services 152,510 145,000 145,000 145,000 - 0% 6312 Janitorial Services $ 82,237 $ 140,000 $ 140,000 $ 134,000 $ (6,000)-4% ITEMIZED EXPENSE SUMMARY 59 EAST VALLEY WATER DISTRICT FY 2017-18 Actuals FY 2018-19 Budget FY 2018-19 Projected FY 2019-20 Proposed Amount Changed % Change 6314 Litigation Services $ - $ 50,000 $ 50,000 $ 50,000 $ - 0% 6401 Utilities 17,935 24,000 24,000 24,000 - 0% 6402 Telephone 92,001 132,000 132,000 152,000 20,000 15% 6403 Electricity 1,841,452 1,820,000 1,820,000 1,820,000 - 0% 6404 Fuel 117,596 125,000 125,000 125,000 - 0% 6405 Permits 180,173 293,000 293,000 293,000 - 0% 6406 Postage 146,966 203,000 203,000 198,000 (5,000)-2% 6501 Memberships 81,746 113,000 113,000 118,000 5,000 4% 6502 Professional Development 110,370 184,000 182,000 200,000 16,000 9% 6503 Education Assistance 12,941 23,000 23,000 11,000 (12,000)-52% 6504 Meetings 25,516 55,400 56,000 48,000 (7,400)-13% 6505 Employee Recognition 18,330 20,000 20,000 25,000 5,000 25% 6701 General Insurance 219,276 210,000 210,000 210,000 - 0% 6702 Insurance Claims 909 10,000 10,000 10,000 - 0% 6703 Cash Over/Short 713 - - - - - 6704 Bad Debt - 1,000 1,000 1,000 6705 OPEB Retirees 99,294 290,000 290,000 290,000 - 0% OPERATING EXPENSES TOTAL 17,606,092 18,069,400 18,617,000 18,351,000 281,600 2% TOTAL EXPENSES $ 28,414,531 $ 28,675,000 $ 29,222,000 $ 29,969,000 $ 1,294,000 5% Operating expenses are identified and accounted for at the Program level. 60FISCAL YEAR BUDGET 2019-20 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. No rate increase was adopted during FY 2018-19 and FY 2019-20 the Board approved the implementation of the final phrase three volumetric rate and no increase to the meter charge. Monthy Meter Charges METER SIZE FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 5/8 in.$ 23.06 $ 23.06 $ 23.06 $ 23.06 3/4 in. 29.27 29.27 29.27 29.27 1 in. 41.71 41.71 41.71 41.71 1.5 in. 72.81 72.81 72.81 72.81 2 in. 110.13 110.13 110.13 110.13 3 in. 228.30 228.30 228.30 228.30 4 in. 402.44 402.44 402.44 402.44 6 in. 819.14 819.14 819.14 819.14 8 in.$ 1,503.25 $ 1,503.25 $ 1,503.25 $ 1,503.25 61 EAST VALLEY WATER DISTRICT Commodity Charges Monthly Fire Line Service Charges COMMODITY RATES FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 Tier 1 $ 1.45 $ 1.73 $ 1.73 $ 1.83 Tier 2 2.07 2.46 2.46 2.61 Tier 3 2.89 3.44 3.44 3.64 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 ―SBVMWD Conservation match funds • 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 62FISCAL YEAR BUDGET 2019-20 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 2019-20 assumptions for revenue projections. The number of accounts does not include fire services. CLASS NO. OF ACCOUNTS TIER 1 TIER 2 TIER 3 TOTAL TOTAL SALES Residential 19,526 5,103 3,228 895 9,226 $ 9,075,000 Multi-Family 463 2,233 852 475 3,560 3,350,000 Commercial 988 1,225 94 147 1,466 1,264,000 Irrigation 275 - 1,194 606 1,800 2,211,000 TOTALS 21,252 8,561 5,368 2,123 16,052 $ 15,900,000 Water Sales (Acre Feet) Single family and multi-family residential customers account for 78% of the District’s water sales. Source of Revenue 58%Water Sales 38%MeterCharges 4%OtherCharges 63 EAST VALLEY WATER DISTRICT METER SIZE NO. OF SERVICES RATE TOTAL 5/8 in. 4,020 $ 23.06 $ 1,113,000 3/4 in. 12,453 29.27 4,374,000 1 in. 4,179 41.71 2,092,000 1.5 in. 270 72.81 236,000 2 in. 292 110.13 386,000 3 in. 62 228.30 180,000 4 in. 22 402.44 110,000 6 in. 12 819.44 120,000 8 in. 11 1,503.28 204,000 Fire Service 1.5 in. 10 13.18 2,000 Fire Service 4 in. 50 35.14 21,000 Fire Service 6 in. 125 52.70 75,000 Fire Service 8 in. 55 70.27 51,000 Fire Service 10 in. 15 87.84 16,000 TOTALS 21,576 $ 8,980,000 Water Sales (Acre Feet) 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 2019- 20. The amount of water produced is more than the amount of water sold to account for normal system water loss. The District is continuing to focus effort towards the Conservation Program which 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. 64FISCAL YEAR BUDGET 2019-20 SOURCE OF SUPPLY FY 2016-17 Actual FY 2017-18 Actual FY 2017-18 Actual FY 2018-19 Projected FY 2019-20 Budgeted Ground Water 16,164 12,928 13,315 12,649 13,485 Surface Water 2,330 3,913 3,700 3,515 0 Purchased 174 606 800 800 3,371 TOTALS 18,668 17,447 17,815 16,964 16,856 Water Production (Acre Feet) Water Fund Expenses by Cost Center 31%Administration 16%DebtService < 1%ReserveContribution 3%Pump &Boosters 4%Treatment 6%CustomerService 16%CapitalExpenditure 12%Source ofSupply 12%Transmission &Distribution 65 EAST VALLEY WATER DISTRICT FY 2017-18 Actuals FY 2018-19 Budget FY 2018-19 Projected FY 2019-20 Proposed Amount Changed % Change REVENUES 4100 Water Sales $ 17,063,891 $ 15,100,000 $ 16,342,378 $ 15,900,000 $ 800,000 5% 4200 Meter Charges 9,001,556 8,960,000 8,943,223 8,980,000 20,000 0% 4301 Penalties 85,340 380,000 145,000 360,000 (20,000)-5% 4303 Disconnect Notice Charge 352,184 - 300,500 - - - 4605 Other Operating Charges 380,387 93,000 131,500 111,000 18,000 19% 4701 Interest Income 178,534 160,000 75,000 250,000 90,000 56% 4703 Energy Incentives/ Rebates - - - - - - 4704 Miscellaneous Revenue 42,973 40,000 50,000 34,000 (6,000)-15% TOTAL REVENUES 27,104,865 24,733,000 25,987,601 25,635,000 902,000 4% OPERATING EXPENSES SOURCE OF SUPPLY/WELLS 5101 Regular Labor 271,702 261,000 261,000 284,000 23,000 9% 5103 Overtime 21,325 32,000 32,000 32,000 - 0% 5200 Benefits 97,055 110,000 110,000 152,000 42,000 38% 6101 Purchased Water 129,977 500,000 500,000 500,000 - 0% 6102 Groundwater Replenishment 185,060 445,000 445,000 445,000 - 0% 6103 Water Assessment 118,312 122,000 122,000 122,000 - 0% 6201 Materials & Supplies 41,770 61,000 61,000 61,000 - 0% 6204 Chemicals 91,715 150,000 150,000 150,000 - 0% 6301 Contract Services 113,015 271,000 271,000 276,000 5,000 2% 6311 Landscape Services 68,813 40,000 40,000 40,000 - 0% 6402 Telephone 609 - - - - - 6403 Electricity 1,153,848 1,000,000 1,000,000 1,150,000 150,000 15% 6405 Permits 52,243 100,000 100,000 100,000 - 0% 6504 Meetings 265 1,000 1,000 1,000 - 0% SOURCE OF SUPPLY TOTAL 2,345,709 3,093,000 3,093,000 3,313,000 220,000 7% PUMPS & BOOSTERS 5101 Regular Labor 87,527 86,000 86,000 95,000 9,000 10% 5103 Overtime 5,980 10,000 10,000 10,000 - 0% 5200 Benefits 27,827 36,000 36,000 52,000 16,000 44% 6201 Materials & Supplies 9,015 23,000 23,000 23,000 - 0% 6301 Contract Services $ 37,669 $ 81,000 $ 81,000 $ 81,000 $ - 0% FY 2019-20 Water Fund Proposed Budget 66FISCAL YEAR BUDGET 2019-20 FY 2017-18 Actuals FY 2018-19 Budget FY 2018-19 Projected FY 2019-20 Proposed Amount Changed % Change 6311 Landscape Services $ - $ 35,000 $ 35,000 $ 35,000 $ - 0% 6403 Electricity 479,004 500,000 500,000 400,000 (100,000)-20% PUMPS & BOOSTERS TOTAL 647,022 771,000 771,000 696,000 (75,000)-10% TREATMENT 5101 Regular Labor 266,986 214,000 214,000 242,000 28,000 13% 5103 Overtime 28,187 25,000 25,000 25,000 - 0% 5200 Benefits 109,641 95,000 95,000 139,000 44,000 46% 6201 Materials & Supplies 20,347 23,000 23,000 23,000 - 0% 6204 Chemicals 105,185 150,000 150,000 150,000 - 0% 6301 Contract Services 284,277 249,000 249,000 249,000 - 0% 6301 Uniforms - 2,000 2,000 2,000 - 0% 6311 Landscape Services 21,451 14,000 14,000 14,000 - 0% 6401 Utilities 1,318 10,000 10,000 10,000 - 0% 6402 Telephone 10,577 - - - - - 6403 Electricity 116,874 200,000 200,000 150,000 (50,000)-25% 6405 Permits - - - - - - TREATMENT TOTAL 964,843 982,000 982,000 1,004,000 22,000 2% TRANSMISSION & DISTRIBUTION 5101 Regular Labor 1,057,910 1,172,000 1,172,000 1,229,000 57,000 5% 5103 Overtime 163,921 163,000 163,000 163,000 - 0% 5200 Benefits 619,894 560,000 560,000 681,000 121,000 22% 6201 Materials & Supplies 201,423 240,000 240,000 305,000 65,000 27% 6202 Tools 16,123 16,000 16,000 26,000 10,000 63% 6204 Chemicals 74,076 50,000 50,000 50,000 - 0% 6301 Contract Services 94,558 124,000 124,000 125,000 1,000 1% 6307 Uniforms 22,104 20,000 20,000 40,000 20,000 100% 6310 Street Services 317,436 400,000 400,000 325,000 (75,000)-19% 6405 Permits 39,590 - - - - - 6406 Postage 1,203 2,000 2,000 2,000 - 0% 6502 Professional Development - - - 2,000 2,000 0% 6503 Education Assistance - 5,000 5,000 3,000 (2,000)0% 6504 Meetings - - - - - - TRANS & DIST TOTAL 2,608,238 2,752,000 2,752,000 2,951,000 199,000 7% CUSTOMER SERVICE 5101 Regular Labor 544,932 511,200 511,200 427,800 (83,400)-16% 5102 Temporary Labor - - - - - - 5103 Overtime $ 8,239 $ 13,500 $ 13,500 $ 13,500 $ - 0% 67 EAST VALLEY WATER DISTRICT FY 2017-18 Actuals FY 2018-19 Budget FY 2018-19 Projected FY 2019-20 Proposed Amount Changed % Change 5200 Benefits $ 328,643 $ 259,900 $ 259,900 $ 230,000 $ (29,900)-12% 6201 Materials & Supplies 4,287 5,500 5,500 5,500 - 0% 6202 Tools 1,301 3,000 3,000 3,000 - 0% 6203 Office Supplies 1,657 2,100 2,100 2,800 700 33% 6301 Contract Services 97,243 95,300 95,300 98,800 3,500 4% 6302 Banking Services 185,420 214,200 214,200 214,200 - 0% 6303 Printing & Publishing 2,641 7,000 7,000 7,000 - 0% 6304 Legal Services - 3,500 3,500 3,500 - 0% 6306 Rents & Leases - - - - - - 6307 Uniforms 8,118 5,800 5,800 5,800 - 0% 6308 Billing Services 38,219 36,400 36,400 36,400 - 0% 6309 Shut Off Notice Services 321,681 359,000 359,000 359,000 - 0% 6402 Telephone 4,599 6,200 6,200 5,600 (600)-10% 6406 Postage 89,043 107,100 107,100 107,100 - 0% 6502 Membership & Dues - - - 1,400 1,400 - 6502 Professional Development 5,472 9,800 9,800 9,800 - 0% 6503 Education Assistance - - - - - - 6504 Meetings 326 1,400 2,000 2,000 600 43% 6703 Cash Over/Short 499 - - - - - CUSTOMER SERVICE TOTAL 1,642,320 1,640,900 1,641,500 1,533,200 (107,700)-7% ADMINISTRATION 5101 Regular Labor 3,002,403 2,619,100 2,846,800 2,936,500 317,400 12% 5102 Temporary Labor 1,814 - - - - - 5103 Overtime 46,098 47,800 44,600 49,950 2,150 4% 5104 Standby 30,570 33,000 29,000 33,000 - 0% 5200 Benefits 1,278,322 1,120,300 1,329,700 1,566,150 445,850 40% 6201 Materials & Supplies 174,757 212,200 243,400 236,000 23,800 11% 6202 Tools 3,680 13,100 12,700 15,900 2,800 21% 6203 Office Supplies 16,889 28,900 28,700 29,500 600 2% 6205 Conservation Rebates 241,312 200,000 700,000 195,000 (5,000)-3% 6301 Contract Services 1,426,676 1,305,100 1,364,500 1,188,650 (116,450)-9% 6302 Banking Services 9,767 14,000 14,000 14,000 - 0% 6303 Printing & Publishing 70,737 191,500 225,300 254,900 63,400 33% 6304 Legal Services 423,090 175,000 226,000 176,000 1,000 1% 6306 Rents & Leases 11,967 10,500 10,500 11,250 750 7% 6307 Uniforms $ 24,310 $ 32,100 $ 31,500 $ 31,850 $ (250)-1% 68FISCAL YEAR BUDGET 2019-20 FY 2017-18 Actuals FY 2018-19 Budget FY 2018-19 Projected FY 2019-20 Proposed Amount Changed % Change 6311 Landscape Services $ 43,572 $ 39,200 $ 39,200 $ 42,000 $ 2,800 7% 6312 Janitorial Services 57,566 96,400 100,400 100,400 4,000 4% 6314 Litigation Services - 35,000 35,000 35,000 - 6401 Utilities 11,632 9,800 9,800 10,500 700 7% 6402 Telephone 55,131 95,400 91,600 117,500 22,100 23% 6403 Electricity 64,208 84,000 84,000 90,000 6,000 7% 6404 Fuel 82,317 112,500 87,500 112,500 - 0% 6405 Permits 61,838 135,100 135,100 135,100 - 0% 6406 Postage 13,680 34,600 39,600 36,100 1,500 4% 6501 Memberships & Dues 57,950 80,600 80,600 84,900 4,300 5% 6502 Professional Development 74,187 121,200 119,400 135,550 14,350 12% 6503 Education Assistance 9,059 12,500 14,100 5,600 (6,900)-55% 6504 Meetings 17,617 35,100 37,700 32,500 (2,600)-7% 6505 Employee Recognition 12,831 14,000 14,000 17,500 3,500 25% 6701 General Insurance 153,493 147,000 147,000 147,000 - 0% 6702 Insurance Claims 636 7,000 7,000 7,000 - 0% 6704 Bad Debt - 1,000 700 1,000 - 0% 6705 OPEB Retirees 69,506 203,000 203,000 203,000 - 0% ADMINISTRATION TOTAL 7,547,615 7,266,000 8,352,400 8,051,800 785,800 11% TOTAL OPERATING EXPENSES 15,755,747 16,504,900 17,591,900 17,549,000 1,044,100 6% OTHER USES 7101 Debt Principal 2,612,462 2,496,000 2,496,000 2,565,000 69,000 3% 7102 Debt Interest 1,777,852 1,550,000 1,550,000 1,501,000 (49,000)-3% 7500 Reserve Contribution - 74,000 74,000 - (74,000)-100% 8101 Capital Outlay 946,198 931,000 931,000 895,000 (36,000)-4% 8999 Capital Improvement Program 3,837,861 3,175,000 3,175,000 3,125,000 (50,000)-2% TOTAL OTHER USES 9,174,373 8,226,000 8,226,000 8,086,000 (140,000)-2% SUMMARY Total Revenue 27,104,865 24,733,000 25,987,601 25,635,000 902,000 4% Total Operating Expenses 15,755,747 16,504,900 17,591,900 17,549,000 1,044,100 6% Total Other Expenses 9,174,373 8,226,000 8,226,000 8,086,000 (140,000)-2% NET $ 2,174,745 $ 2,100 $ 169,701 $ - $ (2,100)0% 69 EAST VALLEY WATER DISTRICT Water Fund Revenues Vs. Expenses The District produces more than 16 million gallons of water daily through 293 miles of water distribution pipeline. $5M $10M $15M $20M $25M FY 2014-15ActualFY 2013-14Actual FY 2015-16Actual FY 2016-17Actual FY 2017-18Actual FY 2018-19Projected FY 2019-20Budgeted Operating Expenses Revenues $10,997,073 $20,385,046 $23,120,539 $19,879,330 $24,587,776 $27,104,865 $25,889,378 $25,635,000 $12,275,670 $12,915,690 $14,532,530 $16,367,600 $16,507,000 $17,549,000 70FISCAL YEAR BUDGET 2019-20 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 identifying 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. CUSTOMER CLASS NUMBER OF SERVICES COLLECTION CHARGE TREATMENT CHARGE TOTAL MONTHLY CHARGE Residential Customer 19,405 $15.36 $21.55 $36.91 COMMERCIAL CUSTOMER EVWD SYSTEM COLLECTION CHARGE CITY OF SAN BERNARDINO TREATMENT CHARGE EVWD Commercial Charge $ 3.90 Multi-Family (4+ Units), Mobile HP $ 1.97 Non-Residential Customer Classes $ 3.52 RESIDENTIAL WASTEWATER RATES RESIDENTIAL WASTEWATER RATES 71 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.Those revenues will be remitted to the City of San Bernardino, therefore having no impact on District Operations. Volumetric Rates CUSTOMER TYPE EVWD SYSTEMCOLLECTION CHARGE $/HCF CITY OF SAN BERNARDINO TREATMENT CHARGE $/HCF 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 Source of Revenue 64%WastewaterTreatmentCharges 34%WastewaterCollectionCharges 2%Other Charges 72FISCAL YEAR BUDGET 2019-20 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 video monitoring 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 SNRC, 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 Governing Board on a quarterly basis. Wastewater Fund Expenses by Cost Center 64%Treatment 19%Administration 6%Transmission &Distribution 3%CustomerService 6%CapitalExpenditure < 1%ReserveContribution2%Debt Service 73 EAST VALLEY WATER DISTRICT FY 2018-19 Wastewater Fund Proposed Budget FY 2017-18 Actuals FY 2018-19 Budget FY 2018-19 Projected FY 2019-20 Proposed Amount Changed % Change REVENUES 4301 Late Payment Fee $ 52,498 $ 164,000 $ 164,000 $ 200,000 $ 36,000 22% 4400 Wastewater Collection Charges 4,668,923 4,630,000 4,647,667 4,648,000 18,000 0% 4500 Wastewater Treatment Charges 8,697,671 8,233,000 8,666,031 8,665,000 432,000 5% 4605 Other Operating Charge 13,098 28,000 28,000 2,000 (26,000)-93% 4701 Interest Income 42,825 60,000 60,000 50,000 (10,000)-17% TOTAL REVENUES 13,475,015 13,115,000 13,565,698 13,565,000 450,000 3% OPERATING EXPENSES TREATMENT 6305 Treatment Services 8,697,671 8,233,000 8,233,000 8,665,000 432,000 5% TREATMENT TOTAL 8,697,671 8,233,000 8,233,000 8,665,000 432,000 5% TRANSMISSION & DISTRIBUTION 5101 Regular Labor 310,936 290,000 290,000 313,000 23,000 8% 5103 Overtime 33,650 45,000 45,000 45,000 - 0% 5200 Benefits 134,453 146,000 146,000 173,000 27,000 18% 6201 Materials & Supplies 53,945 31,000 31,000 31,000 - 0% 6202 Tools 3,369 5,000 5,000 5,000 - 0% 6301 Contract Services 223,124 243,000 243,000 243,000 - 0% 6307 Uniforms 2,190 3,000 3,000 4,000 1,000 33% TRANS & DIST TOTAL 761,667 763,000 763,000 814,000 51,000 7% CUSTOMER SERVICE 5101 Regular Labor $ 147,421 $ 142,800 $ 142,800 $ 103,200 $ (39,600)-28% 5102 Temporary Labor - - - - - - 5103 Overtime 1,608 1,500 1,500 1,500 - 0% 5200 Benefits 90,190 77,100 77,100 63,000 (14,100)-18% 6201 Materials & Supplies 1,611 1,500 1,500 1,500 - 0% 6202 Tools - - - - - - 6203 Office Supplies 710 900 900 1,200 300 33% 6301 Contract Services 41,639 38,700 38,700 40,200 1,500 4% 6302 Banking Services 79,466 91,800 91,800 91,800 - 0% 6303 