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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 06/24/2020REGULAR BOARD MEET ING June 24, 2020 - 5:30 PM31111 Greenspot Road, Highland, CA 92346 VIA TELECONFERENCE In an effort to prevent the spread of COVID-19 and in accordance with Governor Newsom's Executive Order N-25-20 and N-29-20, this meeting is being conducted via teleconference. There will be no public location for attending this meeting in person. Members of the public may listen and provide public comment telephonically and or submit a Speaker/Public Comment card prior to the start of the meeting. Anyone wishing to join the meeting may do so using the following information: DIAL: 1-510-338-9438 and enter ACCESS CODE: 126 755 0760## You may also join via webex.com: LINK MEET ING# 126 755 0760 and PASSWORD: EVWD2020 AGENDA "In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors". CALL TO ORDER PLEDG E O F ALLEGIAN CE ROLL CALL O F BOARD MEMBERS PU BLIC COMMEN TS A ny person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. AG ENDA - 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. APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. a. May 13, 2020 Regular Board Meeting Minutes b. May 20, 2020 Special Board Meeting Minutes c. Financial Statements for May 2020 d. May 2020 Disbursements: Accounts payable disbursements for the period include check numbers 256139 through 256249, bank drafts, and ACH Payments in the amount of $6,571,979.33 and $517,572.02 for payroll. INFORMATIONAL ITEMS 3.Sterling Natural Resource Center Update DISCUSSION AND POSSIBLE ACTION ITEMS 4.Consider Resolution 2020.17 to Approve the Operating and Capital Budgets for Fiscal Year 2020-21 REPORTS 5.Board of Directors' Reports 6.General Manager/CEO Report 7.Legal Counsel Report 8.Board of Directors' Comments ADJOURN PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after d istribution of the agenda packet are available for pub lic inspection in the District's office located at 31111 Greenspot Rd., Highland, during normal bus iness hours. Also, such documents are available on the District's website at www.eastvalley.org sub ject to staff's ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a, any request for a d isability-related mod ification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above-agendized public meeting should be directed to the District Clerk at (909) 885-4900 at least 72 hours prior to said meeting. 1 Minutes 5/13/2020 sma Draft Pending Approval EAST VALLEY WATER DISTRICT May 13, 2020 REGULAR BOARD MEETING VIA TELECONFERENCE MINUTES The Chairman of the Board called the meeting to order at 5:30 p.m. Vice Chairman Goodrich led the flag salute. PRESENT: Directors: Carrillo, Coats, Goodrich, Morales, Smith ABSENT: None STAFF: John Mura, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Jeff Noelte, Director of Engineering and Operations; Kelly Malloy, Director of Strategic Services; Justine Hendricksen, District Clerk; Shayla Antrim, Sr. Administrative Assistant LEGAL COUNSEL: Jean Cihigoyenetche GUEST(s): Members of the public PUBLIC COMMENTS Chairman Smith 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 (Carrillo-Goodrich) by unanimous roll call vote that the May 13, 2020 agenda be approved as submitted. APPROVE THE MARCH 25, 2020 REGULAR BOARD MEETING MINUTES M/S/C (Coats-Goodrich) by unanimous roll call vote that the Board approve the March 25, 2020 regular board meeting minutes as submitted. APPROVE THE APRIL 8, 2020 REGULAR BOARD MEETING MINUTES M/S/C (Coats-Goodrich) by unanimous roll call vote that the Board approve the April 8, 2020 regular board meeting minutes as submitted. 2 Minutes 5/13/2020 sma APPROVE THE APRIL 15, 2020 SPECIAL BOARD MEETING MINUTES M/S/C (Coats-Goodrich) by unanimous roll call vote that the Board approve the April 15, 2020 special board meeting minutes as submitted. APPROVE THE APRIL 22, 2020 REGULAR BOARD MEETING MINUTES M/S/C (Coats-Goodrich) by unanimous roll call vote that the Board approve the April 22, 2020 regular board meeting minutes as submitted. DIRECTORS’ FEES AND EXPENSES FOR MARCH 2020 M/S/C (Coats-Goodrich) by unanimous roll call vote that the Board approve the Directors’ fees and expenses for April 2020 as submitted. REVIEW FRAUD PREVENTION AND DETECTION POLICY The Chief Financial Officer reviewed the Fraud Prevention and Detection Policy and provided a brief summary of each item; he reviewed the purpose of the policy and stated that no changes were made. Information only. EMERGENCY RESPONSE UPDATE The Director of Strategic Services provided an update on the District’s emergency response to the COVID-19 pandemic. She discussed a return to work plan for staff; and stated that the District has communicated with customers regarding COVID-19 updates and closures via social media and mail. Information only. ADOPT RESOLUTION 2020.03 UPDATING INVESTMENT POLICY 7.6 The Chief Financial Officer stated that the investment policy is required by State statues to be reviewed annually; he reviewed minor modifications to the policy that were derived from comments from reviewers at the California Municipal Treasurers Association. M/S/C (Morales-Goodrich) by unanimous roll call vote that the Board adopt Resolution 2020.03 as submitted. BOARD OF DIRECTORS’ REPORTS Director Carrillo reported on the following: April 23 he participated in the planning committee meeting for the San Bernardino County Water Conference; May 1 he participated in a teleconference call with the Director of Strategic Services in preparation for a call with Assemblyman Ramos to discuss septic to sewer legislation; 3 Minutes 5/13/2020 sma May 4 he attended a tour of the SNRC with the General Manager/CEO; May 5 he participated in a Inland Action virtual meeting; May 6 he participated in a conference call with Assemblyman Ramos to discuss septic to sewer legislation; and May 12 he participated in a conference call with the General Manager/CEO to discuss District business. Director Morales reported on the following: May 4 he participated in an Association of California Water Agencies Region 9 Work Plan meeting; May 5 he met with the General Manager/CEO for a site visit at the SNRC; May 8 he participated in a meeting with the East Valley Association of Realtors where he provided an update on District business and the SNRC; May 12 he participated in the San Bernardino Board of Water Commissioners meeting; and May 12 he participated in a conference call with the General Manager/CEO where he received District updates. Director Coats reported that on April 29 he participated in a conference call with the General Manager/CEO where he received District updates; May 5 he participated in the San Bernardino Valley Municipal Water District Board meeting; May 5 he discussed District business with the General manager/CEO; May 8 he participated in the Inland Empire Economic Partnership Leadership class virtually; and May 12 he made a site visit to the SNRC to view construction progress. Vice Chairman Goodrich reported on the following: April 28 he participated in the Highland Chamber of Commerce meeting where they discussed the 210 freeway expansion; May 5 he participated in a meeting with Anthesis where the District received Employer Partner of the Year recognition; May 7 he attended a site tour of the SNRC to view construction progress and met with the General Manager/CEO to review the agenda; and May 8 he met with the General Manager/CEO to discuss District business. Chairman Smith reported on the following: April 28 he participated in the Highland Chamber of Commerce monthly meeting; May 5 he participated in a meeting with Anthesis where the District received Employer Partner of the Year recognition; May 7 he attended a site tour of the SNRC to view construction progress and met with the General Manager/CEO to review the agenda; and May 8 he met with the General Manager/CEO to discuss District business. Information only. GENERAL MANAGER/CEO REPORT The General Manager/CEO reported on the following: • The District received the GFOA Award for Achievement for Excellence in Financial Reporting for the FY 2018-19 Comprehensive Annual Financial Report (CAFR) for the 8th year in a row. • The District will be closed on Monday, May 25 in observance of Memorial Day. 4 Minutes 5/13/2020 sma • He thanked the public for their continued support during these try times and for participating in the District’s teleconferencing meetings; and stated that the District will continue to hold meetings via teleconference until further notice. Upcoming Teleconference Meetings: • Thursday, May 14 @ 2:30pm – Legislative & Public Outreach Committee meeting. • Wednesday, May 20 @ 5:30pm – Special Board meeting to discuss FY 2020-21 Revenues. • Thursday, May 21 @ 2:00pm – Annual North Fork Water Company Shareholder’s meeting. LEGAL COUNSEL REPORT No report at this time. BOARD OF DIRECTORS’ COMMENTS Director Carrillo stated that former San Bernardino County Supervisor, Dennis Hansberger, passed away; and acknowledged his past leadership in the region. Director Morales and Director Coats congratulated the District on receiving the GFOA award for the 8th year in a row; and commended Anthesis for having an amazing program and presentation. Chairman Smith wished everyone well and to stay safe. Information only. ADJOURN The meeting adjourned at 6:16 p.m. ___________________________ David E. Smith, Board President __________________________ John Mura, Secretary 1 Minutes 05/20/2020 sma Draft pending approval EAST VALLEY WATER DISTRICT May 20, 2020 SPECIAL BOARD MEETING VIA TELECONFERENCE MINUTES The Chairman of the Board called the meeting to order at 5:31 p.m. Vice Chairman Goodrich led the flag salute. PRESENT: Directors: Carrillo, Coats, Goodrich, Morales, Smith ABSENT: None STAFF: John Mura, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Kelly Malloy, Director of Strategic Services; Patrick Milroy, Operations Manager; Justine Hendricksen, District Clerk; Nate Paredes, Business Services Manager; Shayla Antrim, Sr. Administrative Assistant LEGAL COUNSEL: Jean Cihigoyenetche GUEST(s): Members of the public PUBLIC COMMENTS Chairman Smith 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. REVIEW FY 2020-21 REVENUE PROJECTIONS The Business Services Manager provided the Board with a FY 2020-21 Revenue Projections presentation: he showed a comparison of FY 2019-20 water and wastewater revenue to the past two fiscal years, anticipated water sales, a chart that compared the projected rate revenue to the last four fiscal years; and presented the FY 2020-21 operating budget broken down between water and wastewater funds. The Business Services Manager stated that the public hearing to consider adoption of water rates and collection rates, scheduled for April 8, 2020, was postponed due to the stay-at-home order issued by Governor Newsom. Staff has taken a conservative approach in developing the FY 2020-21 revenue projections by using rates effective January 1, 2020 for the full fiscal year; and once new rates are adopted, staff will present a revenue adjustment to the Board to re-align projections. Information only. 2 Minutes 05/20/2020 sma GENERAL MANAGER/CEO REPORT No report at this time. LEGAL COUNSEL REPORT Legal counsel not present. BOARD OF DIRECTORS’ COMMENTS Director Morales commended staff on the revenue projection presentation. Director Coats stated that the information provided is easy to understand and complimented staff on their presentation. ADJOURN The meeting adjourned at 6:03 p.m. ___________________________ David E. Smith, Board President __________________________ John Mura, Secretary R ecommended b y: Jo hn Mura G eneral Manager/C EO R espec tfully sub mitted: Brian Tomp kins C hief F inancial O ffic er B O AR D AGE N D A S TAF F R E P ORT Agend a Item #2.c . Meeting Date: June 24, 2020 C ons ent Item To: G o verning Board Memb ers F rom: G eneral Manager/C EO Subject: F inanc ial S tatements fo r May 2020 R E C O MME N D AT IO N: S taff rec o mmends that the Board of Directo rs (Bo ard ) ac cept and file the attac hed financial s tatements as of, and for the p erio d ended, May 31, 2020. B AC KGR O UN D / AN ALYS IS : Includ ed herewith fo r the Board’s review is a s ummary o f Eas t Valley Water District’s financ ial results , as of May 31, 2020. AG E N C Y G O ALS AN D OB J E C T IVE S : G o al and O bjec tives I I - Maintain a C ommitment to S us tainab ility, Transparenc y, and Ac c o untability a) P rac tice Trans parent and Ac countab le F is cal Management R E VIE W B Y O T HE R S : T his agenda item has been reviewed by the F inanc e Dep artment. F IS C AL IMPAC T T here is no fis cal impac t as s o c iated with this agend a item. ATTACH M E N TS: Description Type May 20 20 Financial Statement M onthly Revie w Backup Material May 20 20 Financial Statements Backup Material FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 2020 page | 1 FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 2020 page | 2 FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 2020 page | 3 FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 2020 page | 4 FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 2020 page | 5 FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 2020 page | 6 FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 2020 page | 7 WATER WASTEWATER DISTRICT TOTAL Assets: Current Assets: 01 Cash and Cash Equivalents 9,007,034.44$ -$ 9,007,034.44$ 02 Investments 3,488,281.76 1,804,368.99 5,292,650.75 03 Accounts Receivable, Net 4,199,642.03 270,813.79 4,470,455.82 04 - Interest Receivable 5,951.06 3,377.19 9,328.25 14*05 Other Receivables 1,583,228.56 - 1,583,228.56 07 Due from Sewer Fund 11,888,488.16 - 11,888,488.16 06 Due from Other Governments 58,144.57 13,448,099.46 13,506,244.03 08 Inventory 487,092.31 6,721.16 493,813.47 09 Prepaid Expenses 251,184.50 31,808.36 282,992.86 30,969,047.39 15,565,188.95 46,534,236.34 Non-Current Assets: 10 Restricted Cash and Cash Equivalents 5,213,147.37 4,510,884.07 9,724,031.44 11 Capital Assets not being Depreciated 10,524,160.01 74,202,855.92 84,727,015.93 13 Capital Assets, Net 107,485,514.71 19,400,104.62 126,885,619.33 123,222,822.09 98,113,844.61 221,336,666.70 Total Assets:154,191,869.48 113,679,033.56 267,870,903.04 Deferred Outflow Of Resources 24*Deferred Charge on Refunding 102,610.45 - 102,610.45 25 Deferred Outflows - Pensions 2,720,647.39 818,040.61 3,538,688.00 157,015,127.32 114,497,074.17 271,512,201.49 Current Liabilities: 22 Accounts Payable and Accrued Expenses 684,716.91 29,959.97 714,676.88 29 Due to Water Fund - 11,888,488.16 11,888,488.16 23 Accrued Payroll and Benefits (11.58) - (11.58) 15 Customer Service Deposits 1,560,076.96 - 1,560,076.96 16 Construction Advances and Retentions 122,742.00 3,146,970.23 3,269,712.23 17 Accrued Interest Payable 368,329.02 52,493.75 420,822.77 18 Current Portion of Compensated Absences 352,523.20 70,440.80 422,964.00 19 Current Portion of Long-Term Debt 2,286,028.45 127,957.51 2,413,985.96 5,374,404.96 15,316,310.42 20,690,715.38 Non-Current Liabilities: 20 Compensated Absences, less current portion 118,206.18 3,791.82 121,998.00 28 Net Pension Liability 8,394,844.82 2,452,110.18 10,846,955.00 21 Long Term Debt, Less Current Portion 40,561,559.33 56,316,821.62 96,878,380.95 27 Other Liabilities 1,173.64 406,809.24 407,982.88 Deferred Inflows Of Resources 26 Deferred Inflows - Pensions 513,098.67 160,544.33 673,643.00 49,588,882.64 59,340,077.19 108,928,959.83 54,963,287.60 74,656,387.61 129,619,675.21 31 Equity 93,752,554.20 30,643,122.62 124,395,676.82 93,752,554.20 30,643,122.62 124,395,676.82 Tot Total Revenue 24,299,212.80 20,245,078.03 44,544,290.83 Tot Total Expense 15,999,927.28 11,047,514.09 27,047,441.37 8,299,285.52 9,197,563.94 17,496,849.46 102,051,839.72 39,840,686.56 141,892,526.28 157,015,127.32$ 114,497,074.17$ 271,512,201.49$ Total Liabilities, Equity and Current Surplus (Deficit): Total Total Beginning Equity: Equity: Revenues Over/Under Expenses Total Current Liabilities: Total Non-Current and Deferred Inflows of Resources: Total Liabilities and Deferred Inflows of Resources: Unaudited As of May 31, 2020 Combining Schedule of Net Position Total Equity and Current Surplus (Deficit): Total Assets and Deferred Outflows of Resources: Total Current Assets: Total Non-Current Assets: Page 1 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 1,231,278.48$ 14,898,747.32$ 16,100,000.00$ -$ -$ -$ 16,100,000.00$ 1,201,252.68$ 42 Meter Charges 755,197.09 8,287,509.18 8,980,000.00 - - - 8,980,000.00 692,490.82 43 Penalties 6,761.70 374,223.66 471,000.00 3,433.16 38,941.83 200,000.00 671,000.00 257,834.51 44 Wastewater System Charges - - - 377,224.57 4,262,911.88 4,648,000.00 4,648,000.00 385,088.12 45 Wastewater Treatment Charges - - - 668,638.03 7,817,467.39 8,665,000.00 8,665,000.00 847,532.61 46 Other Operating Revenue 17,453.32 368,731.75 - 1,500.00 1,354,670.50 2,000.00 2,000.00 (1,721,402.25) 47 Non Operating Revenue 13,384.83 367,763.39 284,000.00 - 6,768,848.93 50,000.00 334,000.00 (6,802,612.32) 48 Gain or Loss on Disposition - 2,237.50 - - 2,237.50 - - (4,475.00) 56 Benefits - - - - - - - - 68 Depreciation - - - - - - - - Revenue Total:2,024,075.42 24,299,212.80 25,835,000.00 1,050,795.76 20,245,078.03 13,565,000.00 39,400,000.00 (5,144,290.83) - - - - - Expense by Category 51 Labor 536,480.25 4,252,940.61 5,214,300.00 149,382.37 1,129,965.59 1,375,700.00 6,590,000.00 1,207,093.80 56 Benefits 152,290.40 2,473,910.51 2,822,250.00 39,326.90 635,354.05 754,750.00 3,577,000.00 467,735.44 63 Contract Services 305,807.69 3,375,115.28 3,965,750.00 723,454.85 8,631,549.55 9,655,250.00 13,621,000.00 1,414,335.17 65 Professional Development 5,449.03 172,128.32 295,250.00 2,274.60 55,696.57 106,750.00 402,000.00 174,175.11 53 Overtime 41,264.73 336,820.93 291,350.00 316.42 14,334.96 57,650.00 349,000.00 (2,155.89) 62 Materials and Supplies 101,998.47 1,301,069.75 1,275,700.00 1,828.41 93,504.46 129,300.00 1,405,000.00 10,425.79 64 Utilities 120,267.45 1,919,422.89 2,426,400.00 8,949.36 87,061.69 185,600.00 2,612,000.00 605,515.42 52 Temporary Labor - 14,666.18 - - 6,285.51 - - (20,951.69) 67 Other 7,474.64 426,284.47 358,000.00 3,160.11 180,909.63 153,000.00 511,000.00 (96,194.10) 54 Standby 3,396.00 30,150.32 33,000.00 744.00 5,502.08 2,000.00 35,000.00 (652.40) 61 Water Supply - 240,575.97 1,067,000.00 - - - 1,067,000.00 826,424.03 71 - Debt Service - 3,250,401.83 4,066,000.00 - 312,350.00 312,000.00 4,378,000.00 815,248.17 81 - Capital Improvement 147,090.88 2,539,064.34 3,125,000.00 4,911,179.81 36,532,849.88 200,000.00 3,325,000.00 (35,746,914.22) 82 - Capital Outlay 102,614.20 924,210.06 895,000.00 - 565,437.07 633,000.00 1,528,000.00 38,352.87 83 - Accounting Income Add back (249,705.08) (5,256,834.18) - (4,911,179.81) (37,203,286.95) - - 42,460,121.13 Expense Total:1,274,428.66 15,999,927.28 25,835,000.00 929,437.02 11,047,514.09 13,565,000.00 39,400,000.00 12,152,558.63 Total Surplus (Deficit):749,646.76$ 8,299,285.52$ -$ 121,358.74$ 9,197,563.94$ -$ -$ -$ Unaudited Revenue and Expense Budget-to-Actual by Category Month Ended May 31, 2020 WATER WASTEWATER DISTRICT WIDE Page 2 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 1,231,278.48$ 14,898,747.32$ 16,100,000.00$ -$ -$ -$ 16,100,000.00$ 1,201,252.68$ 42 Meter Charges 755,197.09 8,287,509.18 8,980,000.00 - - - 8,980,000.00 692,490.82 43 Penalties 6,761.70 374,223.66 471,000.00 3,433.16 38,941.83 200,000.00 671,000.00 257,834.51 44 Wastewater System Charges - - - 377,224.57 4,262,911.88 4,648,000.00 4,648,000.00 385,088.12 45 Wastewater Treatment Charges - - - 668,638.03 7,817,467.39 8,665,000.00 8,665,000.00 847,532.61 46 Other Operating Revenue 17,453.32 368,731.75 - 1,500.00 1,354,670.50 2,000.00 2,000.00 (1,721,402.25) 47 Non Operating Revenue 13,384.83 367,763.39 284,000.00 - 6,768,848.93 50,000.00 334,000.00 (6,802,612.32) Revenue Total:2,024,075.42 24,299,212.80 25,835,000.00 1,050,795.76 20,245,078.03 13,565,000.00 39,400,000.00 (5,144,290.83) - - - - - Progra 1000 - Board of Directors 14,162.02 131,443.53 179,900.00 6,069.42 54,602.44 77,100.00 257,000.00 70,954.03 Progra 2000 - General Administration 65,105.25 736,003.22 912,800.00 25,044.27 286,068.62 391,200.00 1,304,000.00 281,928.16 Progra 2100 - Human Resources 30,616.30 735,730.87 716,800.00 13,089.03 309,390.05 307,200.00 1,024,000.00 (21,120.92) Progra 2200 - Public Affairs 86,753.07 746,237.04 1,054,200.00 40,170.63 362,600.85 385,800.00 1,440,000.00 331,162.11 Progra 2300 - Conservation 18,837.97 300,163.12 589,000.00 - - - 589,000.00 288,836.88 Progra 3000 - Finance 64,824.34 708,331.27 874,600.00 27,115.06 306,888.35 374,400.00 1,249,000.00 233,780.38 Progra 3200 - Information Technology 60,100.20 451,291.23 652,400.00 30,595.46 201,689.96 279,600.00 932,000.00 279,018.81 Progra 3300 - Customer Service 71,940.57 855,614.48 1,238,200.00 30,833.34 285,584.05 376,800.00 1,615,000.00 473,801.47 Progra 3400 - Meter Service 24,222.90 228,472.77 295,000.00 - 621.80 - 295,000.00 65,905.43 Progra 4000 - Engineering 46,573.26 719,595.25 1,085,700.00 22,522.34 282,565.96 465,300.00 1,551,000.00 548,838.79 Progra 5000 - Water Production 300,497.58 3,496,149.41 4,667,000.00 - - - 4,667,000.00 1,170,850.59 Progra 5100 - Water Treatment 37,362.65 732,819.09 870,000.00 - - - 870,000.00 137,180.91 Progra 5200 - Water Quality 49,666.73 386,522.16 461,000.00 - - - 461,000.00 74,477.84 Progra 6000 - Field Maintenance Administration 29,115.76 288,972.63 391,500.00 3,912.11 37,347.96 43,500.00 435,000.00 108,679.41 Progra 6100 - Water Maintenance 281,506.27 2,793,812.86 2,467,000.00 - - - 2,317,000.00 (476,812.86) Progra 6200 - Wastewater Maintenance - - - 712,465.58 8,489,851.75 9,479,000.00 9,479,000.00 989,148.25 Progra 7000 - Facilities Maintenance 60,680.51 770,896.24 806,500.00 13,356.96 163,346.59 191,500.00 998,000.00 63,757.17 Progra 7100 - Fleet Maintenance 32,463.28 461,030.06 487,400.00 4,262.82 59,605.71 48,600.00 486,000.00 (34,635.77) Progra 8000 - Capital - 1,456,842.05 8,086,000.00 - 207,350.00 1,145,000.00 9,231,000.00 (34,893,313.18) Total Surplus (Deficit):749,646.76$ 8,299,285.52$ -$ 121,358.74$ 9,197,563.94$ -$ -$ -$ Revenue and Expense Budget-to-Actual by Program Month Ended May 31, 2020 Unaudited WATER WASTEWATER DISTRICT WIDE Page 3 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 1,231,278.48$ 14,898,747.32$ 16,100,000.00$ -$ -$ -$ 16,100,000.00$ 1,201,252.68$ 42 Meter Charges 755,197.09 8,287,509.18 8,980,000.00 - - - 8,980,000.00 692,490.82 43 Penalties 6,761.70 374,223.66 471,000.00 3,433.16 38,941.83 200,000.00 671,000.00 257,834.51 44 Wastewater System Charges - - - 377,224.57 4,262,911.88 4,648,000.00 4,648,000.00 385,088.12 45 Wastewater Treatment Charges - - - 668,638.03 7,817,467.39 8,665,000.00 8,665,000.00 847,532.61 46 Other Operating Revenue 17,453.32 368,731.75 - 1,500.00 1,354,670.50 2,000.00 2,000.00 (1,721,402.25) 47 Non Operating Revenue 13,384.83 367,763.39 284,000.00 - 6,768,848.93 50,000.00 334,000.00 (6,802,612.32) 48 Gain or Loss on Disposition - 2,237.50 - - 2,237.50 - - (4,475.00) 56 Benefits - - - - - - - - 68 Depreciation - - - - - - - - Revenue Total:2,024,075.42 24,299,212.80 25,835,000.00 1,050,795.76 20,245,078.03 13,565,000.00 39,400,000.00 (5,144,290.83) Program: 1000 - Board of Directors - - - 51 Labor 5,512.50$ 47,778.16$ 73,500.00$ 2,362.50$ 20,317.50$ 31,500.00$ 105,000.00$ 36,904.34$ 56 Benefits 4,076.96 54,596.73 59,500.00 1,747.25 23,398.72 25,500.00 85,000.00 7,004.55 62 Materials and Supplies - 1,179.01 700.00 - 505.30 300.00 1,000.00 (684.31) 63 Contract Services - 12,250.00 7,700.00 - 5,250.00 3,300.00 11,000.00 (6,500.00) 65 Professional Development 4,572.56 15,639.63 38,500.00 1,959.67 5,130.92 16,500.00 55,000.00 34,229.45 Program: 1000 - Board of Directors Total:14,162.02 131,443.53 179,900.00 6,069.42 54,602.44 77,100.00 257,000.00 70,954.03 Program: 2000 - General Administration - - - 51 Labor 38,645.30 323,274.23 361,900.00 15,951.90 130,089.88 155,100.00 517,000.00 63,635.89 53 Overtime 233.16 2,027.82 2,100.00 99.93 869.08 900.00 3,000.00 103.10 56 Benefits 13,225.29 204,735.07 226,800.00 3,420.38 69,219.58 97,200.00 324,000.00 50,045.35 62 Materials and Supplies - 3,415.14 4,200.00 - 1,463.67 1,800.00 6,000.00 1,121.19 63 Contract Services 8,883.00 134,693.95 237,300.00 3,807.00 55,344.85 101,700.00 339,000.00 148,961.20 64 Utilities 1,609.85 2,828.36 2,100.00 689.93 1,212.15 900.00 3,000.00 (1,040.51) 65 Professional Development 2,508.65 65,028.65 78,400.00 1,075.13 27,869.41 33,600.00 112,000.00 19,101.94 Program: 2000 - General Administration Total:65,105.25 736,003.22 912,800.00 25,044.27 286,068.62 391,200.00 1,304,000.00 281,928.16 Program: 2100 - Human Resources - - - - 51 Labor 17,434.76 136,048.29 159,600.00 7,472.04 58,306.54 68,400.00 228,000.00 33,645.17 52 Temporary Labor - 471.92 - - 202.25 - - (674.17) 53 Overtime - 1,033.68 2,100.00 - 443.01 900.00 3,000.00 1,523.31 56 Benefits 4,860.32 104,178.65 97,300.00 2,082.89 44,633.68 41,700.00 139,000.00 (9,812.33) 62 Materials and Supplies - 1,422.59 7,000.00 - 493.91 3,000.00 10,000.00 8,083.50 63 Contract Services 838.87 34,109.34 61,600.00 327.38 14,586.15 26,400.00 88,000.00 39,304.51 64 Utilities 45.05 313.50 700.00 19.31 134.32 300.00 1,000.00 552.18 65 Professional Development 63.71 36,030.45 31,500.00 27.30 9,680.56 13,500.00 45,000.00 (711.01) 67 Other 7,373.59 422,122.45 357,000.00 3,160.11 180,909.63 153,000.00 510,000.00 (93,032.08) Program: 2100 - Human Resources Total:30,616.30 735,730.87 716,800.00 13,089.03 309,390.05 307,200.00 1,024,000.00 (21,120.92) Month Ended May 31, 2020 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Page 4 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended May 31, 2020 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 2200 - Public Affairs - - - - 51 Labor 38,103.39 278,398.13 434,000.00 15,364.71 115,330.14 120,000.00 554,000.00 160,271.73 52 Temporary Labor - - - - - - - - 53 Overtime 116.58 2,494.44 4,900.00 49.97 1,109.80 2,100.00 7,000.00 3,395.76 56 Benefits 8,710.03 128,037.63 179,200.00 3,529.76 58,983.77 76,800.00 256,000.00 68,978.60 62 Materials and Supplies 2,227.04 19,838.27 116,200.00 1.80 24,182.67 49,800.00 166,000.00 121,979.06 63 Contract Services 38,170.59 300,750.63 275,100.00 21,408.95 152,267.02 117,900.00 393,000.00 (60,017.65) 64 Utilities 107.94 8,007.85 16,100.00 107.94 6,417.40 6,900.00 23,000.00 8,574.75 65 Professional Development (682.50) 8,710.09 28,700.00 (292.50) 4,310.05 12,300.00 41,000.00 27,979.86 Program: 2200 - Public Affairs Total:86,753.07 746,237.04 1,054,200.00 40,170.63 362,600.85 385,800.00 1,440,000.00 331,162.11 Program: 2300 - Conservation - - - - 51 Labor 14,625.60 115,574.05 101,000.00 - - - 101,000.00 (14,574.05) 52 Temporary Labor - - - - - - - - 53 Overtime - 1,196.03 3,000.00 - - - 3,000.00 1,803.97 56 Benefits 3,024.57 30,690.81 30,000.00 - - - 30,000.00 (690.81) 62 Materials and Supplies 916.96 108,252.55 223,000.00 - - - 223,000.00 114,747.45 63 Contract Services 100.00 37,548.34 200,000.00 - - - 200,000.00 162,451.66 64 Utilities 170.84 3,608.18 22,000.00 - - - 22,000.00 18,391.82 65 Professional Development - 3,293.16 10,000.00 - - - 10,000.00 6,706.84 Program: 2300 - Conservation Total:18,837.97 300,163.12 589,000.00 - - - 589,000.00 288,836.88 Program: 3000 - Finance - - - - 51 Labor 51,788.37 401,705.50 474,600.00 21,625.23 171,353.53 203,400.00 678,000.00 104,940.97 52 Temporary Labor - - - - - - - - 53 Overtime - 3,542.22 3,500.00 - 1,518.07 1,500.00 5,000.00 (60.29) 56 Benefits 12,913.72 234,247.50 263,200.00 5,437.45 100,548.10 112,800.00 376,000.00 41,204.40 62 Materials and Supplies 73.11 4,455.03 7,700.00 31.33 1,909.28 3,300.00 11,000.00 4,635.69 63 Contract Services 540.90 54,153.20 104,300.00 231.81 27,525.21 44,700.00 149,000.00 67,321.59 64 Utilities 190.74 1,575.09 2,800.00 81.74 675.02 1,200.00 4,000.00 1,749.89 65 Professional Development (682.50) 7,837.91 17,500.00 (292.50) 3,359.14 7,500.00 25,000.00 13,802.95 67 Other - 814.82 1,000.00 - - - 1,000.00 185.18 Program: 3000 - Finance Total:64,824.34 708,331.27 874,600.00 27,115.06 306,888.35 374,400.00 1,249,000.00 233,780.38 Program: 3200 - Information Technology - - - - 51 Labor 21,174.72 137,823.62 240,800.00 12,842.88 65,975.39 103,200.00 344,000.00 140,200.99 52 Temporary Labor - - - - - - - - 53 Overtime - - - - - - - - 56 Benefits 4,001.05 48,218.93 70,700.00 2,784.98 22,036.62 30,300.00 101,000.00 30,744.45 62 Materials and Supplies 1,888.35 23,354.23 25,900.00 809.29 10,008.94 11,100.00 37,000.00 3,636.83 63 Contract Services 32,676.80 235,734.74 299,600.00 14,004.34 101,029.14 128,400.00 428,000.00 91,236.12 64 Utilities 359.28 3,682.89 3,500.00 153.97 1,578.36 1,500.00 5,000.00 (261.25) 65 Professional Development - 2,476.82 11,900.00 - 1,061.51 5,100.00 17,000.00 13,461.67 Program: 3200 - Information Technology Total:60,100.20 451,291.23 652,400.00 30,595.46 201,689.96 279,600.00 932,000.00 279,018.81 Page 5 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended May 31, 2020 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 3300 - Customer Service - - - - 51 Labor 28,107.62 189,797.87 240,800.00 13,841.98 86,651.64 103,200.00 344,000.00 67,550.49 52 Temporary Labor - 14,194.26 - - 6,083.26 - - (20,277.52) 53 Overtime - 3,428.52 3,500.00 - 1,574.23 1,500.00 5,000.00 (2.75) 56 Benefits 8,927.07 134,669.47 147,000.00 4,362.09 59,217.58 63,000.00 210,000.00 16,112.95 62 Materials and Supplies 123.24 3,575.92 6,300.00 52.82 1,532.55 2,700.00 9,000.00 3,891.53 63 Contract Services 25,224.92 432,803.26 716,700.00 8,523.59 99,349.47 153,300.00 870,000.00 337,847.27 64 Utilities 10,139.17 72,298.42 110,700.00 4,345.36 30,985.04 48,300.00 159,000.00 55,716.54 65 Professional Development (682.50) 1,499.56 13,200.00 (292.50) 190.28 4,800.00 18,000.00 16,310.16 67 Other 101.05 3,347.20 - - - - - (3,347.20) Program: 3300 - Customer Service Total:71,940.57 855,614.48 1,238,200.00 30,833.34 285,584.05 376,800.00 1,615,000.00 473,801.47 Program: 3400 - Meter Service - - - - 51 Labor 19,693.68 153,877.55 187,000.00 - 517.04 - 187,000.00 32,605.41 53 Overtime - 1,415.91 10,000.00 - - - 10,000.00 8,584.09 56 Benefits 4,305.63 65,256.92 83,000.00 - 104.76 - 83,000.00 17,638.32 62 Materials and Supplies - 2,041.07 5,000.00 - - - 5,000.00 2,958.93 63 Contract Services 108.48 4,745.03 8,000.00 - - - 8,000.00 3,254.97 64 Utilities 115.11 1,136.29 2,000.00 - - - 2,000.00 863.71 65 Professional Development - - - - - - - - Program: 3400 - Meter Service Total:24,222.90 228,472.77 295,000.00 - 621.80 - 295,000.00 65,905.43 Program: 4000 - Engineering - - - - 51 Labor 35,392.29 395,496.19 491,400.00 18,209.04 171,119.66 210,600.00 702,000.00 135,384.15 52 Temporary Labor - - - - - - - - 53 Overtime - 642.14 1,400.00 - 275.20 600.00 2,000.00 1,082.66 56 Benefits 9,104.44 181,946.27 212,800.00 3,910.20 78,153.23 91,200.00 304,000.00 43,900.50 62 Materials and Supplies - 5,551.21 16,100.00 - 2,379.09 6,900.00 23,000.00 15,069.70 63 Contract Services 62.12 68,747.39 202,300.00 26.63 25,777.30 86,700.00 289,000.00 194,475.31 64 Utilities 1,804.41 62,416.34 137,200.00 286.47 3,048.68 58,800.00 196,000.00 130,534.98 65 Professional Development 210.00 4,795.71 24,500.00 90.00 1,812.80 10,500.00 35,000.00 28,391.49 Program: 4000 - Engineering Total:46,573.26 719,595.25 1,085,700.00 22,522.34 282,565.96 465,300.00 1,551,000.00 548,838.79 Program: 5000 - Water Production - - - - 51 Labor 74,888.88 564,316.29 709,000.00 - - - 709,000.00 144,683.71 53 Overtime 6,309.59 29,650.49 61,000.00 - - - 61,000.00 31,349.51 54 Standby 1,460.00 13,876.00 15,000.00 - - - 15,000.00 1,124.00 56 Benefits 20,129.19 383,067.60 461,000.00 - - - 461,000.00 77,932.40 61 Water Supply - 240,575.97 1,067,000.00 - - - 1,067,000.00 826,424.03 62 Materials and Supplies 12,136.84 231,655.65 299,000.00 - - - 299,000.00 67,344.35 63 Contract Services 95,442.49 606,772.37 381,000.00 - - - 381,000.00 (225,772.37) 64 Utilities 89,988.98 1,418,127.66 1,664,000.00 - - - 1,664,000.00 245,872.34 65 Professional Development 141.61 8,107.38 10,000.00 - - - 10,000.00 1,892.62 Program: 5000 - Water Production Total:300,497.58 3,496,149.41 4,667,000.00 - - - 4,667,000.00 1,170,850.59 Page 6 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended May 31, 2020 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 5100 - Water Treatment - - - - 51 Labor 25,603.20 203,308.83 242,000.00 - - - 242,000.00 38,691.17 53 Overtime 3,836.43 44,598.61 25,000.00 - - - 25,000.00 (19,598.61) 56 Benefits 7,446.90 137,119.91 139,000.00 - - - 139,000.00 1,880.09 62 Materials and Supplies - 168,959.08 165,000.00 - - - 165,000.00 (3,959.08) 63 Contract Services 294.36 83,267.21 149,000.00 - - - 149,000.00 65,732.79 64 Utilities 181.76 95,565.45 150,000.00 - - - 150,000.00 54,434.55 Program: 5100 - Water Treatment Total:37,362.65 732,819.09 