Printing & Publishing 1,132 3,000 3,000 3,000 - 0% 6304 Legal Services - 1,500 1,500 1,500 - 0% 6306 Rents & Leases - - - - - - 6307 Uniforms $ 1,527 $ 1,200 $ 1,200 $ 1,200 $ - 0% 74FISCAL YEAR BUDGET 2019-20 FY 2017-18 Actuals FY 2018-19 Budget FY 2018-19 Projected FY 2019-20 Proposed Amount Changed % Change 6308 Billing Services $ 16,379 $ 15,600 $ 15,600 $ 15,600 $ - 0% 6402 Telephone 1,580 1,800 1,800 2,400 600 33% 6406 Postage 38,161 45,900 45,900 45,900 - 0% 6501 Membership & Dues - - - 600 600 - 6502 Professional Development 2,345 4,200 4,200 4,200 - 0% 6503 Education Assistance - - - - - - 6703 Cash Over/Short 214 - - - - - CUSTOMER SERVICE TOTAL 423,983 427,500 427,500 376,800 (50,700)-12% ADMINISTRATION 5101 Regular Labor 1,149,315 1,027,500 799,200 959,500 (68,000)-7% 5102 Temporary Labor 778 - - - - - 5103 Overtime 18,426 14,200 17,400 12,050 (2,150)-15% 5104 Standby 6,749 2,000 6,000 2,000 - 0% 5200 Benefits 482,588 423,700 214,300 517,850 94,150 22% 6201 Materials & Supplies 71,483 124,800 93,600 79,000 (45,800)-37% 6202 Tools 1,694 2,900 3,300 3,100 200 7% 6203 Office Supplies 4,901 9,100 9,300 8,500 (600)-7% 6301 Contract Services 505,277 468,900 459,500 374,350 (94,550)-20% 6302 Banking Services 4,186 6,000 6,000 6,000 - 0% 6303 Printing & Publishing 17,989 87,500 53,700 62,100 (25,400)-29% 6304 Legal Services 173,929 76,000 25,000 75,000 (1,000)-1% 6306 Rents & Leases 5,129 4,500 4,500 3,750 (750)-17% 6307 Uniforms 6,311 7,900 7,500 6,150 (1,750)-22% 6311 Landscape Services 18,674 16,800 16,800 14,000 (2,800)-17% 6312 Janitorial Services 24,671 43,600 39,600 33,600 (10,000)-23% 6314 Litigation Services - 15,000 15,000 15,000 - 0% 6401 Utilities 4,985 4,200 4,200 3,500 (700)-17% 6402 Telephone 19,505 28,600 32,400 26,500 (2,100)-7% 6403 Electricity 27,518 36,000 36,000 30,000 (6,000)-17% 6404 Fuel 35,279 12,500 37,500 12,500 - 0% 6405 Permits 26,502 57,900 57,900 57,900 - 0% 6406 Postage 4,879 13,400 8,400 6,900 (6,500)-49% 6501 Memberships & Dues 23,796 32,400 32,400 31,100 (1,300)-4% 6502 Professional Development 28,366 48,800 48,600 48,450 (350)-1% 6503 Education Assistance 3,882 5,500 3,900 2,400 (3,100)-56% 6504 Meetings $ 7,308 $ 17,900 $ 15,300 $ 12,500 $ (5,400)-30% 75 EAST VALLEY WATER DISTRICT FY 2017-18 Actuals FY 2018-19 Budget FY 2018-19 Projected FY 2019-20 Proposed Amount Changed % Change 6505 Employee Recognition $ 5,499 $ 6,000 $ 6,000 $ 7,500 $ 1,500 25% 6701 General Insurance 65,783 63,000 63,000 63,000 - 0% 6702 Insurance Claims 273 3,000 3,000 3,000 - 0% 6702 Bad Debt Expense - - 300 - 6705 OPEB Retirees 29,788 87,000 87,000 87,000 - 0% ADMINISTRATION TOTAL 2,775,463 2,746,600 2,206,600 2,564,200 (182,400)-7% TOTAL OPERATING EXPENSES 12,658,784 12,170,100 11,630,100 12,420,000 249,900 2% OTHER USES 7101 Debt Principal 102,958 95,000 95,000 100,000 5,000 5% 7102 Debt Interest 198,205 222,000 222,000 212,000 (10,000)-5% 7500 Reserve Contribution (523,053) 347,900 471,848 - (347,900)-100% 8101 Capital Outlay 9,690 70,000 315,750 633,000 130,000 186% 8999 Capital Improvement Program 1,028,431 210,000 831,000 200,000 423,000 201% TOTAL OTHER USES 816,231 944,900 1,935,598 1,145,000 200,100 21% SUMMARY Total Revenue 13,475,015 13,115,000 13,565,698 13,565,000 450,000 3% Total Operating Expenses 12,658,784 12,170,100 11,630,100 12,420,000 249,900 2% Total Other Expenses 816,231 944,900 1,935,598 1,145,000 200,100 21% Transfer from Reserves - - - - - - NET $ - $ -$ -$ -$ -0% 76FISCAL YEAR BUDGET 2019-20 Wastewater Fund Revenues Vs. Expenses $2M $4M $6M $8M $10M $12M $14M FY 2014-15Actual FY 2015-16Actual FY 2016-17Actual FY 2017-18Actual FY 2018-19Projected Operating Expenses FY 2019-20Budgeted Revenues $11,974,364 $10,460,073 $11,572,011 $10,237,972 $11,686,882 $11,944,266 $13,361,606 $13,565,000 $10,164,210 $11,699,046 $12,170,100 $12,419,300 77 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY 78FISCAL YEAR BUDGET 2019-20 PROGRAMSUMMARIES Comprehensive information for each functional program within the Distrtict Program 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 five-year work plan, and with District- wide (agency) goals for the upcoming fiscal year. 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 over time. 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 2019-20 Budget is organized into the following summary programs: • Governing Board • General Administration • Human Resources • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Service • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance 79 EAST VALLEY WATER DISTRICT • 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 during FY 2018-19, or are being proposed for FY 2019-20 and explain the shifts in staff numbers between departments: • The Customer Service Supervisor position was vacated due to retirement, and a Senior Customer Service Representative transferred to the Finance department; billing responsibilities were also transferred to Finance. Neither of these two full-time positions in Customer Service have been filled, rather two part time employees have been hired to assist with customer calls and payment processing. Management will assess the organization and staffing needs of the department with particular attention to the fact that a second Customer Service counter will be opened at the Sterling Natural Resource Center upon its completion in FY 2021-22 • A full-time manager was added in Public Affairs. The table below summarizes the number of full-time personnel by Program. All authorized positions are funded in the proposed budget for FY 2019-20. Full Time Staffing Summary By Program DEPARTMENT 2017-18 ACTUAL 2018-19 ACTUAL 2019-20 PROPOSED 2000 General Administration 3 3 3 2100 Human Resources 2 2 2 2200 Public Affairs 2.5 4 5 2300 Conservation 1.5 1 1 3000 Finance & Accounting 7 6 6 3200 Information Technology 3 3 3 3300 Customer Service 7 7 5 3400 Meter Services 4 4 3 4000 Engineering 8 6 6 5000 Water Production 7 7 7 5100 Water Treatment 2 2 2 5200 Water Quality 2 2 2 6100 Water Maintenance 12 14 15 6200 Wastewater Maintenance 4 4 4 7000 Facilities Maintenance 1 2 2 7100 Fleet Maintenance 2 1 1 TOTAL 68 68 67 80FISCAL YEAR BUDGET 2019-20 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 65 66 FY 2020 6767 69 68 68 Total Authorized Positions 81 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY 82FISCAL YEAR BUDGET 2019-20 FUNCTION The Governing Board is the legislative body of the organization. Comprised of five members elected at-large to four-year staggered terms of office. Board members are responsible for 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. goals and objectives GOAL ONE Provide Organizational Direction and Set Expectations Through Policy Decisions OBJECTIVES 1. Conduct General Manager/CEO annual evaluation, including establishment of FY 2019-20 Goals. 2. Consider actions related to the North Fork Water Company consolidation. 3. Conduct Board Member evaluations and establish Board leadership positions. GOAL TWO Address Policy Related Decisions related to the Sterling Natural Resource Center (SNRC) OBJECTIVES 1. Consider agenda items related to on-going construction of the SNRC 2. Evaluate staffing plan and program proposals related to the operation of the SNRC. 3. Participate in activities that encourage community engagement for the SNRC. GOAL THREE Make Financial Decisions that Result in Stability and Understanding Operational Complexities OBJECTIVES 1. Evaluate and consider agenda items related to water/ wastewater rate studies. 2. Support development of a resource list for the implementation of the 5-Year Work Plan. 3. Consider a Memorandum of Understanding with the East Valley Water District Employee Partnership. GOVERNING BOARD 83 EAST VALLEY WATER DISTRICT FY 2018-19 ACCOMPLISHMENTS Goal 1 – Provide Organizational Direction and Set Expectations Through Policy Decisions -Approved a District 5-Year Work Plan -Conducted General Manager/CEO annual evaluation, including establishment of FY 2019- 20 Goals -Reviewed and Updated the Board of Directors’ Handbook and Policies Goal 2 – Addressed Policy Related Decisions to Construct the Sterling Natural Resource Center (SNRC) -Updated Reimbursement Resolution related to State funding for SNRC, approved contracts for Material Testing an Inspection Services, Program Management Services, and approved contract with labor compliance firm to ensure grant compliance -Approved Guaranteed Maximum Price for design and construction and Selected Design-Build firm -Participated in community Groundbreaking Ceremony for the SNRC Goal 3 – Participate in Activities to Promote Community Engagement and Increase Board Qualifications -Coordinated with the San Bernardino County Registrar of Voters for 2018 elections -Updated and posted all required election information at headquarters office and District website -Attended local and statewide professional development conferences and participated in ongoing communication training OTHER ACCOMPLISHMENTS • Received the Districts of Distinction Gold Accreditation from the Special District Leadership Foundation SIGNIFICANT CHANGES • Changed election year cycle in compliance with the Voter Rights Act, which resulted in a cost savings of $88,000 Program Budget Allocation $257,000 83 EAST VALLEY WATER DISTRICT 84FISCAL YEAR BUDGET 2019-20 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 On-going Professional Development (I-B) • Provide Quality Information to Encourage Community Engagement (II-D) • Strengthen Regional, State and National Partnerships (I-C) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2016-17 FY 2017-18 FY 2018-19 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-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 160 150 150 217 PROGRAM BUDGET DETAIL FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 81,025 $ 105,000 $ 105,000 $ 105,000 $ - 0% 5200 Benefits 33,372 65,000 65,000 85,000 20,000 31% OPERATING EXPENSES 6201 Materials & Supplies 963 1,000 1,000 1,000 - 0% 6301 Contract Services 7,500 110,000 110,000 10,000 (100,000)-91% 6307 Uniforms 472 1,000 1,000 1,000 - 0% 6502 Professional Development 20,042 55,000 55,000 55,000 - 0% GOVERNING BOARD TOTAL $ 143,374 $ 337,000 $ 337,000 $ 257,000 $ (80,000)-24% 85 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY 86FISCAL YEAR BUDGET 2019-20 GENERAL ADMINISTRATION FUNCTION 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. goals and objectives GOAL ONE Complete the Consolidation of the North Fork Water Company OBJECTIVES 1. Acquire remaining shares of the North Fork Water Company. 2. Coordinate with legal counsel to define the terms of potable water service delivery to shareholders currently receiving North Fork and/or Bear Valley deliveries. 3. Coordinate with legal counsel to create a successor corporation as part of the short merger process. GOAL TWO Continue Leading Efforts to Ensure Viability of the Community Heritage and Education Foundation (CHEF) OBJECTIVES 1. Complete the preliminary design of the Community Heritage Education Foundation Building. 2. Develop a fundraising plan and financial goals. 3. Begin implementation of the fundraising plan. GOAL THREE Utilize the Intranet for Communication with Board of Directors OBJECTIVES 1. Create Board member portal/intranet web page. 2. Populate web page with forms, Board calendar and other informational items. 3. Provide Board training and support to encourage utilization of Board page. 87 EAST VALLEY WATER DISTRICT FY 2018-19 ACCOMPLISHMENTS Goal 1 – Acquire Shares of the North Fork Water Company Not Currently Owned by the District -Sent offer to purchase letters to shareholders not currently receiving water deliveries -Coordinated with legal counsel to develop agreement to define the terms of potable water service delivery to shareholders currently receiving North Fork deliveries Goal 2 – Coordinate the Establishment of a Non- Profit Foundation -Approved Vision/Strategic Plan for the Community Heritage and Education Foundation -Adopted Articles of Incorporation, Bylaws and appointed a Public Committee -Approved Architectural and Engineering Contract to develop a site plan, construction budget, marketing material, and determine a fundraising budget Goal 3 – Implement a Districtwide Records Retention Program -Approved revised Records Retention Policy and Schedules -Created document input plan to identify records that need to be transferred into the District’s electronic document repository -Constructed document destruction in accordance with the adopted Records Retention Policy OTHER ACCOMPLISHMENTS • Received the District Transparency Certificate of Excellence and the Districts of Distinction Accreditation from the Special District’s Leadership Foundation • Conducted six Board Orientations for the 2018 Board of Director elections • Continued support for the Adopt-a-School Program partnership with San Bernardino City Unified School District SIGNIFICANT CHANGES • CHEF has been included in the fiscal year 2019-20 budget as allowed by the reimbursement agreement approved by the Governing Board Program Budget Allocation $1,304,000 87 EAST VALLEY WATER DISTRICT 88FISCAL YEAR BUDGET 2019-20 LEVELS OF SERVICE The 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) • Maximize Internal Capabilities through Ongoing Professional Development (I-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 2016-17 FY 2017-18 FY 2018-19 II-A Make administrative documents available on-line 50 -10 61 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 3,083 II-B Encourage user subscriptions to receive electronic agenda notifications 220 113 120 120 PROGRAM BUDGET DETAIL FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 553,605 $ 507,000 $ 507,000 $ 520,000 $ 13,000 3% 5103 Overtime 2,508 3,000 3,000 3,000 - 0% 5200 Benefits 296,447 270,000 270,000 321,000 51,000 19% OPERATING EXPENSES 6201 Materials & Supplies 2,130 4,000 4,000 2,000 (2,000)-50% 6203 Office Supplies 2,775 4,000 4,000 4,000 - 0% 6301 Contract Services 227,386 182,000 182,000 162,000 (20,000)-11% 6303 Printing & Publishing 3,050 2,000 2,000 1,000 (1,000)-50% 6304 Legal Services 523,949 125,000 125,000 125,000 - 0% 6307 Uniforms (81) 1,000 1,000 1,000 - 0% 6314 Litigation Services 212,505 50,000 50,000 50,000 - 0% 6402 Telephone 4,622 3,000 3,000 3,000 - 0% 6406 Postage 97 - - - - 0% 6501 Membership & Dues $ 58,772 $ 77,000 $ 77,000 $ 77,000 $ - 0% GENERAL ADMIN TOTAL $ 1,913,699 $ 1,258,000 $ 1,258,000 $ 1,304,000 $ 46,000 4% 88 EAST VALLEY WATER DISTRICT 89 EAST VALLEY WATER DISTRICT FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change 6502 Professional Development $ 15,484 $ 20,000 $ 20,000 $ 20,000 $ - 0% 6503 Education Assistance - - - - - 0% 6504 Meetings 10,452 10,000 10,000 15,000 5,000 50% GENERAL ADMIN TOTAL $ 1,913,699 $ 1,258,000 $ 1,258,000 $ 1,304,000 $ 46,000 4% 90FISCAL YEAR BUDGET 2019-20 HUMAN RESOURCES FUNCTION 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. goals and objectives GOAL ONE Initiate Programs in Support of the SNRC Workforce and Community 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. Enhance educational partnerships to promote water / wastewater utility education pathways and technical education. GOAL TWO Promote a Positive Organizational Culture that Maintains a Supportive and Encouraging Work Environment OBJECTIVES 1. Update the District’s Succession Plan to support the 5-Year Plan. 2. Develop pre-retirement transition plans (knowledge transfer plans) for key positions. 3. Meet with staff members to facilitate career development planning. GOAL THREE Negotiate a Three-Year MOU that considers both Long- term Financial Commitments and Employee Morale OBJECTIVES 1. Engage in negotiation meetings with East Valley Water District Employee Partnership (EVWDEP) 2. Prepare for a District-Wide Total Compensation survey 3. Review and Update the District’s Compensation Program. 4. Present to BOD for adoption 91 EAST VALLEY WATER DISTRICT FY 2018-19 ACCOMPLISHMENTS Goal 1 – Promote a Positive Organizational Culture that Maintains a Supportive and Encouraging Work -Conducted annual employee engagement surveys and created/implemented an action plan to address results from the surveys and focus group meetings. -Facilitated quarterly activities that supported engagement and empowerment of employees. -Received a Top Workplace in the Inland Empire award from the Inland News Group in the Small Company Category for the fourth consecutive year. -Maintained non-retirement turnover of less than 7%. Goal 2 – Promote Community Involvement and Provide Work Experience Opportunities -Launched the District’s Volunteer Program including an applicant tracking method. -Had seven applicants participating in the Volunteer Program. -Created partnerships with local educational institutions to work on future water and wastewater pathways for students. OTHER ACCOMPLISHMENTS • Conducted a successful Senior Engineer recruitment. • Hired five EVWD team members. • Processed six internal promotions. • Enhanced staff supplemental insurance and flexible spending account program by partnering with American Fidelity for the administration of benefits. SIGNIFICANT CHANGES • Contract Services has decreased due to program changes and a focus on educational partnerships. Program Budget Allocation $1,024,000 91 EAST VALLEY WATER DISTRICT 92FISCAL YEAR BUDGET 2019-20 LEVELS OF SERVICE The Human Resources Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • 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 2016-17 FY 2017-18 FY 2018-19 I-D Percentage of annual non-retirement employee turnover <7%1.49%3%3% I-D Annual performance appraisals completed in a timely manner 95%99%100%100% II-D Enrollment in District volunteer program 5 0 0 7 III-C Maintain high level of employee participation in annual employee engagement survey 90%93%94%96% III-D Utilization rate of District’s Employee Assistance Program >10%21%7%19.72% PROGRAM BUDGET DETAIL FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 234,488 $ 224,000 $ 224,000 $ 230,000 $ 6,000 3% 5102 Temporary Labor 2,592 - - - - 0% 5103 Overtime 2,058 3,000 3,000 3,000 - 0% 5200 Benefits 115,799 104,000 104,000 137,000 33,000 32% OPERATING EXPENSES 6201 Materials & Supplies 2,134 15,000 15,000 8,000 (7,000)-47% 6203 Office Supplies 1,760 2,000 2,000 2,000 - 0% 6301 Contract Services 64,340 70,000 70,000 67,000 (3,000)-4% 6303 Printing & Publishing 30 1,000 1,000 1,000 - 0% 6304 Legal Services 15,307 20,000 20,000 20,000 - 0% 6406 Postage 72 1,000 1,000 1,000 - 0% 6501 Membership & Dues 4,261 4,000 4,000 5,000 1,000 25% 6502 Professional Development $ 9,129 $ 11,000 $ 11,000 $ 10,000 $ (1,000)-9% HUMAN RESOURCES TOTAL $ 795,726 $ 990,000 $ 990,000 $ 1,024,000 $ 34,000 3% 93 EAST VALLEY WATER DISTRICT FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change 6504 Meetings $ 5,947 $ 5,000 $ 5,000 $ 5,000 $ - 0% 6505 Employee Recognition 18,330 20,000 20,000 25,000 5,000 25% 6701 General Insurance 219,276 210,000 210,000 210,000 - 0% 6702 Insurance Claims 909 10,000 10,000 10,000 - 0% 6705 Retiree Benefits 99,294 290,000 290,000 290,000 - 0% HUMAN RESOURCES TOTAL $ 795,726 $ 990,000 $ 990,000 $ 1,024,000 $ 34,000 3% 94FISCAL YEAR BUDGET 2019-20 PUBLIC AFFAIRS FUNCTION Public Affairs oversees internal and external communication programs consistent with the District’s vision. Through media, community and governmental relations, the District is able to provide effective communications to various stakeholders. goals and objectives GOAL ONE Work with Project Partners to Advance the Construction of the SNRC OBJECTIVES 1. Create outreach materials and events to promote the construction status and future programs of the SNRC. 2. Coordinate with outside Government agencies for necessary approvals and review of relevant subject matter relating to the SNRC. 3. Oversee construction of the Administration Center within allocated scope of the Guaranteed Maximum Price (GMP). GOAL TWO Develop Communication Methods that Enhance the District’s Brand OBJECTIVES 1. Develop Proposition 218 notice and outreach campaign to inform customers of proposed rate changes. 2. Develop a campaign to educate customers on the value of reliable utility services provided by EVWD. 3. Host two communication training sessions for the Board and Staff. GOAL THREE Advance the District’s Emergency Preparedness Program to Effectively Respond in an Emergency OBJECTIVES 1. Update the District’s Hazard Mitigation Plan and submit for FEMA approval. 2. Complete the Vulnerability Assessment and the EPA Risk and Resiliency Assessment. 3. Implement a quarterly outreach campaign to improve accuracy of District’s customer contact database. 95 EAST VALLEY WATER DISTRICT FY 2018-19 ACCOMPLISHMENTS Goal 1 – Implement an Outreach Program that Encourages Community Engagement in the SNRC -The District hosted a well-attended groundbreaking ceremony community event for the SNRC -Installed a time-lapse camera to document construction progress of the SNRC and developed an outreach campaign encouraging the public to watch project development. -Continued providing project updates on social media, in the local newspaper and on the District’s website by creating a SNRC spotlight section on the homepage. Goal 2 – Develop Communication Methods that Enhance the District’s Brand -Completed a District website redesign to a platform that supports mobile devices and improves online services by enhancing usability and readability. -District staff participated in a branding workshop, highlighting the importance of cohesiveness in outreach communication materials. -Implemented communication tools to enhance collaboration between departments. -The Board approved and adopted the 5-Year Work Plan at the February 13, 2019 Board meeting. -Hosted events and tours for local organizations the District has worked with throughout the year. Goal 3 – Advance the District’s Emergency Preparedness Program to Effectively Respond in an Emergency -Due to the recent adoption of the Water Infrastructure Act of 2018, the District has issued an RFP and selected a contractor to complete the emergency response documents needed to remain in regulatory compliance. -Staff developed text, email, phone, website, and social media notification templates for emergency situations identified in the District’s Crisis Management Protocol Toolkit. -The District hosted a two-way radio training session for staff and new employees have taken the ICS training courses needed to remain in compliance with FEMA requirement. SIGNIFICANT CHANGES • Sterling Natural Resource Center outreach efforts have 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 $1,440,000 95 EAST VALLEY WATER DISTRICT 96FISCAL YEAR BUDGET 2019-20 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2016-17 FY 2017-18 FY 2018-19 III-A Update Emergency Response Plan 100%80%80%25% III-A Number of Emergency Response training hours per FTE 16 8 8 13 II-D Number of community event presentations 15 18 8 9 I-C Number of Community Advisory Commission meetings conducted 6 3 6 6 II-B Number of followers on social media 100 190 673 943* *Projected: On average we get 2 new Facebook and Twitter followers per month. Instagram followers increase by about 12 per month. PROGRAM BUDGET DETAIL FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 354,634 $ 393,000 $ 393,000 $ 554,000 $ 161,000 41% 5102 Temporary Labor - - - - - 0% 5103 Overtime 10,596 7,000 7,000 7,000 - 0% 5200 Benefits 136,307 132,000 132,000 256,000 124,000 94% OPERATING EXPENSES 6201 Materials & Supplies 47,131 186,000 186,000 163,000 (23,000)-12% 6203 Office Supplies 3,163 3,000 3,000 3,000 - 0% 6301 Contract Services 147,555 167,000 167,000 185,000 18,000 11% 6303 Printing & Publishing 56,616 169,000 169,000 198,000 29,000 17% 6304 Legal Services 910 5,000 5,000 5,000 - 0% 6307 Uniforms 1,720 3,000 3,000 3,000 - 0% 6312 Janitorial Services 5,480 8,000 8,000 2,000 (6,000)-75% 6402 Telephone 2,184 3,000 3,000 3,000 - 0% 6406 Postage 15,930 25,000 25,000 20,000 (5,000)-20% 6501 Membership & Dues 2,368 6,000 6,000 5,000 (1,000)-17% 6502 Professional Development 7,675 12,000 12,000 15,000 3,000 25% 6503 Education Assistance 2,942 8,000 8,000 8,000 - 0% 6504 Meetings 4,719 15,000 15,000 13,000 (2,000)-13% PUBLIC AFFAIRS TOTAL $ 799,931 $ 1,142,000 $ 1,142,000 $ 1,440,000 $ 298,000 26% 97 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY 98FISCAL YEAR BUDGET 2019-20 CONSERVATION FUNCTION Conservation is responsible for overseeing programs that facilitate and encourage sustainable water use throughout the District. Additionally, this program is responsible for communicating conservation benchmarks to various regulatory agencies. goals and objectives GOAL ONE Develop Technical Assessment Tools to Minimize Water Losses within the District’s Distribution System OBJECTIVES 1. Complete annual water audit and develop an action item list. 2. Implement advanced monitoring tools to understand distribution of rebate participation versus water use. 3. Understand industry standards or best practices for gathering conservation data information. 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. Coordinate with other departments to increase water savings through the development of new programs or modification of existing rebates. 3. Develop a program to identify customers with inefficient water use for participation in the District’s 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. Actively participate in the affordable rate legislative process. 3. Provide quarterly updates to the Governing Board to ensure they are informed of the changing conservation requirements and other legislative issues. 99 EAST VALLEY WATER DISTRICT FY 2018-19 ACCOMPLISHMENTS Goal 1 – Develop Community Engagement Programs to Increase Awareness of Water-Use Efficiency -Conservation materials and presentation were provided in both English and Spanish -The District hosted four workshops with a total of 400 attendees. Goal 2 – Evaluate Rebate Program Success and Implement Program Enhancements -The District hosted a free toilet distribution event -The District hosted the Community Conservation Fest at Plant 151 Goal 3 – Engage in the Legislative Process as it Relates to Changes in Conservation Regulations -The District continues to participate in agency and regulatory hearings to provide comments as conservation guidelines were developed. 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 $589,000 99 EAST VALLEY WATER DISTRICT 100FISCAL YEAR BUDGET 2019-20 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2016-17 FY 2017-18 FY 2018-19 I-A Meet SWRCB conservation goal Yes Yes Yes Yes I-A Maintain significant level of participation in annual conservation rebate programs 300 400 556 468 II-D Number of educational materials created 100 275 220 175 II-C External conservation funding received $25,000 $40,123 $33,769 $43,212 PROGRAM BUDGET DETAIL FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 112,086 $ 98,000 $ 98,000 $ 101,000 $ 3,000 3% 5102 Temporary Labor - - - - - 0% 5103 Overtime 2,778 3,000 3,000 3,000 - 0% 5200 Benefits 39,442 27,000 27,000 30,000 3,000 11% OPERATING EXPENSES 6201 Materials & Supplies 7,592 25,000 25,000 25,000 - 0% 6203 Office Supplies 1,259 3,000 3,000 3,000 - 0% 6205 Conservation Rebates 241,312 200,000 700,000 195,000 (5,000)-3% 6301 Contract Services 135,101 108,000 108,000 88,000 (20,000)-19% 6303 Printing & Publishing 28,762 100,000 100,000 110,000 10,000 10% 6304 Legal Services - 1,000 1,000 1,000 - 0% 6307 Uniforms 332 1,000 - 1,000 - 0% 6402 Telephone 871 2,000 2,000 2,000 - 0% 6406 Postage 2,296 20,000 20,000 20,000 - 0% 6501 Membership & Dues 2,011 2,000 2,000 6,000 4,000 200% 6502 Professional Development - 2,000 - 3,000 1,000 50% 6504 Meetings 22 1,000 1,000 1,000 - 0% CONSERVATION TOTAL $ 573,864 $ 593,000 $ 1,090,000 $ 589,000 $ (4,000)-1% 101 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY 102FISCAL YEAR BUDGET 2019-20 FINANCE & ACCOUNTING FUNCTION Finance and accounting oversee the business operations of the District in order to provide accountability and adequate control over the use of District funds. Staff downloads meter read data, audits data, and submits data files to a third-party vendor for bill printing and mailing. Staff also maintains the financial systems and records in accordance with Generally Accepted Accounting Principles (GAAP) as well as applicable laws, regulations, and District policies. goals and objectives GOAL ONE Complete a Water and Wastewater Rate Study and Update the Miscellaneous Fee Schedule OBJECTIVES 1. Coordinate Public Hearing and Noticing efforts with the Public Affair Department to comply with Prop 218 requirements. 2. Implement adopted rates in District’s utility billing software. 3. Collaborate with the Engineering Department on updating Capacity Fees. 4. Present and recommend Miscellaneous fee revisions to the Board for approval and comply with Prop 26 requirements. GOAL TWO Implement Sound Financial Practices to Preserve and Enhance the District’s Financial Position OBJECTIVES 1. Prepare a District fiscal policy on Long-Term Financial Planning. 2. Develop a Long-Term Financial Plan to support activities adopted in the Five-Year Work Plan. 3. Evaluate Comprehensive, Long-Term fiscal impacts of proposed changes to Labor Memorandum of Understanding. GOAL THREE Link Fixed Asset Information in Tyler Accounting System to Digitized Maps in Geographical Information System (GIS) Program OBJECTIVES 1. Hold series of meetings with Engineering staff to fully understand linkage between Tyler and GIS. 2. Develop plan for estimating costs in Tyler for old assets and for distributing costs in GIS. 103 EAST VALLEY WATER DISTRICT FY 2018-19 ACCOMPLISHMENTS Goal 1 – Enhance Accounting and Financial Reporting for the Benefit of Internal and External Stakeholders -Submitted application for exemption for Community Heritage & Education Foundation (CHEF) -Implemented the Prophix budget software -Received awards from both the Government Finance Officers Association (GFOA) and the California Society of Municipal Finance Officers (CSMFO) for the District’s 2018-19 Budget -Issued and received GFOA Awards for Outstanding Achievement for District’s June 2018 Comprehensive Annual Financial Report (CAFR) and Popular Annual Financial Report (PAFR) -Coordinated training and implementation of the inventory bar-code system Goal 2 – Maintain Strong Financial Policies and Management Practices to Preserve and Enhance the District’s Financial Position -Completed and presented a financial plan to address long-term unfunded pension liabilities -Contracted with consultant for a Cost of Service Analysis/Rate Study -Updated Resolutions and Financial Model for changes in the SNRC project Goal 3 – Link Fixed Asset Information in Tyler Accounting System to Digitized Maps in GIS Program -Completed the AMI link between Tyler and GIS for Phases I and II -Rehabilitated sewer manholes have been modified in GIS and are connected to assets in Tyler -All projects performed and completed in FY 2017-18 are identified in GIS and Tyler SIGNIFICANT CHANGES • Moved utility billing and collections from Customer Service to Accounting Technician desk LEVELS OF SERVICE The Finance and Accounting Program has six KPI metrics that are associated with the District’s Goals and Objectives of: • Practice Transparent and Accountable Fiscal Management (II-A) ―Complete Year end close out and audit in timely and efficient manner ―Update fiscal policies regularly to ensure compliance with law ―Work to improve District bond rating ―Produce timely monthly budget reports for program managers ―Receive GFOA Certificate of Achievement in Financial Reporting for each year’s CAFR ―Receive GFOA Certificate of Achievement in Financial Reporting for each year’s PAFR Program Budget Allocation $1,249,000 103 EAST VALLEY WATER DISTRICT 104FISCAL YEAR BUDGET 2019-20 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2016-17 FY 2017-18 FY 2018-19 II-A Days to prepare and present CAFR after fiscal year end 135 days 118 103 102 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 4 3 3 II-A Provide program managers monthly budget variance reports 12 12 12 12 II-A Consecutive years Certificate of Achievement for Excellence in Financial Reporting received for CAFR 7 5 6 7 II-A Consecutive years Certificate of Achievement for Excellence in Financial Reporting received for PAFR 2 N/A 1 2 PROGRAM BUDGET DETAIL FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 746,453 $ 650,000 $ 650,000 $ 681,000 $ 31,000 5% 5102 Temporary Labor - - - - - 0% 5103 Overtime 5,225 5,000 5,000 5,000 - 0% 5200 Benefits 328,510 259,000 259,000 373,000 114,000 44% OPERATING EXPENSES 6203 Office Supplies 5,993 11,000 11,000 11,000 - 0% 6301 Contract Services 70,570 89,000 89,000 66,000 (23,000)-26% 6302 Banking Services 13,953 20,000 20,000 20,000 - 0% 6303 Printing & Publishing 268 1,000 1,000 1,000 - 0% 6304 Legal Services 23,850 60,000 60,000 60,000 - 0% 6307 Uniforms 994 2,000 2,000 2,000 - 0% 6402 Telephone 2,168 3,000 3,000 3,000 - 0% 6406 Postage 67 1,000 1,000 1,000 - 0% 6501 Membership & Dues 3,457 4,000 4,000 4,000 - 0% 6502 Professional Development 10,450 21,000 21,000 17,000 (4,000)-19% 6503 Education Assistance - - - - - 0% 6504 Meetings 1,484 4,000 4,000 4,000 - 0% 6704 Bad Debt 671 1,000 1,000 1,000 - 0% FINANCE TOTAL $ 1,214,112 $ 1,131,000 $ 1,131,000 $ 1,249,000 $ 118,000 10% 105 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY 106FISCAL YEAR BUDGET 2019-20 INFORMATION TECHNOLOGY FUNCTION Information Technology (IT) is responsible for the strategic alignment of technology with the District’s initiatives. Staff maintains the enterprise systems, network, cybersecurity, and computer hardware. goals and objectives GOAL ONE Proactively Replace Hardware and Software Approaching End- of-Life CycleObjectives 1. Proactively replace workstations and laptops approaching end-of-support. 