870,000.00 - - - 870,000.00 137,180.91 Program: 5200 - Water Quality - - - - 51 Labor 19,641.60 152,854.79 176,000.00 - - - 176,000.00 23,145.21 53 Overtime 98.16 1,828.53 15,000.00 - - - 15,000.00 13,171.47 56 Benefits 4,560.09 81,431.10 82,000.00 - - - 82,000.00 568.90 62 Materials and Supplies - 13,722.13 18,000.00 - - - 18,000.00 4,277.87 63 Contract Services 25,366.88 136,145.18 162,000.00 - - - 162,000.00 25,854.82 64 Utilities - - 2,000.00 - - - 2,000.00 2,000.00 65 Professional Development - 540.43 6,000.00 - - - 6,000.00 5,459.57 Program: 5200 - Water Quality Total:49,666.73 386,522.16 461,000.00 - - - 461,000.00 74,477.84 Program: 6000 - Field Maintenance Administration - - - - 51 Labor 18,822.81 137,387.66 170,100.00 2,073.96 15,053.62 18,900.00 189,000.00 36,558.72 52 Temporary Labor - - - - - - - - 53 Overtime - - 18,000.00 - - 2,000.00 20,000.00 20,000.00 54 Standby 1,936.00 16,274.32 18,000.00 744.00 5,502.08 2,000.00 20,000.00 (1,776.40) 56 Benefits 5,725.53 99,551.37 124,200.00 828.67 11,973.55 13,800.00 138,000.00 26,475.08 62 Materials and Supplies 242.16 (4,378.65) 2,700.00 - 103.48 300.00 3,000.00 7,275.17 63 Contract Services 167.60 1,413.79 900.00 18.63 157.04 100.00 1,000.00 (570.83) 64 Utilities 2,221.66 20,590.11 36,900.00 246.85 2,287.79 4,100.00 41,000.00 18,122.10 65 Professional Development - 18,134.03 20,700.00 - 2,270.40 2,300.00 23,000.00 2,595.57 Program: 6000 - Field Maintenance Administration Total:29,115.76 288,972.63 391,500.00 3,912.11 37,347.96 43,500.00 435,000.00 108,679.41 Program: 6100 - Water Maintenance - - - - 51 Labor 105,378.36 846,819.86 957,000.00 - - - 957,000.00 110,180.14 53 Overtime 30,171.24 231,606.93 130,000.00 - - - 130,000.00 (101,606.93) 56 Benefits 34,803.89 479,246.95 527,000.00 - - - 527,000.00 47,753.05 62 Materials and Supplies 78,525.00 605,358.82 301,000.00 - - - 301,000.00 (304,358.82) 63 Contract Services 32,627.78 612,648.30 552,000.00 - - - 552,000.00 (60,648.30) 64 Utilities - 18,132.00 - - - - - (18,132.00) Program: 6100 - Water Maintenance Total:281,506.27 2,793,812.86 2,467,000.00 - - - 2,467,000.00 (326,812.86) Program: 6200 - Wastewater Maintenance - - - - 51 Labor - - - 34,272.33 253,387.70 313,000.00 313,000.00 59,612.30 53 Overtime - - - - 4,485.49 45,000.00 45,000.00 40,514.51 56 Benefits - - - 9,511.98 139,808.88 173,000.00 173,000.00 33,191.12 62 Materials and Supplies - - - - 19,708.67 36,000.00 36,000.00 16,291.33 Wastewater Treatment - - - 668,638.03 7,817,467.39 7,610,000.00 7,610,000.00 (207,467.39) 63 Contract Services - - - 43.24 254,993.62 1,302,000.00 1,302,000.00 1,047,006.38 Program: 6200 - Wastewater Maintenance Total:- - - 712,465.58 8,489,851.75 9,479,000.00 9,479,000.00 989,148.25 Page 7 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended May 31, 2020 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 7000 - Facilities Maintenance - - - - 51 Labor 13,312.65 103,454.81 120,000.00 4,437.51 34,637.89 40,000.00 160,000.00 21,907.30 53 Overtime 499.57 12,979.41 11,250.00 166.52 4,346.43 3,750.00 15,000.00 (2,325.84) 56 Benefits 4,463.48 65,669.56 69,750.00 1,487.70 22,364.79 23,250.00 93,000.00 4,965.65 62 Materials and Supplies 1,642.34 60,396.60 45,500.00 463.90 15,589.38 10,500.00 56,000.00 (19,985.98) 63 Contract Services 32,787.47 423,219.76 396,250.00 4,378.84 57,035.50 62,750.00 459,000.00 (21,255.26) 64 Utilities 7,975.00 105,141.60 163,000.00 2,422.49 29,361.10 51,000.00 214,000.00 79,497.30 65 Professional Development - 34.50 750.00 - 11.50 250.00 1,000.00 954.00 Program: 7000 - Facilities Maintenance Total:60,680.51 770,896.24 806,500.00 13,356.96 163,346.59 191,500.00 998,000.00 63,757.17 - - Program: 7100 - Fleet Maintenance - - - - 51 Labor 8,354.52 65,024.78 75,600.00 928.29 7,225.06 8,400.00 84,000.00 11,750.16 53 Overtime - 1,409.88 2,700.00 - 156.66 300.00 3,000.00 1,433.46 56 Benefits 2,012.24 40,212.36 47,700.00 223.55 4,467.78 5,300.00 53,000.00 8,319.86 62 Materials and Supplies 4,223.43 52,271.10 32,400.00 469.27 15,627.52 3,600.00 36,000.00 (31,898.62) 63 Contract Services 12,515.43 196,112.79 212,000.00 2,046.41 20,766.86 18,000.00 230,000.00 13,120.35 64 Utilities 5,357.66 105,999.15 113,400.00 595.30 11,361.83 12,600.00 126,000.00 8,639.02 65 Professional Development - - 3,600.00 - - 400.00 4,000.00 4,000.00 Program: 7100 - Fleet Maintenance Total:32,463.28 461,030.06 487,400.00 4,262.82 59,605.71 48,600.00 536,000.00 15,364.23 - - Program: 8000 - Capital - - - 71 - Debt Service - 3,250,401.83 4,066,000.00 - 312,350.00 312,000.00 4,378,000.00 815,248.17 81 - Capital Improvement 147,090.88 2,539,064.34 3,125,000.00 4,911,179.81 36,532,849.88 200,000.00 3,325,000.00 (35,746,914.22) 82 - Capital Outlay 102,614.20 924,210.06 895,000.00 - 565,437.07 633,000.00 1,528,000.00 38,352.87 83 - Accounting Income Add back (249,705.08) (5,256,834.18) - (4,911,179.81) (37,203,286.95) - - 42,460,121.13 Program: 8000 - Capital Total:- 1,456,842.05 8,086,000.00 - 207,350.00 1,145,000.00 9,231,000.00 7,566,807.95 Total Surplus (Deficit):749,646.76$ 8,299,285.52$ -$ 121,358.74$ 9,197,563.94$ -$ -$ -$ Page 8 of 8 B O AR D AGE N D A S TAF F R E P ORT Agenda Item #2.d . Meeting Date: June 24, 2020 C ons ent Item To: G o verning Board Memb ers F rom: G eneral Manager/C EO Subject: May 2020 Dis b urs ements : Acc ounts payab le d is b urs ements for the p erio d inc lude chec k numb ers 256139 through 256249, b ank drafts, and AC H P ayments in the amount of $6,571,979.33 and $517,572.02 fo r payroll. R E C O MME N D AT IO N: S taff recommends that the Board of Direc tors (Bo ard ) review and appro ve the District’s expens e disburs ements fo r the period May 1, 2020 through May 31, 2020 in the amo unt of $7,089,551.35. B AC KGR O UN D / AN ALYS IS : In the continued effo rt to b e fis cally trans p arent, the p ayment register fo r s upplies , materials , services , and p ayroll for May 2020 is attac hed for review and ap p ro val. T his p ro ces s provides the Bo ard and the p ublic an o p p o rtunity to review the exp enses of the Dis tric t. Acc o unts P ayable is p ro cess ed weekly, while p ayroll is p ro ces s ed bi-weekly. Info rmation to justify eac h expenditure is available thro ugh the F inanc e Department. Acc o unts payab le d is b urs ements for the p erio d inc lude c hec k numbers 256139 thro ugh 256249, bank drafts , and A C H P ayments in the amo unt of $6,571,979.33 and $517,572.02, fo r p ayroll. S ignific ant expenses greater than o r equal to $50,000 are further exp lained below: R ecommended b y: Jo hn Mura G eneral Manager/C EO R espec tfully sub mitted: Brian Tomp kins C hief F inancial O ffic er AG E N C Y G O ALS AN D OB J E C T IVE S : G o al and O bjec tives I I - Maintain a C ommitment to S us tainab ility, Transparenc y, and Ac c o untability a) P rac tice Trans parent and Ac countab le F is cal Management R E VIE W B Y O T HE R S : T his agenda item has been reviewed by the F inanc e Dep artment. F IS C AL IMPAC T S ufficient funds have b een b udgeted in the adopted F Y 2019-20 Bud get. ATTACH M E N TS: Description Type May 20 20 P ayment Register Backup Material PAYMENT REGISTER MAY 1, 2020 - MAY 31, 2020 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/1/2020 256139 CHEE ONG 100.00 5/1/2020 256140 GRETCHEN WILLIAMS 150.00 5/1/2020 256141 KENNETH LAWSON 29.98 5/1/2020 256142 KIRK HUNTER 300.00 5/1/2020 256143 MARTA RONQUILLO 150.00 5/1/2020 256144 MAYRA URENA 200.00 5/1/2020 256145 MICHAEL WILLIAMS 182.99 5/1/2020 256146 MICHELLE SHIELDS MARES 150.00 5/1/2020 256147 NATALIE DONDALSKI 100.00 5/1/2020 256148 PAULETTE HEDRICK 150.00 5/1/2020 256149 WILLIAM WILLSEY 100.00 5/1/2020 256150 WILLIAM WILLSEY 100.00 5/1/2020 256151 ZULEMA GANDY 199.00 5/1/2020 256152 ZARA'S INVESTMENT LLC 61.16 5/1/2020 256153 LISA ADAMS 8.15 5/4/2020 256155 LYNN C WILSON 446.28 5/6/2020 256156 AMERICAN FIDELITY ASSURANCE COMPANY 2,683.00 5/6/2020 256157 BALFOUR BEATTY INFRASTRUCTURE, INC 4,005,346.11 5/6/2020 256158 BURGESS MOVING & STORAGE 1,239.15 5/6/2020 256159 BURRTEC WASTE (GROUP) INDUSTRIES, INC. 148.82 5/6/2020 256160 BURRTEC WASTE (GROUP) INDUSTRIES, INC. 346.85 5/6/2020 256161 BURRTEC WASTE (GROUP) INDUSTRIES, INC. 148.82 5/6/2020 256162 CULLIGAN OF ONTARIO 126.60 5/6/2020 256163 EVERSOFT, INC 223.32 5/6/2020 256164 EYE MED VISION CARE 1,379.80 5/6/2020 256165 INLAND WATER WORKS SUPPLY CO 6,019.89 5/6/2020 256166 IXOM WATERCARE, INC. 24,989.20 5/6/2020 256167 K & L HARDWARE 17.93 5/6/2020 256168 UNIFIRST CORPORATION 410.54 5/6/2020 256169 VECTOR RESOURCES, INC. VECTOR USA 2,560.00 5/13/2020 256170 ASENCION H JIMENEZ 5.07 5/13/2020 256171 WEKA 692.57 5/13/2020 256172 COMMUNITY REDEVELOPER LP 485.99 5/13/2020 256173 WAYNE C REYNOLDS 1,878.88 5/13/2020 256174 JIMMY CONNER 68.09 5/13/2020 256175 ACS SUPPORT 26.00 5/13/2020 256176 AMERICAN FIDELITY ASSURANCE COMPANY (FSA) 1,244.16 5/13/2020 256177 ANTHESIS 3,909.75 5/13/2020 256178 ASPEN ENVIRONMENTAL GROUP 3,620.78 5/13/2020 256179 BURRTEC WASTE (GROUP) INDUSTRIES, INC. 1,745.60 5/13/2020 256180 CHEM-TECH INTERNATIONAL INC 2,855.08 5/13/2020 256181 FLEET MANAGEMENT DEPARTMENT 1,291.19 5/13/2020 256182 HIGHLAND COMMUNITY NEWS/PUBLISHING INC 2,076.01 5/13/2020 256183 INLAND WATER WORKS SUPPLY CO 519.60 PAYMENT REGISTER MAY 1, 2020 - MAY 31, 2020 Page 1 of 5 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/13/2020 256184 K & L HARDWARE 3.85 5/13/2020 256185 KOPPEL & GRUBER PUBLIC FINANCE 4,423.02 5/13/2020 256186 NASSAU LIFE INSURANCE COMPANY 66.74 5/13/2020 256187 SOUTHERN CALIFORNIA EDISON COMPANY 94,963.01 5/13/2020 256188 U.S. BANCORP SERVICE CENTER 9,752.28 5/13/2020 256191 UNIFIRST CORPORATION 473.28 5/13/2020 256192 UNITED SITE SERVICES OF CALIFORNIA, INC 300.97 5/13/2020 256193 PHILLIP ZOULKO 79.00 5/19/2020 256200 CONNIE DRESSEN 30.00 5/19/2020 256201 DAVID SHELLMAN 200.00 5/19/2020 256202 ELSA SANTOS 79.96 5/19/2020 256203 WILLIAM MACKIE 375.96 5/19/2020 256204 WILLIAM WILLSEY 30.00 5/20/2020 256194 Facility Refund Check 5/20/20 KB 1,500.00 5/20/2020 256195 ANGEL MANZANO G 100.00 5/20/2020 256196 OPENDOOR LABS INC 134.91 5/20/2020 256197 NICOLE LEET 55.49 5/20/2020 256198 PING CHEN 133.41 5/20/2020 256199 FELICIA PARRA 46.17 5/21/2020 256205 ANTHESIS 4,437.88 5/21/2020 256206 ASPEN ENVIRONMENTAL GROUP 2,500.00 5/21/2020 256207 AT&T 577.86 5/21/2020 256208 CHEM-TECH INTERNATIONAL INC 3,101.68 5/21/2020 256209 CROSNO CONSTRUCTION, INC. 25,203.50 5/21/2020 256210 DENTAL HEALTH SERVICES 281.10 5/21/2020 256211 DIB'S SAFE & LOCK SERVICE 110.00 5/21/2020 256212 EWING IRRIGATION PRODUCTS INC 448.73 5/21/2020 256213 FEDERAL EXPRESS CORPORATION 57.44 5/21/2020 256214 FIELDMAN, ROLAPP & ASSOCIATES 8,202.11 5/21/2020 256215 HARPER & ASSOCIATES ENGINEERING, INC 11,223.00 5/21/2020 256216 INLAND WATER WORKS SUPPLY CO 3,877.73 5/21/2020 256217 K & L HARDWARE 83.10 5/21/2020 256218 KONICA MINOLTA 303.08 5/21/2020 256219 PACIFIC CONSTRUCTION, INC 3,125.00 5/21/2020 256220 RESOLUTE 4,200.00 5/21/2020 256221 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 625,660.41 5/21/2020 256222 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 20,329.38 5/21/2020 256223 SO CAL GAS 15.29 5/21/2020 256224 SOUTH COAST AQMD 137.63 5/21/2020 256225 STRADLING YOCCA CARSON & RAUTH, A PROFESSIONAL CORP 24,609.00 5/21/2020 256226 UNIFIRST CORPORATION 468.52 5/21/2020 256227 US AIR CONDITIONING DISTRIBUTORS, LLC 238.21 5/21/2020 256228 VALERO FLEET, WEX BANK 4,620.81 5/27/2020 256229 JASON HAMPTON 6.37 5/27/2020 256230 J & J MARKET 54.66 5/27/2020 256231 MICHAEL BALLARD 174.59 5/27/2020 256232 INVESTNOTIC, LLC 3.51 5/27/2020 256233 RINA HERNANDEZ 62.85 5/27/2020 256234 MOIST REALTORS INC. 113.81 5/27/2020 256235 PREMIER ASSET HOLDINGS LLC 39.55 5/27/2020 256236 GARLAND KEMPER FAMILY TRUST 130.88 5/27/2020 256237 ACS SUPPORT 26.00 PAYMENT REGISTER MAY 1, 2020 - MAY 31, 2020 Page 2 of 5 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/27/2020 256238 AMAZON.COM, LLC 3,455.04 5/27/2020 256239 CALIFORNIA MUNICIPAL TREASURERS ASSOCIATION, CMTA 175.00 5/27/2020 256240 CITY OF HIGHLAND 270.00 5/27/2020 256241 CMUA, CALIFORNIA MUNICIPAL UTILITIES ASSO. 3,041.25 5/27/2020 256242 COUNTY OF SAN BERNARDINO, DEPT OF PUBLIC WORKS 1,136.00 5/27/2020 256243 FIRST CHOICE SERVICES 307.37 5/27/2020 256244 HATFIELD BUICK 59.11 5/27/2020 256245 INLAND WATER WORKS SUPPLY CO 5,773.09 5/27/2020 256246 METROPOLITAN LIFE INS CO 93.30 5/27/2020 256247 SOUTH COAST AQMD 275.26 5/27/2020 256248 UNIFIRST CORPORATION 397.11 5/27/2020 256249 VERIZON 1,311.30 BANK DRAFTS 5/1/2020 DFT0003756 CA SDI Tax 2,428.08 5/1/2020 DFT0003757 CALPERS/ DEFERRED COMPENSATION 18,013.30 5/1/2020 DFT0003758 CALPERS/ RETIREMENT 42,396.58 5/1/2020 DFT0003759 Federal Payroll Tax 26,936.39 5/1/2020 DFT0003760 Medicare 7,250.32 5/1/2020 DFT0003762 State Payroll Tax 10,522.05 5/1/2020 DFT0003763 CALPERS/ MEDICAL 95,875.68 5/1/2020 DFT0003764 Social Security 224.56 5/4/2020 DFT0003766 AUTHNET GATEWAY BILLING 15.00 5/4/2020 DFT0003767 Beyond Merch 12.50 5/4/2020 DFT0003768 MERCHANT BANKCD 367.66 5/6/2020 DFT0003769 CalPERS- FRAS 33.66 5/6/2020 DFT0003770 PayNearMe, Inc. 111.44 5/11/2020 DFT0003771 TRANSFIRST DISCOUNT 11,962.37 5/12/2020 DFT0003781 FORTE, ACH DIRECT INC, ACH FEES 3,820.32 5/13/2020 DFT0003779 STATE DISBURSEMENT UNIT 2,678.62 5/13/2020 DFT0003782 PayNearMe, Inc. 276.61 5/14/2020 DFT0003774 CALPERS/ DEFERRED COMPENSATION 18,054.02 5/14/2020 DFT0003775 CALPERS/ RETIREMENT 42,400.79 5/15/2020 DFT0003773 CA SDI Tax 2,486.32 5/15/2020 DFT0003776 Federal Payroll Tax 27,862.61 5/15/2020 DFT0003777 Medicare 7,554.48 5/15/2020 DFT0003778 Social Security 223.70 5/15/2020 DFT0003780 State Payroll Tax 10,879.90 5/20/2020 DFT0003783 PayNearMe, Inc. 240.79 5/22/2020 DFT0003784 CBB 711.96 5/26/2020 DFT0003795 VERIFONE INC 22.00 5/27/2020 DFT0003787 CALPERS/ DEFERRED COMPENSATION 18,187.30 5/27/2020 DFT0003788 CALPERS/ RETIREMENT 42,298.40 5/27/2020 DFT0003792 STATE DISBURSEMENT UNIT 2,678.62 5/27/2020 DFT0003794 PayNearMe, Inc. 200.99 5/29/2020 DFT0003786 CA SDI Tax 2,438.75 5/29/2020 DFT0003789 Federal Payroll Tax 25,092.98 5/29/2020 DFT0003790 Medicare 7,402.34 5/29/2020 DFT0003791 Social Security 1,183.08 5/29/2020 DFT0003793 State Payroll Tax 9,791.64 5/29/2020 DFT0003796 CBB 6.22 5/29/2020 DFT0003797 PayNearMe, Inc. 57.71 PAYMENT REGISTER MAY 1, 2020 - MAY 31, 2020 Page 3 of 5 PAYMENT DATE NUMBER VENDOR NAME AMOUNT ACH PAYMENTS 5/1/2020 10007401 GAIL WISNIEWSKI 60.00 5/1/2020 10007402 KATHLEEN ASHTON 200.00 5/6/2020 10007403 ADVANTAGE FLEET WASH, INC 450.00 5/6/2020 10007404 ALLEN WILLIAMS 598.60 5/6/2020 10007405 AZTECA SYSTEMS, INC/ CITYWORKS 40,000.00 5/6/2020 10007406 BARRY'S SECURITY SERVICES, INC 1,862.17 5/6/2020 10007407 CAROL CALES 642.87 5/6/2020 10007408 CINTAS CORPORATION (FIRST AID) 144.36 5/6/2020 10007409 CLA-VAL CO 977.51 5/6/2020 10007410 CLEARFLY COMMUNATIONS 1,330.77 5/6/2020 10007411 CORE & MAIN LP 209.25 5/6/2020 10007412 CORELOGIC SOLUTIONS, LLC 360.50 5/6/2020 10007413 DANIEL DAVIS 495.90 5/6/2020 10007414 DAVID HERNANDEZ 431.95 5/6/2020 10007415 ELISEO OCHOA 649.61 5/6/2020 10007416 EXCEL LANDSCAPE, ICN 276.15 5/6/2020 10007417 FERGUSON ENTERPRISES, INC. 1,994.28 5/6/2020 10007418 FILARSKY & WATT LLP 697.50 5/6/2020 10007419 GARY STURDIVAN 606.56 5/6/2020 10007420 GERALD SIEVERS 606.56 5/6/2020 10007421 GOLDEN STATE LABOR COMPLIANCE, LLC 4,750.00 5/6/2020 10007422 GORDON GRANT 518.10 5/6/2020 10007423 INLAND KENWORTH (US) INC. 1,712.51 5/6/2020 10007424 LESLIE'S POOL SUPPLIES, INC. 11.75 5/6/2020 10007425 LINCOLN NATIONAL LIFE INS CO. 2,238.18 5/6/2020 10007426 MCMASTER-CARR 61.22 5/6/2020 10007427 MICHAEL HENDERSON 591.44 5/6/2020 10007428 PLUS 1 PERFORMANCE 1,242.36 5/6/2020 10007429 QUINN COMPANY 1,952.41 5/6/2020 10007430 REBECCA KASTEN 529.31 5/6/2020 10007431 REDLINE MOBILE FLEET SERVICE & REPAIR 1,987.41 5/6/2020 10007432 ROBERT MARTIN 700.00 5/6/2020 10007433 SULZER ELECTRO-MECHANICIAL SERVICES (US) INC. 320.00 5/6/2020 10007434 UNDERGROUND SERVICE ALERT 272.35 5/6/2020 10007435 WATERTRAX USA INC 16,218.24 5/13/2020 10007436 ANAERGIA TECHNOLOGIES LLC 621,957.65 5/13/2020 10007437 BARRY'S SECURITY SERVICES, INC 1,853.47 5/13/2020 10007438 CHEMSEARCH 208.95 5/13/2020 10007439 CLINICAL LAB OF S B 8,933.00 5/13/2020 10007440 COMPUTERIZED EMBROIDERY COMPANY, INC 1,252.27 5/13/2020 10007441 EVWD EMPLOYEES EVENTS ASSOC 387.42 5/13/2020 10007442 EXCEL LANDSCAPE, ICN 68.17 5/13/2020 10007443 EZEQUIEL ELECTRIC, INC. 1,235.00 5/13/2020 10007444 FERGUSON ENTERPRISES, INC. 5,837.81 5/13/2020 10007445 FRONTIER COMMUNICATIONS 690.13 5/13/2020 10007446 GROUP DELTA CONSULTANTS, INC 23,220.33 5/13/2020 10007447 ICMA RETIREMENT CORPORATION 250.00 5/13/2020 10007448 JC LAW FIRM 9,450.00 5/13/2020 10007449 LEGEND PUMP AND WELL 77,234.00 5/13/2020 10007450 MCMASTER-CARR 64.70 5/13/2020 10007451 MIKE J. ROQUET CONSTRUCTION INC 83,871.50 PAYMENT REGISTER MAY 1, 2020 - MAY 31, 2020 Page 4 of 5 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/13/2020 10007452 ORION SYSTEMS INTEGRATORS LLC 2,000.00 5/13/2020 10007453 PLUMBERS DEPOT INC. 959.96 5/13/2020 10007454 STAPLES BUSINESS ADVANTAGE 192.95 5/13/2020 10007455 STEPHANIE MICHELE GUIDA 4,125.00 5/13/2020 10007456 SUPERIOR AUTOMOTIVE WAREHOUSE, INC. 37.39 5/13/2020 10007457 VERIZON WIRELESS 78.10 5/13/2020 10007458 VULCAN MATERIALS CO/ CALMAT CO 1,381.60 5/21/2020 10007459 ADCOMP SYSTEMS 319.29 5/21/2020 10007460 ADVANTAGE FLEET WASH, INC 400.00 5/21/2020 10007461 AIRGAS, USA LLC 451.69 5/21/2020 10007462 ANTHONY POOL SERVICE, JAMES ANTHONY LOGSDON 225.00 5/21/2020 10007463 ARCADIS U.S., INC 46,011.47 5/21/2020 10007464 ASHOK K. DHINGRA, AKD CONSULTING 9,362.00 5/21/2020 10007465 BARRY'S SECURITY SERVICES, INC 3,706.93 5/21/2020 10007466 CHEMSEARCH 182.83 5/21/2020 10007467 CINTAS CORPORATION (FIRST AID) 159.30 5/21/2020 10007468 CORE & MAIN LP 6,810.91 5/21/2020 10007469 FERGUSON ENTERPRISES, INC. 62,504.49 5/21/2020 10007470 FRONTIER COMMUNICATIONS 915.78 5/21/2020 10007471 INFOSEND, INC 27,429.60 5/21/2020 10007472 INLAND DESERT SECURITY & COMMUNICATIONS, INC 603.95 5/21/2020 10007473 JOHN DRURY 105.00 5/21/2020 10007474 MANAGED MOBILE, INC. 5,067.46 5/21/2020 10007475 MCMASTER-CARR 76.83 5/21/2020 10007476 MIKE J. ROQUET CONSTRUCTION INC 19,500.00 5/21/2020 10007477 MINUTEMAN PRESS OF RANCHO CUCAMONGA 3,422.29 5/21/2020 10007478 MUSICK, PEELER & GARRETT LLP 3,696.00 5/21/2020 10007479 SOLARWINDS, INC. 8,207.00 5/21/2020 10007480 STAPLES BUSINESS ADVANTAGE 269.63 5/21/2020 10007481 TESCO CONTROLS, INC. 6,819.04 5/21/2020 10007482 TYLER TECHNOLOGIES, INC 405.90 5/27/2020 10007483 ADVANTAGE FLEET WASH, INC 175.00 5/27/2020 10007484 ANTHONY POOL SERVICE, JAMES ANTHONY LOGSDON 145.00 5/27/2020 10007485 COAST FITNESS REPAIR SHOP 278.25 5/27/2020 10007486 EVWD EMPLOYEES EVENTS ASSOC 432.42 5/27/2020 10007487 EXCEL LANDSCAPE, ICN 13,550.00 5/27/2020 10007488 GENESIS INDUSTRIAL SUPPLY, INC 1,601.95 5/27/2020 10007489 HUB CONSTRUCTION SPECIALTIES, INC. 1,422.89 5/27/2020 10007490 JOSE MILLAN 2,750.00 5/27/2020 10007491 LAYNE CHRISTENSEN COMPANY 4,375.00 5/27/2020 10007492 MANAGED MOBILE, INC. 4,442.95 5/27/2020 10007493 MCMASTER-CARR 47.33 5/27/2020 10007494 MIKE J. ROQUET CONSTRUCTION INC 1,250.00 5/27/2020 10007495 NATIONAL CONSTRUCTION RENTALS 158.49 5/27/2020 10007496 PLUS 1 PERFORMANCE 1,084.10 5/27/2020 10007497 PRINCIPAL FINANCIAL GROUP 9,516.94 5/27/2020 10007498 ULTIMATE TOWING & RECOVERY 375.00 5/27/2020 10007499 VERIZON WIRELESS 8,080.74 TOTAL 6,571,979.33$ PAYMENT REGISTER MAY 1, 2020 - MAY 31, 2020 Page 5 of 5 B O AR D AGE N D A S TAF F R E P ORT Agenda Item #3. Meeting Date: June 24, 2020 Dis c ussion Item To: G o verning Board Memb ers F rom: G eneral Manager/C EO Subject: S terling Natural R es o urc e C enter Update R E C O MME N D AT IO N: T his item is fo r info rmatio n o nly, no actio n is recommended at this time. B AC KGR O UN D / AN ALYS IS : T he S terling Natural R esource C enter continues to p rogres s with c ons tructio n ac tivity throughout the projec t s ite. C o nstruc tio n inc ludes s ignificant reb ar and conc rete wo rk, rough grad ing, p ip eline installatio n, and b uilding as s emb ly. S inc e the project is us ing the p rogres s ive des ign-b uild model, cons truc tion continues while des ign effo rts are underway in a collaborative team environment with all of the projec t p artners . T he design team is working to inc o rp o rate the b io -energy enhanc ement into the various elements of the treatment p ro ces s . Effo rts continue to work through the various regulatory approvals neces s ary fo r the project. T his is an on-going p ro ces s in tand em with the c o ns tructio n effo rt. C urrent regulato ry agencies invo lved in the S NR C inc lude the S tate Water R es ourc es C o ntrol Bo ard Divis io n o f Drinking Water, R egional Water Q uality C o ntrol Bo ard , S o uth C o as t Air Q uality Management Dis tric t, S an Bernardino C ounty F lo o d C ontro l, C ity o f Highland, and C ity o f S an Bernard ino. Ad d itionally, work continues with S outhern C alifo rnia Ed is o n for the infrastruc ture to ensure power can be delivered to the site and that they are ab le to receive the energy generated at the S NR C . T he Dis tric t has inc reased o utreac h with c ommunity memb ers living in the vic inity o f the s ite. G iven the inc reas ed cons truction ac tivity will continue for the remainder o f 2020, the Dis tric t is taking step s to pro vide helpful informatio n. Dis tric t-wid e cus tomers also have pro jects up d ates provid ed thro ugh soc ial media posts and b ill ins erts . AG E N C Y G O ALS AN D OB J E C T IVE S : G oal and O b jectives I - Implement Effec tive S o lutio ns T hrough Visionary Leadership a) Identify O pportunities to O p timize Natural R esourc es R ecommended b y: Jo hn Mura G eneral Manager/C EO R espec tfully sub mitted: Kelly Malloy Direc tor o f S trategic S ervic es F IS C AL IMPAC T T here is no fis cal impac t as s o c iated with this agend a item. ATTACH M E N TS: Description Type SN RC Update Cover M e mo STERLING NATURAL RESOURCE CENTER TEAM STERLING 229,976 Staff Hours Through May 384 Days of Construction 2,551,942 Gallons of Concrete Poured CONSTRUCTION PROGRESS Aeration Basin Testing Concrete Pour/ Testing Sewer Pipe Installation Project Design Bio-Energy Enhancement Design Del Rosa Sewer Pipe CONSTRUCTION PROGRESS Concrete Pour/ Testing Rebar Placement Conduit Installation Building Delivery Building Erected Landscaping Design CONSTRUCTION NUMBERS IN PERSPECTIVE COMMUNITY ENGAGEMENT 800+ Residents Received the SNRC Neighbor Newsletter Social Media Bill Inserts Newspaper Advertisements THE PATH TO SUCCESS Success is the sum of small efforts, repeated day in and day out. -Robert Collier “” REFLECTIONS: A LOOK AT OUR COMMUNITY’S LEGACY B O AR D AGE N D A S TAF F R E P ORT Agenda Item #4. Meeting Date: June 24, 2020 Dis c ussion Item To: G o verning Board Memb ers F rom: G eneral Manager/C EO Subject: C ons id er R es o lutio n 2020.17 to Approve the O p erating and C apital Bud gets fo r F isc al Year 2020- 21 R E C O MME N D AT IO N: S taff recommends that the Board o f Directo rs (Bo ard ) ad o p t R es o lutio n 2020.17 approving the O p erating and C apital Bud gets for fisc al year (F Y) 2020-21. B AC KGR O UN D / AN ALYS IS : T he F Y 2020-21 O p erating and C ap ital Bud gets have been developed to c o ntinue to pro vide high quality water d elivery and wastewater collec tion s ervic es to Dis tric t ratep ayers . In develo ping the fis c al plan fo r next year, s taff remained foc us ed o n key is s ues . At the s ame time, staff ens ured that exp end itures d irec tly correlate to Agenc y G oals and O bjectives. T he o p erating b udget is p res ented b y p ro gram, each having s tated goals and objec tives fo r the up c oming fis c al year that align with Agenc y G o als , and each ac c o mp anied b y funding reques ts to sup p o rt those o b jectives . T he C ap ital Bud get s p ecific ally identifies eq uipment s ched uled fo r replac ement or up grad e, and projec ts fro m the C apital Imp ro vement P ro gram (C I P ) d es ignated as high p riority d ue to age and c ond ition or having ins uffic ient c ap ac ity to meet anticipated growth. Revenues: As dis cus s ed during the Board works hop o n May 20, 2020, total revenue projected for F Y 2020-21 is $39,865,000, a 2% increas e o ver revenue projec ted fo r the p rior year. F ac tors affec ting revenue p ro jectio ns inc lude: R ates us ed from last rate inc reas e, effec tive January 2020; C o ns umptio n based o n F Y 2018-19; No change to meter charge; No change to wastewater collec tion and treatment rates; Dec reas ed interes t rates earned on inves tments ; and Dec reas ed dis connec tion charges d ue to S enate Bill 998 and the C O VI D-19 pand emic . P ro jected revenues are s ummarized in the c hart below: Expenses: T he District ac counts for all o p erating expenses at the p ro gram level. Eac h pro gram is evaluated o n an annual basis to d etermine its effec tivenes s . As a res ult, s o me programs may b e red efined o r enhanc ed , in o rd er to ensure that the pro grams are run effectively and with a high level o f acc o untab ility. F Y 2020-21 p ro gram expens es are bud geted $30,391,000, a 1% inc reas e c o mpared to the p rio r fis c al year. Total program expenses are pres ented by c ost type b elow: Capital Outlay: T he C apital O utlay Budget is an effort to plan for the replac ement of vehic les and equip ment. T he objec tive is to s tand ardize the replac ement process in o rd er to c reate a managed s ystem of p urc has ing and fund ing c ap ital equip ment, thereby allowing the District to ac c urately p lan and bud get for future need s . T he c o s t o f ind ep endent studies enc o mpassing lo ng-term infras truc ture planning and cos t of s ervice rate s tud ies , are als o inc luded in C apital O utlay. T he F Y 2020-21 C ap ital O utlay Budget totals $1,630,000 and inc ludes a c omb inatio n of equip ment purchas es , inves tments in technolo gy, and planning s tudies as s ummarized in the tab le below: Capital Improvement P rogram: T his year ’s propos ed C ap ital Imp ro vement P rogram bud get to tals $85,365,000 and fo c uses on multip le key is s ues includ ing water q uality, sys tem maintenance, and water sup p ly p ro vided by the p ro posed S terling Natural R esourc e C enter (S NR C ). T he C I P budget is fully funded utilizing $3,465,000 fro m operating revenue and $81,900,000 fro m G rants and Loans . A s ummary o f the C I P b udget for 2020-21, by projec t type, is s hown in the fo llowing tab le: T he Mid -year bud get review c o nd uc ted in F ebruary o f each year will allo w the Dis tric t to measure ac tual revenue agains t revenue projectio ns and determine whether exc ess revenue, if any, are s ufficient to fund additio nal p ro jects . Debt S ervice: T he Dis tric t will pay debt s ervic e o n s ix debt ins truments in F Y 2020-21. Both water and wastewater revenues are p led ged as s ec urity fo r revenue b o nd s , while only water revenues are pledged for rep ayment o f exis ting lo ans. A preliminary c alculation bas ed o n b udget numb ers has resulted in F Y 2020-21 d eb t s ervic e c overage o f 216%, well in exc es s of the 120% required by b o nd d o cuments. Deb t s ervice p ayments sc heduled fo r F Y 2020-21 are s ho wn in the following table: Budget F unding: C urrent year water and was tewater rate revenue will pay for all 2020-21 o perating exp ens e, for d eb t s ervic e o n Dis tric t deb t, and will c o ntribute to ward the c urrent year c ap ital budget, whic h includes c ap ital o utlay, and year one of the multi-year capital improvement p ro gram. In additio n to rate revenue, the c ap ital b udget will also b e fund ed by grants and p roc eed s from low interes t s tate loans. T he tab le below displays exp enditure types inc luded in the 2020-21 b udget, and the fund ing sources availab le to p ay tho s e expend itures: Conclusion: S taff has ded icated a s ignificant amount of time to the careful evaluation of revenue and p ro gram expend itures, to develo p a bud get that will p rovid e s uffic ient funding to meet the needs of the community, credito rs , and o ther stakeho ld ers. T hrougho ut the coming year, s taff will c lo s ely mo nito r revenues vers us p ro gram spend ing, and propos e adjus tments as nec es s ary to ens ure the Dis tric t’s fisc al s ustainability. AG E N C Y G O ALS AN D OB J E C T IVE S : G o al and O bjec tives I I - Maintain a C ommitment to S us tainab ility, Transparenc y, and Ac c o untability a) P rac tice Trans parent and Ac countab le F is cal Management R E VIE W B Y O T HE R S : R ecommended b y: Jo hn Mura G eneral Manager/C EO R espec tfully sub mitted: Brian Tomp kins C hief F inancial O ffic er R E VIE W B Y O T HE R S : T his agenda item has b een reviewed b y all d ep artments , the C o mmunity Ad visory C o mmission, and was presented as an information only item at the June 10, 2020 Board meeting. ATTACH M E N TS: Description Type P resentation P resentation FY 20 20 -21 Draft Budget Backup Material Resolution 2020.17 Resolutio n Letter June 24, 2020 OPERATING & CAPITAL BUDGETS DISTRICT-WIDE REVENUES REVENUE CONSIDERATIONS Water •Rates Used from Last Rate Increase, Effective January 2020 •Consumption Based on FY 2018-19 •No Change to Meter Charge Wastewater •No Change to Wastewater Collection and Treatment Rates Other Income •Decreased Interest Rates Earned on Investments •Decreased Disconnection Charges Due to Senate Bill 998 and the COVID-19 Pandemic 2 FISCAL YEAR 2020-21 TOTAL REVENUES = $39,865,000 Water Sales $16,868,000 Meter Charges $9,020,000 Wastewater Collection $4,656,000 Wastewater Treatment $8,586,000 Other $735,000 DISTRICT-WIDE EXPENSES FUNDED BY OPERATING REVENUE EXPENSE CONSIDERATIONS •Acceleration of AMI Installations •In-House Pipeline Replacements •Rehabilitation of Existing Water Tanks •Amortization of Long-Term Pension Obligations •SNRC Consulting and Compliance FISCAL YEAR 2020-21 TOTAL EXPENSES = $39,865,000 3 Employment Services $10,941,000 Water Cost $826,000 Contract Services $6,528,000 Other Operating $425,000 Wastewater Treatment $8,586,000 Power Cost $1,800,000 Materials $1,285,000 Debt Service $4,379,000 Capital Expenditures $5,095,000 Water Sales $16,868,000 Meter Charges $9,020,000 Other Charges $510,000 SOURCE OF REVENUE WATER FUND 4 Operations $18,067,000 Debt Service $4,066,000 Capital Expenditures $4,265,000 EXPENDITURES / OTHER USES FISCAL YEAR 2020-21 TOTAL WATER BUDGET = $26,398,000 BUDGET HIGHLIGHTS •Increase Power Budget •Applying for SRF Funding for Plant 134 •Complete AMI Project •Debt Service Will Decrease after October Payment WASTEWATER FUND 5 BUDGET HIGHLIGHTS •Wastewater Treatment – 63.8% of Budget •Pipeline Monitoring / Maintenance Includes: •New Camera Truck •Flow Sensors •Two Main Projects •$80 Million SRF Funding (Not Included) FISCAL YEAR 2020-21 TOTAL WASTEWATER BUDGET = $13,467,000 Wastewater Collection $4,656,000 Wastewater Treatment $8,586,000 Other Charges $225,000 SOURCE OF REVENUE Operations $12,324,000 Debt Service $313,000 Capital Expenditures $830,000 EXPENDITURES / OTHER USES 6 PROGRAM EXPENDITURE SUMMARY DESCRIPTION WATER FUND WASTEWATER FUND TOTAL Colu mn1 FY 2019-20 BUDGETED CHANGE Governing Board $ 179,900 $ 77,100 $ 257,000 $ 257,000 0% General Administration 912,600 389,400 1,302,000 1,304,000 0% HR/Risk Management 1,079,500 245,500 1,325,000 1,024,000 29% Public Affairs 1,162,400 426,600 1,589,000 1,440,000 10% Conservation 624,000 - 624,000 589,000 6% Finance 890,700 381,300 1,272,000 1,249,000 2% Information Technology 711,100 261,900 973,000 932,000 4% Customer Service 1,107,900 399,100 1,507,000 1,615,000 -7% Meter Services 290,000 - 290,000 295,000 -2% Engineering 1,080,800 463,200 1,544,000 1,551,000 0% DESCRIPTION WATER FUND WASTEWATER FUND TOTAL Colu mn1 FY 2019-20 BUDGETED CHANGE Water Production Administration 600,000 - 600,000 579,000 4% Source of Supply 2,679,000 - 2,679,000 2,994,000 -11% Pumps & Boosters 663,000 - 663,000 652,000 2% Transmission & Distribution 551,000 - 551,000 442,000 25% Water Treatment 905,000 - 905,000 870,000 4% Water Quality 480,000 - 480,000 461,000 4% Water Maintenance 390,600 43,400 434,000 435,000 0% Maintenance Administration 2,485,000 - 2,485,000 2,467,000 1% Wastewater Maintenance - 803,000 803,000 814,000 -1% Wastewater Treatment - 8,586,000 8,586,000 8,665,000 -1% Facilities Maintenance 824,500 197,500 1,022,000 998,000 2% Fleet Maintenance 450,000 50,000 500,000 536,000 -7% TOTAL $18,067,000 $ 12,324,000 $30,391,000 $30,169,000 1% 7 PROGRAM EXPENDITURE SUMMARY (CONTINUED) DEBT SERVICE 8 Debt Proceeds Used For Plant 134 Treatment Upgrade Plant 134 Hydro Electric Plant Administration / Operations Facility Honeywell Energy Projects 4 Million Gallon Underground Tank 2010 Bonds $2,578,000 2013 Bonds $585,000 SRF Loans $253,000 US Bank Loan $454,000 SBVMWD Loan $509,000 FY 2020-21 PAYMENTS -$4,379,000 9 BUDGET SUMMARY DESCRIPTION WATER FUND WASTEWATER FUND TOTAL Revenue Sales & Services $ 25,888,000 $ 13,242,000 $ 39,130,000 Other Charges 285,000 195,000 480,000 Interest & Miscellaneous Revenue 225,000 30,000 255,000 TOTAL REVENUE $ 26,398,000 $ 13,467,000 $ 39,865,000 Expenditures Operations $ 18,067,000 $ 12,324,000 $ 30,391,000 Debt Service 4,066,000 313,000 4,379,000 Capital Expenditures 4,265,000 830,000 5,095,000 Reserve Contributions - - - TOTAL EXPENDITURES $ 26,398,000 $ 13,467,000 $ 39,865,000 10 CAPITAL BUDGET FUNDING SUMMARY DESCRIPTION WATER FUND WASTEWATER FUND TOTAL Capital Outlay $ 1,195,000 $ 435,000 $ 1,630,000 Capital Improvement Program 3,970,000 81,395,000 85,365,000 TOTAL EXPENDITURES 5,165,000 81,830,000 86,995,000 Operating Revenue 4,265,000 830,000 5,095,000 Grants/Loans 900,000 81,000,000 81,900,000 TOTAL SOURCES $ 5,165,000 $ 81,830,000 $ 86,995,000 11 AUTHORIZED POSITIONS •Total Full-Time Positions: 66 •Part-Time Positions: 2 •Position Changes: •Customer Service Rep I •Transitioned Part-Time to Full-Time •Senior Engineer •Sr. Engineering Technician Retired •Engineering Technician II Retired •Creative Services Representative •Filled by Consultant LEADERSHIP | PARTNERSHIP | STEWARDSHIP 2020-21 Building Partnerships Fiscal Year Proposed Budget HIGHLAND, CALIFORNIA DRAFT contentsTABLE OF Transmittal Letter ......................................................1 FY 2019-20 in Review .....................................................1 District Management .......................................................1 Resolution 2020.17 ...........................................................1 Introduction .................................................................1 Budget Guide ....................................................................1 Statistical/Supplemental Information ..........................1 Organizational Structure ................................................1 District Vision.....................................................................1 Financial Summary .................................................1 Financial Policies ..............................................................1 Budget Process ................................................................1 Current & Proposed Budget Cycle Calendar .......1 Basis of Budgeting ...........................................................1 Fund Structure ..................................................................1 Fund/Program Relationship ...........................................1 Budget Summary ..............................................................1 Revenue Summary ...........................................................1 Expenditure Summary .....................................................1 Outstanding Debt .............................................................1 Unrestricted Fund Equity (Reserves) ...........................1 Long Range Financial Plan ............................................1 Consolidated Financial Schedules .........................1 Consolidated Financial Summary ................................1 Water Fund .........................................................................1 Wastewater Fund .............................................................1 Program Summaries ................................................1 Program Descriptions .....................................................1 Position Summary Schedule .........................................1 Governing Board ..............................................................1 General Administration ...................................................1 Human Resources ............................................................1 Public Affairs ......................................................................1 Conservation .....................................................................1 Finance & Accounting .....................................................1 Information Technology ..................................................1 Customer Service .............................................................1 Meter Services ..................................................................1 Engineering ........................................................................1 Water Production ..............................................................1 Water Treatment ...............................................................1 Water Quality .....................................................................1 Water Maintenance ..........................................................1 Wastewater Maintenance ..............................................1 Facilities Maintenance ....................................................1 Fleet Maintenance ...........................................................1 Capital Budget ............................................................1 Capital Expenditures .......................................................1 Capital Budget ..................................................................1 Capital Improvement Projects.......................................1 Infrastructure Accomplishments ..................................1 Glossary........................................................................1 Chart of Accounts ............................................................1 partnershipLEADERSHIP STEWARDSHIP TR A N S M I T T A L L E T T E R letterTRANSMITTAL LEADERSHIP | PARTNERSHIP | STEWARDSHIP DISTRICT MANAGEMENT FISCAL YEAR IN REVIEW The annual budget development provides an opportunity for cooperation and collaboration with the understanding that an efficient operation requires high degrees of teamwork and focus. 16 RESOLUTION 2020.17 Transmittal Letter Placeholder introduction LEADERSHIP | PARTNERSHIP | STEWARDSHIP IN T R O D U C T I O N STATISTICAL/SUPPLEMENTAL INFORMATION BUDGET GUIDE ORGANIZATIONAL STRUCTURE DISTRICT VISION 16 The financial plan serves as a policy document, operations guide for programs, and as a means of transparent communication. 15 PAGE EAST VALLEY WATER DISTRICT GuideBudget 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. THE BUDGET DOCUMENT IS THE DISTRICT’S ANNUAL FINANCIAL PLAN PREPARED BY DISTRICT STAFF AND APPROVED BY THE GOVERNING BOARD. 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 2020-21 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 2020-21 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 INTRODUCTION FISCAL YEAR BUDGET 2020-202116 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 2020-21. • Accomplishments: This section includes highlights from FY 2019-20. • 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 and 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 2020-21 Budget. GLOSSARY This section provides definitions for general terms and the Chart of Accounts used throughout the budget document. DistinguishedBudget PresentationAward GOVERNMENT FINANCE OFFICERS ASSOCIATION July 1, 2019 For the Fiscal Year Beginning PRESENTED TO East Valley Water District Executive Director California 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 (CSMFO) presented the Excellence Award for its annual budget for the fiscal year beginning July 1, 2019. In order to receive these awards, 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. These awards are 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. Budget Awards EAST VALLEY WATER DISTRICT 17 INTRODUCTION 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 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed FY 2018-19 Actuals Actual financial information for FY 2018-19 as reported in the Comprehensive Annual Financial Report. The actual financial information is reported in the budget document on a budgetary basis. FY 2019-20 Budget The FY 2019-20 Budget was adopted by the Governing Board on June 26, 2019 and may also include any adjustments approved by the Governing Board at the Mid-Year Budget Review. FY 2019-20 Projected The FY 2019-20 Projected column reflects the FY 2019- 20 Budget in addition to any budget amendments approved by the Governing Board during the fiscal year. The FY 2019-20 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 2020-21 Proposed This column initially reflects the FY 2020-21 Proposed Budget submitted by the General Manager/CEO. After the Governing Board reviews and approves the FY 2020-21 Budget, the information in the FY 2020-21 column changes, if necessary, to reflect the Board’s actions. Amount Changed / % Change These columns provide the amount changed/percent change from the previous year’s budget to the newly proposed budget. Three years of financial information are presented to facilitate user analysis. FISCAL YEAR BUDGET 2020-202118 This includes over 103,000 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. EVWD PROVIDES WATER AND WASTEWATER SERVICES TO RESIDENTS WITHIN ITS 30.1 SQUARE MILE AREA. InformationStatistical/Supplemental 210 210 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 HIGHLAND SAN BERNARDINO District Boundary Map SEVEN OAKS DAM N 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 portion of the District’s water is imported from Northern California EAST VALLEY WATER DISTRICT 19 through the State Water Project. EVWD has access to this water through San Bernardino Valley Municipal Water District (SBVMWD). The District anticipates using all of the allocated North Fork Shares to be used for groundwater replenishment rather than treated and used in the water distribution system directly. Not only will this help to contribute to a healthy basin level, it will offset the District’s cost obligation toward the Groundwater Council. 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 constructing the Sterling Natural Resource Center (SNRC) facility in the city of Highland that will treat up to 10 million gallons of wastewater daily for recharge 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. 76%23% 1% Santa Ana River (Surface Water) Bunker Hill Basin (Groundwater) Imported State Water Project (Surface Water) Sources of Water POPULATION GROWTH Population growth projections vary within EVWD’s service area due to a number of proposed developments with unspecified timing for completion. There are a number of future developments planned within the EVWD service area including: • The development of diverse housing from large estate lots to multifamily units. Additional planned services of the area may include 14 to 21 acres of commercial services, a new fire station equipped with a police substation, and a new art school. The new development consists of approximately 1,650 acres and may add approximately 11,800 to 12,400 new residents in the District upon buildout anticipated in 2035. • Unit development project offering a variety of housing opportunities. The development density allows for a minimum of 250 housing units and a maximum of 800 house units. The development will be located along Greenspot Road and the 210 Freeway. • Residential planned community of 316 housing units. The permitted land use types of this area focus towards low to medium density residential units with additional inclusion of open space, agriculture, parks and recreation. INTRODUCTION FISCAL YEAR BUDGET 2020-202120 CLIMATE The climate in the cities of 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 a daily high of 94 degrees in the summer and a daily low of 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. The 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. EVWDEVWD CaliforniaAverage City ofSan Bernardino City ofHighland County ofSan Bernardino $47,000 $41,000 $55,000 $57,000 $67,000 Average Household Income *Income information retrieved from census.gov. 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 colleges within the region include: Crafton Hills College; Riverside City College; and San Bernardino Valley College. 2018-19 Graduation Rates 92.1%90.4% 89.3%88.1% RUSD SBCUSD County ofSan Bernardino State ofCalifornia Graduation information retrieved from cde.ca.gov. EAST VALLEY WATER DISTRICT 21 INTRODUCTION 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 centers 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. District Spotlight 103,000 population served Miles ofsewer videoMonitoring 263 water leaksrepaired 1,577 linear feet ofnew watermain installed square mile service area 30.1 miles ofsewer cleaned 300 3,400SAMPLES COLLECTED 47415,000,000 Average Gallons OFwater produced/day 28,977,000 gallons of water storage enough to fill 44 olympic-sized swimming pools MILES OFWATER MAINS 214 MILES OFSEWER MAINS hydrants flushed646hydrants repaired orreplaced & Painted activegroundwaterwells 4,891MANUAL AND16,016AMI AUTOMATIC METERSREAD MONTHLY 6,000,000 average gallons ofsewer conveyed daily 127 LOW WATER USEPLANT SPECIES INDISTRICT GARDEN 60+ FISCAL YEAR BUDGET 2020-202122 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. En ance and Pre ervethe ualit of Life FOR OUR COMMUNITY THROUGH INNOVATIVE LEADERSHIP World Cla & Public ervice Core Values LEADERSHIP Motivating a group of people to act towards achieving a common goal or destination. PARTNERSHIP Developing relationships between a wide range of groups and individuals through collaboration and shared responsibility. STEWARDSHIP Embracing the responsibility of enhancing and protecting resources considered worth caring for and preserving. EAST VALLEY WATER DISTRICT 23 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. Adopted January 10, 2018 INTRODUCTION FISCAL YEAR BUDGET 2020-202124 RATEPAYERS SR. ADMINISTRATIVE ASSISTANT DIRECTOR OF STRATEGIC SERVICES HUMAN RESOURCES/ RISK & SAFETY MANAGER OPERATIONS MANAGER DIRECTOR OF ENGINEERING & OPERATIONS SR. ADMINISTRATIVE ASSISTANT PUBLIC AFFAIRS SPECIALIST PUBLIC AFFAIRS MANAGER CONSERVATION COORDINATOR SR. ADMINISTRATIVE ASSISTANT COMMUNITY RELATIONS REPRESENTATIVE (PT) WATER PRODUCTION SUPERVISOR WATER QUALITY COORDINATOR FIELD SERVICE SUPERVISOR SR. TREATMENT PLANT OPERATOR FACILITY MAINTENANCE COORDINATOR FACILITY MAINTENANCE WORKER SR. WATER PRODUCTION OPERATOR WATER PRODUCTION OPERATOR III WATER QUALITY TECHNICIAN ADMINISTRATIVE ASSISTANT SR. FIELD SERVICE WORKER FIELD SERVICE WORKER III FIELD SERVICE WORKER II FIELD SERVICE WORKER I FIELD SERVICE WORKER PART-TIME EQUIPMENT MECHANIC III STOREKEEPER/ BUYER METER READER II METER READER I GENERAL MANAGER/CEODISTRICT CLERK GOVERNING BOARD (5) (7) (2) (4) (5) (3) (PT) (2) Organizational Chart EAST VALLEY WATER DISTRICT 25 CHIEF FINANCIAL OFFICER INFORMATION TECHNOLOGY MANAGER LEGAL COUNSEL SENIOR ENGINEER SR. ADMINISTRATIVE ASSISTANT BUSINESS SERVICES MANAGER ACCOUNTANT SR. ACCOUNTING TECHNICIAN ACCOUNTING TECHNICIAN SR. ADMINISTRATIVE ASSISTANT SR. CUSTOMER SERVICE REPRESENTATIVE NETWORK ADMINISTRATOR INFORMATION SYSTEMS TECHNICIAN CUSTOMER SERVICE REPRESENTATIVE III CUSTOMER SERVICE REPRESENTATIVE II CUSTOMER SERVICE REPRESENTATIVE PART-TIME CUSTOMER SERVICE REPRESENTATIVE I (3) (2) (2) (PT) Management General StaffExecutive Management * All positions are full-time unless noted otherwise. Elected Officials LEGEND INTRODUCTION FISCAL YEAR BUDGET 2020-202126 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 66 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 Human Resources/Risk & Safety Manager Operations Manager Administration Public Affairs Engineering Finance Human Resources Meter Services Conservation *Operations Customer Service Water Production *Information Technology Water Treatment Water Quality Water Maintenance Wastewater Maintenance Facilities Maintenance Fleet Maintenance * This program is overseen by a director position but managed by a member of the executive team. summaryFINANCIAL LEADERSHIP | PARTNERSHIP | STEWARDSHIP FI N A N C I A L S U M M A R Y BUDGET PROCESS FINANCIAL POLICIES CURRENT & PROPOSED BUDGET CYCLE CALENDAR BASIS OF BUDGETING FUND STRUCTURE FUND/PROGRAM RELATIONSHIP BUDGET SUMMARY REVENUE SUMMARY EXPENDITURE SUMMARY 16 The annual budget is an opportunity to establish priorities for the fiscal year, identify means to evaluate results, and ensure that the planned operations and capital projects responsibly use District resources. DEBT OVERVIEW UNRESTRICTED FUND EQUITY (RESERVES) LONG RANGE FINANCIAL PLAN 27 PAGE EAST VALLEY WATER DISTRICT PoliciesFinancial FINANCIAL SUMMARY 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. OPERATING AND CAPITAL BUDGET POLICY Purpose and Scope The purpose of this policy is to provide guidelines to assist in the formulation and consideration of a comprehensive annual budget, one of the most important financial activities the District undertakes each year. Those guidelines include the Strategic Plan and Capital Improvement Plan which assist in completing financial planning cycles that deliver efficient and effective public services. This policy applies to all funds under the budgetary and fiscal control of the Governing Board. Balanced Budget The District will adopt a balanced budget for each fund this policy covers, where the sum of estimated revenues and use of reserves is equal to or greater than current expenditures. Expenditures will include operating expenses, debt service, and the operating budget’s contribution to the Capital Improvement Program (CIP). Short term operating deficits will be mitigated by either raising rates and fees or cutting costs. The use of one- time revenues and development fees for the funding of operating costs is not permitted, and reserves may only be used for the purpose for which they were intended in accordance with the District’s designated funds policy. The budget development process is outlined in the following pages. INVESTMENT POLICY Purpose and Scope The purpose of this policy is to establish guidelines for the prudent investment of District funds in conformance with California Government Code (CGC) requirements. The Policy applies to all funds under direct authority of the District, which does not include funds held in trust for the District’s retirement plans and post-employment health benefits. FISCAL YEAR BUDGET 2020-202128 Objectives CGC §53600.5 states that, when investing and managing public funds, the primary objectives, in priority order, of the District’s investment activities shall be: • Safety: Safety of principal is foremost, therefore, investments shall be undertaken in a manner that seeks to preserve capital while mitigating risks such as interest rate risk and credit risk. • Liquidity: The investment portfolio shall remain sufficiently liquid to enable the District to meet all operating requirements that can reasonably be anticipated. • Return on Investment: The investment portfolio shall be designed for attaining the best yield while keeping in mind that return is secondary to the objectives of safety and liquidity. Delegation of Authority The authority of the District’s Board of Directors to invest District funds is derived from CGC §53601. The §53607 of the CGC allows the Governing Board to delegate that authority to the District’s Chief Financial Officer/ Treasurer. This delegation expires and may be renewed annually, by Board resolution, in conjunction with the annual review of the investment policy. Authorized Investments The District is empowered by CGC §53600 et. seq. to invest in certain types of investments. The District policy is more restrictive than the CGC regarding allowable investments due to the size of the District’s investment portfolio and limited staff resources available to manage invested funds. Safekeeping and Internal Control To protect against potential losses caused by the collapse of a security dealer, all book-entry securities are kept in safekeeping by a third party bank trust department, acting as agent for the District under the terms of a custody agreement. Internal controls have been established to help ensure assets are protected from loss, theft or misuse. Controls include separation of transaction authority from record- accounting, and confirmation of telephone transactions for investments and wire transfers. Reporting In accordance with CGC §53646, the CFO/Treasurer will prepare, and render to the Governing Board, a quarterly investment report within 30 days of the end of each quarter. The report shall list types of investments, maturity, par and market values of each investment, transaction occurring during the quarter, and identification of funds managed by a third party. RESERVE POLICY Purpose 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. General Provisions The following provisions and principles are established for building and utilizing reserve funds: • Interest – Interest income will be credited to reserve funds until maximum target levels have been reached. Once a fund reaches is established maximum, interest will be allocated to other funds. • Funding Priority – Fund balances are reviewed annually to determine whether maximum target levels have been reached. Liquidity reserves will be funded first. When Liquidity reserves are at their target levels, Capital reserves will be funded. The Governing Board will determine how excess monies will be allocated after reserves are at their maximum levels. • Pay Go versus Debt – For funding of capital acquisitions and improvements, the District will analyze the use of reserves and/or issuing debt to determine the optimal funding strategy. Current and future liquidity positions will also be considered. EAST VALLEY WATER DISTRICT 29 FINANCIAL SUMMARY Types of Reserves The District has established and will strive to maintain the following funds: Operating Fund Restricted Funds CapitalReplacement Fund Operating Fund The Operating Fund is used for unanticipated operating expenses. This fund is designated by the Board to maintain working capital for current operations and to meet routine cash flow needs. 1. Target Level – Funding shall be targeted at a minimum amount equal to 90 days of the District's budgeted total operating expenses, and the maximum amount shall not exceed 120 days of the budgeted total operating expenses. 2. Events or Conditions Prompting the Use of the Fund – Upon Board authorization, this fund may be routinely utilized by staff to cover temporary cash flow deficiencies caused by timing differences between revenue and expenses and extraordinary decreases in revenues and unexpected increases in expenses. 3. Periodic Review Dates for Balances – Fund balances and target level will be reviewed by staff and the Board during the preparation and approval of the annual budget. Includes debt pro c e e d s , customer deposits a n d developer fees Capital Replacement Fund Both the water and wastewater divisions will maintain a replacement fund for the replacement of capitalized assets when they reach the end of their useful lives. The source of replacement funds will be user fee revenue from the respective enterprises. 1. Target Level – The minimum target level should be equal to one years depreciation as determined by depreciation recorded for the previous fiscal year. The maximum balance shall not exceed the projected needs for five years according to the District’s Capital Improvement Plan. 2. Events or Conditions Prompting the Use of the Fund – Staff will recommend assets to be replaced during the Capital Improvement Plan/Capital Budget presentation. As projects are approved, funds will be appropriated from undesignated funds or available revenues. 3. Periodic Review Dates for Balances – Fund balances and projected improvement projects will be reviewed by staff and the Board during the preparation and approval of the annual budget. Restricted Funds 1. Bond Proceeds – Typically consist of construction fund monies, and a debt service reserve. a. Target Level – The debt service reserve requirement, if applicable, is established at the time of issue. b. Events or Conditions Prompting the Use of the Fund – Construction fund monies must be spent on applicable projects, while the debt service reserve can only be used in the event of a shortfall of pledged revenues. 2. Development Fees – Consists of capacity fees paid by developers to buy in to the utility infrastructure system paid for by the investment of existing customers. a. Target Level – Capacity fees are collected to pay for facility additions or improvements to support demands on the system by new development. b. Events or Conditions Prompting the Use of the Fund – Capacity fees may be used for Capital Improvement Projects necessitated wholly, or in part, by new development. FISCAL YEAR BUDGET 2020-202130 DEBT POLICY Purpose The purpose of this policy is to establish guidelines for the issuance and management of District Debt, and to provide guidance for decision makers with respect to options available for financing infrastructure, and other capital projects, so that the most prudent, equitable, and cost effective financing can be chosen. Standards for Use of Debt Financing When appropriate, the District will use long-term financing to: • Achieve an equitable allocation of capital costs/ charges between current and future system users; • Provide more manageable rates in the near and medium term and; • Minimum rate volatility. The District will not construct or acquire a facility it it is unable to adequately provide for the subsequent annual operation and maintenance costs of the facility throughout its expected life. In addition, capital projects financed through debt will not be financed for a term longer than the expected useful life of the project. Methods of Financing The Finance Department will investigate all possible project financing alternatives including, but not limited to: annual operating revenue, reserves, bonds, loans, and grants. When applicable, development fees will be used to pay for increase capital costs resulting from new development. The District may legally issue short and long term financing using the following debt instruments: • Inter-Fund Borrowing – May be used for short term cash flow imbalances due to grant terms, and interim financing pending issuance of long term debt. • Lines of Credit • Capital Lease debt – May be used for equipment purchases where cost exceeds $50,000 and financing terms are cost effective. • State Revolving Fund (SRF) Loans – Based on availability, loans are low or zero interest for water and wastewater infrastructure projects with a term of 20 to 30 years. • Certificates of Participation • JPA Revenue Bonds • Refunding Revenue Bonds Compliance The use of bond proceeds must be monitored to ensure compliance with all Internal Revenue Code arbitrage rebate requirements. The District is also responsible for verifying compliance with all undertakings, covenants, and agreements of each debt issue, typically including: • Annual appropriations of revenue to meet debt service payments; • Timely transfer of debt service payments to the Trustee; • Compliance with insurance requirement and; • Compliance with rate covenants. Board Discretion This policy is intended to serve as a guide and in no way restricts the ability of the District Board to review proposed rate actions, debt issuances, or other actions of substance to the District. EAST VALLEY WATER DISTRICT 31 FINANCIAL SUMMARY ProcessBudget 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 FY 2020-21 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 2020-21 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. District Vision Adopt Budget Monitor Programs and Adjust as Necessary Develop Program Goals and Objectives Five-Year Work Plan/ District-Wide Goals Establish Performance Indicators and Estimate Costs FISCAL YEAR BUDGET 2020-202132 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. FIVE YEAR PLAN AND DISTRICT-WIDE 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. 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 & 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. EAST VALLEY WATER DISTRICT 33 FINANCIAL SUMMARY CURRENT & PROPOSED BUDGET CYCLE CALENDAR Date Activity June 24, 2020 FY 2020-21 Budget Adoption November 18, 2020 First Quarter Budget Review at Public Board Meeting January 28, 2021 Budget Meeting to Distribute Worksheets to Management Staff February 10, 2021 FY 2020-21 Mid-Year Budget Review at Public Board Meeting March 11, 2021 FY 2021-22 Capital Outlay and Capital Improvement Program Planning Meeting March 25, 2021 FY 2021-22 New Position Requests, Program Goals and Objectives Due to Finance March 25, 2021 FY 2021-22 Capital Outlay and Capital Improvement Project Requests Due to Finance March 29, 2021 FY 2021-22 Program Budget Requests Due to Finance April 21, 2021 FY 2021-22 Proposed Goals and Objectives Workshop at Public Board Meeting April 22, 2021 FY 2021-22 Capital Outlay and Capital Improvement Program Budget Review with Managers and General Manager/CEO May 11, 2021 Meet with CAC to Present and Discuss Proposed Program Goals and Objectives and Revenue Projections for FY 2021-22 May 12, 2021 FY 2021-22 Revenue Projection Workshop at Public Board Meeting May 21, 2021 FY 2021-22 Budget Complete with all Revisions June 9, 2021 FY 2021-22 Budget Presentation at Public Board Meeting June 15, 2021 Meet with CAC to Present Draft Budget for FY 2021-22 June 23, 2021 FY 2021-22 Budget Adoption at Public Board Meeting 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. FISCAL YEAR BUDGET 2020-202134 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: THE DISTRICT’S FINANCIAL RECORDS ARE KEPT IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) FOR GOVERNMENTAL ENTERPRISE FUNDS. BudgetingBasis of • 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. The District follows the GAAP requirement that enterprise funds use the full accrual basis of accounting. EAST VALLEY WATER DISTRICT 35 FINANCIAL SUMMARY StructureFund GAAP REQUIRE 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 in that rates and fees charged for services are intended to fund the cost of operations and capital needs. Though it is 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 and the Wastewater Funds. 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. The Wastewater Fund accounts for the cost of maintaining a system of pipelines responsible for collecting wastewater from residential and commercial customers and delivering the wastewater to the City of San Bernardino Municipal Water Department Treatment Plant. Both Funds are supported by centralized customer service, engineering, and general administrative functions, the cost for which is allocated between the water and wastewater funds. RAW WATER SOURCES WATER PRODUCTION PLANTS DISTRIBUTION & STORAGE CUSTOMER USE COLLECTION & CONVEYANCE WATER FUND WASTEWATER FUND RECYCLED WATER DISCHARGE CITY OF SAN BERNARDINO WATER RECLAMATION FACILITIES District Operations FISCAL YEAR BUDGET 2020-202136 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 District Operations & Maintenance Programs Each of the funds rely on a significant amount of planning 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 Municipal Water Department. 