2. Replace aging phone system router to enhance phone system performance. 3. Modernize and provide real-time field updates with Inframap Now software installation. GOAL TWO Improve Business Processes by Leveraging Existing Technologies OBJECTIVES 1. Develop digitized workflows and reporting capabilities for Conservation Rebates. 2. Improve Labor Rate accuracy in Cityworks with Personnel Management system integration. 3. Improve Materials cost data accuracy with Tyler Inventory system integration. 4. Automate updating of Employee and Customer contact records in mass notification system. GOAL THREE Improve IT Infrastructure for Reliable and Secure Services OBJECTIVES 1. Install firewalls at Treatment Plant to prepare for a dedicated Internet line. 2. Configure file server failover feature to provide staff with uninterrupted access to work files. 3. Improve signal strength of back-up internet access by repositioning antenna. 107 EAST VALLEY WATER DISTRICT FY 2018-19 ACCOMPLISHMENTS Goal 1 – Ensure Effective Technology Services with Proactive Planning and Maintenance Activities -Eliminated 8 of 9 cybersecurity vulnerabilities identified in the Cybersecurity Assessment. -Elevated staff’s cybersecurity awareness by reducing test phishing click rates down to 7%. Goal 2 – Conduct Critical System Upgrades to Help Ensure Business Continuity -Completed the Fire Suppression System installation in the server room. -Proactively replaced 21 workstations/laptops that have reached their maximum useful life. -Upgraded the Voice-Over-IP phone system prior to the end-of-support date. Goal 3 – Enable Data Collection and Data Management Efforts for Other Departments -Supported and configured data requirements for field GPS data collection. SIGNIFICANT CHANGES • Increased Cloud Storage costs by 10% to support backups to the cloud for enhanced disaster recovery. • IT Professional Development budget will be utilized this fiscal year. LEVELS OF SERVICE The Information Technology Program has five 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) • Dedicate Effort Toward System Maintenance and Modernization (IV-C) Program Budget Allocation $932,000 107 EAST VALLEY WATER DISTRICT 108FISCAL YEAR BUDGET 2019-20 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2016-17 FY 2017-18 FY 2018-19 IV-A Elevate Cybersecurity awareness by sending out test ‘phishing’ emails 800 140 2,191 844 IV-A Maximize system availability 99%99%99%99% IV-A Complete disaster recovery drill (system restoration, power outages, emergency notifications) 2 1 1 1 III-B Receive ‘Excellent’ scores on IT satisfaction surveys submitted by staff >95%90%94%88% III-B Minimize resolution time for help desk issues submitted by staff 24 Hrs.10.2 Hrs.10.1 23.3 PROGRAM BUDGET DETAIL FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 340,892 $ 334,000 $ 334,000 $ 344,000 $ 10,000 3% 5102 Temporary Labor - - - - - 0% 5103 Overtime - - - - - 0% 5200 Benefits 123,759 109,000 109,000 101,000 (8,000)-7% OPERATING EXPENSES 6201 Materials & Supplies 73,307 35,000 35,000 37,000 2,000 6% 6203 Office Supplies 113 - - - - 0% 6301 Contract Services 444,116 500,000 500,000 427,000 (73,000)-15% 6307 Uniforms 91 1,000 1,000 1,000 - 0% 6402 Telephone 4,505 5,000 5,000 5,000 - 0% 6501 Membership & Dues 10,000 5,000 5,000 - (5,000)-100% 6502 Professional Development 6,033 7,000 7,000 7,000 - 0% 6503 Education Assistance 5,274 1,000 1,000 9,000 8,000 800% 6504 Meetings 355 12,000 12,000 1,000 (11,000)-92% IT TOTAL $ 1,008,444 $ 1,009,000 $ 1,009,000 $ 932,000 $ (77,000)-8% 109 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY 110FISCAL YEAR BUDGET 2019-20 CUSTOMER SERVICE FUNCTION Customer Service provides the community with prompt, courteous, and world class customer relations. As the primary contact point with residents, this program explores opportunities to provide thorough / accurate responses to billing inquiries; provide convenient locations and methods for payment; and to resolve customer concerns about service delivery by requesting assistance from field personnel, and then following up with customers regarding the resolution to their concern. goals and objectives GOAL ONE Develop Strategies to Address Organizational Service Needs OBJECTIVES 1. Assist with Continued Tyler/Cityworks integration for after hours and field work orders. 2. Develop Action Plan to prepare for changes to Customer Service Operations as a result of the SNRC. 3. Propose best use of unused kiosks and whether they should be updated for use at the SNRC. GOAL TWO Modify Processes to Comply with Changes in Legislation while Maintaining Financial Stability OBJECTIVES 1. Create written policies for disconnection of service in accordance with SB 998. 2. Assist with preparation of Customer Service talking points to address customer inquiries related to proposed Water Tax legislation. 3. Review and propose changes to Miscellaneous Fee Schedule related to Customer Accounts. GOAL THREE Gather Information and Apply for Award or Other Third- Party Recognition for Outstanding Customer Service OBJECTIVES 1. Complete the award application process and submit to third party organization for consideration. 2. Document and provide examples of outstanding customer service for inclusion in application. 3. Document / discuss process improvements or Best Practices identified during the application process that are not currently utilized by the District. 111 EAST VALLEY WATER DISTRICT FY 2018-19 ACCOMPLISHMENTS Goal 1 – Modify Processes to Encourage World Class Customer Service while Maintaining Financial Stability -Amended the service disconnection schedule to provide customers more time to pay which significantly reduced the number of service disconnections by 38% Goal 2 – Establish a Professional Development Plan that Supports the District’s Vision -Implemented a new process for communicating meter change-outs which resulted in accurate information sharing between departments OTHER ACCOMPLISHMENTS • Worked with IT to expand pre-disconnection courtesy calls to all parties tied to the account • Developed a processing template for service account audits to ensure customers are billed accurately SIGNIFICANT CHANGES • Eliminated full-time Customer Service Supervisor position • Moved one full time Lead position and utility billing function to Finance Department Program Budget Allocation $1,615,00 111 EAST VALLEY WATER DISTRICT 112FISCAL YEAR BUDGET 2019-20 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) by ―Collecting customer satisfaction surveys ―Offering convenient off-site & after-hours payment options ―Provide five to six notices of pending service disconnection • Maximize Internal Capabilities through Ongoing Professional Development (I-B) by ―Scheduling staff for user group conferences and internal and external training opportunities • Dedicate Efforts Toward System Maintenance and Modernization (IV-C) by ―Offering paperless billing ―Promoting cost-effective auto-debit payment collection The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2016-17 FY 2017-18 FY 2018-19 III-B Reduce number of customers disconnected for non-payment each year 1,800 2,437 1,607 1,000 III-B Encourage completion of Customer Satisfaction Surveys to better understand customer concerns 120 45 166 75 III-B Number of customer payments received through convenient off-site locations 10,000 7,463 5,216 6,652 I-B Number of customer service training hours per employee 16 7 12 14 IV-C Customers enrolled in paperless billing 2,000 1,945 2,090 2,259 IV-C Customers enrolled in the Pre-Authorized Payment Plan (auto-debit)2,000 1,632 1,826 2,233 113 EAST VALLEY WATER DISTRICT PROGRAM BUDGET DETAIL FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 491,405 $ 476,000 $ 476,000 $ 345,000 $ (131,000)-28% 5102 Temporary Labor - - - - - 0% 5103 Overtime 5,361 5,000 5,000 5,000 - 0% 5200 Benefits 300,632 257,000 257,000 209,000 (48,000)-19% OPERATING EXPENSES 6201 Materials & Supplies 5,371 5,000 5,000 5,000 - 0% 6203 Office Supplies 2,366 3,000 3,000 4,000 1,000 33% 6301 Contract Services 114,101 129,000 129,000 134,000 5,000 4% 6302 Banking Services 264,886 306,000 306,000 306,000 - 0% 6303 Printing & Publishing 3,773 10,000 10,000 10,000 - 0% 6304 Legal Services - 5,000 5,000 5,000 - 0% 6306 Rents & Leases - - - - - 0% 6307 Uniforms 5,090 4,000 4,000 4,000 - 0% 6308 Billing Services 54,598 52,000 52,000 52,000 - 0% 6309 Shut Off Notice Services 321,681 359,000 359,000 359,000 - 0% 6402 Telephone 5,267 6,000 6,000 6,000 - 0% 6406 Postage 127,204 153,000 153,000 153,000 - 0% 6406 Membership & Dues - - - 2,000 2,000 100% 6502 Professional Development 7,817 14,000 14,000 14,000 - 0% 6503 Education Assistance - - - - - 0% 6504 Meetings 466 2,000 2,000 2,000 - 0% 6703 Cash Over/Short 41 - - - - 0% CUSTOMER SERVICE TOTAL $ 1,710,060 $ 1,786,000 $ 1,786,000 $ 1,615,000 $ (171,000)-10% 114FISCAL YEAR BUDGET 2019-20 METER SERVICES FUNCTION Meter Service is responsible for reading all District meters monthly for billing, on-site customer meter-related requests and customer service assistance. goals and objectives GOAL ONE Develop Inspection Program for Facilities in AMI Areas that Are No Longer Read Manually OBJECTIVES 1. Identify needed vault lid replacements - create prioritized replacement schedule. 2. Recommend top five limited access meters for relocation. 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 for AMI Phase IV. 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 Proactive Reader Training and Meter Testing Programs OBJECTIVES 1. Train readers on budget-based rates and on uploading routes into handhelds. 2. Train readers on AWWA meter efficiency standards. 3. 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. 4. Conduct an audit of 10% of the large meter accuracy to ensure compliance with AWWA standards. 115 EAST VALLEY WATER DISTRICT FY 2018-19 ACCOMPLISHMENTS Goal 1 – Evaluate Opportunities and Impacts Resulting from the AMI Implementation -Created standard operating procedure for meter retrofits, repairs and replacements. -Identified and coordinated with other departments, impacted by the transition to AMI. Goal 2 – Collect Information on Existing Meters to Facilitate Future Phases of AMI Implementation -Collected information on meter location to be one step ahead on future AMI phases. -Collected meter sizes and reported the data to Engineering for records updating. -Provided an updated count of meter lid sizes to Engineering. Goal 3 – Develop a Proactive Meter Testing Program -Conducted large meter testing to ensure accuracy meets AWWA standards. SIGNIFICANT CHANGES • With the completion of AMI Phase III, one-half of the District’s meters are now read remotely LEVELS OF SERVICE The Meter Services Program has three KPI metrics that are associated with the District’s Goals and Objectives of: • Identify Opportunities to Optimize Natural Resources (I-A) ―Test meters to minimize ‘Unaccounted’ water losses • Strive to Provide World Class Customer Relations (III-B) by ―Responding to customer requested service order within two hours • Dedicate Efforts Toward System Maintenance and Modernization (IV-C) by Program Budget Allocation $295,000 115 EAST VALLEY WATER DISTRICT 116FISCAL YEAR BUDGET 2019-20 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2016-17 FY 2017-18 FY 2018-19 I-A *Number of large meters tested for accuracy ---10%/ Yr. 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 3 3 PROGRAM BUDGET DETAIL FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 200,948 $ 178,000 $ 178,000 $ 187,000 $ 9,000 5% 5103 Overtime 4,486 10,000 10,000 10,000 - 0% 5200 Benefits 118,201 80,000 80,000 83,000 3,000 4% OPERATING EXPENSES 6201 Materials & Supplies 527 2,000 2,000 2,000 - 0% 6202 Tools 1,301 3,000 3,000 3,000 - 0% 6301 Contract Services 83 5,000 5,000 5,000 - 0% 6307 Uniforms 4,555 3,000 3,000 3,000 - 0% 6402 Telephone 912 2,000 2,000 2,000 - 0% 6502 Professional Development - - - - - 0% METER SERVICES TOTAL $ 331,014 $ 283,000 $ 283,000 $ 295,000 $ 12,000 4% 117 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY 118FISCAL YEAR BUDGET 2019-20 ENGINEERING FUNCTION Engineering is responsible for planning and overseeing infrastructure projects designed to maintain safe and reliable water and wastewater services. Staff manages the capital improvement program, coordinates with new development, and provides technical support for the infrastructure system. goals and objectives GOAL ONE 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 System and Sewer System Master Plans. 2. Lead process resulting in long-term contract for rehabilitation of multiple reservoirs. 3. Complete development guidelines update and present to Board for adoption. GOAL TWO Develop Plans to Optimize District Utilization of Local and Imported Surface Water OBJECTIVES 1. Evaluate long-term solutions to addressing disinfection byproduct formation. 2. Investigate improvements to increase capacity for sludge handling at Plant 134. 3. Conduct a Feasibility Study for a Water Treatment Plant at the east-end of the District’s service area. GOAL THREE Support the Steps Necessary for Advancement of the SNRC OBJECTIVES 1. Lead evaluation of digesters and complete design if included. 2. Ensure decisions are made promptly to support construction efforts. 3. Continue working with regulatory agencies to receive needed approvals and permits. 