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. Fund Structure Illustration Additional detail about the activities and budgets of each fund are included at the Water Fund and Wastewater Fund tabs in this document. EAST VALLEY WATER DISTRICT 37 FINANCIAL SUMMARY RelationshipFund/Program DISTRICT OPERATING AND MAINTENANCE EXPENSES ARE ALL BUDGETED AND ACCOUNTED FOR BY PROGRAM. Expenses incurred by Programs 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 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: Program Water Fund Wastewater Fund Total 1000 Governing Board $ 179,900 $ 77,100 $ 257,000 2000 General Administration 912,600 389,400 1,302,000 2100 Human Resources/Risk Management 1,079,500 245,500 1,325,000 2200 Public Affairs 1,162,400 426,600 1,589,000 2300 Conservation 624,000 - 624,000 3000 Finance 890,700 381,300 1,272,000 3200 Information Technology 711,100 261,900 973,000 3300 Customer Service 1,107,900 399,100 1,507,000 3400 Meter Services 290,000 - 290,000 4000 Engineering 1,080,800 463,200 1,544,000 5000 Water Production Administration 600,000 - 600,000 5000-51 Source of Supply 2,834,000 - 2,834,000 5000-52 Pumps & Boosters 611,000 - 611,000 5000-54 Transmission & Distribution 448,000 - 448,000 5100 Water Treatment 905,000 - 905,000 5200 Water Quality 480,000 - 480,000 6000 Maintenance Administration 390,600 43,400 434,000 6100 Water Maintenance 2,485,000 - 2,485,000 6200 Wastewater Maintenance - 803,000 803,000 6300 Wastewater Treatment - 8,586,000 8,586,000 7000 Facilities Maintenance 824,500 197,500 1,022,000 7100 Fleet Maintenance 450,000 50,000 500,000 TOTAL $ 18,067,000 $ 12,324,000 $ 30,391,000 FISCAL YEAR BUDGET 2020-202138 The District projects that it will receive $39,865,000 in revenue during FY 2020-21 and has developed a budget plan to allocate $30,391,000 toward funding of program operations, $4,379,000 toward the amortization of outstanding debt, and $5,095,000 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. THE BUDGET FOR FY 2020-21 IS BALANCED AND REFLECTS THE DISTRICT’S COMMITMENT TO ALLOCATING ANTICIPATED RESOURCES TO MEETING THE EXPECTATIONS OF DISTRICT RATEPAYERS, CREDITORS, AND OTHER STAKEHOLDERS. SummaryBudget Water Fund Wastewater Fund FY 2020-21 Total REVENUE / SOURCES Water Sales / Wastewater Collection Charges $ 16,868,000 $ 4,656,000 $ 21,524,000 Wastewater Treatment Charges - 8,586,000 8,586,000 Water System (Meter) Charges 9,020,000 - 9,020,000 Other Charges and Income 510,000 225,000 735,000 TOTAL REVENUE / SOURCES 26,398,000 13,467,000 39,865,000 OPERATING EXPENSES Employment Expenses 8,617,900 2,323,100 10,941,000 Water Costs 826,000 - 826,000 Contracted Wastewater Treatment - 8,586,000 8,586,000 Power Costs 1,800,000 - 1,800,000 Materials & Supplies 1,156,700 128,300 1,285,000 Contract Services 5,352,950 1,175,050 6,528,000 Other Operating Expenses 313,450 111,550 425,000 TOTAL OPERATING EXPENSES 18,067,000 12,324,000 30,391,000 OTHER USES Debt Service 4,066,000 313,000 4,379,000 Capital Outlay 1,195,000 435,000 1,630,000 Capital Improvement Program Contribution 3,070,000 395,000 3,465,000 TOTAL OTHER USES 8,331,000 1,143,000 9,474,000 TOTAL OPERATING EXPENSES/OTHER USES 26,398,000 13,467,000 39,865,000 NET SURPLUS (DEFICIT) $ - $ - $ - EAST VALLEY WATER DISTRICT 39 FINANCIAL SUMMARY SummaryRevenue 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 Governing Board in 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: Revenue History and Forecast (In Millions) 26.9 25.5 25.3 26.4 26.6 27.5 13.4 13.7 13.3 13.5 13.6 13.8 5.0 10.0 15.0 20.0 25.0 30.0 FY 2017-18 FY 2018-19 FY 2019-20 Estimated FY 2020-21 Projected FY 2021-22 Projected FY 2022-23 Projection Water Revenue Wastewater Revenue • Water Sales • Meter Charges • Wastewater Collection • Wastewater Treatment • Other Charges 23%Meter Charges 21%WastewaterTreatment 12%WastewaterCollection 42%WaterSales Other Charges/Revenue 2% FY 2020-21 PROJECTED REVENUE FISCAL YEAR BUDGET 2020-202140 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 mitigated this decline in revenue by revising its rate structure. Construction within the District has been slow for the past several years as large residential developments have been challenged by community members concerned about water supply and traffic congestion. However, in FY 2019-20 the District did work with a landowner to establish Community Facilities District 2020-1 for the purpose of funding water and sewer infrastructure to serve a 586 unit development. The completion and sale of homes will likely not occur until FY 2023-24. 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 FY 2020-21 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. 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 units (Hundred Cubic Feet or HCF) billed at each tier, is determined based on the individual customer’s characteristics. For single and multi-family customers, the Tier 1 width is determined based on the number of occupants in a dwelling and is intended to supply the customer with sufficient water for indoor health and safety needs. Tier 2 width is based on a customer’s landscaped square footage, and the measured evapotranspiration, or the rate at which plants and soil lost moisture during the month being billed. The tier 2 budget is intended to supply sufficient water for efficient irrigation of the landscaped square footage. Tier 3 is billed for water use in excess of the Tier 1 and 2 budgets and is deemed to be inefficient use. Irrigation meter customers receive only a Tier 2 budget as described above, with usage in excess of the budget billed at the Tier 3 rate. Finally, commercial customers, having neither occupants or landscaped area associated with their domestic meter, receive Tier 1 and 2 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 for the last three years, and also includes conservative projections for FY 2020-21. Customer Consumption In Hundred Cubic Feet FY 2017-18 Actual FY 2018-19 Actual FY 2019-20 Estimated FY 2020-21 Projected Tier 1 3,734,469 3,633,298 3,649,000 3,634,000 Tier 2 2,552,470 2,346,603 2,239,000 2,311,000 Tier 3 1,270,186 1,111,457 1,053,000 1,150,000 TOTAL 7,557,125 7,091,358 6,941,000 7,095,000 EAST VALLEY WATER DISTRICT 41 FINANCIAL SUMMARY The District adopted budget based rates, along with rate adjustments phased over three years, 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. No rate adjustment was needed again for FY 2018-19; however, the District did implement the final increment of phase 3 rate adjustments in January of 2020. The rate adjustments to each tier price was approximately 6% and are projected to increase sales revenue for FY 2020-21 by $900,000. 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 $16.9 million for FY 2020-21. 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 Trends $2M $4M $6M $8M $10M $12M $14M $16M $18M FY 2016-17 Actual FY 2017-18 Actual FY 2018-19 Actual FY 2019-20 Estimated FY 2020-21 Projected $14,537,867 $16,342,378 $16,268,902 $15,777,000 $16,868,000 Tier 1 Tier 2 Tier 3 FISCAL YEAR BUDGET 2020-202142 WATER SYSTEM CHARGES Also referred to as Meter Charges, this revenue consists of a fixed monthly charge assessed to customers based on the size of the meter serving their property. East Valley Water District sets its meter charge rates to generate between 35% and 40% of annual water operating revenue. In doing so, the District is able to shift some of the burden for revenue stability from unpredictable water sales, such as during times of severe drought and water restrictions, to a more reliable fixed charge. Meter charge revenue is projected to remain the same for FY 2020-21. The underlying rates have not been adjusted since July 2017 and there will not be a significant number of new customer connections due to development. The District did, however, complete a cost-of-service analysis in January 2020 which recommended that the meter charge and other rates be increased. Accordingly, a public hearing to consider rate increases was noticed and scheduled for April 2020, but the hearing was cancelled when the state forced business closures due to the COVID-19 pandemic and many Californians, including District ratepayers, were experiencing financial hardship because they were not able to work. The District will reschedule the public hearing to consider rate adjustments in January 2021. Meter Charges $8.9M $8.92M $8.94M $8.96M $8.98M $9M $9.02M FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 Estimated FY 2020-21 Projected $8,944,652 $8,943,223 $8,999,756 $9,020,000 $9,020,000 EAST VALLEY WATER DISTRICT 43 FINANCIAL SUMMARY 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 $0.55 per HCF of water usage, respectively. Wastewater collection rates were last adjusted in October 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. Like the District’s water charges, a cost-of-service analysis was also completed for wastewater collection rates in January 2020, but consideration of adopting recommended adjustments to rates at a public hearing was postponed until January 2021. Revenue projections do not include the recommended rate adjustments. Wastewater Collection Charges $1M $2M $3M $4M $5M FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 Estimated FY 2020-21 Projected Single Family Residential Multi-Family/Commercial $4,703,439 $4,668,923 $4,643,732 $4,656,000 $4,656,000 FISCAL YEAR BUDGET 2020-202144 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 customers within its service area at the 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 FY 2020-21 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. Multi-family accounts are billed a small fixed monthly charge of $1.97, plus a volumetric charge of $1.53 per HCF of water used. Commercial accounts are billed a small fixed monthly charge of $3.52 plus a volumetric charge 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 FY 2020-21 are $8,586,000. The District is building a water recycling facility called the Sterling Natural Resource Center (SNRC) that, upon completion, will allow the District to treat its own wastewater and no longer contract with the City for wastewater treatment. The SNRC is scheduled for completion in November 2021, accordingly, the District will conduct a cost-of-service analysis during FY 2020-21 in order to have rates established for commencement of operations at the plant. Wastewater Treatment Charges $8,129,944 $8,697,671 $8,592,950 $8,536,014 $8,586,000 $8M $8.1M $8.2M $8.3M $8.4M $8.5M $8.6M $8.7M FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 Estimated FY 2020-21 Projected EAST VALLEY WATER DISTRICT 45 FINANCIAL SUMMARY OTHER CHARGES AND INCOME Other 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. Charges include initiation of service fees, and charges related to collection of customer payment, including delinquent fees, final notice fees, and disconnect/reconnect fees. In prior years, revenue from charges related to collection of delinquent customer payments have been significant, so the District has been successfully implementing procedures to reduce the number of service disconnections for non-payment. However, a new California law, effective February 1, 2020, mandating that residential customers not be disconnected until payment is at least 60 days overdue, and a COVID-19 related Executive Order from California’s Governor effective March 17, 2020 which mandated that utilities not disconnect customers during the COVID-19 state of emergency, will further reduce delinquency fees. For FY 2020-21 projections, service disconnection related charges have been reduced by half. Other Income included in FY 2020-21 projections are facility rentals, interest, and miscellaneous revenue. Projections for interest revenue have decreased as yields are expected to decline, and the amount of investible funds held by the District will be depressed as the District fronts the construction costs of the Sterling Natural Resource Center and then must wait 30 to 60 days for reimbursement. In total, the 2020-21 projection for Other Charges and Income is $735,000, which is calculated using adopted fees and an estimate of the number of occurrences for each type of fee based on historical trends. $255KInvestment Income $195KDisconnect Notice Charge $115KDelinquentFees $80KInititation of Service $33K $57K ReconnectFees Miscellaneous Revenue OTHER CHARGES FISCAL YEAR BUDGET 2020-202146 Salaries include regular wages, overtime and on-call pay, paid leave time, incentives, and differential payments which are awarded upon attainment of designated certifications. When negotiations on a new MOU with employees resume, salaries are projected to increase by approximately 5% for the remainder of 2020-21. This projected increase reflects the elimination of an agreed-upon policy to pay staff 5% below market median and then award up to 5% incentives at year end (10% for management) based on performance measures. Pay scale step increases of 2.5% are also available for 32 employees who have not reached the top step in their pay range, subject to annual performance evaluations,. Projected salaries expense for 2020-21 is $7,295,000. Benefit programs include a retirement plan with the California Public Employee Retirement System (CalPERS), a cafeteria health insurance plan, a deferred compensation plan with employer matching, and worker’s comp and Medicare insurance. Overall, benefits are expected to increase by 2.7% to $3,964,000 for FY 2020-21. The most significant of employee benefits is the CalPERS retirement plan. Funding requirements for the plan are determined through actuarial valuations conducted by CalPERS and include contributions from both the District and the employees. The District has also implemented an aggressive 15-year level-pay plan to amortize unfunded pension Resources required for these expenditures are then appropriated from the District’s Water and Wastewater enterprise funds. EMPLOYMENT EXPENSES Employment expenses include salaries and benefits paid for 66 full time employees and 3 temporary employees, and District contributions toward retiree health insurance. Employees are represented by two in-house bargaining units, or employee partnerships, which have negotiated a three-year Memorandum of Understanding (MOU) regarding wage and benefit adjustments through FY 2019-20. Negotiations for an updated MOU were delayed until January 2021 by vote of the District employees due to the COVID-19 related economic downturn. 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. SummaryExpenditure Water Costs EXPENDITURES BY CATEGORY Other Operating 27.7%EmploymentServices 12.4%CapitalExpenditures 22.1%WastewaterTreatment 2.7% 4.3%Power Costs 18.6%Materials/ContractServices 1% 11.2%DebtService EAST VALLEY WATER DISTRICT 47 FINANCIAL SUMMARY liabilities; this plan was adopted to replace a 25-year amortization schedule created by CalPERS. While the 15-year plan requires higher initial annual contributions, the shorter amortization period is projected to save the District $3.5 million. District paid costs related to the retirement plan are projected to increase 3%. Healthcare costs are also split between the District and employees as the District pays 90% to 95% of premiums of a designated ‘benchmark’ insurance plan, with employees paying the balance. Premiums for the benchmark plan increased 21.4% for 2020. The District also contributes toward retiree health insurance premiums until the age of 65, provided they meet all eligibility requirements for this benefit. Workers compensation and life insurance premiums, cell phone allowances, and auto allowances for managers make up the remaining benefits. Total District paid benefits are expected to increase 2.7% to $3,646,000 for FY 2020-21. Salaries and Benefits $8,759,213 $9,782,191 $9,967,572 $10,571,700 $10,941,000 $2M $4M $6M $8M $10M FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 Estimated FY 2020-21 Projected Salaries Benefits WATER COSTS The District anticipates customer demand for approximately 15,935 acre-feet, or 5.19 billion gallons, of water during FY 2020-21. 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 on the following page. FISCAL YEAR BUDGET 2020-202148 • 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. This assessment replaces an assessment previously charged by the Conservation District. Groundwater Council assessments are based on historical pumping levels by each of the signers to the GC Framework Agreement, and the District’s assessment for 2020-21 is projected to be $445,000. However, the District receives credit against the assessment for Santa Ana River surface water that it allows to flow past the District’s intake into groundwater recharge basins. Net of the expected credit, the final assessment the District will pay to the Groundwater Council is projected to be $336,000. • 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 7,033 shares and projects that the assessment will be $13 per share and has budgeted $90,000 accordingly. • Purchased Water – paid to the San Bernardino Valley Municipal Water District to buy State Water Project at $126 per acre foot (AF) when available. Due to moderate snow and rainfall in Northern California during the last two winters water is available from the State Water Project, therefore, the District has budgeted $400,000 to purchase up to 3,175 acre-feet of imported water in FY 2020-21. Total water costs associated with these three sources are projected to be $826,000 for FY 2020-21. Water Costs GW Assessment-Cons Dist Purchased WaterSurface Water GW Council Assessment $200K $400K $600K $800K $1M $1.2M $1.4M FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 Estimated FY 2020-21 Projected $1,309,459 $803,301 $221,953 $548,374 $826,000 EAST VALLEY WATER DISTRICT 49 FINANCIAL SUMMARY CONTRACTED WASTEWATER TREATMENT As outlined in the discussion about wastewater treatment charges, the District has budgeted $8,586,000 for the cost of contracted wastewater treatment in FY 2020-21. 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, including replacement of inefficient pumps, and the installation of a hydroelectric generation facility at the District’s surface water treatment plant (Plant 134), in 2018, have helped the District mitigate the effect of rising power costs. Even with these cost saving measures, some rates applicable to District plants have increased as much as 15% annually. Accordingly, District operations staff works closely with representatives from Southern California Edison (SCE) to try to ensure that water production facilities are assigned Time-Of-Use (TOU) rates wherever possible, and then staff tries to operate facilities to take advantage of the off-peak rates. Total District power costs were $1.75 million in FY 2019-20. Based on the discussion above, power costs are expected to increase approximately 3% for FY 2020-21 to $1.8 million. Power Costs FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 Estimated FY 2020-21 Projected $1M $1.2M $1.4M $1.6M $1.8M Boosting WellsTreatment $1,535,223 $1,749,726 $1,663,720 $1,750,165 $1,800,000 FISCAL YEAR BUDGET 2020-202150 MATERIALS AND 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 increase 15% in FY 2020-21. The prior year budget included a significant earmark for the replacement of street cutting and trenching tools. Program Services Description FY 2019-20 Projected FY 2020-21 Proposed Governing Board General Office Supplies $ 1,684 $ 1,000 Administration General Office Supplies 6,154 5,000 Human Resources Desk, Office Supplies, Software 2,116 10,000 Public Affairs Promo Items, Events and Emergency Supplies 48,021 116,000 Conservation Educational Materials, Books, Workshop Items 6,844 22,000 Finance General Office Supplies 8,972 11,000 Information Technology Computer Supplies 35,363 43,000 Customer Service Lobby Materials, Office Supplies 6,108 9,000 Meter Services Hydration Supplies, Repellents 2,642 5,000 Engineering Small Tools, Plotter Supplies 11,978 23,000 Production Hand Tools, Lubricants, Electrical Supplies, Chemicals 256,707 300,000 Water Treatment Tools, Lab Supplies, Chemicals 194,082 165,000 Water Quality Test & Repair Kits, Chemicals 17,812 18,000 Water Maintenance Inventory Items, Fill Materials 385,542 304,000 Wastewater Maintenance Tools, Degreaser, Insecticides, Manhole Covers 14,931 36,000 Facilities Maintenance Paint Supplies, Hardware, Tools, Signs 85,810 56,000 Fleet Maintenance Tools, Oil, Inventory Items 213,811 161,000 TOTAL $ 1,298,577 $ 1,285,000 Materials, supplies and contract expenses are necessary elements for managing each program's budget. EAST VALLEY WATER DISTRICT 51 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 contract services costs and projections for FY 2020-21 include: • HR/Risk Management will have a significant increase in property/liability insurance costs as insurers have incurred significant losses due to fires in California; • Public Affairs costs have increased to support enhanced emergency preparedness training and the use of a graphic design consultant in leiu of a full time position; • Conservation will have increased consultants’ costs to capture rebate program data and display on GIS maps; and • Engineering will have increased consultant costs to assist with planning for service continuity while plants are taken off-line for rehabilitation. Program Services Description FY 2019-20 Projected FY 2020-21 Proposed Governing Board CEO Evaluation, Balloting $ 18,044 $ 31,000 Administration Legislative, Legal Consultants 225,974 311,000 Human Resources Safety Consultants, Insurance 368,312 870,000 Public Affairs Printing, Emergency Training, Graphic Design 342,874 616,000 Conservation Community Events, Demo Garden, Direct Installation of Water Efficient Irrigation Controllers 249,167 442,000 Finance Auditing, Banking, Software 83,318 114,000 Information Technology GIS, Data Mgt, Cybersecurity 400,954 456,000 Customer Service Billing, Pmt Cards, Software Support 661,446 800,000 Meter Services Uniforms 6,898 10,000 Engineering Surveying, Engineering, Software, Regional Studies 198,418 485,000 Production SCADA Updates, Inspections, Valve Maintenance 733,108 495,000 Water Treatment Filtration Media Replacement, Software Maintenance 116,030 149,000 Water Quality Lab Fees, Software Maintenance 149,814 169,000 Water Maintenance Leak Detection, Asphalt Repair 657,301 479,000 Wastewater Maintenance Manhole Insect Treatment, Collection Pipeline Spot Repairs 265,015 247,000 Facilities Maintenance Security, Janitorial, Landscaping, Equipment Repairs, 591,326 673,000 Fleet Maintenance Mobile Fleet Management Large Equip Repairs 190,569 181,000 TOTAL $ 5,258,568 $ 6,528,000 FINANCIAL SUMMARY FISCAL YEAR BUDGET 2020-202152 OTHER OPERATING EXPENSES Other Operating Expenses budgeted for FY 2020-21 total $425,000 and include professional development, memberships and dues, licensing, meeting expenses, employee recognition and education assistance. East Valley Water 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 chart shown to the right depicts the allocation of Other Operating Expenses budgeted for FY 2020-21: OTHER OPERATING EXPENSES $194KProfessionalDevelopment $45KMeetings $16K EducationAssistance $27KEmployeeRecognition $17KOther $126KMembership & Dues Other operating expenses represents the investment East Valley Water District makes into its employee programs. EAST VALLEY WATER DISTRICT 53 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. THE DISTRICT’S DEBT SERVICE PAYMENTS IN FY 2020-21 WILL BE $4,379,000 ON TOTAL OUTSTANDING DEBT OF $44,218,000 AS OF JUNE 30, 2020. OverviewDebt 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 to refund all outstanding long-term debt and to provide $16 million for future capital improvements. Bonds outstanding total $21,635,000, bear interest of 3.9% to 5%. • 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%. Current payments are interest only, with principal amortization scheduled to begin in FY 2021-22. State Water Resources Control Board (SWRCB) 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 $5,834,973 bearing interest at 0%. • Sterling Natural Resource Center: borrowed as primary funding for the water recycling plant known as the Sterling Natural Resource Center. Total loan requested is $148.3 million with $56 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. FISCAL YEAR BUDGET 2020-202154 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. The 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 $363,864 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 years 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 $1,719,000 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 $2,580,000 bears interest at the Local Agency Investment Fund (LAIF) apportionment rate, currently 2.03%. Debt service is payable over 10 years out of water net revenue and energy cost savings. IMPACT OF CURRENT DEBT LEVELS A schedule of FY 2020-21 debt service payments, by issue, is shown in the following schedule: WATER FUND WASTEWATER FUND Debt Issue Principal Interest Principal Interest Total 2010 Refunding Revenue Bonds $ 1,540,000 $ 925,000 $ 110,000 $ 3,000 $ 2,578,000 2013 Revenue Bonds - 385,000 - 200,000 585,000 DWR Loan-Treatment Plant 234,000 - - - 234,000 DWR Loans - Assessment Districts 19,000 - - - 19,000 US Bank Loan 416,000 38,000 - - 454,000 SBVMWD Loan 430,000 79,000 - - 509,000 TOTAL $ 2,639,000 $ 1,427,000 $ 110,000 $ 203,000 $ 4,379,000 As shown above, debt service for FY 2020-21 on all outstanding debt is $4,379,000, which represents 11.2% of the District’s total budget. FY 2020-21 is the final of a five-year period during which annual debt service payments will exceed $4.2 million. This level of debt service does not affect utility services provided to District ratepayers but does directly impact the number of Capital Projects that can be funded by operating revenues. The following table presents District debt level ratios compared to 2015 Southwest Regional medians reported by Fitch ratings. Ratio Fitch Median EVWD Outstanding debt per customer (21,576 accts)$ 1,634 $ 2,049 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 EAST VALLEY WATER DISTRICT 55 Debt Coverage Ratio WATER FUND WASTEWATER FUND Fiscal Year Principal Interest Principal Interest Total 2020-21 $ 2,639,000 $ 1,427,000 $ 110,000 $ 203,000 $ 4,379,000 2021-22 2,138,000 1,325,000 105,000 198,000 3,766,000 2022-23 2,193,000 1,265,000 110,000 192,000 3,760,000 2023-24 2,248,000 1,203,000 115,000 187,000 3,753,000 2024-25 1,838,000 1,140,000 120,000 181,000 3,279,000 2026-30 6,045,000 5,064,000 700,000 805,000 12,614,000 2031-35 6,582,000 4,052,000 870,000 629,000 12,133,000 2036-40 8,001,000 2,627,000 1,100,000 410,000 12,138,000 2041-45 8,214,000 740,000 1,090,000 113,000 10,157,000 TOTAL $ 39,898,000 $ 18,843,000 $ 4,320,000 $ 2,918,000 $ 65,979,000 FUTURE DEBT LEVELS The addition of the California Department of Water Resources (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 Municipal Water Department 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 incurred by the District. The graph below presents total debt service on existing debt, and future SNRC loan payments, through maturity. Debt Service $2M $4M $6M $8M $10M 20 2 0 - 2 1 20 2 1 - 2 2 20 2 2 - 2 3 20 2 3 - 2 4 20 2 4 - 2 5 20 2 5 - 2 6 20 2 6 - 2 7 20 2 7 - 2 8 20 2 8 - 2 9 20 2 9 - 3 0 20 3 0 - 3 1 20 3 1 - 3 2 20 3 2 - 3 3 20 3 3 - 3 4 20 3 4 - 3 5 20 3 5 - 3 6 20 3 6 - 3 7 20 3 7 - 3 8 20 3 8 - 3 9 20 3 9 - 4 0 20 4 0 - 4 1 20 4 1 - 4 2 20 4 2 - 4 3 20 4 3 - 4 4 20 4 4 - 4 5 20 4 5 - 4 6 20 4 6 - 4 7 20 4 7 - 4 8 20 4 8 - 4 9 20 4 9 - 5 0 20 5 0 - 5 1 Wastewater Fund Water FundRecycled Water FINANCIAL SUMMARY FISCAL YEAR BUDGET 2020-202156 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% of annual debt service. The FY 2020-21 proposed operating budget provides the net revenue to debt ratios shown in the table below. Debt Service Coverage Water Fund Wastewater Fund Total REVENUE Sales and Services $ 25,888,000 $ 13,242,000 $ 39,130,000 Other Charges 285,000 195,000 480,000 Interest & Miscellaneous Revenue 225,000 30,000 255,000 TOTAL REVENUES $ 26,398,000 $ 13,467,000 $ 39,865,000 OPERATING EXPENSES Programs $ 18,067,000 $ 12,324,000 $ 30,391,000 TOTAL OPERATING EXPENSES $ 18,067,000 $ 12,324,000 $ 30,391,000 Net Revenue $ 8,331,000 $ 1,143,000 $ 9,474,000 Annual Debt Service $ 4,066,000 $ 313,000 $ 4,379,000 DEBT COVERAGE RATIO 2.05 3.65 2.16 Net Revenue in excess of annual debt service (excess coverage) provides funding for the District’s CIP and contributions to Replacement Reserves. EAST VALLEY WATER DISTRICT 57 FINANCIAL SUMMARY Fund EquityNet 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 spendable 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 for capital projects, but only as defined by contractual agreement with bondholders and other creditors, or by studies adopted by EVWD 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, which is summarized on pages 24-25. The policy establishes three designations for Unrestricted Net Position, and has defined their purpose, order of priority for funding, target levels, and uses. Those unrestricted designations are the: • Operating Fund • Capital Replacement Fund • Rate Stabilization Fund Operating Fund WATER ENTERPRISE CapitalReplacement Fund CapitalReplacement Fund RateStabilization Fund Operating Fund WASTEWATER ENTERPRISE RateStabilization Fund Debt Proceeds Unrestricted Funds Capacity Fees Restricted Funds FISCAL YEAR BUDGET 2020-202158 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 120 days operating expenses, excess funds are applied to the Capital Replacement 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 Governing Board may take action to transfer balances between the Unrestricted Fund designations. The graph below, illustrates the changes in the designated funds that make up Unrestricted Fund Equity for the past five years and forecasted balances for FY 2020-21. Unrestricted Fund Equity $6,786,369 $8,141,879 $6,484,818 $6,221,085 $3,000,000 $14,595,000 $14,978,648 $14,978,648 $3,029,652 $2,706,085 $3,306,271 $3,911,086 $2M $4M $6M $8M $10M $12M $14M $16M FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 Water Capital Replacement Fund Wastewater Operating FundWater Operating Fund $3,911,086 $6,221,085 WATER DESIGNATED FUNDS Funding for designated fund balances (reserves) is built into rates when the District conducts a cost-of-service analysis; this occurs approximately every five years. In March 2015, the District adopted a new tiered rate structure 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 rate structure, as is evidenced by the growth of designated fund balances for FY 2016-17 through FY 2020-21 in the graph above. In addition, designated fund balances realized significant growth in FY 2018-19 due to the sale of surplus land. The following table presents beginning balances, annual activity, and ending balances for the unrestricted water designated funds for a period of five years, including projections for the FY 2020-21 budget year, and also presents target levels established for each designated fund in accordance with the District’s Reserve Policy. The table also includes balances and activity for restricted water capacity fees. Although capacity fees are not budgeted, they are available for appropriation for certain capital improvement projects. EAST VALLEY WATER DISTRICT 59 FINANCIAL SUMMARY Unrestricted and Restricted - Water Designated Funds FY 2016-17 Actual FY 2017-18 Actual FY 2018-19 Actual FY 2019-20 Projected FY 2020-21 Budgeted WATER OPERATING FUND Maximum Target Level 120 Days Operations $ 5,216,000 $ 5,175,000 $ 5,505,000 $ 5,849,667 $ 6,022,333 Beginning Fund Balance 5,789,742 6,786,369 8,141,879 6,484,818 6,221,085 Revenue 24,954,835 27,296,029 26,754,320 25,831,669 26,398,000 Operating/Non Operating Expenditures (16,291,186) (17,714,108) (18,098,700) (16,493,402) (19,568,000) Capital Expenditures (3,097,378) (2,645,333) (2,938,973) (4,106,000) (4,265,000) Debt Principal Payments (1,926,956) (2,581,078) (2,924,244) (2,496,000) (2,565,000) Interfund Sale of Land / Land Sale (2,642,688)- 7,550,536 -- Transfer to Capital Replacement Fund - (3,000,000) (12,000,000) (3,000,000)- ENDING WATER OPERATING FUND $ 6,786,369 $ 8,141,879 $ 6,484,818 $ 6,221,085 $ 6,221,085 WATER CAPITAL REPLACEMENT FUND Minimum Target Level $ 10,000,000 $ 10,000,000 $ 10,000,000 $ 10,000,000 $ 10,000,000 Beginning Fund Balance - - 3,000,000 14,595,000 14,978,648 Transfer from Operating Fund - 3,000,000 12,000,000 3,000,000 - Capital Expenditures - - (405,000) (2,616,352)- ENDING WATER CAPITAL REPLACEMENT FUND $ - $3,000,000 $14,595,000 $ 14,978,648 $ 14,978,648 RESTRICTED WATER CAPACITY FEES No Target Level - - - - - Beginning Fund Balance $ 1,627,295 $ 1,962,255 $ 2,171,212 $ 1,996,379 $ 2,114,692 Fees Collected 334,960 208,957 310,946 118,313 - Debt Issued ----- Capital Expenditures - - (485,779)-- ENDING WATER CAPACITY FEES $ 1,962,255 $ 2,171,212 $ 1,996,379 $ 2,114,692 $ 2,114,692 ENDING BALANCE ALL WATER FUNDS $ 8,748,624 $ 13,313,091 $ 23,076,197 $ 24,195,777 $ 23,845,777 FISCAL YEAR BUDGET 2020-202160 WASTEWATER DESIGNATED FUNDS The District last adjusted Wastewater Rates in October 2012. This fact, combined with the funding of preliminary studies and design, and ensuing litigation, related to the water recycling plant, have limited the District’s ability to accumulate and grow balances in Wastewater designated funds. The District completed a cost of service analysis and rate study for wastewater rates in January 2020 and will consider adoption of rate adjustments during FY 2020-21. However, the effective date for implementation of adjusted rates is not known, therefore, FY 2020-21 wastewater enterprise budget projections do not show any increase to designated fund balances. The following table presents the beginning balance, annual activity, and ending balance for the wastewater operating fund for a period of five years, including projections for the 2020-21 budget year. As the operating fund target level has not been met, no funding is available for the wastewater capital replacement fund. The table also includes balances and activity for restricted wastewater capacity fees. Although capacity fees are not budgeted, they are available for appropriation for certain capital improvement projects. Unrestricted and Restricted - Wastewater Designated Funds FY 2016-17 Actual FY 2017-18 Actual FY 2018-19 Actual FY 2019-20 Projected FY 2020-21 Budgeted WASTEWATER OPERATING FUND Maximum Target Level 120 Days Operations $ 3,680,000 $ 3,824,000 $ 4,056,000 $ 4,140,000 $ 4,108,000 Beginning Fund Balance 1,761,323 3,029,652 2,706,085 3,306,271 3,911,086 Revenue 12,432,000 13,475,015 14,129,144 13,319,081 13,467,000 Operating/Non Operating Expenditures (11,816,048) (13,171,144) (12,804,125) (11,781,266) (12,537,000) Capital Expenditures (1,895,311) (532,438) (624,833) (833,000) (830,000) Debt Principal Payments (95,000) (95,000) (100,000) (100,000) (100,000) Interfund Sale of Land / Land Sale 2,642,688 ---- ENDING WASTEWATER OPERATING FUND $ 3,029,652 $ 2,706,085 $ 3,306,271 $ 3,911,086 $ 3,911,086 RESTRICTED WASTEWATER CAPACITY FEES No Target Level - - - - - Beginning Fund Balance $ 528,599 $ 698,889 $ 982,851 $ 1,283,578 $ 3,618,172 Fees Collected 170,290 283,962 300,727 2,334,594 - Debt Issued ----- Capital Expenditures ----- ENDING RESTRICTED WASTEWATER CAPACITY FEES $ 698,889 $ 982,851 $ 1,283,578 $ 3,618,172 $ 3,618,172 ENDING BALANCE ALL WASTEWATER FUNDS $ 3,728,541 $ 3,688,936 $ 4,589,849 $ 7,529,258 $ 7,529,258 EAST VALLEY WATER DISTRICT 61 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 strategic planning efforts. 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. Financial PlanLong Range LONG TERM PRIORITIES 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 FINANCIAL SUMMARY FISCAL YEAR BUDGET 2020-202162 Assumption Link to District Goals & Objectives Find / Utilize Additional Water Supply • State Water Project 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 FY 2017-18. An updated cost of service analysis will be completed in FY 2019-20 for both water and wastewater rates. Any rate 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 budget based rates implemented by the District incentivize consumers to use water efficiently. • Meter Charge revenue is expected to grow by $100,000 between FY 2019-20 and FY 2023- 24 due to the increase in customer accounts mentioned above. Wastewater Treatment/Recycled Water 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 Investment Program (LRIP) established to recharge the Bunker Hill Groundwater Basin. Under the LRIP, 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 an annual revenue of $1.26 million. EAST VALLEY WATER DISTRICT 63 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 Municipal Water Deparment for wastewater treatment services through December 2021. In January 2022 the SNRC will begin operations and contract payments to the City will be replaced by staff and direct operating costs related to this new water recycling enterprise. 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, which became effective in July 2017, and has been extended through January 2021 with the following agreed-upon changes: • 3% Cost of Living Increases in 2017, 2018 and 2019. • 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 FY 2020-21 through FY 2024-25. UAL payments are $1,165,981 per year for fifteen years, beginning with FY 2019-20. Other benefit costs included are projected to increase 5% per year. Staffing levels are expected to remain constant through FY 2020-21. However, as construction of the SNRC progresses, an estimated six full time employees will be added to operate the facility. Accordingly, recruiting and hiring for these positions will need to begin approximately six 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 June 2022. Thereafter, monthly payments to the City of San Bernardino Municipal Water Department averaging more than $550,000 per month, or $8.6 million annually, will cease. However, part of the 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 over a 10 year period. 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 gas, 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 Southern California 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 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 $550,000 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. FINANCIAL SUMMARY FISCAL YEAR BUDGET 2020-202164 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 FY2021-22, to $10.6 million in FY 2022-23. A schedule of future debt service, including on the State Revolving Fund loan from the SWRCB, is shown on page 54 of this document. REVENUE FUNDED CAPITAL EXPENDITURES FORECAST Revenue funded capital project spending is projected to average $4 million over the next five years. Projects included in the five-year forecast are discussed in the Capital Improvement Program section of this budget. FIVE YEAR FORECAST – FY 2020-21 THROUGH FY 2024-25 The financial forecast on the following page is presented to provide a general understanding of how long-term goals will affect operating revenue and expenditures over the next five years. The District's Debt Management Policy stipulates that debt may only be issued to finance capital projects. EAST VALLEY WATER DISTRICT 65 FORECAST FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 REVENUE Water Sales / Wastewater Collect $ 21,524,000 $ 21,832,000 $ 22,403,000 $ 22,428,000 $ 22,453,000 Wastewater Treatment 8,586,000 8,693,000 8,708,000 8,752,000 8,795,000 LRP Revenue - 519,000 1,038,000 1,044,000 1,050,000 Meter Fees 9,020,000 9,110,000 9,688,000 9,688,000 9,688,000 Power Offset, Energy Sales, Tipping Fees - 1,457,000 6,298,000 6,325,000 6,274,000 Other Operating Charges 446,000 1,160,000 1,156,000 1,153,000 1,149,000 Investment Income 255,000 336,000 602,000 649,000 735,000 Capacity Fees - - - - - Other Income 34,000 50,000 50,000 50,000 50,000 TOTAL REVENUE / SOURCES $ 39,865,000 $ 43,157,000 $ 49,943,000 $ 50,089,000 $ 50,194,000 EXPENDITURES Labor & Benefits $ 10,941,000 $ 12,623,000 $ 13,699,000 $ 13,887,000 $ 13,394,000 Water Costs 826,000 826,000 826,000 826,000 826,000 Contracted Wastewater Treatment 8,586,000 4,625,000 - - - Power Costs 1,800,000 1,850,000 4,709,000 4,710,000 4,711,000 Contract Services 6,528,000 7,570,000 8,582,000 8,659,700 8,739,000 Materials 1,285,000 1,777,000 2,208,000 2,223,000 2,240,000 Other Operating Expenses 425,000 708,000 988,000 1,006,000 1,024,000 Debt Service 4,379,000 3,787,000 3,793,000 10,604,000 10,593,000 Capital Outlay 1,630,000 1,050,000 1,100,000 1,650,000 1,650,000 Capital Improvement Program 3,465,000 3,685,000 3,859,000 4,158,000 4,145,000 TOTAL EXPENDITURES $ 39,865,000 $ 38,501,000 $ 39,764,000 $ 47,723,700 $ 47,322,000 CHANGE IN EQUITY $ -$ 4,656,000 $ 10,179,000 $ 2,365,300 $ 2,872,000 BEGINNING UNRESTRICTED EQUITY $ 25,110,819 $ 25,110,819 $ 29,766,819 $ 39,945,819 $ 42,311,119 ENDING UNRESTRICTED EQUITY $ 25,110,819 $ 29,766,819 $ 39,945,819 $ 42,311,119 $ 45,183,119 FINANCIAL SUMMARY FISCAL YEAR BUDGET 2020-202166 intentionally THIS PAGE LEFT BLANK schedulesCONSOLIDATED FINANCIAL LEADERSHIP | PARTNERSHIP | STEWARDSHIP CO N S O L I D A T E D FI N A N C I A L S C H E D U L E S WATER FUND CONSOLIDATED FINANCIAL SUMMARY WASTEWATER FUND 16 The District conducts an extensive process gathering input from internal staff and the community throughout the budget development and review process. 67 PAGE EAST VALLEY WATER DISTRICT SummaryFinancial CONSOLIDATED FINANCIAL SCHEDULES OVERVIEW OF REVENUES AND OTHER FINANCING SOURCES AND EXPENDITURES Consolidated DISTRICT-WIDE SUMMARY FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed REVENUES 4100 Water Sales $ 15,746,654 $ 15,900,000 $ 15,777,000 $ 16,868,000 $ 968,000 6% 4200 Meter Charges 9,009,881 8,980,000 9,009,881 9,020,000 40,000 0% 4301 Late Fee Payment 607,040 560,000 410,507 388,000 (172,000)-31% 4400 WW Collection Charges 4,643,732 4,648,000 4,747,462 4,656,000 8,000 0% 4500 WW Treatment Charges 8,592,950 8,665,000 8,501,530 8,586,000 (79,000)-1% 4605 Other Operating Charges 592,164 113,000 142,655 58,000 (55,000)-49% 4701 Interest Income 571,535 300,000 310,013 255,000 (45,000)-15% 4703 Energy Incentives/ Rebates - - - - - - 4704 Miscellaneous Revenue 624,378 34,000 251,701 34,000 - 0% TOTAL REVENUES $40,388,334 $39,200,000 $39,150,749 $39,865,000 $ 665,000 2% FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed EXPENSES – OPERATING BY PROGRAM 1000 Governing Board $ 189,580 $ 257,000 $ 199,323 $ 257,000 $ - 0% 2000 General Administration 1,103,421 1,304,000 1,139,171 1,302,000 (2,000)0% 2100 HR/Risk Management $ 899,194 $ 1,024,000 $ 1,114,510 $ 1,325,000 $ 301,000 29% FISCAL YEAR BUDGET 2020-202168 FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed 2200 Public Affairs $ 1,146,804 $ 1,440,000 $ 1,074,970 $ 1,589,000 $ 149,000 10% 2300 Conservation 1,032,155 589,000 447,360 624,000 35,000 6% 3000 Finance 1,273,669 1,249,000 1,171,964 1,272,000 23,000 2% 3200 Information Technology 998,358 932,000 795,030 973,000 41,000 4% 3300 Customer Service 1,594,902 1,615,000 1,232,417 1,507,000 (108,000)-7% 3400 Meter Services 328,314 295,000 311,473 290,000 (5,000)-2% 4000 Engineering 1,661,570 1,551,000 1,248,827 1,544,000 (7,000)0% 5000 Water Production Admin 426,547 579,000 479,440 600,000 21,000 4% 5000-51 Source of Supply 2,226,616 2,994,000 2,641,752 2,834,000 (160,000)-5% 5000-52 Pumps & Boosters 538,913 652,000 422,076 611,000 (41,000)-6% 5000-54 Trans & Distribution 398,325 442,000 416,569 448,000 6,000 1% 5100 Water Treatment 775,031 870,000 877,811 905,000 35,000 4% 5200 Water Quality 417,411 461,000 452,914 480,000 19,000 4% 6000 Maintenance Admin 366,723 435,000 370,029 434,000 (1,000)0% 6100 Water Maintenance 2,211,467 2,317,000 2,851,565 2,485,000 168,000 7% 6200 Wastewater Maintenance 700,507 814,000 786,206 803,000 (11,000)-1% 6300 Wastewater Treatment (Pass-through) 8,592,950 8,665,000 7,932,758 8,586,000 (79,000)-1% 7000 Facilities Maintenance 942,177 998,000 1,013,202 1,022,000 24,000 2% 7100 Fleet Maintenance 632,170 486,000 533,298 500,000 14,000 3% SUBTOTAL OPERATING EXPENSES $28,456,804 $29,969,000 $27,512,665 $30,391,000 $ 422,000 1% EXPENSES – OTHER Debt Service $ 4,474,253 $ 4,358,000 $ 4,358,000 $ 4,379,000 $ 21,000 0% Capital Outlay 452,005 1,564,000 1,564,000 1,630,000 66,000 4% Capital Improvement 3,262,546 3,375,000 3,375,000 3,465,000 90,000 3% Transfer to Reserves 3,742,726 - 2,341,084 - - - Transfer from Reserves - (66,000) - - 66,000 -100% SUBTOTAL OTHER EXPENSES $ 11,931,530 $ 9,231,000 $11,638,084 $ 9,474,000 $ 243,000 3% TOTAL EXPENSES $40,388,334 $39,200,000 $39,150,749 $39,865,000 $ 665,000 2% NET $ - $ - $ - $ - $ - EAST VALLEY WATER DISTRICT 69 CONSOLIDATED FINANCIAL SCHEDULES ITEMIZED OPERATING EXPENSE SUMMARY FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 6,536,095 $ 6,590,600 $ 6,617,598 $ 6,877,000 $ 286,400 4% 5102 Temporary Labor 42,242 - 24,691 - - - 5103 Overtime 366,134 352,000 379,588 388,000 36,000 10% 5104 Standby 37,993 35,000 39,050 35,000 - 0% 5200 Benefits 2,779,970 3,574,000 3,328,152 3,641,000 67,000 2% PERSONNEL TOTAL $ 9,762,434 $ 10,551,600 $ 10,389,079 $ 10,941,000 $ 389,400 4% WATER SUPPLY 6101 Purchased Water $ 306,513 $ 500,000 $ 440,716 $ 400,000 $ (100,000)-20% 6102 Replenishment 98,406 445,000 111,625 304,000 (141,000)-32% 6103 Water Assessment 123,547 122,000 50,716 122,000 - 0% WATER SUPPLY TOTAL $ 528,466 $ 1,067,000 $ 603,057 $ 826,000 $ (241,000)-23% OTHER OPERATING EXPENSES 6201 Materials & Supplies $ 773,310 $ 765,000 $ 831,750 $ 715,000 $ (50,000)-7% 6202 Tools 36,683 53,000 63,614 54,000 1,000 2% 6203 Office Supplies 26,294 42,000 30,359 41,000 (1,000)-2% 6204 Chemicals 227,518 350,000 270,207 350,000 - 0% 6205 Conservation Rebates 711,436 195,000 156,412 145,000 (50,000)-26% 6301 Contract Services 3,198,981 2,676,000 2,443,566 3,017,000 341,000 13% 6302 Banking Services 270,123 326,000 246,730 259,000 (67,000)-21% 6303 Printing & Publishing 195,737 327,000 181,102 358,000 31,000 9% 6304 Legal Services 199,204 256,000 123,100 186,000 (70,000)-27% 6305 Treatment Services 8,592,950 8,665,000 7,932,758 8,586,000 (79,000)-1% 6306 Rents & Leases 32,246 15,000 28,022 15,000 - 0% 6307 Uniforms 42,136 91,000 66,219 90,000 (1,000)-1% 6308 Billing Services 41,060 52,000 42,229 52,000 - 0% 6309 Shut Off Notice Services 344,565 359,000 139,406 195,000 (164,000)-46% 6310 Street Services 323,336 325,000 506,433 325,000 - 0% 6311 Landscape Services 159,932 145,000 154,724 145,000 - 0% 6312 Janitorial Services 106,928 134,000 133,152 134,000 - 0% 6314 Litigation Services - 50,000 20,330 40,000 (10,000)-20% 6401 Utilities 27,183 24,000 31,497 24,000 - 0% 6402 Telephone 67,149 152,000 72,472 157,000 5,000 3% 6403 Electricity 1,686,016 1,820,000 1,760,302 1,920,000 100,000 5% 6404 Fuel $ 125,357 $ 125,000 $ 134,936 $ 125,000 $ - 0% FISCAL YEAR BUDGET 2020-202170 FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed 6405 Permits $ 131,996 $ 293,000 $ 158,526 $ 293,000 $ - 0% 6406 Postage 151,438 198,000 127,727 245,000 47,000 24% 6501 Memberships 87,727 118,000 94,953 126,000 8,000 7% 6502 Professional Development 82,150 200,000 89,815 194,000 (6,000)-3% 6503 Education Assistance 5,090 11,000 2,842 16,000 5,000 45% 6504 Meetings 29,392 47,400 32,886 45,000 (2,400)-5% 6505 Employee Recognition 18,537 25,000 27,183 27,000 2,000 8% 6701 General Insurance 242,930 210,000 294,128 399,000 189,000 90% 6702 Insurance Claims 300 10,000 10,756 10,000 - 0% 6703 Cash Over/Short 262 - 512 1,000 1,000 - 6704 Bad Debt 3,447 1,000 3,791 16,000 6705 OPEB Retirees 224,491 290,000 308,090 319,000 29,000 10% OTHER OPERATING EXPENSES TOTAL $18,165,904 $18,350,400 $16,520,529 $18,624,000 $ 273,600 1% TOTAL OPERATING EXPENSES $28,456,804 $29,969,000 $27,512,665 $ 30,391,000 $ 422,000 1% Operating expenses are identified and accounted for at the Program level. fundWATER WA T E R F U N D 15 The District maintains 300 miles of water main line in a 30.1 square mile service area. 16 Budget based rates promote water efficiency and are based on the cost of service while remaining equitable and fair. EAST VALLEY WATER DISTRICT 71 FundWater EAST VALLEY WATER DISTRICT UNDERSTANDS THE IMPORTANCE OF PRESERVING CALIFORNIA’S WATER SUPPLIES. REVENUE: WATER SALES East Valley Water District has taken many steps to encourage water use efficiency. Budget based rates promote water efficiency and are based on the cost of service; they are equitable, fair, and supports sustainable behavior change. The SWRCB approves of the budget based rate structure for its ability to produce superior water savings, and the alternative approach is compliant with the California Drought Conservation Regulations. Additionally, budget based rates encourage efficient water use and provide security for the District's long-term financial position. RATES In FY 2019-20, the Board approved the implementation of the final phase three volumetric rate and refrained from increasing meter charges. Also, during FY 2019- 20, a comprehensive cost of service analysis and rate study were completed and presented to the Board at a public meeting held on January 22, 2020. The studies identified rate increases over the next three years to cover additions to operating and capital costs. Due to the restriction imposed on public meetings due to the pandemic, the District postponed the April 8, 2020 rate hearing until a date when it would be easier for members of the public to attend the hearing. Therefore, the rates used for FY 2020-21 projections are the rates which became effective January 2020. Commodity Charges Rates FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21* 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 *Rates became effective January 2020 Projected Tier Revenue by Customer Class Customer Class Tier 1 Tier 2 Tier 3 Total Residential $ 3,936,000 $ 3,744,000 $ 1,707,000 $ 9,387,000 Multi-Family 1,788,000 1,020,000 916,000 3,724,000 Commercial 926,000 89,000 398,000 1,413,000 Irrigation / Construction - 1,178,000 1,166,000 2,344,000 TOTAL $ 6,650,000 $ 6,031,000 $ 4,187,000 $ 16,868,000 CONSOLIDATED FINANCIAL SCHEDULES FISCAL YEAR BUDGET 2020-202172 Water Sales (Acre Feet) CLASS NO. OF ACCOUNTS TIER 1 TIER 2 TIER 3 TOTAL TOTAL SALES Residential 19,526 4,937 3,293 1,077 9,307 $ 9,387,000 Multi-Family 463 2,243 897 578 3,718 3,724,000 Commercial 988 1,162 78 251 1,491 1,413,000 Irrigation 275 - 1,036 735 1,771 2,344,000 TOTALS 21,252 8,342 5,304 2,641 16,287 $ 16,868,000 The table below projects the amount of water to be produced for FY 2020-21. The amount of water produced is more than the amount of water sold to account for unanticipated water demand, state-mandated water reserves, and regular system water loss. Water Production (Acre Feet) SOURCE OF SUPPLY FY 2016-17 Actual FY 2017-18 Actual FY 2018-19 Actual FY 2019-20 Projected FY 2020-21 Budgeted Ground Water 13,315 12,649 12,649 12,549 12,800 Surface Water 3,700 3,675 3,515 3,666 3,739 Purchased Water 800 800 800 800 800 TOTAL 17,815 17,124 16,964 17,015 17,339 ASSUMPTIONS AND TRENDS The development of the revenue projections for FY 2020-21 requires the District to estimate customer consumption for the next year. The District will provide water services through approximately 21,252 domestic and irrigation connections in FY 2020-21. In addition, 252 commercial fire services and 21 temporary hydrant meters are connected to the District’s system. Water demand is estimated at 7,094,000 hundred cubic feet of water (HCF = 748 gallons) for FY 2020-21. The estimate is based on actual consumption from FY 2018-19. The consumption data from this year was selected because of the consumption model’s three-year averages. Staff is confident that the above projection will allow significant funding for program goals and objectives without considerable risk of overstatement. EVWD considers multiple factors in calculating each customer’s monthly water budget: Since the adoption of budget based rates, the District has experienced success in reducing water consumption and stabilizing revenues to ensure adequate funding of operating and capital needs of the District. HOW WATER BILLS ARE CALCULATED – RESIDENTIAL Indoor Water Budgets are unique to each customer and is based on the number of occupants residing in the house. Each occupant is budgeted 60 gallons of water per day (gpd) for efficient indoor use, which is then multiplied by the number of days in the billing cycle. • Number of Occupants • Number of Dwelling Units • Medical Needs • Horses/Livestock • Business Needs • Agricultural Needs • Irrigable Landscape • Weather • Meter Size EAST VALLEY WATER DISTRICT 73 CONSOLIDATED FINANCIAL SCHEDULES Tier 1 Indoor Budget Example 60 Gal 748 Persons Per Household Per Person, Per Day Days in Billing Cycle Number of Gallons In One Unit Tier 1 Budget 60 Gal 74828Days 6,730 Gallons or 9 Units of Water for Tier 1 Budget Example:Tier 1 budget calculation for a home with 4 occupants during a 28 day billing cycle. Outdoor Water Budgets are unique to customer property, and it is based on the irrigable landscape. Irrigable landscape represents the square footage of the property’s landscape requiring irrigation (e.g., grass, parkways, trees, bushes, and various plants). • Irrigable landscape square footage – is the area of the property requiring irrigation used for the outdoor water budget calculation. When the District restructured its uniform rates to budget based rates in FY 2014-15, a consultant flew an airplane with an advanced camera over the District’s service area which measured the square footage of the irrigable landscape for each parcel. The data provided was reviewed and analyzed for accuracy and appropriate adjustments were made for, but not limited to, pools, livestock, trees, and other plant based surfaces. • Monthly plant factor (Crop Coefficient Kc) – are the properties of plants used in predicting evapotranspiration (ETo) and the resulting level of water needed for irrigation to replenish healthy turfgrass. The table below lists the values used in each month. East Valley Water District has elected to use the Cool-Season turfgrass coefficient for the monthly plant factor. • Evapotranspiration (ETo) – the process by which water is transferred from the land to the atmosphere by evaporation from the soil and other surfaces and by transpiration from plants. ETo is measured in inches, which is captured and recorded by a state-certified weather station. The District receives ETo data from the California Irrigation Management Information System (CIMIS) Station ID 251, located at Beattie Middle School 7800 Orange Street, Highland, California 92346. The sum of the daily ETo measurement during the billing cycle is used in the calculation for efficient outdoor water usage. • Square feet to gallons conversion – Evapotranspiration (ETo) is measured in inches of water, but irrigable landscape is measured in square feet requiring a gallon conversion to determine the outdoor budget. One-cubic foot of water equals 7.48 gallons, therefore 1 inch of water per square foot equals 0.62 gallons (7.48 gallons divided by 12 inches equals 0.62 gallons). Tier 2 Factors: In determining the customer’s outdoor budget, the following factors and conversions are made during each billing cycle. Month JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Plant Factor 0.61 0.64 0.75 1.04 0.95 0.88 0.94 0.86 0.74 0.75 0.69 0.60 Annual Average 0.80 One Foot On e F o o t WATER One Cubic Foot = 7.48 Gallons One F o o t One Foot WATER 1 Inch of Water per Square Foot = 0.62 Gallons 1” FISCAL YEAR BUDGET 2020-202174 Tier 2 Outdoor Budget Example 7480.620.88 Irrigated Sq. Ft.Monthly Evapotranspiration Rate Note: This rate varies per day and month Monthly Plant Factor Note: Plant factor changes each month Number of Gallons In One Unit Sq. Ft to Gallons Conversion Factor for Irrigation 748 1,076 Gallons or 2 Units of Water for Tier 2 Usage Tier 2 Usage 0.620.881,200 2.37 Irrigated Sq. Ft.Evapotranspiration Rate Plant Factor Sq. Ft to Gallons Conversion Factor for Irrigation Number of Gallons In One Unit Example: Tier 2 budget calculation for a home with 1,200 sq.ft. of irrigable area. 600 Sq. Ft. 600 Sq. Ft. 0.88 2.37 June Plant Factor Evapotranspiration Rate Sq.Ft. = Square Feet HCF = Hundred Cubic Feet or 1 Billing Unit Tier 3 Inefficient Use: When a customer exceeds their Tier 1 and Tier 2 budgets, the excess units of water used are billed at the Tier 3 rate. The District has developed its rates in accordance with Prop 218, allowing the District and agencies alike, to charge customers additional charges for the additional cost incurred by the District, including but not limited to, imported water cost, electricity expenses for pumping and boosting water throughout the distribution system, and chemicals needed during the treatment process. HOW WATER BILLS ARE CALCULATED – NON RESIDENTIAL Non-Residential customers water budgets are calculated differently from residential customers to ensure water budgets equitably cover the cost of supplying water to these establishments. The water budgets for this customer class are determined below: Tier 1 and Tier 2 Water Budgets: The indoor (Tier 1) and outdoor water (Tier 2): budgets are calculated by taking the average of the last two years actual HCF consumption for each Tier, then it’s multiplied by 90%. Calculating non-residential customers in this manner encourages conservation and shares the cost of operating the District. Tier 3 Inefficient Use: When a customer exceeds their Tier 1 and Tier 2 budgets, the excess units of water are billed at the Tier 3 rate. EAST VALLEY WATER DISTRICT 75 CONSOLIDATED FINANCIAL SCHEDULES REVENUE: MONTHLY METER CHARGE The District’s Operating Revenue includes fixed charges, which are based on the size of the meter serving the customer’s property. The rates meet the compliance requirements of Proposition 218. Meter charges have been established on a comprehensive third-party cost of services analysis, and the rates provide funding for operating and capital needs. Monthly Meter Charges Meter Size FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 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 Monthly Fire Line Service Charges Meter Size FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 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 Since the adoption of budget based rates, the District has experienced success in reducing water consumption and stabilizing revenues. FISCAL YEAR BUDGET 2020-202176 Monthly Meter Charge Revenue by Meter Size METER SIZE NO. OF SERVICES RATE TOTAL 5/8 in. 4,202 $ 23.06 $ 1,163,000 3/4 in. 12,537 29.27 4,368,000 1 in. 3,876 41.71 1,940,000 1.5 in. 267 72.81 233,000 2 in. 294 110.13 389,000 3 in. 89 228.30 244,000 4 in. 26 402.44 126,000 6 in. 18 819.44 177,000 8 in. 12 1,503.28 216,000 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 79,000 Fire Service 8 in. 55 70.27 46,000 Fire Service 10 in. 15 87.84 16,000 TOTALS 21,576 $ 9,020,000 OTHER SOURCES OF REVENUE Other charges and other revenue include fees related to the collection of delinquent accounts, investment revenue, reimbursements from other agencies, facility rentals, and other miscellaneous revenue. SOURCES OF REVENUE Other 34%Meter 63%Water Sales 3% EAST VALLEY WATER DISTRICT 77 CONSOLIDATED FINANCIAL SCHEDULES Assumptions and Considerations for Operating Revenue: This income source is made up of the following assumptions and considerations when developing budget figures for this document: • Initiation of service, delinquent, and non-sufficient funds fees have decreased. The decision to decrease this source is due to the following contributing factors: –The Discontinuation of Residential Water Service Policy required by SB 998 effective February 1, 2020. –The impact the COVID-19 pandemic has on Disconnection/Reconnection charges, which are normally collected during the delinquency process. • The two factors above are revenue-neutral because these fees are related to and charged to delinquent customers, the charge is collected for sending the notice and field service worker to turn on/off water services. • Investment Income decreased due to delay between the time of withdrawals to pay SNRC construction invoices and the time it takes to re-deposit reimbursement checks from SRF loan proceeds and grant funds. • Facility Rental Fees and Other Miscellaneous Revenue decreased due to the uncertainty the COVID-19 pandemic may have on public use of District facilities. EXPENSES The Water Fund is one of two enterprise funds the District operates. All expenses incurred for operating and maintaining the distribution system, infrastructure repairs, and replacements are included in the calculation of expenses for these funds. The District has debt service payments due semi-annually. Theses debts East Valley Water District has incurred provided full or partial funding for multiple capital improvement projects. 11% WATER FUND EXPENSES BY COST CENTER 5% 12%Transmission &Distribution 4%3% 16% 15%34%AdministrationDebt Service Source ofSupply CapitalExpenditures CustomerService TreatmentPumps & Boosters FISCAL YEAR BUDGET 2020-202178 Assumptions and Consideration for Operating Expenses: This income source is made up of the following assumptions and considerations when developing budget figures for this document: • Electricity expense will be incurred for operating wells, pumps and boosters, treatment plants and other facilities • Chemical expense purchased for the treatment of source water before it enters the distribution system for consumption. The cost trends for chemicals are stable, with no foreseeable significant increases. • Contract services are expenses incurred for services provided by third parties. Many divisions of the water District utilize consultants or vendors who offer quality and economical services. Since these services are unique to the program, it is excessive to list them all. Program Managers are responsible for researching or pre-bidding services in developing their program’s budget. • Material and supplies are needed to support field operations and general administration related to operating the District. 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. Debt Service & Capital Expenses The District has issued debt to pay for capital expenditures for replacing, improving, and/or adding infrastructure. In addition to liability, East Valley Water District budgets and cash finances capital projects funded by Operating Revenue. CONCLUSION The Water Fund is balanced, however, a rate study must be conducted to ensure proper rates are charged to fund future Capital Improvement Projects. The District continues to meet debt service obligations as set forth in debt covenants. District staff will continue to monitor the revenues and expenses and present the progress to the Board of Directors on a periodic basis. The District delivers more than 15 million gallons of water daily through 293 miles of water distribution pipeline. EAST VALLEY WATER DISTRICT 79 CONSOLIDATED FINANCIAL SCHEDULES FY 2020-21 PROPOSED WATER FUND BUDGET FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed REVENUES 4100 Water Sales $ 15,746,654 $ 15,900,000 $ 15,777,000 $ 16,868,000 $ 968,000 6% 4200 Meter Charges 9,009,881 8,980,000 9,009,881 9,020,000 40,000 0% 4301 Late Fee Payment 89,493 - 78,267 40,000 40,000 - 4303 Disconnect Notice Charge 475,772 360,000 295,138 155,000 (205,000)-57% 4605 Other Operating Charges 111,279 111,000 136,392 56,000 (55,000)-50% 4701 Interest Income 446,720 250,000 283,289 225,000 (25,000)-10% 4703 Energy Incentives/Rebates - - - - - - 4704 Miscellaneous Revenue 624,378 34,000 251,702 34,000 - 0% TOTAL REVENUES $26,504,177 $25,635,000 $25,831,669 $26,398,000 $763,000 3% OPERATING EXPENSES SOURCE OF SUPPLY/WELLS 5101 Regular Labor $ 407,631 $ 284,000 $ 461,018 $ 295,000 $ 11,000 4% 5103 Overtime 10,656 32,000 15,873 13,000 (19,000)-59% 5200 Benefits 112,559 152,000 157,060 148,000 (4,000)-3% 6101 Purchased Water 306,513 500,000 440,716 400,000 (100,000)-20% 6102 Groundwater Replenishment 98,406 445,000 111,625 304,000 (141,000)-32% 6103 Water Assessment 123,547 122,000 50,716 122,000 - 0% 6201 Materials & Supplies 39,992 61,000 51,997 61,000 - 0% 6204 Chemicals 72,400 150,000 96,676 150,000 - 0% 6301 Contract Services 76,613 276,000 329,104 276,000 - 0% 6311 Landscape Services 70,851 40,000 71,430 40,000 - 0% 6402 Telephone 109 - - - - - 6403 Electricity 1,125,950 1,150,000 1,138,829 1,250,000 100,000 9% 6405 Permits 63,210 100,000 70,405 100,000 - 0% 6504 Meetings 264 1,000 526 1,000 - 0% SOURCE OF SUPPLY TOTAL $ 2,508,701 $ 3,313,000 $ 2,995,975 $ 3,160,000 $ (153,000)-5% PUMPS & BOOSTERS 5101 Regular Labor $ 91,428 $ 95,000 $ 34,503 $ 74,000 $ (21,000)-22% 5103 Overtime 3,491 10,000 4,697 4,000 (6,000)-60% 5200 Benefits 32,515 52,000 34,116 38,000 (14,000)-27% 6201 Materials & Supplies 4,750 23,000 18,019 23,000 - 0% 6301 Contract Services 64,956 81,000 (5,083) 81,000 - 0% 6311 Landscape Services - 35,000 19,419 35,000 - 0% 6403 Electricity 352,486 400,000 343,310 400,000 - 0% PUMPS & BOOSTERS TOTAL $ 549,626 $ 696,000 $ 448,981 $ 655,000 $ (41,000)-6% FISCAL YEAR BUDGET 2020-202180 FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed TREATMENT 5101 Regular Labor $ 289,958 $ 242,000 $ 288,472 $ 252,000 $ 10,000 4% 5103 Overtime 38,117 25,000 46,420 39,000 14,000 56% 5200 Benefits 99,017 139,000 145,338 150,000 11,000 8% 6201 Materials & Supplies 54,543 23,000 65,536 23,000 - 0% 6204 Chemicals 101,467 150,000 138,305 150,000 - 0% 6301 Contract Services 73,531 249,000 106,751 249,000 - 0% 6301 Uniforms - 2,000 1,854 2,000 - 0% 6311 Landscape Services 24,097 14,000 20,347 14,000 - 0% 6401 Utilities 1,265 10,000 2,517 10,000 - 0% 6402 Telephone 3,112 - 1,836 - - - 6403 Electricity 117,177 150,000 108,462 150,000 - 0% 6405 Permits - - - - - - TREATMENT TOTAL $ 802,284 $ 1,004,000 $ 925,838 $ 1,039,000 $ 35,000 3% TRANSMISSION & DISTRIBUTION 5101 Regular Labor $ 1,239,703 $ 1,229,000 $ 1,326,467 $ 1,302,000 $ 73,000 6% 5103 Overtime 228,311 163,000 248,392 236,000 73,000 45% 5200 Benefits 506,917 681,000 654,715 681,000 - 0% 6201 Materials & Supplies 245,771 305,000 407,582 305,000 - 0% 6202 Tools 17,312 26,000 44,866 26,000 - 0% 6204 Chemicals 53,651 50,000 35,226 50,000 - 0% 6301 Contract Services 172,592 125,000 186,733 165,000 40,000 32% 6307 Uniforms 15,838 40,000 27,909 40,000 - 0% 6310 Street Services 323,336 325,000 506,433 325,000 - 0% 6405 Permits 13,500 - 18,132 - - - 6406 Postage 2,062 2,000 486 2,000 - 0% 6502 Professional Development 85 2,000 175 2,000 - 0% 6503 Education Assistance 90 3,000 - 3,000 - - 6504 Meetings - - - - - - TRANSMISSION & DIST. TOTAL $ 2,819,168 $ 2,951,000 $ 3,457,116 $ 3,137,000 $ 186,000 6% CUSTOMER SERVICE 5101 Regular Labor $ 510,638 $ 427,800 $ 449,093 $ 433,500 $ 5,700 1% 5102 Temporary Labor 18,102 - 17,284 - - - 5103 Overtime 9,452 13,500 7,983 10,900 (2,600)-19% 5200 Benefits 236,634 230,000 218,931 266,300 36,300 16% 6201 Materials & Supplies $ 962 $ 5,500 $ 1,932 $ 5,500 $ - 0% EAST VALLEY WATER DISTRICT 81 CONSOLIDATED FINANCIAL SCHEDULES FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed 6202 Tools $ 2,924 $ 3,000 $ 2,353 $ 3,000 $ - 0% 6203 Office Supplies 961 2,800 2,054 2,800 - 0% 6301 Contract Services 111,111 98,800 45,987 98,800 - 0% 6302 Banking Services 182,921 214,200 167,012 187,300 (26,900)-13% 6303 Printing & Publishing 6,570 7,000 5,139 7,000 - 0% 6304 Legal Services - 3,500 - 3,500 - 0% 6306 Rents & Leases - - - - - - 6307 Uniforms 4,549 5,800 4,427 5,800 - 0% 6308 Billing Services 28,742 36,400 29,560 36,400 - 0% 6309 Shut Off Notice Services 344,565 359,000 139,406 195,000 (164,000)-46% 6402 Telephone 4,904 6,200 5,168 10,000 3,800 61% 6406 Postage 89,457 107,100 73,212 107,100 - 0% 6502 Membership & Dues - 1,400 - 700 (700)-50% 6502 Professional Development 1,803 9,800 1,249 10,500 700 7% 6503 Education Assistance - - - - - - 6504 Meetings 452 1,400 936 2,000 600 43% 6703 Cash Over/Short 183 - 358 700 700 - 6704 Bad Debt Expense 2,413 - 2,083 11,100 11,100 - CUSTOMER SERVICE TOTAL $ 1,557,343 $ 1,533,200 $ 1,174,165 $ 1,397,900 $ (135,300)-9% ADMINISTRATION 5101 Regular Labor $ 2,690,604 $ 2,769,100 $ 2,786,487 $ 2,977,900 $ 208,800 8% 5102 Temporary Labor 11,467 - - - - - 5103 Overtime 48,134 47,800 34,130 56,300 8,500 18% 5104 Standby 31,198 33,000 32,027 33,000 - 0% 5200 Benefits 1,182,256 1,510,300 1,393,633 1,608,000 97,700 6% 6201 Materials & Supplies 287,323 201,400 196,328 199,500 (1,900)-1% 6202 Tools 10,890 15,800 9,851 16,900 1,100 7% 6203 Office Supplies 19,586 28,900 20,974 28,500 (400)-1% 6205 Conservation Rebates 711,436 195,000 156,412 145,000 (50,000)-26% 6301 Contract Services 1,623,521 1,149,800 1,002,932 1,475,950 326,150 28% 6302 Banking Services 6,165 14,000 5,699 14,000 - 0% 6303 Printing & Publishing 156,362 215,300 141,196 303,400 88,100 41% 6304 Legal Services 141,589 175,000 87,718 127,000 (48,000)-27% 6306 Rents & Leases 22,572 10,500 19,615 11,250 750 7% 6307 Uniforms 15,118 30,700 24,564 31,150 450 1% 6311 Landscape Services 45,489 39,200 30,470 42,000 2,800 7% 6312 Janitorial Services $ 74,850 $ 93,400 $ 93,206 $ 100,400 $ 7,000 7% FISCAL YEAR BUDGET 2020-202182 FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed 6314 Litigation Services $ - $ 35,000 $ 14,231 $ 28,000 $ (7,000)- 6401 Utilities 18,143 9,800 20,286 10,500 700 7% 6402 Telephone 42,749 113,400 47,236 119,600 6,200 5% 6403 Electricity 63,282 84,000 59,382 90,000 6,000 7% 6404 Fuel 84,390 112,500 94,455 112,500 - 0% 6405 Permits 38,700 135,100 48,992 135,100 - 0% 6406 Postage 15,541 32,100 17,015 74,100 42,000 131% 6501 Memberships & Dues 62,503 83,900 67,342 92,400 8,500 10% 6502 Professional Development 57,152 132,500 64,266 130,650 (1,850)-1% 6503 Education Assistance 3,500 4,000 1,989 9,100 5,100 128% 6504 Meetings 20,201 29,900 22,205 30,400 500 2% 6505 Employee Recognition 12,976 17,500 19,028 18,900 1,400 8% 6701 General Insurance 170,051 147,000 205,890 379,300 232,300 158% 6702 Insurance Claims 210 7,000 7,529 7,000 - 0% 6704 Bad Debt Expense - 1,000 571 1,000 - 0% 6705 OPEB Retirees 157,144 203,000 215,663 269,300 66,300 33% ADMINISTRATION TOTAL $7,825,102 $7,676,900 $ 6,941,324 $ 8,678,100 $1,001,200 13% TOTAL OPERATING EXPENSES $16,062,224 $17,174,100 $15,943,399 $18,067,000 $892,900 5% OTHER USES 7101 Debt Principal $ 2,496,000 $ 2,565,000 $ 2,565,000 $ 2,639,000 $ 74,000 3% 7102 Debt Interest 1,684,986 1,481,000 1,481,000 1,427,000 (54,000)-3% 7500 Reserve Contribution 3,331,981 308,900 1,736,269 (308,900)-100% 8101 Capital Outlay 333,059 931,000 931,000 1,195,000 264,000 28% 8999 Capital Improvement Program 2,595,927 3,175,000 3,175,000 3,070,000 (105,000)-3% OTHER USES TOTAL $10,441,953 $8,460,900 $ 9,888,269 $ 8,331,000 $ (129,900)-2% SUMMARY Total Revenue $ 26,504,177 $25,635,000 $25,831,669 $26,398,000 $ 763,000 3% Total Operating Expenses 16,062,224 17,174,100 15,943,399 18,067,000 892,900 5% Total Other Expenses 10,441,953 8,460,900 9,888,269 8,331,000 (129,900)-2% TOTAL $ 26,504,177 $25,635,000 $25,831,668 $26,398,000 $763,000 3% NET $ - $ - $ - $ - $ - - EAST VALLEY WATER DISTRICT 83 CONSOLIDATED FINANCIAL SCHEDULES Water Fund Revenues vs. Expenses $5M $10M $15M $20M $25M $30M FY 2015-16 Actual FY 2016-17 Actual FY 2017-18 Actual FY 2018-19 Actual Fy 2019-20 Projected FY 2020-21 Proposed $12,916,000 $14,533,000 $16,368,000 $16,062,000 $17,549,000 $18,067,000 $19,879,000 $24,588,000 $27,105,000 $26,504,000 $25,832,000 $26,398,000 Operating Expenses Revenues A careful analysis of the District's water accounts and usage are considered as the foundation for projecting water sales. FISCAL YEAR BUDGET 2020-202184 intentionally THIS PAGE LEFT BLANK 15 The District is responsible for maintaining wastewater pipeline throughout a 30.1 square mile service area. WA S T E W A T E R FU N DfundWASTEWATER The activities of enterprise funds closely resemble those of ongoing businesses in which the purpose is to conserve and add to resources while funding operating expenses from current revenues. 