119 EAST VALLEY WATER DISTRICT FY 2018-19 ACCOMPLISHMENTS Goal 1 – Develop and Implement the District’s Capital improvement Program to Address Rehabilitation and Maintenance Needs While Also Preparing for New Development -Completed Phase III of the AMI Meter Replacement Program -Evaluated properties for new storage reservoirs and initiated purchase of one -Completed wastewater main replacements on 35th St, Modesto Dr and Ferndale Ave -Completed the Water System Master Plan and the Sewer System Master Plan Goal 2 – Develop and Expand Workflow Procedures to Maximize Inter-Departmental Communication and Cooperation with Engineering -Increased the level of collaboration with the Operations Department to accomplish mapping updates Goal 3 – Support the Steps Necessary for Advancement of the SNRC -Led design efforts for the SNRC treatment process -Continued permitting work with regulatory agencies SIGNIFICANT CHANGES • Senior Engineer retired after 13 years of service • Recruitment for Senior Engineer conducted 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) Program Budget Allocation $1,551,000 119 EAST VALLEY WATER DISTRICT 120FISCAL YEAR BUDGET 2019-20 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2016-17 FY 2017-18 FY 2018-19 IV-A Initiate fully funded projects included in the current year CIP 100%100%100%90% IV-C Complete current year updates to GIS base maps 100%25%80%100% III-B Complete development infrastructure plan reviews in < 14 days 100%100%100%100% III-B Issue development impact fee costs estimates in < 2 days 100%100%100%100% PROGRAM BUDGET DETAIL FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 1,072,865 $ 707,000 $ 707,000 $ 708,000 $ 1,000 0% 5102 Temporary Labor - - - - - 0% 5103 Overtime 2,817 2,000 2,000 2,000 - 0% 5200 Benefits 349,845 263,000 263,000 298,000 35,000 13% OPERATING EXPENSES 6201 Materials & Supplies 4,814 11,000 11,000 9,000 (2,000)-18% 6202 Tools 180 7,000 7,000 7,000 - 0% 6203 Office Supplies 1,943 7,000 7,000 7,000 - 0% 6301 Contract Services 240,269 240,000 240,000 240,000 - 0% 6303 Printing & Publishing - 6,000 6,000 6,000 - 0% 6304 Legal Services 15,750 40,000 40,000 40,000 - 0% 6307 Uniforms 2,787 5,000 5,000 3,000 (2,000)-40% 6402 Telephone 2,468 2,000 2,000 2,000 - 0% 6405 Permits 88,340 193,000 193,000 193,000 - 0% 6406 Postage 96 1,000 1,000 1,000 - 0% 6501 Membership & Dues 2,096 4,000 4,000 4,000 - 0% 6502 Professional Development 11,037 30,000 30,000 28,000 (2,000)-7% 6504 Meetings 182 3,000 3,000 3,000 - 0% ENGINEERING TOTAL $ 1,795,489 $ 1,521,000 $ 1,521,000 $ 1,551,000 $ 30,000 2% 121 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY 122FISCAL YEAR BUDGET 2019-20 WATER PRODUCTION FUNCTION Water Production is responsible for the daily monitoring and operations of the entire water production system. This program ensures the timely preventative maintenance of all pumps, 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. goals and objectives GOAL ONE Prioritize and Execute Contracts for Tank/Reservoir Rehabilitation Projects Based on Findings in Harper Engineering Report OBJECTIVES 1. Select three tanks, distribute Invitations to Bid, complete bid process, and execute contract to complete three rehabilitation projects by June 2021. 2. Contract for design of alternative water distribution solutions where rehabilitation of tank(s) will interrupt service for sections of service area. GOAL TWO Implement Improvements to Enhance the SCADA System OBJECTIVES 1. Contract with Consultant for recommended improvements to the District’s radio network infrastructure. 2. Implement SCADA integrator’s new pump time controls to operate during SCE’s least expensive run-times. GOAL THREE Transition the North Fork Water Company and Bear Valley Mutual Water Company Shareholders from the North Fork Canal/Pipeline to Alternative Metered Connections OBJECTIVES 1. Determine District’s obligations to deliver water to Bear Valley shareholders under 1988 Agreement. 2. Facilitate execution of agreements with shareholders who need to retain limited rights to water for irrigation purposes by installing connection points to District’s distribution system. 3. Abandon weirs and other facilities made unnecessary by shareholder agreements. 123 EAST VALLEY WATER DISTRICT FY 2018-19 ACCOMPLISHMENTS Goal 1 – Develop a Water Supply Mix Plan to Maximize Surface Water -Installed tank mixing equipment at Plants 101 and 140 reducing TTHMs and overall better Water Quality. Goal 2 – Implement Improvements to Enhance the SCADA System -Worked with SCADA contractor on electrical and telemetry cabinet cleaning and maintenance. -Worked with contractor to complete SCADA assessment. Goal 3 – Develop a Plan to Address Challenges and Opportunities Related to North Fork Water Company (NFWC) -Converted five North Fork irrigators from weir delivery to metered delivery. -Established ownership of North Fork shares to become a 90% stakeholder in the North Fork Water Company. -Completed removal of North Fork weir 40 to secure the environment and safety in the area. SIGNIFICANT CHANGES • Increased Materials & Supplies by 60% for Transmission & Distribution due to tariffs and inflation. 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) Program Budget Allocation $4,667,000 123 EAST VALLEY WATER DISTRICT 124FISCAL YEAR BUDGET 2019-20 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2016-17 FY 2017-18 FY 2018-19 IV-C Contract for yearly reservoir inspections 4 4 3 9 IV-C Perform or schedule repairs recommended by inspection reports 100%100%100%80% 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 0 3 PROGRAM BUDGET DETAIL (ADMINISTRATION) FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 198,703 $ 223,000 $ 223,000 $ 235,000 $ 12,000 5% 5103 Overtime 325 1,000 1,000 1,000 - 0% 5104 Standby 14,822 15,000 15,000 15,000 - 0% 5200 Benefits 112,840 106,000 106,000 184,000 78,000 74% OPERATING EXPENSES 6201 Materials & Supplies 371 - - - - 0% 6202 Tools (272) 5,000 5,000 5,000 - 0% 6203 Office Supplies 4,196 4,000 4,000 4,000 - 0% 6301 Contract Services 129,850 101,000 101,000 101,000 - 0% 6307 Uniforms 7,903 10,000 10,000 10,000 - 0% 6402 Telephone 8,748 14,000 14,000 14,000 - 0% 6405 Permits - - - - - 0% 6501 Membership & Dues 415 3,000 3,000 3,000 - 0% 6502 Professional Development 8,000 6,000 6,000 6,000 - 0% 6503 Education Assistance - 5,000 5,000 - (5,000)-100% 6504 Meetings 542 1,000 1,000 1,000 - 0% ADMINISTRATION TOTAL $ 486,443 $ 494,000 $ 494,000 $ 579,000 $ 85,000 17% 125 EAST VALLEY WATER DISTRICT PROGRAM BUDGET DETAIL (SOURCE OF SUPPLY/WELLS) FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 184,624 $ 177,000 $ 177,000 $ 197,000 $ 20,000 11% 5103 Overtime 13,563 25,000 25,000 25,000 - 0% 5200 Benefits 65,247 77,000 77,000 110,000 33,000 43% OPERATING EXPENSES 6101 Purchased Water 129,977 500,000 500,000 500,000 - 0% 6102 Groundwater Replenishment 185,060 445,000 445,000 445,000 - 0% 6103 Water Assessment 118,312 122,000 122,000 122,000 - 0% 6201 Materials & Supplies 24,692 45,000 45,000 45,000 - 0% 6204 Chemicals 91,715 150,000 150,000 150,000 - 0% 6301 Contract Services 62,222 150,000 150,000 150,000 - 0% 6402 Telephone 609 - - - - 0% 6403 Electricity 1,153,848 1,000,000 1,000,000 1,150,000 150,000 15% 6405 Permits 52,243 100,000 100,000 100,000 - 0% SOURCE OF SUPPLY/ WELLS TOTAL $ 2,082,113 $ 2,791,000 $ 2,791,000 $ 2,994,000 $ 203,000 7% PROGRAM BUDGET DETAIL (BOOSTING AND PUMPING) FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 87,527 $ 86,000 $ 86,000 $ 95,000 $ 9,000 10% 5103 Overtime 5,980 10,000 10,000 10,000 - 0% 5200 Benefits 27,827 36,000 36,000 52,000 16,000 44% OPERATING EXPENSES 6201 Materials & Supplies 8,741 20,000 20,000 20,000 - 0% 6301 Contract Services 25,682 75,000 75,000 75,000 - 0% 6403 Electricity 479,004 500,000 500,000 400,000 (100,000)-20% BOOSTING & PUMPING TOTAL $ 634,761 $ 727,000 $ 727,000 $ 652,000 $ (75,000)-10% 126FISCAL YEAR BUDGET 2019-20 PROGRAM BUDGET DETAIL (TRANSMISSION AND DISTRIBUTION) FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 177,388 $ 163,000 $ 163,000 $ 185,000 $ 22,000 13% 5103 Overtime 16,797 25,000 25,000 25,000 - 0% 5200 Benefits 119,897 73,000 73,000 112,000 39,000 53% OPERATING EXPENSES 6201 Materials & Supplies 9,796 10,000 10,000 25,000 15,000 150% 6204 Chemicals 74,076 50,000 50,000 50,000 - 0% 6301 Contract Services 46,257 45,000 45,000 45,000 - 0% TRANSMISSION & DISTRIBUTION TOTAL $ 444,211 $ 366,000 $ 366,000 $ 442,000 $ 76,000 21% TOTAL WATER PRODUCTION $ 3,647,528 $ 4,378,000 $ 4,378,000 $ 4,667,000 $ -- 127 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY 128FISCAL YEAR BUDGET 2019-20 WATER TREATMENT FUNCTION Water Treatment is responsible for using various methods to treat the three different sources of supply used by the District. Staff is trained to operate the Surface Water Treatment Plant 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. goals and objectives GOAL ONE Support Consultant with Data for Additional Treatment Process Water Quality Improvements OBJECTIVES 1. Understand recommendations for additional treatment processes needed to maintain high water quality. 2. Assist in capital planning for new treatment processes. GOAL TWO Complete Plant 134 Membrane Replacements Using a Five-Phase Replacement Plan OBJECTIVES 1. Identify the modules to be replaced in Phase 4. 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. Provide support to begin implementing these planning efforts. 129 EAST VALLEY WATER DISTRICT FY 2018-19 ACCOMPLISHMENTS Goal 1 – Incorporate Operation and Maintenance of the Hydro-Generation Technology at Plant 134 -Developed an Operating Guide to support safe and effective Procedures. -Trained staff regarding the hydro-generation technology. -Incorporated the upkeep and inspection of equipment into Plant 134’s maintenance schedule. Goal 2 – Complete Plant 134 Membrane Replacement Phase Two of the 5-Year Replacement Plan -Received and installed new membrane filters at Plant 134. -Coordinated a schedule and began installation of the membrane filters at Plant 134. Goal 3 – Support the Development of a Long-Term Plant 134 Site Improvement Plan -Began discussions with Facilities to secure quotes on fencing options for site. -Coordinated security camera options and locations recommendations and quotes with IT Services. -Presented the Plant 134 Site Improvement Plan to the Board of Directors. SIGNIFICANT CHANGES • Installed Hydro Generation Technology at Plant 134 that reduces the amount of electricity required to run the plant. 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) Program Budget Allocation $870,000 129 EAST VALLEY WATER DISTRICT 130FISCAL YEAR BUDGET 2019-20 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2016-17 FY 2017-18 FY 2018-19 IV-A Meet all regulatory requirements 100%90%100%100% IV-A Maximize utilization of plant capacity through minimization of downtime and monitoring of raw water 7.5 MGD 5.0 3.0 4.0 IV-C Percentage of plant equipment and motors on preventative maintenance schedules 100%100%100%100% I-B Number of Production staff with T-4 certification or higher 4 2 2 3 PROGRAM BUDGET DETAIL FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 266,986 $ 214,000 $ 214,000 $ 243,000 $ 29,000 14% 5103 Overtime 28,187 25,000 25,000 25,000 - 0% 5200 Benefits 109,641 95,000 95,000 138,000 43,000 45% OPERATING EXPENSES 6201 Materials & Supplies 11,559 15,000 15,000 15,000 - 0% 6204 Chemicals 105,185 150,000 150,000 150,000 - 0% 6301 Contract Services 284,277 147,000 147,000 147,000 - 0% 6307 Uniforms 1,298 2,000 2,000 2,000 - 0% 6402 Telephone 10,577 - - - - 0% 6403 Electricity 116,874 200,000 200,000 150,000 (50,000)-25% 6405 Permits - - - - - 0% WATER TREATMENT TOTAL $ 934,586 $ 848,000 $ 848,000 $ 870,000 $ 22,000 3% 131 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY 132FISCAL YEAR BUDGET 2019-20 WATER QUALITY FUNCTION 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. goals and objectives GOAL ONE Conduct Expanded Sampling Programs to Ensure Compliance with all State and Federal Water Quality Requirements OBJECTIVES 1. Conduct unregulated contaminant sampling to comply with Federal water quality standards. 2. Support efforts to assist in treatment process improvements at Plant 134. 3. Install tank mixing equipment at Plant 108. GOAL TWO Implement an In-House Environmental Controls and Compliance Program OBJECTIVES 1. Evaluate processes used by other agencies to assist with Fats, Oils and Grease (FOG) program implementation in conjunction with the SNRC. 2. Transition current backflow software access to web- enabled for field access. 3. Review District ordinance 396 to accommodate the in- house backflow testing program. 133 EAST VALLEY WATER DISTRICT FY 2018-19 ACCOMPLISHMENTS Goal 1 – Conduct Expanded Sampling Multi-Year Programs to Ensure Compliance with all State and Federal Water Quality Requirements -Completed one of three constituents’ list of sampling for the EPA’s Unregulated Contaminant Monitoring Rule. -Successfully completed Tri-Annual Lead and Copper sampling with expanded collection requirements. Goal 2 – Implement the Mandatory Lead Sampling in Schools Program as Required by Assembly Bill 746 -Successfully completed K-12 Lead Sampling at all schools served by the District in accordance with AB 746. Goal 3 – Implement an In-House Environmental Controls and Compliance Program -Increased customer participation in the District’s backflow testing program by an additional 10%. SIGNIFICANT CHANGES • 15% increase in Contract Services for new regulatory sampling costs 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) Program Budget Allocation $461,000 133 EAST VALLEY WATER DISTRICT 134FISCAL YEAR BUDGET 2019-20 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2016-17 FY 2017-18 FY 2018-19 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 3%/Yr 8%/Yr 10%/Yr 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 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $87,078 $84,000 $84,000 $88,000 $4,000 5% 5103 Overtime 7,761 7,000 7,000 7,000 - 0% 5200 Benefits 31,808 33,000 33,000 41,000 8,000 24% SOURCE OF SUPPLY WELLS OPERATING EXPENSES 6201 Materials & Supplies 15,993 13,000 13,000 13,000 - 0% 6301 Contract Services 50,794 110,000 110,000 115,000 5,000 5% 6307 Uniforms 1,348 4,000 4,000 4,000 - 0% 6504 Meetings 265 1,000 1,000 1,000 - 0% TRANSMISSION AND DISTRIBUTION PERSONNEL EXPENSES 5101 Regular Labor 94,271 84,000 84,000 88,000 4,000 5% 5103 Overtime 605 8,000 8,000 8,000 - 0% 5200 Benefits 40,521 33,000 33,000 41,000 8,000 24% TRANSMISSION AND DISTRIBUTION OPERATING EXPENSES 6201 Materials & Supplies 224 - - - - 0% 6202 Tools 3,217 5,000 5,000 5,000 - 0% 6301 Contract Services 35,765 45,000 45,000 43,000 (2,000)-4% 6406 Postage 1,203 2,000 2,000 2,000 - 0% 6503 Education Assistance - - - 2,000 2,000 100% WATER QUALITY TOTAL $370,852 $434,000 $434,000 $461,000 $27,000 6% 135 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY 136FISCAL YEAR BUDGET 2019-20 WATER MAINTENANCE FUNCTION 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. goals and objectives GOAL ONE Implement Adjusted Preventative Maintenance Schedules to Ensure Equipment Readiness for Emergency Response OBJECTIVES 1. Exercise all gate valves between Boulder Ave on the east, and Central Ave on the west. 2. Work with Production to perform inspection and operation of critical valves at 12 plants. 3. Inspect, and paint if necessary, 1,500 hydrants. GOAL TWO Obtain Exact Coordinates for All Valves and Meter Boxes Using Global Positioning System (GPS) Equipment OBJECTIVES 1. Train three additional operators on GPS equipment. 2. Obtain GPS location for all valves exercised. 3. Field verify GPS locations for all meters within AMI Phases II and III. GOAL THREE Review Data Accuracy Compared to Actual Field Conditions OBJECTIVES 1. Work with IT to ensure all Field Staff are equipped with appropriate mobile devices. 