16 EAST VALLEY WATER DISTRICT 85 FundWastewater 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 Municipal Water Department Wastewater Treatment Charge that includes the treatment and disposal of wastewater generated within the District's service area until the SNRC becomes operational. 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 adopted rates by customer class are listed in the rate tables below. CONSOLIDATED FINANCIAL SCHEDULES Wastewater System Charges Customer Type FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 EVWD - MONTHLY FIXED COLLECTION CHARGES Residential $ 15.36 $ 15.36 $ 15.36 $ 15.36 Commercial 3.90 3.90 3.90 3.90 EVWD - VOLUMETRIC RATES Multi-Family $ 0.55 $ 0.55 $ 0.55 $ 0.55 Commercial/Retail/Dry 0.55 0.55 0.55 0.55 Restaurants/Hotels 0.55 0.55 0.55 0.55 Laundromats/Government/Office 0.55 0.55 0.55 0.55 Building/Motels 0.55 0.55 0.55 0.55 Schools/Churches 0.55 0.55 0.55 0.55 Convalescent Homes 0.55 0.55 0.55 0.55 Office Buildings/Motels 0.55 0.55 0.55 0.55 Auto Repair/Service/Carwash $ 0.55 $ 0.55 $ 0.55 $ 0.55 FISCAL YEAR BUDGET 2020-202186 Wastewater Treatment Charges Customer Type FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 CITY OF SAN BERNARDINO - MONTHLY FIXED TREATMENT CHARGES Residential $ 21.55 $ 21.55 $ 21.55 $ 21.55 Multi-Family (4+ Units), Mobile HP 1.97 1.97 1.97 1.97 Non-Residential Customer Class 3.52 3.52 3.52 3.52 CITY OF SAN BERNARDINO - VOLUMETRIC RATES Multi-Family $ 1.53 $ 1.53 $ 1.53 $ 1.53 Commercial/Retail/Dry 2.55 2.55 2.55 2.55 Restaurants/Hotels 3.28 3.28 3.28 3.28 Laundromats/Government/Office 1.83 1.83 1.83 1.83 Building/Motels 1.83 1.83 1.83 1.83 Schools/Churches 1.33 1.33 1.33 1.33 Convalescent Homes 1.63 1.63 1.63 1.63 Office Buildings/Motels 1.83 1.83 1.83 1.83 Auto Repair/Service/Carwash $ 1.58 $ 1.58 $ 1.58 $ 1.58 Revenue - Wastewater System Customer Type Service Connections Estimated Usage Monthly Fixed or Unit Charge Total Revenue RESIDENTIAL Fixed 19,125 N/A $ 15.36 $ 3,525,000 RESIDENTIAL TOTAL $ 3,525,000 COMMERCIAL / MULTI-FAMILY Fixed 1,080 3.9 50,500 Volumetric 1,950,000 0.55 1,072,500 COMMERCIAL/MULTI-FAMILY TOTAL $ 1,123,000 WASTEWATER SYSTEM CHARGES TOTAL $ 4,648,000 EAST VALLEY WATER DISTRICT 87 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 above 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 consist of EVWD’s system charge and the City of San Bernardino Municipal Water Department’s treatment charge. The two consumption based rates include EVWD’s collection charge per hundred cubic feet (HCF) and the City’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 Municipal Water Department treatment charge) x HCF used]. Shown above is a schedule of commercial wastewater rates for FY2020-21. REVENUES Wastewater revenues consist of collection charges, treatment charges, and miscellaneous revenues such as interest income and capacity charges for new services. The District anticipates a small increase in revenue related to the assessment of wastewater collection charges to vacant homes. In addition, the City of San Bernardino Municipal Water Deparment has adopted rate increases for treatment. Those revenues will be passed through directly to the City, therefore having no impact on District Operations. 35%WastewaterCollection Charges 64%WastewaterTreatment Charges Other Charges 1% SOURCES OF REVENUE CONSOLIDATED FINANCIAL SCHEDULES Revenue - Wastewater Treatment Customer Type Service Connections Estimated Usage Monthly Fixed or Unit Charge Total Revenue RESIDENTIAL Residential 19,125 N/A $ 21.55 $ 4,945,000 RESIDENTIAL TOTAL $ 4,945,000 COMMERCIAL / MULTI-FAMILY Multi-Family - Fixed 468 $ 1.97 $ 11,000 Multi-Family - Volumetric 1,320,000 1.53 2,019,000 Commercial - Fixed 612 3.52 26,000 Commercial - Volumetric 630,000 Various 1,664,000 COMMERCIAL/MULTI-FAMILY TOTAL $ 3,720,000 WASTEWATER TREATMENT CHARGES TOTAL $ 8,665,000 FISCAL YEAR BUDGET 2020-202188 EXPENSES Operating expenses have remained the same overall in the Wastewater Fund. The District continues to conduct preventative maintenance programs on the wastewater mains such as video inspections and cleaning the lines on a regular schedule. Additionally, staff has invested more time and effort to spot repairs of the mains when sags and cracks are found during the inspections of the wastewater system. With the implementation of 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. The project began construction in FY 2018-19 and will continue through FY 2021-22. CONCLUSION The Wastewater Fund is balanced, however, a rate study must be conducted to ensure proper rates are charged to fund future capital improvement projects and that the District continues to meet debt service obligations as set forth in the bond covenants. District staff will continue to monitor the revenues and expenses and present the progress to the Board of Directors on a quarterly basis. WASTEWATER FUND EXPENSES BY COST CENTER 19%Administration 64%Treatment 6%2% 6% 3% CustomerService Capital ExpendituresDebt Service Transmission & Distribution The budget document demonstrates accountability and responsibility in our fiscal management practices. EAST VALLEY WATER DISTRICT 89 FY 2020-21 PROPOSED WASTEWATER FUND BUDGET FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed REVENUES 4301 Late Payment Fee $ 41,775 $ 200,000 $ 37,102 $ 193,000 $ (7,000)-4% 4400 Wastewater Collection Charges 4,643,732 4,648,000 4,747,462 4,656,000 8,000 0% 4500 Wastewater Treatment Charges 8,592,950 8,665,000 8,501,530 8,665,000 (79,000)-1% 4605 Other Operating Charge 480,885 2,000 6,263 2,000 - 0% 4701 Interest Income 124,815 50,000 26,724 30,000 (20,000)-40% TOTAL REVENUES $13,884,157 $13,565,000 $13,319,081 $ 13,467,000 $ (98,000)-1% OPERATING EXPENSES TREATMENT 6305 Treatment Services $ 8,592,950 $ 8,665,000 $ 7,932,758 $ 8,586,000 $ (79,000)-1% TREATMENT TOTAL $ 8,592,950 $8,665,000 $7,932,758 $8,586,000 $ (79,000)-1% TRANSMISSION & DISTRIBUTION 5101 Regular Labor $ 201,992 $ 313,000 $ 262,205 $ 335,000 $ 22,000 7% 5103 Overtime 8,168 45,000 6,974 9,000 (36,000)-80% 5200 Benefits 101,066 173,000 148,188 176,000 3,000 2% 6201 Materials & Supplies 29,432 31,000 12,006 31,000 - 0% 6202 Tools 2,496 5,000 2,925 5,000 - 0% 6301 Contract Services 355,833 243,000 351,830 243,000 - 0% 6307 Uniforms 1,520 4,000 2,078 4,000 - 0% TRANSMISSION & DIST. TOTAL $ 700,507 $ 814,000 $ 786,206 $ 803,000 $ (11,000)-1% CUSTOMER SERVICE 5101 Regular Labor $ 116,079 $ 103,200 $ 95,106 $ 178,500 $ 75,300 73% 5102 Temporary Labor 7,758 - 7,407 - - - 5103 Overtime 1,901 1,500 2,165 2,100 600 40% 5200 Benefits 69,857 63,000 63,045 47,700 (15,300)-24% 6201 Materials & Supplies 287 1,500 704 1,500 - 0% 6202 Tools - - - - - - 6203 Office Supplies 412 1,200 880 1,200 - 0% 6301 Contract Services 46,511 40,200 18,446 40,200 - 0% 6302 Banking Services 78,395 91,800 71,576 51,700 (40,100)-44% 6303 Printing & Publishing 2,816 3,000 2,202 3,000 - 0% 6304 Legal Services - 1,500 - 1,500 - 0% 6306 Rents & Leases $ - $ - $ - $ - $ - 0% CONSOLIDATED FINANCIAL SCHEDULES FISCAL YEAR BUDGET 2020-202190 FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed 6307 Uniforms $ 714 $ 1,200 $ 722 $ 1,200 $ - 0% 6308 Billing Services 12,318 15,600 12,669 15,600 - 0% 6402 Telephone 1,589 1,800 1,697 - (1,800)-100% 6406 Postage 38,339 45,900 31,376 45,900 - 0% 6501 Membership & Dues - 600 - 300 (300)-50% 6502 Professional Development 773 4,200 535 4,500 300 7% 6503 Education Assistance - - - - - - 6703 Cash Over/Short 79 - 154 300 300 - 6704 Bad Debt Expense 1,034 - 893 3,900 3,900 CUSTOMER SERVICE TOTAL $ 378,862 $ 376,200 $ 309,579 $ 399,100 $ 22,900 6% ADMINISTRATION 5101 Regular Labor $ 992,862 $ 1,127,500 $ 999,116 $ 1,029,100 $ (98,400)-9% 5102 Temporary Labor 4,915 - - - - - 5103 Overtime 17,904 14,200 12,954 17,700 3,500 25% 5104 Standby 6,795 2,000 7,023 2,000 - 0% 5200 Benefits 439,149 573,700 513,126 526,000 (47,700)-8% 6201 Materials & Supplies 110,250 113,600 77,647 65,500 (48,100)-42% 6202 Tools 3,061 3,200 3,619 3,100 (100)-3% 6203 Office Supplies 5,335 9,100 6,451 8,500 (600)-7% 6301 Contract Services 674,313 413,200 406,866 388,050 (25,150)-6% 6302 Banking Services 2,642 6,000 2,443 6,000 - 0% 6303 Printing & Publishing 29,989 101,700 32,565 44,600 (57,100)-56% 6304 Legal Services 57,615 76,000 35,382 54,000 (22,000)-29% 6306 Rents & Leases 9,674 4,500 8,407 3,750 (750)-17% 6307 Uniforms 4,397 7,300 4,665 5,850 (1,450)-20% 6311 Landscape Services 19,495 16,800 13,058 14,000 (2,800)-17% 6312 Janitorial Services 32,078 40,600 39,946 33,600 (7,000)-17% 6314 Litigation Services - 15,000 6,099 12,000 (3,000)-20% 6401 Utilities 7,775 4,200 8,694 3,500 (700)-17% 6402 Telephone 14,686 30,600 16,535 27,400 (3,200)-10% 6403 Electricity 27,121 36,000 25,449 30,000 (6,000)-17% 6404 Fuel 36,167 12,500 40,481 12,500 - 0% 6405 Permits 16,586 57,900 20,997 57,900 - 0% 6406 Postage $ 6,039 $ 10,900 $ 5,638 $ 15,900 $ 5,000 46% EAST VALLEY WATER DISTRICT 91 FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed 6501 Memberships & Dues $ 25,224 $ 32,100 $ 27,611 $ 32,600 $ 500 2% 6502 Professional Development 22,337 51,500 23,590 46,350 (5,150)-10% 6503 Education Assistance 1,500 4,000 853 3,900 (100)-3% 6504 Meetings 8,475 15,100 9,219 11,600 (3,500)-23% 6505 Employee Recognition 5,561 7,500 8,155 8,100 600 8% 6701 General Insurance 72,879 63,000 88,238 19,700 (43,300)-69% 6702 Insurance Claims 90 3,000 3,227 3,000 - 0% 6702 Bad Debt Expense - - 245 - 6705 OPEB Retirees 67,347 87,000 92,427 49,700 (37,300)-43% ADMINISTRATION TOTAL $ 2,722,261 $ 2,939,700 $ 2,540,723 $ 2,535,900 $(403,800)-14% TOTAL OPERATING EXPENSES $12,394,580 $ 12,794,900 $ 11,569,266 $12,324,000 $ (470,900)-4% OTHER USES 7101 Debt Principal $ 100,000 $ 100,000 $ 100,000 $ 110,000 $ - 0% 7102 Debt Interest 193,267 212,000 212,000 203,000 1,000 0% 7500 Reserve Contribution 410,745 (374,900) 604,815 374,900 -100% 8101 Capital Outlay 118,946 633,000 633,000 435,000 (198,000)-31% 8999 Capital Improvement Program 666,619 200,000 200,000 395,000 195,000 98% OTHER USES TOTAL $ 1,489,577 $ 770,100 $ 1,749,815 $ 1,143,000 $ 372,900 48% SUMMARY Total Revenue $ 13,884,157 $ 13,565,000 $ 13,319,081 $ 13,467,000 $ (98,000)-1% Total Operating Expenses 12,394,580 12,794,900 11,569,266 12,324,000 (470,900)-4% Total Other Expenses 1,489,577 770,100 1,749,815 1,143,000 372,900 48% Transfer from Reserves - - - - - - TOTAL $13,884,157 $13,565,000 $ 13,319,081 $13,467,000 $ (98,000)-1% NET $ - $ - $ - $ - $ - - CONSOLIDATED FINANCIAL SCHEDULES FISCAL YEAR BUDGET 2020-202192 Wastewater Fund Revenues vs. Expenses $10,238,000 $10,164,000 $11,699,000 $12,395,000 $11,569,000 $12,324,000 $2M $4M $6M $8M $10M $12M $14 M Operating Expenses Revenues FY 2015-16 Actual FY 2016-17 Actual FY 2017-18 Actual FY 2018-19 Actual Fy 2019-20 Projected FY 2020-21 Proposed $11,572,000 $11,687,000 $11,944,000 $13,884,000 $13,319,000 $13,467,000 The Sterling Natural Resource Center will have the capability to treat all wastewater flows currently generated by District customers. PR O G R A M S U M M A R I E S summariesPROGRAM LEADERSHIP | PARTNERSHIP | STEWARDSHIP POSITION SUMMARY SCHEDULE PROGRAM DESCRIPTIONS 16 Program-based budgeting allows for costs to be clearly identified while easily measuring benefits as outlined in the Key Performance Indicators and completion of Goals and Objectives. PROGRAM SUMMARIES 93 PAGE EAST VALLEY WATER DISTRICT DescriptionsProgram COMPREHENSIVE INFORMATION FOR EACH FUNCTIONAL PROGRAM WITHIN THE DISTRICT PROVIDES A HIGHER DEGREE OF OPERATIONAL DETAIL PROGRAM SUMMARIES 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 analysis, 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 2020-21 Budget is organized into the following summary programs: • Governing Board • General Administration • Human Resources • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Maintenance • Facilities Maintenance • Fleet Maintenance FISCAL YEAR BUDGET 2020-202194 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 position changes for FY 2020-21 include the addition of one Customer Service Representative to the Customer Service Program and the removal of the Creative Services Representative from the Public Affairs Program. The table below summarizes the number of full-time personnel by Program. All authorized positions are funded in the proposed budget for FY 2020-21. Part time positions are included in the program descriptions and not shown below. Department FY 2018-19 Actual FY 2019-20 Actual FY 2020-21 Proposed 2000 General Administration 3 3 3 2100 Human Resources 2 2 2 2200 Public Affairs 4 5 4 2300 Conservation 1 1 1 3000 Finance & Accounting 6 6 6 3200 Information Technology 3 3 3 3300 Customer Service 7 5 6 3400 Meter Services 4 3 3 4000 Engineering 6 6 5 5000 Water Production 7 7 7 5100 Water Treatment 2 2 2 5200 Water Quality 2 2 2 6100 Water Maintenance 14 15 15 6200 Wastewater Maintenance 4 4 4 7000 Facilities Maintenance 2 2 2 7100 Fleet Maintenance 1 1 1 TOTAL 68 67 66 Full Time Staffing Summary by Department EAST VALLEY WATER DISTRICT 95 East Valley Water District continues to evaluate staffing needs to ensure all services are addressed by a high-quality workforce. 66FY 2021 67FY 2020 68FY 2019 68FY 2018 69FY 2017 67FY 2016 66FY 2015 Total Authorized Positions PROGRAM SUMMARIES FISCAL YEAR BUDGET 2020-202196 intentionally THIS PAGE LEFT BLANK GO V E R N I N G BO A R D 15 Board meetings follow a fair, efficient, democratic and orderly process. boardGOVERNING HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE PROGRAM PERSONNEL Governing Board Members 5 Elected Officials 5 RATEPAYERS Governing Board Chairman Governing Board Vice Chairman Governing Board Members PROGRAM STRUCTURE The Governing Board is the District’s Legislative Body Responsible for Serving as the Organizational Policy Makers 16 EAST VALLEY WATER DISTRICT 97 BoardGOVERNING 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. 01 Goals and Objectives GOAL Provide Organizational Direction and Set Expectations Through Policy Decisions Consistent with the Five-Year Work Plan OBJECTIVES 1. Review and address items that may impact the District related to the COVID-19 pandemic. 2. Conduct General Manager/CEO annual evaluation, including establishment of FY 2021-22 Goals. 3. Consider actions related to the North Fork Water Company. 02GOAL Address Policy Related Decisions Related to the Sterling Natural Resource Center (SNRC) OBJECTIVES 1. Consider agenda items related to ongoing 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. 03GOAL 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. Consider agenda items related to bond refinancing and Community Facilities Districts. 3. Assess and consider agenda items relating to COVID-19 which may have a financial impact on the adopted budget. 04GOAL Conduct all Activities Required for the Board of Directors Election OBJECTIVES 1. Coordinate with the San Bernardino County Registrar of Voters to hold the 2020 elections. 2. Update and post electoral information on the District’s website. 3. Review and update Candidate Orientation Program. PROGRAM SUMMARIES FISCAL YEAR BUDGET 2020-202198 FY 2019-20 Accomplishments GOAL ONE • Conducted General Manager/CEO Annual Evaluation and established FY 2020-21 goals. • Conducted Board member evaluations and established Board leadership positions. Provide Organizational Direction and Set Expectations through Policy Decisions GOAL TWO • Participated in activities that encouraged community engagement for the SNRC.Address Policy Related Decisions Related to SNRC GOAL THREE • Considered Memorandum of Understanding with the EVWD Employee Partnership. • Evaluated and considered agenda items related to water/ wastewater rate studies. Make Financial Decisions that Result in Stability and Understanding Operational Complexities SIGNIFICANT CHANGES Contract Services has been increased due to costs associated with the District’s participation in the 2020 General Elections. LEVELS OF SERVICE The Governing Board has four KPI metrics that are associated with the District’s Goals and Objectives of: • Identify Opportunities to Optimize Natural Resources (I-A) • Maximize Internal Capabilities through Ongoing Professional Development (I-B) • Provide Quality Information to Encourage Community Engagement (II-D) • Strengthen Regional, State and National Partnerships (I-C) $257,000 PROGRAM BUDGET ALLOCATION EAST VALLEY WATER DISTRICT 99 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2017-18 FY 2018-19 FY 2019-20 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 8 12 11 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 160 179 217 165 PROGRAM BUDGET DETAIL FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 77,373 $ 105,000 $ 74,930 $ 105,000 $ - 0% 5200 Benefits 68,753 85,000 82,979 80,000 (5,000)-6% OPERATING EXPENSES 6201 Materials & Supplies 450 1,000 1,684 1,000 - 0% 6301 Contract Services 18,933 10,000 17,500 30,000 20,000 200% 6307 Uniforms 544 1,000 544 1,000 - 0% 6502 Professional Development 23,527 55,000 21,686 40,000 (15,000)-27% GOVERNING BOARD TOTAL $ 189,580 $ 257,000 $ 199,323 $ 257,000 $ - 0% PROGRAM SUMMARIES FISCAL YEAR BUDGET 2020-2021100 intentionally THIS PAGE LEFT BLANK 15 General Administration is a partnership of essential business operations. GE N E R A L AD M I N I S T R A T I O N adminGENERAL HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE PROGRAM PERSONNEL General Manager/CEO 1 District Clerk 1 Sr. Administrative Assistant 1 Total Full Time 3 GOVERNING BOARD General Manager/CEO District Clerk Sr. Administrative Assistant PROGRAM STRUCTURE General Administration is Responsible for Overseeing the Day-to-Day Operations 16 EAST VALLEY WATER DISTRICT 101 AdministrationGENERAL 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. 01 Goals and Objectives GOAL Complete Reaccreditation Process for SDLF District Transparency Certificate of Excellence and District of Distinction Accreditation OBJECTIVES 1. Update and post required information to District website. 2. Complete and submit application and required documents for approval. 02GOAL Complete Consolidation/Dissolution of North Fork Water Company OBJECTIVES 1. Continue acquiring remaining shares of North Fork Water Company. 2. Coordinate with legal counsel to determine how North Fork Water Company will operate in the future. 03GOAL Develop Agenda Policy and Procedures to Standardize Business Processes OBJECTIVES 1. Evaluate and identify industry best practices to be included in the new policy. 2. Prepare draft policy to include comments and suggestions received from staff. 3. Finalize and implement approved policy. 04GOAL Finalize Preliminary Design of Community Heritage and Education Foundation Building OBJECTIVES 1. Resolve administrative challenges related to the CHEF building site. 2. Continue efforts to develop a fundraising plan and financial goals. PROGRAM SUMMARIES FISCAL YEAR BUDGET 2020-2021102 FY 2019-20 Accomplishments GOAL ONE • Increased the District’s stock ownership of the North Fork Water Company to 97%.Complete Consolidation of the North Fork Water Company GOAL TWO Continue Leading Efforts to Ensure Viability of the Community Heritage and Educational Foundation (CHEF) • Completed preliminary design of CHEF Building. GOAL THREE • Created Board member portal/intranet web page. • Populated web page with forms, Board calendar, and other informational items. Utilize the Intranet for Communication with Board of Directors OTHER ACCOMPLISHMENTS • Increased efforts to support Adopt-a-School partnership with SBUSD. SIGNIFICANT CHANGES Legal Services and Litigation Expenses have been reduced due to the completion of multiple projects that required significant legal guidance. LEVELS OF SERVICE The General Administration Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Practice Transparent and Accountable Fiscal Management (II-A) • Provide Quality Information to Encourage Community Engagement (II-D) • Dedicated Efforts Toward System Maintenance and modernization (IV-C) • Maximize Internal Capabilities through Ongoing Professional Development (I-B) $1,302,000 PROGRAM BUDGET ALLOCATION EAST VALLEY WATER DISTRICT 103 PROGRAM SUMMARIES The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2017-18 FY 2018-19 FY 2019-20 II-A Make administrative documents available on-line 50 20 61 55 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 3,291 3,083 2,770 I-B Participate in Professional Development Opportunities 6 N/A 9 8 PROGRAM BUDGET DETAIL FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 468,624 $ 517,000 $ 516,418 $ 525,000 $ 8,000 2% 5103 Overtime 2,745 3,000 3,062 3,000 - 0% 5200 Benefits 257,718 324,000 293,356 332,000 8,000 2% OPERATING EXPENSES 6201 Materials & Supplies 1,030 2,000 3,579 2,000 - 0% 6203 Office Supplies 2,170 4,000 1,943 3,000 (1,000)-25% 6301 Contract Services 187,283 162,000 123,052 166,000 4,000 2% 6303 Printing & Publishing 85 1,000 1,126 1,000 - 0% 6304 Legal Services 80,725 125,000 78,550 100,000 (25,000)-20% 6307 Uniforms 655 1,000 397 1,000 - 0% 6314 Litigation Services - 50,000 20,330 40,000 (10,000)-20% 6402 Telephone 3,068 3,000 2,499 3,000 - 0% 6406 Postage 367 - 20 - - 0% 6501 Memberships & Dues 74,642 77,000 76,904 91,000 14,000 18% 6502 Professional Development 12,041 20,000 7,699 20,000 - 0% 6503 Education Assistance - - - - - 0% 6504 Meetings 12,268 15,000 10,236 15,000 - 0% GENERAL ADMIN TOTAL $ 1,103,421 $ 1,304,000 $ 1,139,171 $ 1,302,000 $ (2,000)0% FISCAL YEAR BUDGET 2020-2021104 intentionally THIS PAGE LEFT BLANK 15 resourcesHUMAN The District empowers staff at all levels to feel confident in long-term and real-time decision making in our efforts to provide world class public service. HU M A N RE S O U R C E S HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE PROGRAM PERSONNEL Human Resources/ Risk & Safety Manager 1 Sr. Administrative Assistant 1 Total Full Time 2 GENERAL MANAGER/CEO Human Resources/Risk & Safety Manager Sr. Administrative Assistant PROGRAM STRUCTURE Human Resources is Responsible for Personnel-Related Programs 16 EAST VALLEY WATER DISTRICT 105 ResourcesHUMAN 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 workplace at the District. 01 Goals and Objectives GOAL Initiate Programs in Support of the SNRC Workforce Needs OBJECTIVES 1. Amend District organizational chart to include new job classifications and generate job descriptions and pay scales for the identified classifications. 2. Develop an action plan for a Wastewater Operator-in-Training program to prepare internal candidates for future employment opportunities at the SNRC. 3. Develop a marketing strategy to attract quality candidates to apply for SNRC employment opportunities. 02GOAL Promote a Positive Organizational Culture that Maintains a Supportive and Encouraging Work Environment OBJECTIVES 1. Update the District’s Succession Plan to identify organizational growth and provide development opportunities for staff. 2. Develop pre-retirement transition plans to assist retirees in preparing for retirement and offer the District the opportunity to capture institutional knowledge. 3. Conduct a comprehensive compensation analysis and update the District’s compensation policy. 03GOAL Promote Regional Involvement and Provide Workforce Experience and Educational Opportunities OBJECTIVES 1. Work with San Bernardino City Unified School District on elevating the Water and Resource Management Pathway Program. 2. Partner with Generation Go, the Workforce Development Department’s work-based learning program, to provide internship opportunities to high school students. 3. Update the District’s Volunteer Program to include SNRC related volunteer opportunities. PROGRAM SUMMARIES FISCAL YEAR BUDGET 2020-2021106 FY 2019-20 Accomplishments GOAL ONE Initiate Programs in Support of the SNRC Workforce and Community Needs • Conducted a staffing analysis to address current staffing needs and identify future growth and SNRC staffing needs with a 3-year schedule. • Helped implement a water industry pathway program at Indian Springs High School. GOAL TWO Promote a Positive Organizational Culture that Maintains a Supportive and Encouraging Work Environment • Evaluated and discussed potential plan for upcoming retirements in the next five years. • Initiated updates to staff career mapping and identified professional development opportunities for staff. • Enhanced partnerships with the San Bernardino Sheriff’s Department to increase the safety and security of District staff, sites and resources. GOAL THREE • Successful coordination with EVWDEP to extend the current MOU to allow for evaluation of potential financial impacts of COVID-19. Negotiate a 3-Year MOU that considers both Long-term Financial Commitments and Employee Morale SIGNIFICANT CHANGES Contract Services has increased due to budgeting for a comprehensive compensation survey during this fiscal year. LEVELS OF SERVICE The Human Resources Program has five 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) $1,325,000 PROGRAM BUDGET ALLOCATION EAST VALLEY WATER DISTRICT 107 PROGRAM SUMMARIES The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2017-18 FY 2018-19 FY 2019-20 I-D Percentage of annual non-retirement employee turnover <7%3%3%3% I-D Annual performance appraisals completed in a timely manner 95%100%100%100% II-D Enrollment in District volunteer program 5 0 7 3 III-C Maintain high level of employee participation in annual employee engagement survey 90%94%96%95% III-D Utilization rate of District’s Employee Assistance Program >10%7%20%24% PROGRAM BUDGET DETAIL FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 226,623 $ 228,000 $ 231,927 $ 243,000 $ 15,000 7% 5102 Temporary Labor - - - - - 0% 5103 Overtime 2,716 3,000 1,970 3,000 - 0% 5200 Benefits 102,904 139,000 157,069 151,000 12,000 9% OPERATING EXPENSES 6201 Materials & Supplies 3,598 8,000 1,371 8,000 - 0% 6203 Office Supplies 1,169 2,000 910 2,000 - 0% 6301 Contract Services 47,575 67,000 55,321 125,000 58,000 87% 6303 Printing & Publishing 532 1,000 713 1,000 - 0% 6304 Legal Services 18,155 20,000 4,166 15,000 (5,000)-25% 6406 Postage 111 1,000 22 1,000 - 0% 6501 Memberships & Dues 728 5,000 4,123 5,000 - 0% 6502 Professional Development 6,265 10,000 11,681 11,000 1,000 10% 6504 Meetings 2,559 5,000 5,080 5,000 - 0% 6505 Employee Recognition 18,537 25,000 27,183 27,000 2,000 8% 6701 General Insurance 242,930 210,000 294,128 399,000 189,000 90% 6702 Insurance Claims 300 10,000 10,756 10,000 - 0% 6705 Retiree Benefits 224,492 290,000 308,090 319,000 29,000 10% HUMAN RESOURCES TOTAL $ 899,194 $ 1,024,000 $ 1,114,510 $ 1,325,000 $ 301,000 29% FISCAL YEAR BUDGET 2020-2021108 intentionally THIS PAGE LEFT BLANK 15 affairsPUBLIC Public Affairs builds relationships with an engaging communication program. PU B L I C AF F A I R S HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE PROGRAM PERSONNEL Full Time Director of Strategic Services 1 Public Affairs Manager 1 Public Affairs Specialist 1 Sr. Administrative Assistant 1 Total Full Time 4 Part Time Community Relations Representative 0.5 Total Part Time 0.5 GENERAL MANAGER/CEO Director of Strategic Services Public Affairs Manager PROGRAM STRUCTURE Public Affairs Oversees Internal and External Communication Programs 16 Public Affairs Specialist Sr. Administrative Assistant Community Relations Representative EAST VALLEY WATER DISTRICT 109 AffairsPUBLIC 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. 01 Goals and Objectives GOAL Advance Construction of the SNRC and Prepare for Facility Operations OBJECTIVES 1. Begin developing operational plans and identifying contract services necessary for the Administration Center for 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). 4. Maintain community engagement including weekly social media posts, regular print advertisements, and internal communications to share critical project information. 5. Begin quarterly meetings of the SNRC Community Group. 02GOAL Utilize Communication Methods that Enhance the District’s Brand OBJECTIVES 1. Develop proposition notices and outreach material to inform customers of proposed rate changes for water and wastewater services. 2. Develop door hangers and project notices for all current year CIP projects (English/Spanish). 3. Develop a monthly report to highlight internal communications efforts and used to assess the effectiveness of the tools. 4. Develop and implement an outreach effort to increase customers understanding of budget based rates through social media posts, community events and bill redesign. 03GOAL Advance the District’s Emergency Preparedness Program to Effectively Respond in an Emergency OBJECTIVES 1. Implement a quarterly campaign to improve the District’s customer contact database in the event of an emergency. 2. Finalize the updated Emergency Response Plan and Hazard Mitigation Plan as required by FEMA and the EPA. 3. Evaluate and assess the District’s current Department Operations Center for needed enhancements to infrastructure and equipment. 4. Complete necessary reporting requirements related to the COVID-19 local state of emergency. 5. Conduct quarterly emergency preparedness trainings for staff. PROGRAM SUMMARIES FISCAL YEAR BUDGET 2020-2021110 FY 2019-20 Accomplishments 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) GOAL ONE Work with Partners to Advance the Construction of the SNRC • Created outreach materials and events to promote the construction status and future programs of the SNRC. • Coordinated with outside Government agencies for necessary approvals and review of relevant subject matter relating to the SNRC. • Oversaw construction of the Administration Center was within allocated scope of the GMP. GOAL TWO • Developed Proposition 218 notice and outreach campaign to inform customers of proposed rate changes. • Developed a campaign to educate customers on the value of reliable utility services proved by the District. Develop Communication Methods that Enhance the District’s Brand GOAL THREE Advance the District’s Emergency Preparedness Program to Effectively Respond in an Emergency • Updated the District’s Hazard Mitigation Plan and submitted for FEMA approval. • Completed the Vulnerability Assessment, and EPA Risk and Resiliency Assessment. OTHER ACCOMPLISHMENTS • Completed outreach material for SB 998, AMI project and Capital Improvement Projects. SIGNIFICANT CHANGES Additional contract services relating to the construction and preparation for operations of the SNRC have been incorporated in the Public Affairs budget. The COVID-19 health emergency impacted the number of presentations completed due to the cancellation of events. $1,589,000 PROGRAM BUDGET ALLOCATION EAST VALLEY WATER DISTRICT 111 PROGRAM SUMMARIES The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2017-18 FY 2018-19 FY 2019-20 III-A Update Emergency Response Plan 100%80%25%100% III-A Number of Emergency Response training hours per FTE 16 8 13 15 II-D Number of community event presentations 15 8 9 15 I-C Number of Community Advisory Commission meetings conducted 6 6 6 6 II-B Number of followers on social media 100 673 943 1,399 PROGRAM BUDGET DETAIL FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 414,462 $ 554,000 $ 454,390 $ 532,000 $ (22,000)-4% 5102 Temporary Labor - - - - - 0% 5103 Overtime 15,998 7,000 7,859 17,000 10,000 143% 5200 Benefits 143,556 256,000 197,807 269,000 13,000 5% OPERATING EXPENSES 6201 Materials & Supplies 149,792 163,000 52,744 113,000 (50,000)-31% 6203 Office Supplies 1,764 3,000 610 3,000 - 0% 6301 Contract Services 274,811 185,000 214,754 329,000 144,000 78% 6303 Printing & Publishing 98,297 198,000 103,279 223,000 25,000 13% 6304 Legal Services 1,075 5,000 60 5,000 - 0% 6307 Uniforms 1,383 3,000 1,447 2,000 (1,000)-33% 6312 Janitorial Services - 2,000 2,970 2,000 - 0% 6402 Telephone 2,154 3,000 2,420 5,000 2,000 67% 6406 Postage 19,350 20,000 17,944 50,000 30,000 150% 6501 Memberships & Dues 2,645 5,000 2,691 6,000 1,000 20% 6502 Professional Development 7,186 15,000 4,407 15,000 - 0% 6503 Education Assistance 5,000 8,000 2,842 8,000 - 0% 6504 Meetings 9,331 13,000 8,746 10,000 (3,000)-23% PUBLIC AFFAIRS TOTAL $ 1,146,804 $ 1,440,000 $ 1,074,970 $ 1,589,000 $ 149,000 10% FISCAL YEAR BUDGET 2020-2021112 intentionally THIS PAGE LEFT BLANK 15 conservation Conservation workshops help educate customers on how to reduce water consumption. CO N S E R V A T I O N HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE PROGRAM PERSONNEL Conservation Coordinator 1 Total Full Time 1 Conservation Encourages Sustainable Water Use 16 GENERAL MANAGER/CEO Director of Strategic Services Public Affairs Manager PROGRAM STRUCTURE Conservation Coordinator EAST VALLEY WATER DISTRICT 113 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. 01 Goals and Objectives GOAL Coordinate with District Programs/Departments to Complete Necessary Conservation Reporting OBJECTIVES 1. Gather information necessary to update the District’s Drought Risk Assessment within the required timeline. 2. Draft the District’s Water Shortage Contingency Plan and work with Engineering for data collection to meet the SWRCB requirements for the Regional Urban Water Management Plan. 3. Remain in compliance with the state’s monthly reporting requirements. 4. Facilitate the annual water audit submittal, develop an action item list and track results. 02GOAL Evaluate Rebate Program Success and Implement Program Enhancements OBJECTIVES 1. Work with IT to build GIS maps that will display rebate program participation. 2. Hold four conservation workshops in English (2) and in Spanish (2). 3. Understand and adopt industry standards or best practices for gathering conservation data information. 03GOAL Engage in the Legislative Process as it Relates to Changes in Conservation Regulations OBJECTIVES 1. Actively participate in the regulatory and legislative process as new conservation guidelines are considered. 2. Develop tracking measures to highlight the financial impact on operations should affordable-rate regulations be considered. 3. Provide quarterly updates to the Legislative and Public Outreach Committee, semi-annual to the Governing Board, to ensure they are informed of the changing conservation requirements and other legislative issues. PROGRAM SUMMARIES FISCAL YEAR BUDGET 2020-2021114 FY 2019-20 Accomplishments GOAL ONE Develop Technical Assessment Tools to Minimize Water Losses within the District’s Distribution System • Completed the annual water audit and developed an action item list. GOAL TWO Evaluate Rebate Program Success and Implement Program Enhancements • Translated rebates from English to Spanish to enhance program participation. • Invited high-water users to participate in rebate water surveys. • Began developing a conservation action plan to encourage water efficiency through different stages of water supply availability. GOAL THREE • Actively participated in the regulatory and legislative process as new conservation guidelines were considered.Engage in the Legislative Process as it Relates to Changes in Conservation Regulations SIGNIFICANT CHANGES The amount of educational materials distributed this year was less than the target. Many of the outreach events occur during the spring, which were canceled this year due to the COVID-19 pandemic. The development of technical tools to track conservation participation or to minimize water losses will be carried over to next fiscal year due to the departure of the IT Manager. An increase in contract services was made in the budget to cover the cost of a contractor to assist with the development and submittal of the Water Shortage Contingency Plan which is due December 2021. Printing and publishing budget has been increased to cover the cost of direct mailers that will be distributed to customers inviting them to participate in the free community workshops. $624,000 PROGRAM BUDGET ALLOCATION EAST VALLEY WATER DISTRICT 115 PROGRAM SUMMARIES 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) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2017-18 FY 2018-19 FY 2019-20 I-A Meet SWRCB conservation goal Yes Yes Yes Yes I-A Maintain significant level of participation in annual conservation rebate programs 300 556 468 344 II-D Number of educational materials created 100 220 175 97 II-C External conservation funding received $25,000 $33,769 $43,212 $34,000 PROGRAM BUDGET DETAIL FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 136,014 $ 101,000 $ 141,520 $ 107,000 $ 6,000 6% 5102 Temporary Labor - - - - - 0% 5103 Overtime 6,235 3,000 3,831 7,000 4,000 133% 5200 Benefits 33,798 30,000 34,461 36,000 6,000 20% OPERATING EXPENSES 6201 Materials & Supplies 27,159 25,000 14,479 20,000 (5,000)-20% 6203 Office Supplies 760 3,000 559 2,000 (1,000)-33% 6205 Conservation Rebates 711,436 195,000 156,412 145,000 (50,000)-26% 6301 Contract Services 23,690 88,000 21,609 140,000 52,000 59% 6303 Printing & Publishing 86,388 110,000 65,211 116,000 6,000 5% 6304 Legal Services 680 1,000 - 1,000 - 0% 6307 Uniforms 697 1,000 743 1,000 - 0% 6402 Telephone 1,066 2,000 1,331 2,000 - 0% 6406 Postage 1,449 20,000 3,861 37,000 17,000 85% 6501 Memberships & Dues 2,313 6,000 2,660 6,000 - 0% 6502 Professional Development 252 $3,000 683 3,000 - 0% 6504 Meetings 218 $1,000 - 1,000 - 0% CONSERVATION TOTAL $ 1,032,155 $ 589,000 $ 447,360 $ 624,000 $ 35,000 6% FISCAL YEAR BUDGET 2020-2021116 intentionally THIS PAGE LEFT BLANK 15 accountingFINANCE & Finance and accounting maintain a high ethical standard required to support the objectives of maintaining an extensive infrastructure system. FI N A N C E & AC C O U N T I N G HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE Finance and Accounting Provides Transparent and Responsible Oversight of District Funds 16 GENERAL MANAGER/CEO Chief Financial Officer Accountant PROGRAM STRUCTURE Sr. Accounting Technician PROGRAM PERSONNEL Chief Financial Officer 1 Business Services Manager 1 Accountant 1 Sr. Accounting Technician 1 Accounting Technician 1 Sr. Administrative Assistant 1 Total Full Time 6 Accounting Technician Sr. Administrative Assistant Business Services Manager EAST VALLEY WATER DISTRICT 117 AccountingFINANCE & 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. 01 Goals and Objectives GOAL Financial Stability with Full Understanding of Operational Complexities (GM Goal) OBJECTIVES 1. Work with Bond Council to restructure current bonds to take advantage of the financial market and record the debt in accordance with GAAP. 2. Coordinate Public Hearing and noticing efforts with the Public Affairs Department to comply with Proposition 218 requirements and implement adopted rates in District’s utility billing software 3. Identify the financial impact with affordable-rate regulation consideration working with Conservation and Public Affairs. 02GOAL Fully understand the cost associated with the SNRC operations (GM Goal) OBJECTIVES 1. Develop a listing of vendors and contract services based on recommendations from Engineering and regional wastewater agencies. 2. Develop a comprehensive salaries and benefits analysis based on the staffing schedule for the SNRC and the District. 3. Develop an allocation plan to determine each funds’ proportionate share of the SNRC operating and capital costs. 03GOAL 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 and Information Technology 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. PROGRAM SUMMARIES FISCAL YEAR BUDGET 2020-2021118 FY 2019-20 Accomplishments GOAL ONE • Completed the Water and Wastewater Rate Study. • Completed the Capacity Fee Study.Complete a Water and Wastewater Rate Study and Update the Miscellaneous Fee Schedule GOAL TWO Implement Sound Financial Practices to Preserve and Enhance the District’s Financial Position • Received awards from both the Government Finance Officers Association (GFOA) and the California Society of Municipal Finance Officers (CSMFO) for the District’s 2019-20 Budget. • Issued and received GFOA Awards for Outstanding Achievement for the District’s June 2019 Comprehensive Annual Financial Report (CAFR) and Popular Annual Financial Report (PAFR). • Amended the Finance Agreement and received $56 million from the SWRCB for reimbursement loans for the SNRC. GOAL THREE • Completed the linking of FY 2018-19 Water and Wastewater projects.Link Fixed Asset Information in Tyler Accounting System to Digitized Maps in GIS Program OTHER ACCOMPLISHMENTS • Saved the District approximately $67,000 annually by executing a contract with a new merchant service provider. SIGNIFICANT CHANGES None. LEVELS OF SERVICE The Finance & 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)$1,272,000 PROGRAM BUDGET ALLOCATION EAST VALLEY WATER DISTRICT 119 PROGRAM SUMMARIES The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2017-18 FY 2018-19 FY 2019-20 II-A Days to prepare and present CAFR after fiscal year end 135 days 103 102 102 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 3 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 6 7 8 II-A Consecutive years Certificate of Achievement for Excellence in Financial Reporting received for PAFR 2 1 2 3 PROGRAM BUDGET DETAIL FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 673,175 $ 678,000 $ 694,849 $ 716,000 $ 38,000 6% 5102 Temporary Labor 16,382 - - - - 0% 5103 Overtime 12,733 5,000 5,931 13,000 8,000 160% 5200 Benefits 300,935 376,000 359,923 385,000 9,000 2% OPERATING EXPENSES 6203 Office Supplies 9,322 11,000 12,390 11,000 - 0% 6301 Contract Services 212,587 66,000 52,082 67,000 1,000 2% 6302 Banking Services 8,806 20,000 8,142 20,000 - 0% 6303 Printing & Publishing 844 1,000 2,479 1,000 - 0% 6304 Legal Services 22,479 60,000 16,800 20,000 (40,000)-67% 6307 Uniforms 1,830 2,000 1,386 2,000 - 0% 6402 Telephone 2,129 3,000 1,623 3,000 - 0% 6406 Postage 303 1,000 806 1,000 - 0% 6501 Memberships & Dues 3,316 4,000 3,480 4,000 - 0% 6502 Professional Development 6,571 17,000 8,527 19,000 2,000 12% 6503 Education Assistance - - - 5,000 5,000 100% 6504 Meetings 2,243 4,000 2,731 4,000 - 0% 6704 Bad Debt 14 1,000 815 1,000 - 0% FINANCE & ACCT. TOTAL $ 1,273,669 $ 1,249,000 $ 1,171,964 $1,272,000 $ 23,000 2% FISCAL YEAR BUDGET 2020-2021120 intentionally THIS PAGE LEFT BLANK IN F O R M A T I O N TE C H N O L O G Y 15 technologyINFORMATION The District is leveraging technology to provide water consumption information electronically. HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE PROGRAM PERSONNEL Information Technology Manager 1 Network Administrator 1 Information Systems Technician 1 Total Full Time 3 IT is Responsible for District Technology and Software Programs 16 GENERAL MANAGER/CEO Chief Financial Officer Network Administrator PROGRAM STRUCTURE Information Systems Technician Information Technology Manager EAST VALLEY WATER DISTRICT 121 TechnologyINFORMATION 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. 01 Goals and Objectives GOAL Fortify IT Infrastructure for Reliability and Expand Services for HQ, SNRC and Plant 134 OBJECTIVES 1. Broaden network server infrastructure by upgrading End-of-Life Cisco servers and VMware licensing to support the SNRC and Plant 134. 2. Work with Operations to enhance SCADA infrastructure and improve radio communication at each site. 3. Expand hardware needs for operations staff and simplify staff processes through mobile devices. 02GOAL Proactively Improve Systems and Cybersecurity Measures for Internal and Emergency Response Functions OBJECTIVES 1. Engage staff with cybersecurity training and monthly Phishing emails to mitigate security risk. 2. Heighten IT staff knowledge and skills through professional development for IT standards. 3. Assess and enhance remote capabilities for staff and Emergency Operations Center operations. 4. Implement imaging software to allow image and recovery of computer systems to minimize downtime. 03GOAL Analyze Current Systems to Enhance Reporting and Automate Processes OBJECTIVES 1. Work with consultant to enhance reporting and business analytics through Microsoft BI. 2. Assist Finance with GIS and Tyler integration. 3. Expand DocuSign E-form capability to streamline internal processes and create another outlet for customer/ organization engagement. 4. Work with Operations to select an asset management system. 5. Assess Cityworks and current GIS infrastructure with Engineering to fit the organizational needs recommended through the IT strategic plan. PROGRAM SUMMARIES FISCAL YEAR BUDGET 2020-2021122 FY 2019-20 Accomplishments GOAL ONE • Proactively replaced all end-of-life workstations and laptops. • Implemented InframapNow mapping software. Proactively Replace Hardware and Software Approaching End-of-Life Cycle GOAL THREE • Installed treatment plant firewalls.Improve IT Infrastructure for Reliable and Secure Services OTHER ACCOMPLISHMENTS • Improved SCADA wireless performance. • Deployed 20 iPads to Field staff. • Completed Five-year IT Strategic Plan. SIGNIFICANT CHANGES IT Professional Development will be utilized this fiscal year to enhance internal controls of current systems. Increased Contract Services to configure and implement Imaging/Deployment system and Mobile Device Management. Membership dues have been decreased due to IT program changes. 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) $973,000 PROGRAM BUDGET ALLOCATION EAST VALLEY WATER DISTRICT 123 PROGRAM SUMMARIES The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2017-18 FY 2018-19 FY 2019-20 IV-A Elevate Cybersecurity awareness by sending out test ‘phishing’ emails 800 2,191 844 862 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%94%88%98% III-B Minimize resolution time for help desk issues submitted by staff 24 Hrs.10.1 23.3 16.36 PROGRAM BUDGET DETAIL FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 327,448 $ 344,000 $ 258,012 $ 338,000 $ (6,000)-2% 5102 Temporary Labor - - - - - 0% 5103 Overtime - - - - - 0% 5200 Benefits 89,684 101,000 77,926 120,000 19,000 19% OPERATING EXPENSES 6201 Materials & Supplies 69,935 37,000 52,955 42,000 5,000 14% 6203 Office Supplies - - - 1,000 1,000 100% 6301 Contract Services 497,207 427,000 394,910 449,000 22,000 5% 6307 Uniforms 795 1,000 358 1,000 - 0% 6402 Telephone 5,927 5,000 5,686 6,000 1,000 20% 6501 Memberships & Dues 932 7,000 3,096 1,000 (6,000)-86% 6502 Professional Development 6,430 9,000 1,366 14,000 5,000 56% 6503 Education Assistance - - - - - 0% 6504 Meetings - 1,000 721 1,000 - 0% IT TOTAL $ 998,358 $ 932,000 $ 795,030 $ 973,000 $ 41,000 4% FISCAL YEAR BUDGET 2020-2021124 intentionally THIS PAGE LEFT BLANK 15 serviceCUSTOMER As the primary contact point with residents, this program provides prompt and courteous service. CU S T O M E R SE R V I C E HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE PROGRAM PERSONNEL Full Time Sr. Customer Service Rep 1 Customer Service Rep III 1 Customer Service Rep II 2 Customer Service Rep I 2 Total Full Time 6 Part Time Customer Service Rep I 0.5 Total Part Time 0.5 Customer Service Provides Customers with World Class Community Relations 16 GENERAL MANAGER/CEO Chief Financial Officer Sr. Customer Service Representative PROGRAM STRUCTURE Customer Service Representative III Business Services Manager Customer Service Representative II Customer Service Representative I EAST VALLEY WATER DISTRICT 125 ServiceCUSTOMER 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 and 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. 01 Goals and Objectives GOAL Develop Strategies to Address Organizational Service Needs OBJECTIVES 1. Work with Field and IT in Re-Evaluation of Cityworks and attend product demonstrations for alternate work order system if scheduled. 2. Develop SNRC action plan and prepare justification for additional full-time employee if necessary. 3. Work with IT to activate autopay with credit card while remaining PCI compliant. 4. Work with Business Services Manager to update physical/digital access where needed. 02GOAL Modify Processes to Comply with Changes in Legislation while Maintaining Financial Stability OBJECTIVES 1. Meet quarterly with PA for updates on proposed/pending legislation. 2. Reassess written policy and departmental procedures related to SB 998. 3. Assist with preparation of Customer Service talking points to address customer inquiries related to proposed Water Tax legislation. 4. Review and propose changes to Miscellaneous Fee Schedule related to Customer Accounts. 03GOAL Work with Engineering and IT to Complete AMI Installations and Fully Utilize Smart Meter Capabilities OBJECTIVES 1. Log all leak notifications and contact customers to minimize water losses. Estimate water saved. 2. Work with PA to create customer educational materials about Smart Meter Portal and setting up alerts. 3. Review routes and billing dates for possible changes to accommodate timing of bills to customers on fixed incomes. PROGRAM SUMMARIES FISCAL YEAR BUDGET 2020-2021126 FY 2019-20 Accomplishments GOAL ONE Develop Strategies to Address Organizational Service Needs • Launched AMI customer portal. • Implemented the use of Intellius to research landlord info/ contact information. • Implemented disconnect service orders through municipal online portal. • Worked with 3rd party vendor to validate all service addresses within the District, in compliance with USPS. GOAL TWO • Assisted with the launch and implemented SB 998.Modify Processes to Comply with Changes in Legislation while Maintaining Financial Stability OTHER ACCOMPLISHMENTS • Successfully transitioned to working from home during an emergency. • Resolved ongoing issues with automated phone check payments. SIGNIFICANT CHANGES None. LEVELS OF SERVICE The Customer Service Program has six KPI metrics that are associated with the District’s Goals and Objectives of: • Strive to Provide World Class Customer Relations (III-B) • Maximize internal Capabilities through Ongoing Professional Development (I-B) • Dedicate Efforts Toward System Maintenance and Modernization (IV-C) $1,507,000 PROGRAM BUDGET ALLOCATION EAST VALLEY WATER DISTRICT 127 PROGRAM SUMMARIES The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2017-18 FY 2018-19 FY 2019-20 III-B Reduce number of customers disconnected for non-payment each year 1,800 1,607 1,000 930 III-B Encourage completion of Customer Satisfaction Surveys to better understand customer concerns 120 166 75 65 III-B Number of customer payments received through convenient off-site locations 10,000 5,216 6,652 5,000 I-B Number of customer service training hours per employee 16 12 14 11 IV-C Customers enrolled in paperless billing 2,000 2,090 2,259 1,998 IV-C Customers enrolled in the Pre-Authorized Payment Plan (auto-debit)2,000 1,826 2,233 2,528 East Valley Water District is a results-oriented organization with 17 programs essential to operations. FISCAL YEAR BUDGET 2020-2021128 PROGRAM BUDGET DETAIL FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 386,931 $ 344,000 $ 317,021 $ 415,000 $ 71,000 21% 5102 Temporary Labor 25,860.00 - 24,691 - - 0% 5103 Overtime 6,336 5,000 7,218 7,000 2,000 40% 5200 Benefits 232,858 210,000 210,151 242,000 32,000 15% OPERATING EXPENSES 6201 Materials & Supplies 958 5,000 2,347 5,000 - 0% 6203 Office Supplies 1,373 4,000 2,934 4,000 - 0% 6301 Contract Services 141,871 134,000 61,487 134,000 - 0% 6302 Banking Services 261,315 306,000 238,588 239,000 (67,000)-22% 6303 Printing & Publishing 9,385 10,000 7,341 10,000 - 0% 6304 Legal Services - 5,000 - 5,000 - 0% 6306 Rents & Leases - - - - - 0% 6307 Uniforms 2,381 4,000 2,406 4,000 - 0% 6308 Billing Services 41,060 52,000 42,229 52,000 - 0% 6309 Shut Off Notice Services 344,565 359,000 199,151 195,000 (164,000)-46% 6402 Telephone 5,297 6,000 5,656 8,000 2,000 33% 6406 Postage 127,795 153,000 104,588 153,000 - 0% 6501 Memberships & Dues - 2,000 - 1,000 (1,000)-50% 6502 Professional Development 2,576 14,000 1,784 15,000 1,000 7% 6503 Education Assistance - - - - - 0% 6504 Meetings 646 2,000 1,337 2,000 - 0% 6703 Cash Over/Short 248 - 512 1,000 1,000 100% CUSTOMER SERVICE TOTAL $ 1,594,902 $ 1,615,000 $ 1,232,417 $ 1,507,000 $ (108,000)-7% 15 servicesMETER Smart meters improves customer service and increases customer participation. ME T E R SE R V I C E S HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE PROGRAM PERSONNEL Meter Reader II 1 Meter Reader I 2 Total Full Time 3 Meter Services is responsible for reading all District meters monthly for billing, on- site customer meter-related requests and customer service assistance. 16 GENERAL MANAGER/CEO Director of Engineering & Operations Meter Reader II PROGRAM STRUCTURE Meter Reader I Operations Manager EAST VALLEY WATER DISTRICT 129 ServicesMETER FUNCTION Meter Services is responsible for reading all District meters monthly for billing, on-site customer meter-related requests and customer service assistance. 01 Goals and Objectives GOAL 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. Visually inspect all meter boxes in routes included in Phase I of AMI implementation. 02GOAL Collect Information on Remaining Manual-Read Meters to Facilitate Early Completion of AMI Implementation Project OBJECTIVES 1. Verify meter lid sizes, meter size and lay length in preparation for AMI Phases VI and VII. 2. Install AMI meters at accounts bypassed by the AMI Contractor due to special issues/concerns (broken angle valves, leaks). 03GOAL Continue Meter Testing Programs in Compliance with State Water Audits Best Practices OBJECTIVES 1. Conduct an audit of 10% of large meters for accuracy to ensure compliance with AWWA standards. PROGRAM SUMMARIES FISCAL YEAR BUDGET 2020-2021130 FY 2019-20 Accomplishments GOAL ONE • Created a prioritized replacement schedule that identified needed vault lid replacements. • Recommended the top five limited-access meters for relocation. Developed Inspection Program for Facilities in AMI Areas that Are No Longer Read Manually GOAL TWO Collect Information on Existing Meters to Facilitate Future Phases of AMI Implementation • Verified meter lid sizes, meter sizes and lay length for AMI Phase IV. • Identified and documented concerns with existing meter locations and resolve any issues prior to the account being scheduled for an AMI installation. • Provided recommendations for Engineering for future phases of AMI implementation regarding areas of priority and routes, including new construction. GOAL THREE Develop Proactive Meter Reader Training and Meter Testing Programs • Trained readers on budget-based rates and on uploading routes into handhelds. • Trained readers on AWWA meter efficiency standards. • Conducted an audit of 10% of large meters for accuracy to ensure compliance with AWWA standards. SIGNIFICANT CHANGES None. 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) • Strive to Provide World Class Customer Relations (III-B) • Dedicate Efforts towards System Maintenance and Modernization (IV-C) $290,000 PROGRAM BUDGET ALLOCATION EAST VALLEY WATER DISTRICT 131 PROGRAM SUMMARIES The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2017-18 FY 2018-19 FY 2019-20 I-A Number of large meters tested for accuracy 11 N/A 11 11 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 3 3 3 PROGRAM BUDGET DETAIL FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 239,786 $ 187,000 $ 227,178 $ 197,000 $ 10,000 5% 5103 Overtime 5,016 10,000 2,930 6,000 (4,000)-40% 5200 Benefits 73,633 83,000 71,825 72,000 (11,000)-13% OPERATING EXPENSES 6201 Materials & Supplies 292 2,000 289 2,000 - 0% 6202 Tools 2,924 3,000 2,353 3,000 - 0% 6301 Contract Services 2,584 5,000 2,946 5,000 - 0% 6307 Uniforms 2,882 3,000 2,743 3,000 - 0% 6402 Telephone 1,197 2,000 1,209 2,000 - 0% 6502 Professional Development - - - - - 0% METER SERVICES TOTAL $ 328,314 $ 295,000 $ 311,473 $ 290,000 $ (5,000)-2% FISCAL YEAR BUDGET 2020-2021132 intentionally THIS PAGE LEFT BLANK 15 engineering Engineering provides leadership in the development and implementation of the District's CIP. EN G I N E E R I N G HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE PROGRAM PERSONNEL Director of Engineering and Operations 1 Sr. Engineer 3 Sr. Administrative Assistant 1 Total Full Time 5 Engineering Implements Infrastructure Projects Needed to Provide Safe and Reliable Services 16 GENERAL MANAGER/CEO Director of Engineering & Operations Sr. Engineer PROGRAM STRUCTURE Sr. Administrative Assistant EAST VALLEY WATER DISTRICT 133 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. 01 Goals and Objectives GOAL Develop and Implement the District’s Capital Improvement Program to Address Rehabilitation and Maintenance Needs While Also Preparing for New Development OBJECTIVES 1. Issue design and construction contract for rehabilitation of reservoir at Plant 108. 2. Complete rehabilitation of Plant 101. 3. Facilitate completion of design for main replacement projects identified in CIP for 2020-21. 4. Support the development of Community Facilities District (CFD) for the Highland Hills development. 5. Continue to lead AMI implementation. 02GOAL Develop Plans to Optimize District Utilization of Local and Imported Surface Water OBJECTIVES 1. Complete pre-design report for the Water Treatment Plant at the east-end of the District’s service area. 2. Initiate contract for design-build of process improvements related to disinfection by-product control at Plant 134. 3. Install meter facilities and reporting tools to document North Fork water going to surface spreading. 03GOAL Support the Steps Necessary for Advancement of the SNRC OBJECTIVES 1. Lead development of facility start-up plans. 2. Ensure decisions are made promptly to support construction efforts. 3. Continue working with regulatory agencies to receive needed approvals and permits. PROGRAM SUMMARIES FISCAL YEAR BUDGET 2020-2021134 FY 2019-20 Accomplishments GOAL ONE Develop and Implement the District’s Capital Improvement Program to Address Rehabilitation and Maintenance Needs While Also Preparing for New Development • Completed master service contracts for rehabilitation of reservoirs and completed the rehabilitation of Reservoir 1 at Plant 39. • Managed the completion of Phase 4 of the AMI Project and led efforts to pre-purchase materials for subsequent phases to realize cost savings. • Supported the design and construction of the sewer main upsizing and replacement in Sterling Ave and Marshall Blvd being performed by the San Manuel Band of Mission Indians. • Provided engineering support on water main replacement work performed by the Operations Department on Rockford Avenue, Del Norte Place, Del Norte Circle, Lomita Place, Val Mar Circle, Yuma Drive, and Barton Street. GOAL TWO Develop Plans to Optimize District Utilization of Local and Imported Surface Water • Completed an evaluation of enhanced coagulation at Plant 134 to assess its potential to address disinfection byproduct formation. • Initiated an investigation to increase capacity for sludge handling at Plant 134. • Completed a feasibility study for a water treatment plant at the east-end of the District’s service area. GOAL THREE • Led evaluation of digesters and completed the design of the digesters and associated systems. • Continued permitting work with regulatory agencies. Support the Steps Necessary for Advancement of the SNRC SIGNIFICANT CHANGES Engineering Technician II and Senior Engineering Technician retired. Recruitment for Senior/Associate Engineer conducted. $1,544,000 PROGRAM BUDGET ALLOCATION EAST VALLEY WATER DISTRICT 135 PROGRAM SUMMARIES 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 towards System Maintenance and Modernization (IV-C) • Strive to Provide World Class Customer Relations (III-B) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2017-18 FY 2018-19 FY 2019-20 IV-A Initiate fully funded projects included in the current year CIP 100%100%90%90% IV-C Complete current year updates to GIS base maps 100%80%100%90% III-B Complete development infrastructure plan reviews in < 14 days 100%100%100%90% III-B Issue development impact fee costs estimates in < 2 days 100%100%100%100% PROGRAM BUDGET DETAIL FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 717,139 $ 702,000 $ 680,868 $ 735,000 $ 33,000 5% 5102 Temporary Labor - - - - - 0% 5103 Overtime 1,846 2,000 969 3,000 1,000 50% 5200 Benefits 251,526 304,000 280,984 263,000 (41,000)-13% OPERATING EXPENSES 6201 Materials & Supplies 2,458 9,000 5,713 9,000 - 0% 6202 Tools 1,369 7,000 1,236 7,000 - 0% 6203 Office Supplies 2,634 7,000 4,076 7,000 - 0% 6301 Contract Services 545,731 240,000 174,131 240,000 - 0% 6303 Printing & Publishing 206 6,000 953 6,000 - 0% 6304 Legal Services 69,615 40,000 18,364 40,000 - 0% 6307 Uniforms 2,001 3,000 2,899 3,000 - 0% 6402 Telephone 2,059 2,000 2,071 2,000 - 0% 6405 Permits 55,286 193,000 69,989 193,000 - 0% 6406 Postage - 1,000 - 1,000 - 0% 6501 Memberships & Dues 426 4,000 886 4,000 - 0% 6502 Professional Development 9,220 28,000 5,315 28,000 - 0% 6504 Meetings 54 3,000 373 3,000 - 0% ENGINEERING TOTAL $ 1,661,570 $ 1,551,000 $ 1,248,827 $ 1,544,000 $ (7,000)0% FISCAL YEAR BUDGET 2020-2021136 intentionally THIS PAGE LEFT BLANK 15 productionWATER The District delivers an average of 15 million gallons of water per day to customers. WA T E R PR O D U C T I O N HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE PROGRAM PERSONNEL Operations Manager 1 Sr. Water Production Operator 1 Water Production Operator III 3 Water Production Operator I 1 Administrative Assistant 1 Total Full Time 7 Water Production is Responsible for Monitoring and Operating the Entire Water System 16 DIRECTOR OF ENGINEERING & OPERATIONS Operations Manager Water Production Operator III PROGRAM STRUCTURE Water Production Operator I Water Production Supervisor Administrative Assistant Sr. Water Production Operator EAST VALLEY WATER DISTRICT 137 PROGRAM SUMMARIES ProductionWATER 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. 