2. Conduct field surveys of the west-end of the District to validate GIS data. 3. Improve on the existing field verification and correction process to ensure information is updated within 30 days. 137 EAST VALLEY WATER DISTRICT FY 2018-19 ACCOMPLISHMENTS Goal 1 – GPS All Valves and Meter Boxes within the Service Area -Implemented GPS meter box program. -Captured over 4,700 boxes using the GPS meter box program. Goal 2 – Review Data Accuracy Compared to Actual Field Conditions -Assisted Engineering Department with job and tract inspections. -Reported inconsistencies in maps to Engineering staff and requested map corrections. Goal 3 – Facilitate Technology Trainings and Community Engagement -Cross trained all new field staff to run the valve maintenance truck, sewer jetting and sewer camera truck. -Increased employees’ level of Water Distribution, Treatment and Collections Certifications. -Implemented water line leak detection program to comply with new State water audit. SIGNIFICANT CHANGES • 50% increase in Uniforms `to purchase PPE uniforms. • 18% increase in Materials & Supplies for emergency stock. • 91% increase in Tools to purchase two compacting tools. LEVELS OF SERVICE The Water Maintenance Program has six KPI metrics that are associated with the District’s Goals and Objectives of: • Maximize internal capabilities through ongoing professional development (I-B) • Advance Emergency Preparedness Efforts (III-A) • Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) • Dedicate Effort Towards System Maintenance and Modernization (IV-C) Program Budget Allocation $2,752,000 137 EAST VALLEY WATER DISTRICT 138FISCAL YEAR BUDGET 2019-20 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2016-17 FY 2017-18 FY 2018-19 I-B Number of Water Maintenance staff with D-3 certifications or higher.5 3 3 6 III-A Annual equipment and safety training hours per staff member 16 16 16 16 IV-A Number of gate valves exercised 1,200 1,200 1,200 1,400 IV-C Respond to, and assess, customer leak concerns within reasonable time frame 4 Hrs 90%95%<4 Hrs IV-C Number of main leaks repaired <70 80 85 85 IV-C Estimate of water losses from main leaks (MG)<10 MG .467 MG 1 MG 1 MG PROGRAM BUDGET DETAIL (FIELD MAINTENANCE ADMINISTRATION) FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 175,594 $ 177,000 $ 177,000 $ 189,000 $ 12,000 7% 5103 Overtime 19,543 20,000 20,000 20,000 - 0% 5104 Standby 22,497 20,000 20,000 20,000 - 0% 5200 Benefits 76,176 90,000 90,000 138,000 48,000 53% OPERATING EXPENSES 6203 Office Supplies 258 3,000 3,000 3,000 - 0% 6303 Printing & Publishing - - - - - 0% 6307 Uniforms - 1,000 1,000 1,000 - 0% 6402 Telephone 17,145 21,000 21,000 41,000 20,000 95% 6501 Memberships & Dues 550 2,000 2,000 2,000 - 0% 6502 Professional Development 15,376 9,000 9,000 19,000 10,000 111% 6503 Education Assistance - - - - - 0% 6504 Meetings 1,221 2,000 2,000 2,000 - 0% FIELD MAINTENANCE ADMINISTRATION TOTAL $ 328,360 $ 345,000 $ 345,000 $ 435,000 $ 90,000 26% 139 EAST VALLEY WATER DISTRICT PROGRAM BUDGET DETAIL (TRANSMISSION & DISTRIBUTION) FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 786,251 $ 925,000 $ 925,000 $ 957,000 $ 32,000 3% 5103 Overtime 146,519 130,000 130,000 130,000 - 0% 5200 Benefits 459,475 454,000 454,000 527,000 73,000 16% OPERATING EXPENSES 6201 Materials & Supplies 191,404 230,000 230,000 280,000 50,000 22% 6202 Tools 12,907 11,000 11,000 21,000 10,000 91% 6301 Contract Services 12,537 34,000 34,000 37,000 3,000 9% 6307 Uniforms 20,806 20,000 20,000 40,000 20,000 100% 6310 Street Services 317,436 400,000 400,000 325,000 (75,000)-19% 6405 Permits 39,590 - - - - 0% TRANSMISSION & DISTRIBUTION TOTAL $ 1,986,925 $ 2,204,000 $ 2,204,000 $ 2,317,000 $ 113,000 5% WATER MAINTENANCE TOTAL $ 2,315,285 $ 2,549,000 $ 2,549,000 $ 2,752,000 $ 203,000 8% 140FISCAL YEAR BUDGET 2019-20 WASTEWATER MAINTENANCE FUNCTION Wastewater Maintenance is responsible for monitoring and helping ensure the free flow and containment of wastewater through the District’s 220 miles of wastewater conveyance pipelines. The Wastewater Maintenance program’s primary mission is to prevent wastewater spills and leaks. goals and objectives GOAL ONE Continue Wastewater Collection System Maintenance and Management OBJECTIVES 1. Video inspect and assess all District mains between the northern and southern boundaries and west of Del Rosa Dr. 2. Clean a minimum of 220 miles of wastewater main. 3. Support employees in obtaining California Water Environment Association Collection System Maintenance certification. GOAL TWO Identify Operational Changes Needed to Accommodate Planned Development within the District OBJECTIVES 1. Document contributing factors of high maintenance areas in preparation for the in-house Fats, Oils and Grease (FOG) Program. 2. Send out letters to FOG generating businesses/ customers. 3. Train staff on the lateral launcher tool. 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. Conduct training and create an Operating Guide for GPS equipment. 141 EAST VALLEY WATER DISTRICT FY 2018-19 ACCOMPLISHMENTS Goal 1 – Complete Implementation of GraniteNet Software to Collect Data Regarding Wastewater Collection System Maintenance -Completed the software upgrade to GraniteNet for Wastewaster Collection System Maintenance. Goal 2 – Identify Operational Changed Needed to Accommodate Planned Development within the District -Identified training and certification requirements for wastewater treatment certificates. Goal 3 – Incorporate GPS Data to Enhance Efficiency of Wastewater Maintenance Operations and Asset Management -Identified manholes located within easements and implemented planned maintenance to reduce damage caused by tree roots and other field conditions. -Conducted training and created an Operating Guide for GPS equipment. SIGNIFICANT CHANGES • 17% increase in Uniforms for boot allowance to match employee count. LEVELS OF SERVICE The Wastewater Maintenance Program has four KPI metrics that are associated with the District’s Goals and Objectives as follows: • Maximize Internal Capabilities through Ongoing Professional Development (I-B) • Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) • Dedicate Effort towards System Maintenance and Modernization (IV-C) Program Budget Allocation $9,479,000 141 EAST VALLEY WATER DISTRICT 142FISCAL YEAR BUDGET 2019-20 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2016-17 FY 2017-18 FY 2018-19 I-B Number of staff holding CWEA certifications 4 5 5 5 IV-A Miles of wastewater mains inspected by video 55 72 70 74 IV-A Category 1 Sanitary System Overflows reportable to State Water Quality Control Board 0 0 0 0 IV-C Miles of wastewater mains jetted / cleaned 220 223 200 177 IV-C Spot repairs identified and completed 100%100%100%100% PROGRAM BUDGET DETAIL FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 310,936 $ 290,000 $ 290,000 $ 314,000 $ 24,000 8% 5103 Overtime 33,650 45,000 45,000 45,000 - 0% 5200 Benefits 134,453 146,000 146,000 172,000 26,000 18% OPERATING EXPENSES 6201 Materials & Supplies 53,945 31,000 31,000 31,000 - 0% 6202 Tools 3,369 5,000 5,000 5,000 - 0% 6307 Uniforms 223,124 243,000 243,000 243,000 - 0% 6305 Treatment Services 2,190 3,000 3,000 4,000 1,000 33% 6301 Contract Services 8,697,671 8,233,000 8,233,000 8,665,000 432,000 5% WASTEWATER MAINT. TOTAL $ 9,459,338 $ 8,996,000 $ 8,996,000 $ 9,479,000 $ 483,000 5% 143 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY 144FISCAL YEAR BUDGET 2019-20 FACILITIES MAINTENANCE FUNCTION Facilities Maintenance is responsible for the complete Maintenance and repair of all District Facilities, including Administration Buildings, Water Facilities, District-owned vacant properties and easements. goals and objectives GOAL ONE Implement a Long-Term Site Improvement Plan for Plant 134 OBJECTIVES 1. Install security cameras. 2. Remodel laboratory to include restroom, flooring and cabinetry. 3. Develop a comprehensive site improvement project list. GOAL TWO Develop a Facilities Maintenance Program to Track and Anticipate Future Costs Associated with All District Facilities OBJECTIVES 1. Begin incorporating facilities data into the selected Facilities Maintenance Program. 2. Implement a consistent request tracking system and provide training to staff. 3. Develop recommendations to be included in a long-term staffing plan. GOAL THREE Complete Systematic Upgrades and Rehabilitation of District Facilities OBJECTIVES 1. Rehabilitate pump house at Plant 129. 2. Paint and replace HVAC at Plant 149. 3. Replace landscaping and paint pump house at Plant 108. 145 EAST VALLEY WATER DISTRICT FY 2018-19 ACCOMPLISHMENTS Goal 1 – Develop a Long-Term Plant 134 Site Improvement Plan -Began a security development program for cameras at Plant 134 site with contractor -Began development of a lab remodeling design for existing District pallets Goal 2 – Develop a Facilities Maintenance Program to Track and Anticipate Future Costs Associated with All District Facilities -Began developing an Asset Management Program with IT Services using Cityworks Goal 3 – Complete Systematic Upgrades and Rehabilitation of District Facilities -Worked with Public Affairs on Demonstration Garden upgrades -Completed various security upgrades at Headquarters -Upgraded inside and outside LED lights at Plant 134 -Removed swamp coolers and upgraded to HVAC at Plants 99, 33, 24A, 24B, and 129 SIGNIFICANT CHANGES • 50% Increase in Building Supplies to cover building maintenance needed to ensure building safety and structural longevity 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) Program Budget Allocation $998,000 145 EAST VALLEY WATER DISTRICT 146FISCAL YEAR BUDGET 2019-20 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2016-17 FY 2017-18 FY 2018-19 IV-C Close all service work orders timely <30 Days N/A <30 Days <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 100%100% I-A Reduce energy consumption for each facility site >20%N/A 25%30% **N/A Represents new KPIs for FY 2018-19 with no historical data available PROGRAM BUDGET DETAIL FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 106,447 $ 147,000 $ 147,000 $ 160,000 $ 13,000 9% 5103 Overtime 16,276 15,000 15,000 15,000 - 0% 5200 Benefits 54,173 79,000 79,000 93,000 14,000 18% ADMINISTRATION OPERATING EXPENSES 6201 Materials & Supplies 41,309 30,000 30,000 40,000 10,000 33% 6202 Tools 1,926 2,000 2,000 2,000 - 0% 6301 Contract Services 45,831 37,000 37,000 37,000 - 0% 6306 Rents & Leases 17,095 15,000 15,000 15,000 - 0% 6307 Uniforms 11,873 11,000 11,000 11,000 - 0% 6311 Landscape Services 35,526 56,000 56,000 56,000 - 0% 6312 Janitorial Services 82,237 132,000 132,000 132,000 - 0% 6313 Facilities Repair - - - - - 0% 6401 Utilities 17,935 14,000 14,000 14,000 - 0% 6402 Telephone 30,541 70,000 70,000 70,000 - 0% 6403 Electricity 91,725 120,000 120,000 120,000 - 0% 6403 Professional Development 85 1,000 1,000 1,000 - 0% SOURCE OF SUPPLY/WELLS OPERATING EXPENSES 6201 Materials & Supplies 4,735 3,000 3,000 3,000 - 0% 6301 Contract Services 19,276 11,000 11,000 11,000 - 0% 6311 Landscape Services $ 53,307 $ 40,000 $ $40,000 $ 40,000 $ - 0% FACILITIES MAINT. TOTAL $ 817,061 $ 961,000 $ 961,000 $ 998,000 $ 37,000 4% 147 EAST VALLEY WATER DISTRICT FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change PUMPS AND BOOSTERS OPERATING EXPENSES 6201 Materials & Supplies $ 6,895 $ 3,000 $ 3,000 $ 3,000 $ - 0% 6301 Contract Services 9,460 6,000 $6,000 6,000 - 0% 6311 Landscape Services 46,551 35,000 $35,000 35,000 - 0% TREATMENT OPERATING EXPENSES 6201 Materials & Supplies 7,453 8,000 8,000 8,000 - 0% 6301 Contract Services 93,677 102,000 102,000 102,000 - 0% 6311 Landscape Services 21,531 14,000 14,000 14,000 - 0% 6401 Utilities 1,196 10,000 10,000 10,000 - 0% FACILITIES MAINT. TOTAL $ 817,061 $ 961,000 $ 961,000 $ 998,000 $ 37,000 4% 148FISCAL YEAR BUDGET 2019-20 FLEET MAINTENANCE FUNCTION 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. goals and objectives GOAL ONE Comply with Current Air Quality and Highway Safety Regulations OBJECTIVES 1. Contract with air quality consultant for AQMD Air Quality Management District and CARB. 2. Schedule semi-annual on-site safety training for vehicles and equipment. 3. Transmit emissions data to the Bureau of Automotive Repair using new Network Fleet devices. GOAL TWO Continue Enhancement of Emergency Response Capabilities OBJECTIVES 1. Purchase a trailer mounted back-up generator. 2. Register new generator with DMV and CARB. GOAL THREE Transition Fleet Management Program OBJECTIVES 1. Outsource scheduled maintenance to third-party vendors. 2. Evaluate third-party fleet turnover program for light-duty vehicles. 3. Identify heavy-duty vehicles and equipment for replacement. 4. Purchase and register new vehicles and equipment. 149 EAST VALLEY WATER DISTRICT FY 2018-19 ACCOMPLISHMENTS Goal 1 – Enhance Emergency Response Capabilities -Installed radios in all trucks for emergency preparedness -Installed Network Fleet (GPS devices) on all vehicles Goal 2 – Utilize the Most Effective Fleet Maintenance Methods -Implemented Outsourcing maintenance program which supports no vehicle downtime -Hired a consultant to evaluate all vehicles, equipment and generators to ensure the District complies with all Southern California Air Quality permits and regulations. -Submitted application for Smog exempting for 2019 due to the addition of Network Fleet installed in all vehicles SIGNIFICANT CHANGES • Reduced staff from 2 to 1 • Increased Contract Services to cover outsourcing of maintenance for vehicles LEVELS OF SERVICE The Fleet Maintenance Program has three 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) Program Budget Allocation $486,000 149 EAST VALLEY WATER DISTRICT 150FISCAL YEAR BUDGET 2019-20 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2016-17 FY 2017-18 FY 2018-19 IV-A Ensure vehicles and equipment are evaluated and replaced on schedule 80% of Net Asset Value N/A 100%100% IV-C Percent of vehicles pass annual D.O.T. inspection 100%100%100%100% IV-A Number of vehicle/equipment units replaced 4 4 4 4 PROGRAM BUDGET DETAIL FY 2017-18 Actuals FY 2018-19 Budget 2018-19 Projected 2019-20 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 165,073 $ 81,000 $ 81,000 $ 84,000 $ 3,000 4% 5103 Overtime 2,400 3,000 3,000 3,000 - 0% 5200 Benefits 94,239 40,000 40,000 53,000 13,000 33% OPERATING EXPENSES 6201 Materials & Supplies 72,451 30,000 30,000 30,000 - 0% 6202 Tools 3,539 2,000 2,000 5,000 3,000 150% 6203 Office Supplies 331 1,000 1,000 1,000 - 0% 6301 Contract Services 122,785 170,000 220,000 180,000 10,000 6% 6301 Contract Services 3,182 - - - - 0% 6402 Telephone 790 1,000 1,000 1,000 - 0% 6404 Fuel 117,595 125,000 125,000 125,000 - 0% 6501 Membership & Dues 1,783 4,000 4,000 3,000 (1,000)-25% 6502 Professional Development - 2,000 2,000 1,000 (1,000)-50% FLEET MAINTENANCE TOTAL $ 584,168 $ 459,000 $ 509,000 $ 486,000 $ 27,000 6% 151 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY 152FISCAL YEAR BUDGET 2019-20 CAPITAL BUDGET Capital Investments in assets and projects based on the needs of the District 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 2019-20 Capital Budget contains $65,258,000 in total capital expenditures. Of this amount, $63,730,000 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 expenditures of $1,528,000 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 2019-20 Capital Budget is shown on the following page. CAPITAL EXPENDITURES SUMMARY Capital Improvement Program Capital Outlay (Routine) AMI Meter Replacement Program $ 1,500,000 Emergency Response Plan Update $ 250,000 New Storage Reservoir 400,000 Storage Tank Mixers 40,000 Plant 134 Site Improvements 400,000 Capacity Fee Study 27,000 Plant 134 Membrane Replacement 405,000 Computer & Phone System Upgrades 127,000 Storage Tank / Reservoir Rehabilitation 400,000 Field Equipment 90,000 Water Main Replacements 200,000 Facility Upgrades 140,000 Wastewater Main Rehabilitation $ 200,000 Treatment Equipment Upgrades $ 84,000 153 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, and with the Sterling Natural Resource Center (SNRC), new revenue streams. Proposed treatment processes at the Districts surface water treatment plant (Plant 134) will allow the District to run the plant at higher capacity and more fully utilize hydroelectric generation equipment and reduce power costs. New water storage reservoirs will 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 energy rates. The SNRC 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, materials, contract services, and other operating costs. At the same time, the inclusion of solid waste digesters at the facility will allow the District to tap into other revenue streams such as solid waste carrier tipping fees, energy sales, and recycled water revenue. Not included here, but discussed in the Debt section of this document, is a significant increase in debt service related to the SNRC. The following schedule provides an estimate of the effect of capital expenditures on future operations: Capital Improvement Program Capital Outlay (Routine) General Facilities Rehab / Relocation $ 175,000 Upgrade HVAC at Various Plants $ 45,000 Well & Booster Improvements 50,000 Sewer Main Jetting Truck (Vactor) 550,000 SNRC Water Recycling Plant 60,000,000 Service Trucks (4) 175,000 TOTAL CIP EXPENDITURES $ 63,730,000 TOTAL CAPITAL OUTLAY $ 1,528,000 CAPITAL IMPACT Annual Impact on Operations Nature of Impact AMI Replacement Program $ 56,000 Increased Software maintenance and telecommunications costs AMI Replacement Program (200,000)Decreased labor / equipment for meter reading New Storage Reservoir (10,000) Decreased Power Costs resulting from greater utilization of off-peak energy rates Plant 134 Treatment Modifications 30,000 Increased Power Costs Plant 134 Treatment Modifications 50,000 Increased Filter Media Cost General Facilities Rehabilitation/Relocation - SNRC Water Recycling Plant (5,080,000) New revenue sources (tipping fees, power sales, recycled water) SNRC Water Recycling Plant (8,650,000) Decrease Contracted Treatment SNRC Water Recycling Plant 1,200,000 Increased labor costs SNRC Water Recycling Plant 1,010,000 Increased materials & consumables SNRC Water Recycling Plant 2,450,000 Increased contract services SNRC Water Recycling Plant 520,000 Increased other costs TOTAL $ (8,624,000) 154FISCAL YEAR BUDGET 2019-20 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. 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 were updated during the FY 2019-20 CAPITAL OUTLAY Water Wastewater Total FUNDED BY OPERATING REVENUE ERP Consultant $ 225,000 $ 25,000 $ 250,000 Device Replacement 40,000 - 40,000 Engineering Scanner 7,000 3,000 10,000 Inframap NOW Software 19,000 8,000 27,000 Treatment Plant Firewalls 40,000 - 40,000 Voice Gateway Replacement 7,000 3,000 10,000 Capacity Fee Study 25,000 2,000 27,000 Ortho Pumps at Plants 146, 147 40,000 - 40,000 Chlorine Generation Cells for Plant 134 44,000 - 44,000 Reservoir 108 Tank Mixer 40,000 - 40,000 Skid Steer with Street Sweeper and Asphalt Roller Attachment 70,000 - 70,000 Trimble GPS Surveying Equipment 20,000 - 20,000 Sewer Jetting Truck - 550,000 550,000 HVAC Upgrades at Plants 11, 127, 142, 149 45,000 - 45,000 Roofing at HQ 28,000 12,000 40,000 Slurry Seal HQ Parking Lot 70,000 30,000 100,000 4 Service Trucks 175,000 - 175,000 TOTAL CAPITAL OUTLAY $ 895,000 $ 633,000 $ 1,528,000 155 EAST VALLEY WATER DISTRICT 2018-19 fiscal year. The Master Plans identify the infrastructure improvements needed to serve a growing population. In addition, each project being considered must meet one or more of the following criteria: • Preservation of public health and water quality. • Improvements required as a result of local, state or federal legislation/mandates. • Reduction of current maintenance expenditures and avoidance of costly future rehabilitation. • Preservation of existing facilities/infrastructure. • Positive impacts on customers. • External funding (grant/debt proceeds) has been secured for specific project For FY 2019-20, the District has proposed the use of operating revenue, reserves, and a loan from the California Department of Water Resources to fund current year phases of Capital Improvement Program projects for $60,730,000 – total project costs for the projects in process are approximately $172 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, will help the District realize water and energy efficiencies, and will empower customers to monitor water usage, and potentially leaks, in near ‘real time’. For FY 2019-20 the District will install approximately 4,030 at a cost of $1.5 million to be paid out of operating revenue. • Foothill Zone Storage Reservoir – this facility will add much needed storage capacity to a District pressure zone that, as found by the 2019 Water Master Plan update, will be deficient by 15 million gallons of storage by the year 2025. Current year budgeted costs are $400,000 paid out of 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 $805,000 to be paid out of water fund operating revenue and capital replacement reserves. • Storage Tank Rehabilitation – involves systematic rehabilitation of existing tanks in order to ensure their dependability and years of future service. Current year costs are $400,000 to be paid out of water operating revenue. • Water Main Replacements – the District has scheduled the replacement of approximately 964 linear feet of a main that is difficult to access for repairs, and several cul-de-sacs that are served by undersized PVC line. Planned expenditures during FY 2019-20 on these mains are $200,000, to be funded by water operating revenue. • Wastewater Main Replacements – the District has scheduled the rehabilitation of a sewer main pipeline, rated as high priority due to the number of structural defects noted during video logging of the pipeline. Planned expenditures during FY 2019-20 on these mains are $200,000, 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 2019-20 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 2019- 20 are $60,000,000, funded by State Revolving Fund grants and low interest loans. The following pages include the District current Capital Improvement Program, a summary of project funding, and detailed descriptions of each project. 156FISCAL YEAR BUDGET 2019-20 CIP FIVE YEAR PROGRAM SCHEDULE (FY 2020-24) YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-22 YEAR 4 FY 2022-23 YEAR 5 FY 2023-24 PROJECT TOTAL GENERAL Habitat Conservation Plan $ - $ - $ 310,000 $ 384,000 $ 383,000 $ 1,077,000 AMI Meter Replacement Program 1,500,000 1,500,000 1,000,000 - - 4,000,000 GENERAL SUBTOTAL 1,500,000 1,500,000 1,310,000 384,000 383,000 5,077,000 WATER Foothill Zone Storage Reservoir 400,000 - 3,750,000 - - 4,150,000 Canal Zone Storage Reservoir - - - 1,100,000 1,100,000 2,200,000 Transmission Main - Plant 134 to Canal Zone - - - - 500,000 500,000 Plant 134 - Process Improvements 400,000 3,000,000 - - - 3,400,000 Plant 134 - Site Improvements - 1,000,000 - - - 1,000,000 Plant 134 Membrane Replacement 405,000 405,000 405,000 - - 1,215,000 Tank/Reservoir Rehabilitation 400,000 400,000 400,000 400,000 400,000 2,000,000 Plant 9 - Forebay Repair - - - 350,000 - 350,000 Water Mains - Barton 83,000 - - - - 83,000 Water Mains - Cul-de-sacs 117,000 - - - - 117,000 Water Mains - Dwight & Glasgow - - 200,000 1,000,000 - 1,200,000 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 $ 2,030,000 $ 5,030,000 $ 4,980,000 $ 3,075,000 $ 3,145,000 $ 18,260,000 157 EAST VALLEY WATER DISTRICT YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-22 YEAR 4 FY 2022-23 YEAR 5 FY 2023-24 PROJECT TOTAL WASTEWATER Wastewater Main Replacement - Lillian & 11th $ 200,000 $ - $ - $ - $ - $ 200,000 Wastewater Main Rehabilitation Projects - 350,000 350,000 350,000 350,000 1,400,000 Sterling Natural Resource Center (SNRC) 60,000,000 46,900,000 34,493,764 - - 141,393,764 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 60,200,000 54,850,000 34,843,764 350,000 350,000 150,593,764 TOTAL $ 63,730,000 $ 61,380,000 $ 41,133,764 $ 3,809,000 $ 3,878,000 $ 173,930,764 158FISCAL YEAR BUDGET 2019-20 CIP FIVE YEAR FUNDING SCHEDULE (FY 2020-24) YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-22 YEAR 4 FY 2022-23 YEAR 5 FY 2023-24 PROJECT TOTAL Water Operating Revenue $ 2,725,000 $ 3,125,000 $ 2,135,000 $ 3,459,000 $ 3,528,000 $ 14,972,000 Water Replacement Reserves 405,000 405,000 405,000 - - 1,215,000 Grants / Debt - Water 400,000 3,000,000 3,750,000 - - 7,150,000 Wastewater Operating Revenue 200,000 350,000 350,000 350,000 350,000 1,600,000 Wastewater Replacement Reserves - - - - - - Wastewater Reserve Borrowing - - - - - - Grants /Debt - Wastewater 60,000,000 54,500,000 34,493,764 - - 148,993,764 Revenue Bonds/Loans - - - - - - Developer Fees - - - - - - TOTAL $ 63,730,000 $ 61,380,000 $ 41,133,764 $ 3,809,000 $ 3,878,000 $ 173,930,764 A $126 million funding package from the California State Water Resources Control Board State Revolving Fund will be used to build the Sterling Natural Resource Center. 159 EAST VALLEY WATER DISTRICT CIP FY 2019-20 PROPOSED FUNDING Water Operating Revenue Wastewater Operating Revenue Replacement Reserves Grants/ Loans Other Fund Project Total GENERAL Habitat Conservation Plan $ - $ - $ - $ - $ - AMI Meter Replacement Program 1,500,000 - - - 1,500,000 GENERAL SUBTOTAL 1,500,000 - -- 1,500,000 WATER Foothill Zone Storage Reservoir 400,000 - -- 400,000 Canal Zone Storage Reservoir - - -- - Lower Zone Storage Reservoir - - -- - Transmission Main - Plant 134 to Upper Zone - - -- - Transmission Main - Plant 134 to Canal Zone - - -- - Plant 134 - Process Improvements 400,000 --- 400,000 Plant 134 - Site Improvements ---- - Plant 134 Membrane Replacement -- 405,000 - 405,000 Tank/Reservoir Rehabilitation 400,000 --- 400,000 Plant 9 - Forebay Repair ---- - Water Mains - Barton 83,000 --- 83,000 Water Mains - Cul-de-sacs 117,000 --- 117,000 Water Mains - Dwight & Glasgow ---- - Water Mains - Fisher & Stratford ---- - Facility Relocations 100,000 --- 100,000 Facility Rehabilitations 75,000 --- 75,000 Well & Booster Improvements / Rehabilitations 50,000 - -- 50,000 WATER SUBTOTAL $ 1,625,000 $ - $ 405,000 $ - $ 2,030,000 TOTAL $ 3,125,000 $ 200,000 $ 405,000 $ 60,000,000 $ 63,730,000 160FISCAL YEAR BUDGET 2019-20 Water Operating Revenue Wastewater Operating Revenue Replacement Reserves Grants/ Loans Other Fund Project Total WASTEWATER Wastewater Main Replacement -Lillian & 11th $ -$ 200,000 $ -$ -$ 200,000 Sterling Natural Resources Center (SNRC)--- 60,000,000 60,000,000 WASTEWATER SUBTOTAL 200,000 - 60,000,000 60,200,000 15,430,000 TOTAL $ 3,125,000 $ 200,000 $ 405,000 $ 60,000,000 $ 63,730,000 161 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY 162FISCAL YEAR BUDGET 2019-20 Project Type Replacement Water Distribution Location All service connections throughout the District Project Manager Engineering/Information Technology Total Project Cost $7,500,000 Prior Years Budget $3,500,000 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, 2, and 3 of this project replaced 11,368 meters, and Phase 4 and 5 proposed for FY 2019-20, will replace an additional 4,036 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 5,850 accounts will be upgraded with AMI in phases 6 and 7 to be installed over the next two years. AMI Meter Retrofit Program Additional Staff Salaries This project will reduce staffing and equipment costs required to collect manual reads of meters. Meter reading staff and equipment, with an annual cost of approximately $100,000, will be reassigned to other District programs, mitigating the need to fill vacant positions in those programs from external sources. 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 OPERATING BUDGET IMPACT 162FISCAL YEAR BUDGET 2019-20 163 EAST VALLEY WATER DISTRICT AMI Meter Retrofit Program PROJECT COST YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 1,500,000 1,475,000 975,000 - - 3,950,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - 25,000 25,000 - 50,000 Other (Legal)- - - - - - ANNUAL TOTAL $ 1,500,000 $ 1,500,000 $ 1,000,000 $ - $ - $ 4,000,000 PROJECT FUNDING YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 1,500,000 $ 1,500,000 $ 1,000,000 $ - $ - $ 4,000,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 1,500,000 $ 1,500,000 $ 1,000,000 $ - $ - $ 4,000,000 164FISCAL YEAR BUDGET 2019-20 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 $4,150,000 Prior Years Budget N/A Start Date January 2020 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 Foothill Pressure Zone. The 2019 update to the District’s Water System Master Plan determined that District water storage capacity, when considering emergency supply requirements, will be deficient by up to 15 million gallons (mg) by the year 2025, and that the pressure zone with the greatest deficiency is the Foothill Zone. Based on recommended projects in the master plan update, staff is planning for site acquisition, engineering and construction of a 3mg water storage facility to serve existing customers in the District’s Foothill pressure zone. Foothill Zone Storage Reservoir 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 OPERATING BUDGET IMPACT 164FISCAL YEAR BUDGET 2019-20 165 EAST VALLEY WATER DISTRICT Foothill Zone Storage Reservoir PROJECT COST YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation 400,000 - - - - 400,000 Construction (Contract) - - 3,100,000 - - 3,100,000 Project Mgmt/Inspection - - 200,000 - - 200,000 Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - 50,000 - - 50,000 Other (Legal) - - - - - - ANNUAL TOTAL $ 400,000 $ - $ 3,350,000 $ - $ - $ 3,750,000 PROJECT FUNDING YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 400,000 $ - $ 3,350,000 $ - $ - $ 3,750,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - Other - - - - - - ANNUAL TOTAL $ 400,000 $ - $ 3,350,000 $ - $ - $ 3,750,000 166FISCAL YEAR BUDGET 2019-20 Project Type Water Location Treatment Plant 134 4588 Highland Avenue Highland, CA 92346 Project Manager Operations Total Project Cost $3,400,000 Prior Years Budget N/A Start Date July 2019 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, which has increased due to the conversion to membrane filtration and the expansion of Plant 134 capacity from 4 to 8 million gallons per day. Plant 134 - Process Improvements (TTHMs & Sludge Management) 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. OPERATING BUDGET IMPACT 166FISCAL YEAR BUDGET 2019-20 167 EAST VALLEY WATER DISTRICT Plant 134 - Process Improvements (TTHMs & Sludge Management) PROJECT COST YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation 400,000 - - - - 400,000 Construction (Contract) - 3,000,000 - - - 3,000,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 400,000 $ 3,000,000 $ - $ - $ - $ 3,400,000 PROJECT FUNDING YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 400,000 $ 3,000,000 $ - $ - $ - $ 3,400,000 Reserves - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 400,000 $ 3,000,000 $ - $ - $ - $ 3,400,000 168FISCAL YEAR BUDGET 2019-20 Project Type Water Location Treatment Plant 134 4588 Highland Avenue Highland, CA 92346 Project Manager Operations Total Project Cost $1,620,000 Prior Years Budget 810,000 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 fiscal year 2017-18 staff replaced one 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. Plant 134 - Membrane Replacement Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A OPERATING BUDGET IMPACT 168FISCAL YEAR BUDGET 2019-20 169 EAST VALLEY WATER DISTRICT Plant 134 - Membrane Replacement PROJECT COST YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 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 - - 1,215,000 EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 405,000 $ 405,000 $ 405,000 $ - $ - $ 1,215,000 PROJECT FUNDING YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Reserves 405,000 405,000 405,000 - - 1,215,000 Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 405,000 $ 405,000 $ 405,000 $ - $ - $ 1,215,000 170FISCAL YEAR BUDGET 2019-20 Project Type Water Location Plant 108 29572 Crestview Lane Highland, CA 92346 Project Manager Engineering Total Project Cost $400,000 Prior Years Budget N/A Start Date December 2019 Estimated Completion April 2020 Capital Requests New Project Project Description The District has completed a comprehensive, multi-year water tank inspection program and received an engineering report identifying and prioritizing tank rehabilitation projects. Many of the projects present significant challenges where there is no redundant storage capacity, limiting projects to certain times of year when demand for water is low, and requiring alternate methods for distributions of water to sections of the affected service area. The District will bid a three-year contract to include three of the top five priority tank rehabilitation projects. The first, a 2 million-gallon reservoir serving the District’s Foothill zone (Plant 108) will be scheduled for fiscal year 2019-20. Tank/Reservoir Rehabilitations Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A OPERATING BUDGET IMPACT 170FISCAL YEAR BUDGET 2019-20 171 EAST VALLEY WATER DISTRICT Tank/Reservoir Rehabilitations PROJECT COST YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 75,000 Land and Land Preparation - - - - - - Construction (Contract) 380,000 380,000 380,000 380,000 380,000 1,900,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials 5,000 5,000 5,000 5,000 5,000 25,000 EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 2,000,000 PROJECT FUNDING YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 2,000,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 2,000,000 172FISCAL YEAR BUDGET 2019-20 Project Type Replacement – Water Distribution Main Location Barton Street south of Baseline Avenue Project Manager Engineering Total Project Cost $83,000 Prior Years Budget N/A Start Date September 2019 Estimated Completion November 2019 Capital Requests New Project Project Description The purpose of this project is to replace 964 linear feet of existing water main in Barton Street which 1) has a history of leaks, 2) is aligned under private driveways and block walls, and 3) is undersized – 894 linear feet is 4” diameter. A new 6” main will be re-aligned within the street, a gate valve added, and 30 service lines will be replaced. Work will be performed by District crews and will take approximately two weeks. Water Main Replacement - Barton Street 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 frequency of leaks in this main, combined with the difficulty of accessing the main to repair leaks, are the key drivers for this project. Utilities N/A OPERATING BUDGET IMPACT BARTON ST BA S E L I N E 172FISCAL YEAR BUDGET 2019-20 173 EAST VALLEY WATER DISTRICT Water Main Replacement - Barton Street PROJECT COST YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 8,000 $ - $ - $ - $ - $ 8,000 Land and Land Preparation - - - - - - Construction (Contract) 20,000 - - - - 20,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials 55,000 - - - - 55,000 EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 83,000 $ - $ - $ - $ - $ 83,000 PROJECT FUNDING YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 83,000 $ - $ - $ - $ - $ 83,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 83,000 $ - $ - $ - $ - $ 83,000 174FISCAL YEAR BUDGET 2019-20 Project Type Replacement – Water Distribution Main Location Rockford Avenue and Seine Avenue Project Manager Engineering Total Project Cost $117,000 Prior Years Budget N/A Start Date August 2019 Estimated Completion June 2020 Capital Requests New Project Project Description The purpose of this project is to improve water mains serving 34 customer connections on five different Cul- de-sacs. The existing mains are 3” PVC pipes and are susceptible to leaks and undersized. Four of the Cul- de-sacs are connected to an 8” main in Rockford Avenue, between Marshall Boulevard and Avalon Avenue. The PVC lines will be replaced with 6” ductile iron pipe, allowing for the installation of fire hydrants. The fifth project is in 28th Street off of Seine Avenue. This 3” PVC line will also be replaced with 6” ductile iron to permit the installation of a fire hydrant. Work will be performed by District crews, and most of the materials needed for the project are in inventory. Water Main Replacement (PVC) – 5 Cul-de-sacs 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; enhanced fire protections is an added benefit. Utilities N/A OPERATING BUDGET IMPACT D E L N O R T E P L D E L N O R T E C I R LO M I T A P L VA L M A R C I R ROCKFORD AVE 174FISCAL YEAR BUDGET 2019-20 175 EAST VALLEY WATER DISTRICT Water Main Replacement (PVC) – 5 Cul-de-sacs PROJECT COST YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 12,000 $ - $ - $ - $ - $ 12,000 Land and Land Preparation - - - - - - Construction (Contract) 35,000 - - - - 35,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials 70,000 - - - - 70,000 EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 117,000 $ - $ - $ - $ - $ 117,000 PROJECT FUNDING YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 117,000 $ - $ - $ - $ - $ 117,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 117,000 $ - $ - $ - $ - $ 117,000 176FISCAL YEAR BUDGET 2019-20 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 2019 Estimated Completion June 2020 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. Facility Relocations Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A OPERATING BUDGET IMPACT 176FISCAL YEAR BUDGET 2019-20 177 EAST VALLEY WATER DISTRICT Facility Relocations PROJECT COST YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 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 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 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 178FISCAL YEAR BUDGET 2019-20 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 2019 Estimated Completion June 2020 Capital Requests Perennial Budget Request Project Description This project involves improvements to multiple facilities, including: 1) paint exterior doors and trim at Plant 134, and 2) slurry seal asphalt inside of Plant 129, replace booster building roof, and repair perimeter fencing. Facility Rehabilitations Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A OPERATING BUDGET IMPACT 178FISCAL YEAR BUDGET 2019-20 179 EAST VALLEY WATER DISTRICT Facility Rehabilitations PROJECT COST YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 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 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 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 180FISCAL YEAR BUDGET 2019-20 Project Type Water Location TBD Project Manager Operations Total Project Cost $50,000 for FY 2018-19 Budgeted Annually Prior Years Budget N/A Start Date July 2019 Estimated Completion June 2020 Capital Requests Perennial 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 facilities 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. Well & Booster Improvements/Rehabilitation 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. OPERATING BUDGET IMPACT 180FISCAL YEAR BUDGET 2019-20 181 EAST VALLEY WATER DISTRICT Well & Booster Improvements/Rehabilitations PROJECT COST YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 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 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 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 182FISCAL YEAR BUDGET 2019-20 Project Type Wastewater Location On Lillian Lane south of Baseline through 11th Street north of 10th Street. Also, on 11th Street east of Cole Avenue west of Palm Avenue. Project Manager Engineering Total Project Cost $200,000 Prior Years Budget N/A Start Date July 2019 Estimated Completion January 2020 Capital Requests New Project Project Description CCTV inspections has identified two segments of 6-inch diameter sewer main with cracks in the clay VCP pipe. One segment on Lillian Lane approximately 650 linear feet and the other on 11th Street approximately 390 linear feet. Wastewater Main Rehabilitation - Lillian Lane & 11th Street Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A OPERATING BUDGET IMPACT 11TH ST LI L L I A N L N 182FISCAL YEAR BUDGET 2019-20 183 EAST VALLEY WATER DISTRICT Wastewater Main Rehabilitation - Lillian & 11th Street PROJECT COST YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 190,000 - - - - 190,000 Project Mgmt/Inspection 7,500 - - - - 7,500 Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor 2,500 - - - - 2,500 Other (Legal) - - - - - - ANNUAL TOTAL $ 200,000 $ - $ - $ - $ - $ 200,000 PROJECT FUNDING YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 200,000 $ - $ - $ - $ - $ 200,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 200,000 $ - $ - $ - $ - $ 200,000 184FISCAL YEAR BUDGET 2019-20 Project Type New - Wastewater Treatment Location Northwest Corner of 5th Street and Del Rosa Drive Project Manager Engineering Total Project Cost $157,000,000 Prior Years Budget $15,606,236 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 reclamation 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. Sterling Natural Resource Center (SNRC) 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. OPERATING BUDGET IMPACT 184FISCAL YEAR BUDGET 2019-20 185 EAST VALLEY WATER DISTRICT Sterling Natural Resource Center PROJECT COST YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - Construction (Contract) 60,000,000 46,900,000 34,493,764 - - 141,393,764 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 60,000,000 $ 46,900,000 $ 34,493,764 $ - $ - $141,393,764 PROJECT FUNDING YEAR 1 FY 2019-20 YEAR 2 FY 2020-21 YEAR 3 FY 2021-2022 YEAR 4 FY 2022-2023 YEAR 5 FY 2023-24 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Reserves - - - - - - Grants/Loans 60,000,000 46,900,000 34,493,764 - - 141,393,764 Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 60,000,000 $ 46,900,000 $ 34,493,764 $ - $ - $ 141,393,764 186FISCAL YEAR BUDGET 2019-20 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 2018-19 that focused on system improvements for both water and wastewater systems. Each project was completed under budget and include: Project Details Completion Date AMI Phases II and III March 2019Project Budget $1,565,000 Actual Cost $1,528,802 Plant 134 Membrane Replacement February 2019Project Budget $405,000 Actual Cost $293,992 Warm Creek Crossing May 2019Project Budget $200,000 Actual Cost $200,000 Orange Street Wastewater Main Replacement February 2019Project Budget $75,000 Actual Cost $20,959 Modesto Drive / 35th Street Wastewater Main Replacement March 2019Project Budget $430,000 Actual Cost $453,728 186FISCAL YEAR BUDGET 2019-20 187 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY 188FISCAL YEAR BUDGET 2019-20 GLOSSARY Definitions for technical terms and acronyms found in the budget document  A • Acre Foot (AF): A water measurement equal to 325,851 gallons. - pg. 43 • AMI: Advanced Metering Infrastructure is the technology of collecting meter reads via a network. - pg. 123 • 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. 87 C • CAFR: Comprehensive Annual Financial Report is a set of U.S. government financial statements comprising of 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. 125 • Cal Fire: California Department of Forestry and Fire and Protection. - pg. 20 • 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. 31 • CIP: Capital Improvement Program. - pg. 9 • 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. 199 • COLA: Cost of Living Adjustment. - pg. 9 • COSA: Cost of Service Analysis. - pg. 55 • 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. • CWEA: California Water Environment Association is a nonprofit public benefit corporation dedicated to the educational development and certification of wastewater professionals. - pg. 174 189 EAST VALLEY WATER DISTRICT • D • DWR: Department of Water Resources. - pg. 48 E • EDU: An equivalent dwelling unit is defined by the Borough to be the measure of volume and strength of flow or expected flow of sanitary sewage equivalent to that generated by a single family residential establishment. • Enterprise Fund: Revenues and expenditures of services are separated into separate funds with its own financial statements. - pg. 4 • EVWD: East Valley Water District F • Fees: Charges for service that are based upon the cost of providing the service. - pg. 27 • FEMA: Federal Emergency Management Agency is a federal agency whose mission is to support citizens and first responders in their efforts to improve capabilities to prepare for, respond to, and recover from emergencies and hazards. - pg. 111 • 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. 167 • Full-Time Employee (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. 21 • 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. 53 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. 171 • 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. 31 • 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. 31 • 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. 31 • 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. 46 • GFOA: The Government Finance Officers Association represents public finance officials throughout the United States and Canada. - pg. 16 • Global Positioning System (GPS): A global positioning system provides geolocation and time information to a GPS receiver. - pg. 129 H • Hundred Cubic Feet (HCF): Water billing measurement equal to 748 gallons. - pg. 36 K • KPI: A Key Performance Indicator monitors progress towards meeting program objectives. - pg. 7 190FISCAL YEAR BUDGET 2019-20 L • LAIF: Local Agency Investment Fund is a program administered by the California State Treasurers office to give local agencies and special districts the opportunity to participate in a major portfolio using the investment expertise of the Treasurer’s Office Investment staff. - pg. 48 • Linear Feet (LF): A linear foot is a 12-inch measurement of length. - pg. 200 M • MG: Million Gallon. - pg. 49 • MGD: Million Gallons Per Day. - pg. 163 • MOU: Memorandum of Understanding. - pg. 42 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. 43 • NPO: Net Position Obligation. - pg. 42 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. 19 • SCADA: Supervisory Control and Data Acquisition generally refers to an industrial computer system that monitors and controls a process. - pg. 47 • SCE: Southern California Edison. - pg. 153 • Single Family Residential (SFR): A stand-alone residential building. - pg. 229 • Sterling Natural Resource Center (SNRC): The District is planning and constructing a water recycling center called the Sterling Natural Resource Center. - pg. 19 • SWRCB: State Water Resources Control Board. - pg. 42 T • TTHM: Total Trihalomethanes is a disinfectant by product when chlorine used to treat water reacts with organic materials in the water. - pg. 9 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. 18 U • UCMR: Unregulated Contaminant Monitoring Rule. - pg.168 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. 153 • 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 necessary projects and capital requirements taking existing deficiencies and facility requirements to meet both current and future demand in consideration. - pg. 147 • WBIC: Weather-Based Irrigation Controller systems are sprinkler control devices that automatically adjust irrigation schedules in response to changing weather or environmental conditions. - pg. 118 191 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY 192FISCAL YEAR BUDGET 2019-20 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: Service 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 • 6502 - Professional Development: Seminars, conferences, and travel costs for employee development 193 EAST VALLEY WATER DISTRICT • 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 DISTRICT HEADQUARTERS 31111 Greenspot Road, Highland, CA 92346 (909) 889-9501 www.eastvalley.org DISTRICT BOARD MEETINGS Second and fourth Wednesday of each month District Headquarters Board Room, 5:30pm East Valley Water District Resolution 2019.08 Page 1 of 2 RESOLUTION 2019.08 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT APPROVING THE OPERATING AND CAPITAL BUDGETS FOR FISCAL YEAR 2019-20 WHEREAS, East Valley Water District (“District”) is a county water district organized and operating pursuant to California Water Code Section 30000 et seq.; and WHEREAS, the Board of Directors has reviewed and considered the Budget as presented for fiscal year 2019-20, hereinafter referred to as the “Budget;” and WHERES, the Budget provides a comprehensive plan of financial operations for the District including an estimate of revenues and the anticipated requirements for expenditures, appropriations, and reserves for the forthcoming fiscal year; and WHEREAS, the Budget establishes the basis for incurring liability and making expenditures on behalf of the District; and NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the East Valley Water District as follows: Section 1. The Budget, and each and every part thereof, is hereby approved and adopted for the fiscal year 2019-20; and Section 2. The provisions of this Resolution shall take effect on July 1, 2019. ADOPTED this 26th day of June 2019. Ayes: Noes: Abstain: Absent: Chris Carrillo Board President East Valley Water District Resolution 2019.08 Page 2 of 2 June 26, 2019 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2019.08 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held June 26, 2019. ATTEST: _____________________________ John Mura Secretary, Board of Directors