01 Goals and Objectives GOAL Support the Engineering Department and Contractor Assigned to Plant 108 Tank/Reservoir Rehabilitation Projects OBJECTIVES 1. Develop a pumping plan to have tank 108 out of service for rehabilitation. 2. Identify and isolate all valves required to drain and rehabilitate tank. 3. After construction fill, sample and bring the tank back online. 02GOAL Implement Improvements to Enhance the SCADA System OBJECTIVES 1. Work with consultants to develop RFP for the SCADA masterplan. 2. Work with IT to identify scope of work and complete phase three to upgrade SCADA radios. 3. Move forward and assign staff to assist with radio contractors’ recommendations. 03GOAL Transition the Remaining North Fork Water Company and Bear Valley Mutual Water Company Shareholders from the North Fork Canal/Pipeline to Alternative Metered ConnectionsOBJECTIVES 1. Determine size and flow required and install water meters to the properties. 2. Abandon weirs and other facilities made unnecessary by shareholder agreements. 04GOAL Bring Plant 120 Online to Produce 600-800 Gallons per Minute OBJECTIVES 1. Hire a SCADA contractor and electrician to install necessary equipment to control the Plant. 2. Clean and rehabilitate the forebay downstream of the well. 3. Inspect and make necessary repairs to boosters on site. 4. Obtain proper SWRCB permit. FISCAL YEAR BUDGET 2020-2021138 FY 2019-20 Accomplishments GOAL ONE • Rehabilitated two wells and five booster pumps. • Assisted with Plant 39-1 tank rehabilitation. • Replaced and repaired the control panel at Plant 132 to prevent ground arcing and motor failure. • Replaced motor starts at Plants 33-1, 24-2, 129-1, and 39-2. Prioritize and Execute Contracts for Tank/ Reservoir Rehabilitation Projects Based on Finding in Harper Engineering Report GOAL TWO • Replaced the transfer switch at Plant 141 in order to receive generator power. • Worked with a contractor to improve SCADA and radio communications at multiple Plants. • Worked on NFWC sand box Parshall flume to get SCADA feedback for more accurate groundwater recharge data. Implement Improvements to Enhance the SCADA System GOAL THREE • Assisted with purchase of NFWC shares. Transition the North Fork Water Company and Bear Valley Mutual Water Company Shareholders from the North Fork Canal/ Pipeline to Alternative Metered Connections OTHER ACCOMPLISHMENTS • Completed Cla-Val pressure regulating valve maintenance and inspections. • Completed annual tank inspections. • Trained operators on proper generator hook up to prepare for Edison shutdowns. • Promoted and trained the new Water Production Supervisor, Sr. Water Production Operator and Water Production Operator I. SIGNIFICANT CHANGES Re-allocated $100,000 from Water Production purchased water to Water Production well electrical. EAST VALLEY WATER DISTRICT 139 PROGRAM SUMMARIES LEVELS OF SERVICE The Water Production 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 Effort towards System Maintenance and Modernization (IV-C) • Enable Fact-Based Decision Making through State-of-the-Art Data Management (IV-D) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2017-18 FY 2018-19 FY 2019-20 IV-A Perform upgrades to SCADA radios as recommended by consultant 10/YR N/A N/A N/A IV-C Perform or schedule repairs recommended by reservoir inspection report 1/YR N/A N/A 1 IV-D Implement available SCADA software updates 100%100%100%100% IV-A Perform repairs recommended from the electrical inspection report 100%100%100%100% PROGRAM BUDGET DETAIL Administration FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 224,304 $ 234,000 $ 228,825 $ 248,000 $ 14,000 6% 5103 Overtime 122 1,000 74 1,000 - 0% 5104 Standby 15,342 15,000 15,640 15,000 - 0% 5200 Benefits $ 123,778 $ 185,000 $ 161,879 $ 191,000 $ 6,000 3% $4,493,000 PROGRAM BUDGET ALLOCATION FISCAL YEAR BUDGET 2020-2021140 FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed OPERATING EXPENSES 6201 Materials & Supplies $ 2,914 $ - $ 673 $ - $ - 0% 6202 Tools 3,749 5,000 1,408 6,000 1,000 20% 6203 Office Supplies 6,378 4,000 5,364 4,000 - 0% 6301 Contract Services 26,433 101,000 31,968 101,000 - 0% 6304 Legal Services 6,475 - 5,160 - - 0% 6307 Uniforms 3,312 10,000 11,637 10,000 - 0% 6402 Telephone 7,416 14,000 7,324 14,000 - 0% 6405 Permits - - - - - 0% 6501 Memberships & Dues 1,335 3,000 255 3,000 - 0% 6502 Professional Development 4,780 6,000 8,539 6,000 - 0% 6503 Education Assistance - - - - - 0% 6504 Meetings 209 1,000 694 1,000 - 0% ADMINISTRATION TOTAL $ 426,547 $ 579,000 $ 479,440 $ 600,000 $ 21,000 4% Source of Supply/Wells FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 319,672 $ 196,000 $ 372,741 $ 203,000 $ 7,000 4% 5103 Overtime 6,147 25,000 14,675 7,000 (18,000)-72% 5200 Benefits 71,636 111,000 113,666 103,000 (8,000)-7% OPERATING EXPENSES 6101 Purchased Water 306,513 500,000 440,716 400,000 (100,000)-20% 6102 Groundwater Replenishment 98,406 445,000 111,625 304,000 (141,000)-32% 6103 Water Assessment 123,547 122,000 50,716 122,000 - 0% 6201 Materials & Supplies 18,000 45,000 36,767 45,000 - 0% 6204 Chemicals 72,400 150,000 96,676 150,000 - 0% 6301 Contract Services 21,026 150,000 194,936 150,000 - 0% 6402 Telephone 109 - - - - 0% 6403 Electricity 1,125,950 1,150,000 1,138,829 1,250,000 100,000 9% 6405 Permits 63,210 100,000 70,405 100,000 - 0% SOURCE OF SUPPLY/WELLS TOTAL $ 2,226,616 $ 2,994,000 $ 2,641,752 $ 2,834,000 $ (160,000)-5% EAST VALLEY WATER DISTRICT 141 PROGRAM SUMMARIES Boosting and Pumping FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 91,428 $ 95,000 $ 34,503 $ 74,000 $ (21,000)-22% 5103 Overtime 3,491 10,000 4,697 4,000 (6,000)-60% 5200 Benefits 32,515 52,000 34,116 38,000 (14,000)-27% OPERATING EXPENSES 6201 Materials & Supplies 2,667 20,000 16,776 20,000 - 0% 6301 Contract Services 56,326 75,000 (11,326) 75,000 - 0% 6403 Electricity 352,486 400,000 343,310 400,000 - 0% BOOSTING & PUMPING TOTAL $ 538,913 $ 652,000 $ 422,076 $ 611,000 $ (41,000)-6% Transmission and Distribution FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 181,581 $ 184,000 $ 157,715 $ 198,000 $ 14,000 8% 5103 Overtime 9,514 25,000 6,674 10,000 (15,000)-60% 5200 Benefits 74,359 113,000 96,283 120,000 7,000 6% OPERATING EXPENSES 6201 Materials & Supplies 25,742 25,000 63,817 25,000 - 0% 6204 Chemicals 53,651 50,000 35,226 50,000 - 0% 6301 Contract Services 53,478 45,000 56,854 45,000 - 0% TRANSMISSION & DISTRIBUTION TOTAL $ 398,325 $ 442,000 $ 416,569 $ 448,000 $ 6,000 1% TOTAL WATER PRODUCTION $ 3,590,401 $ 4,667,000 $ 3,959,837 $4,493,000 $ (174,000)-4% Program Managers develop achievable and measurable goals and objectives to be implemented in a single fiscal year. FISCAL YEAR BUDGET 2020-2021142 intentionally THIS PAGE LEFT BLANK 15 treatmentWATER Plant 134 Water Filtration Facility treats local surface water from the Santa Ana River. WA T E R TR E A T M E N T HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE PROGRAM PERSONNEL Water Production Supervisor 1 Sr. Treatment Plant Operator 1 Total Full Time 2 Water Treatment is Responsible for Treating the Three Sources of Supply 16 DIRECTOR OF ENGINEERING & OPERATIONS Operations Manager Sr. Treatment Plant Operator PROGRAM STRUCTURE Water Production Supervisor EAST VALLEY WATER DISTRICT 143 TreatmentWATER 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 Water Project. Staff also operates two unique groundwater treatment facilities: Plant 28 uses Granular Activated Carbon (GAC) and Plant 39 is a blending facility. 01 Goals and Objectives GOAL Support Anticipated Design Build Efforts at Plant 134 for GAC and Sludge Removal Capital Projects Per SWRCB Recommendations OBJECTIVES 1. Understand recommendations for additional treatment processes needed to maintain high water quality. 2. Assist in capital planning for new treatment processes. 02GOAL Complete Plant 134 Membrane Replacements Using a Five-Phase Replacement Plan and Replace Air Control Valves for Trains OBJECTIVES 1. Identify the modules to be replaced in Phase 4. 2. Procure the needed membrane modules from the manufacturer in accordance with the District’s purchasing policy. 3. Coordinate and schedule the in-house installation of the new membranes. 4. Hire contractor to install air control valves. 03GOAL Replace All Five Chlorine Generation Cells at Plant 134 OBJECTIVES 1. Purchase proper cells. 2. Coordinate and schedule installation. PROGRAM SUMMARIES FISCAL YEAR BUDGET 2020-2021144 FY 2019-20 Accomplishments GOAL ONE • Received and installed the new membrane filters at Plant 134.Complete Plant 134 Membrane Replacements Using a Five-Phase Replacement Plan GOAL TWO Support the Development of a Long-Term Plant 134 Site Improvement Plan • Worked with contractor to repaint the filter basins due to peeling paint. • Replaced wastewater valve and implemented a plan to replace/maintain all plant valves. • Hired an engineering firm to update the Spill Prevention Control and Countermeasure Plan (SPCC) which is required for the diesel fuel storage for the generator at Plant 134. OTHER ACCOMPLISHMENTS • Increased two employees’ level of Treatment Certifications. SIGNIFICANT CHANGES None. 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 Ongoing Professional Development (I-B) $905,000 PROGRAM BUDGET ALLOCATION EAST VALLEY WATER DISTRICT 145 PROGRAM SUMMARIES The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2017-18 FY 2018-19 FY 2019-20 IV-A Meet all regulatory requirements 100%100%100%100% IV-A Maximize utilization of plant capacity through minimization of downtime and monitoring of raw water 7.5 MGD 3.0 4.0 3.5 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 3 5 PROGRAM BUDGET DETAIL FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 289,958 $ 242,000 $ 288,472 $ 252,000 $ 10,000 4% 5103 Overtime 38,117 25,000 46,420 39,000 14,000 56% 5200 Benefits 99,017 139,000 145,338 150,000 11,000 8% OPERATING EXPENSES 6201 Materials & Supplies 51,705 15,000 55,777 15,000 - 0% 6204 Chemicals 101,467 150,000 138,305 150,000 - 0% 6301 Contract Services 73,531 147,000 91,347 147,000 - 0% 6307 Uniforms 947 2,000 1,854 2,000 - 0% 6402 Telephone 3,112 - 1,836 - - 0% 6403 Electricity 117,177 150,000 108,462 150,000 - 0% 6405 Permits - - - - - 0% WATER TREATMENT TOTAL $ 775,031 $ 870,000 $ 877,811 $ 905,000 $ 35,000 4% FISCAL YEAR BUDGET 2020-2021146 intentionally THIS PAGE LEFT BLANK WA T E R QU A L I T Y 15 qualityWATER East Valley Water District's primary water quality goal is to protect the health and safety of its residents. HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE PROGRAM PERSONNEL Water Quality Coordinator 1 Water Quality Technician 1 Total Full Time 2 Water Quality Complies with all Required Drinking Water Regulations 16 DIRECTOR OF ENGINEERING & OPERATIONS Operations Manager Water Quality Coordinator PROGRAM STRUCTURE Water Production Supervisor Water Quality Technician EAST VALLEY WATER DISTRICT 147 QualityWATER 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. Water Quality is also leading District efforts to establish a Fats, Oil and Grease (FOG) program, a critical program for monitoring customer discharge into the wastewater collection system. FOG programs are maintained by agencies providing wastewater treatment services, which the District will become upon completion of the Sterling Natural Resource Center at the end of calendar year 2021. 01 Goals and Objectives GOAL Evaluate Water Quality Regulations and Improve Process Efficiencies to Enhance Water Quality Compliance OBJECTIVES 1. Develop sampling programs to maximize treatment process efficiencies. 2. Support efforts to assist in treatment process improvements at Plant 134. 3. Contract for installation of tank mixing equipment in District reservoirs at Plant 129. 02GOAL Implement In-House Environmental Controls and Compliance Program Improvements OBJECTIVES 1. Develop Fats, Oil and Grease (FOG) program language for incorporation into the District’s Sewer Use Ordinance. 2. Analyze, and report to management on, the effect of SB 998 on District’s ability to enforce compliance with annual backflow testing. PROGRAM SUMMARIES FISCAL YEAR BUDGET 2020-2021148 FY 2019-20 Accomplishments GOAL ONE • Installed tank mixer at Plant 108. • Completed EPA’s Unregulated Contaminant Monitoring Rule sampling as required. • Completed construction of the Plant 143 consolidated Orthophosphate injection system. Conduct Expanded Sampling Programs to Ensure Compliance with All State and Federal Water Quality Requirements GOAL TWO • Increased customer participation in the backflow testing program by 6%.Implement an In-House Environmental Controls and Compliance Program OTHER ACCOMPLISHMENTS • One employee received their Water Use Efficiency Practitioner I certification. SIGNIFICANT CHANGES Increased Contract Services to comply with Title 22 expanded sampling for all sources. Increased Contract Services for FOG program development and software. 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 Ongoing Professional Development (I-B) $480,000 PROGRAM BUDGET ALLOCATION EAST VALLEY WATER DISTRICT 149 PROGRAM SUMMARIES The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2017-18 FY 2018-19 FY 2019-20 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 8%/Yr 10%/Yr 8%/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 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 87,960 $ 88,000 $ 88,277 $ 92,000 $ 4,000 5% 5103 Overtime 4,509 7,000 1,198 6,000 (1,000)-14% 5200 Benefits 40,923 41,000 43,394 45,000 4,000 10% SOURCE OF SUPPLY/WELLS OPERATING EXPENSES 6201 Materials & Supplies 18,889 13,000 13,256 13,000 - 0% 6301 Contract Services 55,587 115,000 115,982 115,000 - 0% 6307 Uniforms 849 4,000 1,299 4,000 - 0% 6504 Meetings 264 1,000 526 1,000 - 0% TRANSMISSION AND DISTRIBUTION PERSONNEL EXPENSES 5101 Regular Labor 112,868 88,000 113,184 92,000 4,000 5% 5103 Overtime 323 8,000 835 7,000 (1,000)-13% 5200 Benefits 44,650 41,000 37,699 45,000 4,000 10% TRANSMISSION AND DISTRIBUTION OPERATING EXPENSES 6201 Materials & Supplies 257 - - - - 0% 6202 Tools 4,522 5,000 4,556 5,000 - 0% 6301 Contract Services 43,573 43,000 32,047 48,000 5,000 12% 6406 Postage 2,062 2,000 486 2,000 - 0% 6502 Professional Development 85 2,000 175 2,000 - 0% 6503 Education Assistance 90 3,000 - 3,000 - 0% WATER QUALITY TOTAL $ 417,411 $ 461,000 $ 452,914 $ 480,000 $ 19,000 4% FISCAL YEAR BUDGET 2020-2021150 intentionally THIS PAGE LEFT BLANK 15 maintenanceWATER The District proactively performs infrastructure enhancements by rehabilitating and replacing aging pipelines, installing new pipes, and expanding water storage capacity. WA T E R MA I N T E N A N C E HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE Water Maintenance Maintains the District’s Water Transmission and Distribution System 16 DIRECTOR OF ENGINEERING & OPERATIONS Operations Manager Field Service Worker III PROGRAM STRUCTURE Field Service Worker II PROGRAM PERSONNEL Field Service Supervisor 1 Sr. Field Service Worker 2 Field Service Worker III 5 Field Service Worker II 2 Field Service Worker I 4 Storekeeper/Buyer 1 Total Full Time 15 Field Service Worker I Field Service Supervisor Storekeeper/Buyer Sr. Field Service Worker EAST VALLEY WATER DISTRICT 151 MaintenanceWATER 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. 01 Goals and Objectives GOAL Prioritize Preventative Maintenance Schedules to Ensure Equipment Readiness for Emergency Response OBJECTIVES 1. Exercise all gate valves between Boulder Avenue on the east, and Central Avenue 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. 02GOAL Complete Two In-House Water Main Projects OBJECTIVES 1. Replace 550 linear feet of 4-inch with new 8-inch water main in 14th Street. 2. Replace 250 linear feet of 3-inch with new 6-inch water main in Mirada Street. 03GOAL Complete Evaluation of Existing Technology/Software and Requisition Upgrades/Replacements if Necessary OBJECTIVES 1. Identify weaknesses of existing software programs. 2. Conduct needs-assessment. 3. Work with IT to hold product demonstrations. 4. Work with IT to ensure all Field Staff are equipped with appropriate mobile devices. 5. Work with IT to fix data connectivity issue. PROGRAM SUMMARIES FISCAL YEAR BUDGET 2020-2021152 FY 2019-20 Accomplishments GOAL THREE • Worked with IT to ensure all Field Staff were equipped with appropriate mobile devices.Review Data Accuracy Compared to Actual Field Conditions OTHER ACCOMPLISHMENTS • Completed in-house projects by installing 2,500 linear feet of new water main in six streets. • Repaired 263 leaks. • Installed infrastructure for North Fork ditch to meter switch over. • Completed year two of the leak survey, by collecting data for the water audit. • Increased employees’ level of Water Distribution and Class B Driver’s License. SIGNIFICANT CHANGES Increased Contract Services 95% to cover survey of water mains across the 210 freeway. 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) $2,919,000 PROGRAM BUDGET ALLOCATION EAST VALLEY WATER DISTRICT 153 PROGRAM SUMMARIES The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2017-18 FY 2018-19 FY 2019-20 I-B Number of Water Maintenance staff with D-3 certification or higher 5 6 6 5 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 1,400 0 IV-C Respond to, and assess, customer leak concerns within reasonable time frame 98%95%95%100% IV-C Number of main leaks repaired <70 85 85 78 IV-C Estimate of water losses from main leaks (MG)<10 MG 1 MG 1 MG 0.54 MG PROGRAM BUDGET DETAIL Field Maintenance FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 186,338 $ 189,000 $ 180,335 $ 200,000 $ 11,000 6% 5103 Overtime 1,370 20,000 24 2,000 (18,000)-90% 5104 Standby 22,652 20,000 23,410 20,000 - 0% 5200 Benefits 129,991 138,000 118,059 144,000 6,000 4% OPERATING EXPENSES 6203 Office Supplies 720 3,000 1,467 3,000 - 0% 6303 Printing & Publishing - - - - - 0% 6307 Uniforms 2,665 1,000 1,879 1,000 - 0% 6402 Telephone 16,586 41,000 23,248 41,000 - 0% 6501 Memberships & Dues 1,390 2,000 858 2,000 - 0% 6502 Professional Development 3,216 19,000 17,906 19,000 - 0% 6503 Education Assistance - - - - - 0% 6504 Meetings 1,795 2,000 2,843 2,000 - 0% ADMINISTRATION TOTAL $ 366,723 $ 435,000 $ 370,029 $ 434,000 $ (1,000)0% FISCAL YEAR BUDGET 2020-2021154 Water Maintenance FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 945,254 $ 957,000 $ 1,055,568 $ 1,012,000 $ 55,000 6% 5103 Overtime 218,474 130,000 240,883 219,000 89,000 68% 5200 Benefits 387,908 527,000 520,733 516,000 (11,000)-2% OPERATING EXPENSES 6201 Materials & Supplies 219,772 280,000 343,765 280,000 - 0% 6202 Tools 12,790 21,000 40,310 21,000 - 0% 6301 Contract Services 75,542 37,000 97,832 72,000 35,000 95% 6307 Uniforms 14,891 40,000 27,909 40,000 - 0% 6310 Street Services 323,336 325,000 506,433 325,000 - 0% 6405 Permits 13,500 - 18,132 - - 0% TRANSMISSION & DISTRIBUTION TOTAL $ 2,211,467 $ 2,317,000 $ 2,851,565 $ 2,485,000 $ 168,000 7% TOTAL WATER MAINTENANCE $ 2,578,190 $ 2,752,000 $ 3,221,594 $2,919,000 $ 167,000 6% Cost estimates reflect the anticipated expenses for accomplishing each program's day-to-day operational tasks, special projects and overall program goals. 15 maintenanceWASTEWATER More than 52 miles of sewer video monitoring was conducted in 2020. WA S T E W A T E R MA I N T E N A N C E HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE PROGRAM PERSONNEL Field Service Worker III 2 Field Service Worker II 2 Total Full Time 4 Wastewater Maintenance Maintains the District’s Wastewater Conveyance System 16 DIRECTOR OF ENGINEERING & OPERATIONS Operations Manager Field Service Worker III PROGRAM STRUCTURE Field Service Supervisor Field Service Worker II EAST VALLEY WATER DISTRICT 155 MaintenanceWASTEWATER 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. 01 Goals and Objectives GOAL Continue Wastewater Collection System Maintenance and Management OBJECTIVES 1. Video inspect and assess all District mains between the northern and southern District boundaries, and between Del Rosa Drive and Victoria Avenue. 2. Clean a minimum of 110 miles of wastewater main. 02GOAL Implement Procedures to Enhance Monitoring of High-Flow Sewer Mains OBJECTIVES 1. Contract for video inspection of recently acquired East Trunk sewer main south of Baseline (33,000 feet). 2. Install flow sensors in manholes of five selected mains. 03GOAL Update Staff Training to Include Enhanced Functions of New Equipment OBJECTIVES 1. Train all field staff on the new vactor. 2. Train all field staff on lateral launcher and new CCTV truck. PROGRAM SUMMARIES FISCAL YEAR BUDGET 2020-2021156 FY 2019-20 Accomplishments GOAL ONE • Updated Sanitary Sewer Management Plan (SSMP). • Cleaned 125 miles of sewer main and video inspected 52 miles of sewer main. • Worked with contractor on numerous main and lateral repairs. Continue Wastewater Collection System Maintenance and Management GOAL TWO • Documented contributing factors of high maintenance areas in preparation for in-house FOG Program. • Sent out letters to FOG generating businesses/customers. Identify Operational Changes Needed to Accommodate Planned Development within the District OTHER ACCOMPLISHMENTS • Started maintaining the East trunk sewer, formerly owned by the City of San Bernardino Municipal Water Department. SIGNIFICANT CHANGES None. LEVELS OF SERVICE The Wastewater Maintenance Program has five KPI metrics that are associated with the District’s Goals and Objectives of: • 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) $9,389,000 PROGRAM BUDGET ALLOCATION EAST VALLEY WATER DISTRICT 157 PROGRAM SUMMARIES The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2017-18 FY 2018-19 FY 2019-20 I-B Number of staff holding CWEA certifications 4 5 5 6 IV-A Miles of wastewater mains inspected by video 55 70 74 52 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 220 200 177 125 IV-C Spot repairs identified and completed 100%100%100%100% PROGRAM BUDGET DETAIL FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 201,992 $ 313,000 $ 262,205 $ 335,000 $ 22,000 7% 5103 Overtime 8,168 45,000 6,974 9,000 (36,000)-80% 5200 Benefits 101,066 173,000 148,188 176,000 3,000 2% OPERATING EXPENSES 6201 Materials & Supplies 29,432 31,000 12,006 31,000 - 0% 6202 Tools 2,496 5,000 2,925 5,000 - 0% 6301 Contract Services 355,833 243,000 351,830 243,000 - 0% 6305 Treatment Services 8,592,950 8,665,000 7,932,758 8,586,000 (79,000)-1% 6307 Uniforms 1,520 4,000 2,078 4,000 - 0% WASTEWATER MAINTENANCE TOTAL $ 9,293,457 $9,479,000 $ 8,718,964 $ 9,389,000 $ (90,000)-1% FISCAL YEAR BUDGET 2020-2021158 intentionally THIS PAGE LEFT BLANK 15 maintenanceFACILITIES East Valley Water District has set out to be a world class organization that provides maximum benefits to the community. FA C I L I T I E S MA I N T E N A N C E HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE PROGRAM PERSONNEL Facilities Maintenance Coordinator 1 Facilities Maintenance Worker 1 Total Full Time 2 Facilities Maintenance Repairs and Maintains All District Facilities 16 DIRECTOR OF ENGINEERING & OPERATIONS Operations Manager Facilities Maintenance Coordinator PROGRAM STRUCTURE Water Production Supervisor Facilities Maintenance Worker EAST VALLEY WATER DISTRICT 159 MaintenanceFACILITIES 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. 01 Goals and Objectives GOAL Complete Long-Term Site Improvements for Plant 134 OBJECTIVES 1. Work with IT to complete security system and digital access at Plant 134. 2. Remodel laboratory at Plant 134 to include restroom, flooring and cabinetry. 02GOAL Complete Systematic Upgrades and Rehabilitation of District Facilities OBJECTIVES 1. Develop a comprehensive site improvement project list. 2. Replace Fence and repair asphalt driveway at Plant 34 and 141. 3. Paint existing building at Plant 33. 4. Complete upgrades on HVAC systems at Plants 129 and 142. 03GOAL Develop a Facilities Maintenance Program to Track and Anticipate Future Costs Associated with All District Facilities OBJECTIVES 1. Work with IT and other Program/Department stakeholders in selecting an asset management program that fits with the Program's needs. 2. Complete incorporating facilities data into selected Facilities Maintenance Program. 3. Implement a consistent tracking program and help provide training to staff. PROGRAM SUMMARIES FISCAL YEAR BUDGET 2020-2021160 FY 2019-20 Accomplishments GOAL ONE • Completed security fence upgrade at Plant 134.Implement a Long-Term Site Improvement Plan for Plant 134 GOAL THREE Complete Systematic Upgrades and Rehabilitation of District Facilities • Completed the following HQ security upgrades: access card readers entering the Board Room and Break Room; installed emergency exit gate in the demonstration garden and patio. • Installed new HVAC systems and upgraded to LED lights at Plants 99, 33, 24, 11, 127, and 149. • Upgraded to LED lights at HQ. • Installed new metal doors at Plants 11, 39 and 33. • Replaced the booster house roof at Plant 129. • Slurry seal and striping of HQ parking lot. OTHER ACCOMPLISHMENTS • Assisted with demolition of the Cherokee house on 6th Street to expand the SNRC to the east. SIGNIFICANT CHANGES None. 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) $1,022,000 PROGRAM BUDGET ALLOCATION EAST VALLEY WATER DISTRICT 161 PROGRAM SUMMARIES The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2017-18 FY 2018-19 FY 2019-20 IV-C Close all service work orders timely <30 Days <30 Days <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%100%100%100% I-A Reduce energy consumption for each facility site >20%25%30%60% PROGRAM BUDGET DETAIL FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 144,697 $ 160,000 $ 158,137 $ 168,000 $ 8,000 5% 5103 Overtime 20,181 15,000 21,797 22,000 7,000 47% 5200 Benefits 75,044 93,000 95,487 102,000 9,000 10% ADMINISTRATION OPERATING EXPENSES 6201 Materials & Supplies 59,320 40,000 71,703 40,000 - 0% 6202 Tools 2,517 2,000 107 2,000 - 0% 6301 Contract Services 84,572 37,000 63,178 37,000 - 0% 6306 Rents & Leases 32,245 15,000 28,022 15,000 - 0% 6307 Uniforms 2,578 1,000 5,582 11,000 10,000 1,000% 6311 Landscape Services 106,024 56,000 82,767 56,000 - 0% 6312 Janitorial Services 106,928 132,000 130,182 132,000 - 0% 6313 Facilities Repair - - - - - 0% 6401 Utilities 27,183 24,000 22,576 14,000 (10,000)-42% 6402 Telephone 15,985 70,000 16,786 70,000 - 0% 6403 Electricity 90,403 120,000 84,831 120,000 - 0% 6403 Professional Development - 1,000 47 1,000 - 0% SOURCE OF SUPPLY/WELLS OPERATING EXPENSES 6201 Materials & Supplies 3,103 3,000 3,000 3,000 - 0% 6301 Contract Services 70,851 11,000 11,000 11,000 - 0% 6311 Landscape Services $ - $ 40,000 $ 40,000 $ 40,000 $ - 0% Continued on next page FISCAL YEAR BUDGET 2020-2021162 FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PUMPS AND BOOSTERS OPERATING EXPENSES 6201 Materials & Supplies $ 2,083 $ 3,000 $ 3,000 $ 3,000 - 0% 6301 Contract Services 8,630 6,000 6,000 6,000 - 0% 6311 Landscape Services 29,812 35,000 35,000 35,000 - 0% TREATMENT OPERATING EXPENSES 6201 Materials & Supplies 4,055 8,000 8,000 8,000 - 0% 6301 Contract Services 30,604 102,000 102,000 102,000 - 0% 6311 Landscape Services 24,097 14,000 14,000 14,000 - 0% 6401 Utilities 1,265 10,000 10,000 10,000 - 0% FACILITIES MAINTENANCE TOTAL $ 942,177 $ 998,000 $ 1,013,202 $ 1,022,000 $ 24,000 2% Unique key performance indicators are utilized as a quantitative measure. 15 maintenanceFLEET The District maintains 44 vehicles for safe and operable use. FL E E T MA I N T E N A N C E HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE PROGRAM PERSONNEL Equipment Mechanic III 1 Total Full Time 1 Fleet Maintenance is Responsible for Care of the District’s Vehicles and Heavy Equipment 16 DIRECTOR OF ENGINEERING & OPERATIONS Operations Manager PROGRAM STRUCTURE Field Service Supervisor Equipment Mechanic III EAST VALLEY WATER DISTRICT 163 MaintenanceFLEET 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. 01 Goals and Objectives GOAL Keep Air Quality and Highway Safety Regulations Current OBJECTIVES 1. Perform quarterly inspections with air quality consultant for Air Quality Management District (AQMD) and California Air Resources Board (CARB). 2. Schedule semi-annual site employee safety training for vehicles and equipment. 3. Transmit emissions data to the Bureau of Automotive Repair using Network Fleet devices. 02GOAL Enhance Vendor-Managed Fleet Maintenance Program OBJECTIVES 1. Work with IT to utilize vendor reporting capabilities. 2. Work with vendor to refine list of pre-approved work in order to mitigate delays on safety repairs. 3. Contract with vendor to provide detailing for specialized equipment. PROGRAM SUMMARIES FISCAL YEAR BUDGET 2020-2021164 FY 2019-20 Accomplishments GOAL ONE Comply with Current Air Quality and Highway Safety Regulations • Contracted with air quality consultant for AQMD and CARB. • Scheduled semi-annual on-site employee safety training for vehicles and equipment. • Transmitted emissions data to the Bureau of Automotive Repair using new Network Fleet devices. GOAL TWO • Added three additional generators to support Production with Edison shutdowns and enhance emergency preparedness. Continue Enhancement of Emergency Response Capabilities GOAL THREE Transition Fleet Management Program • Purchased new sewer jetting truck to support wastewater crews. • Added skid steer and trailer to support field staff with in- house water main projects. • Purchased three new trucks; one is a mid-size dump truck to transport generators. SIGNIFICANT CHANGES None. 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) $500,000 PROGRAM BUDGET ALLOCATION EAST VALLEY WATER DISTRICT 165 PROGRAM SUMMARIES The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2017-18 FY 2018-19 FY 2019-20 IV-A Ensure vehicles and equipment are evaluated and replaced on schedule 80% of Net Asset Value 100%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 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 82,475 $ 84,000 $ 80,522 $ 90,000 $ 6,000 7% 5103 Overtime 2,093 3,000 1,567 3,000 - 0% 5200 Benefits 43,718 53,000 46,829 61,000 8,000 15% OPERATING EXPENSES 6201 Materials & Supplies 80,917 30,000 68,050 30,000 - 0% 6202 Tools 6,316 5,000 10,719 5,000 - 0% 6203 Office Supplies 555 1,000 106 1,000 - 0% 6301 Contract Services 294,102 180,000 189,165 180,000 - 0% 6307 Uniforms 849 - 1,058 - - 0% 6402 Telephone 588 1,000 346 1,000 - 0% 6404 Fuel 120,557 125,000 134,936 125,000 - 0% 6501 Memberships & Dues - 3,000 - 3,000 - 0% 6502 Professional Development - 1,000 - 1,000 - 0% FLEET MAINTENANCE TOTAL $ 632,170 $ 486,000 $ 533,298 $ 500,000 $ 14,000 3% FISCAL YEAR BUDGET 2020-2021166 intentionally THIS PAGE LEFT BLANK budgetCAPITAL LEADERSHIP | PARTNERSHIP | STEWARDSHIP CA P I T A L B U D G E T CAPITAL IMPROVEMENT PROJECTS CAPITAL BUDGET OVERVIEW INFRASTRUCTURE ACCOMPLISHMENTS 16 The District's long-term planning efforts have always included consideration of the age, condition, and efficiency of infrastructure used to deliver services to its customers. 167 PAGE EAST VALLEY WATER DISTRICT Budget OverviewCapital The District plans for two types of expenses outside of the program summaries and debt service. Two types of those capital expenditures categories are within, 1) routine purchases and replacement of assets, referred to as Capital Outlay, and 2) non-routine construction, large material, or planning project expenditures that are part of the District’s Capital Improvement Plan (CIP). EAST VALLEY WATER DISTRICT INCLUDES TWO TYPES OF CAPITAL EXPENDITURES IN ITS CAPITAL BUDGET. The District’s FY 2020-21 Capital Expenditures contains $86,995,000 in total projects and purchases. Of this amount, $1,630,000 are Capital Outlay, which typically include requests to replace vehicles, computer and office equipment, and to conduct infrastructure planning and rate studies. The remaining proposed capital expenditures of $85,365,000 are current year (Year 1) costs pertaining to projects shown in the District’s Capital Improvement Program, presented in greater detail in this section. A summary of the proposed FY 2020-21 Capital Budget is shown on the following table: CAPITAL BUDGET CAPITAL BUDGET SUMMARY Capital Improvement Program Capital Outlay (Routine) AMI Meter Replacement Program $ 450,000 Computer Hardware / Software $ 240,000 Plant 134 Process Improvements 1,000,000 Storage Tank Mixers 40,000 Plant 134 Site Improvements 600,000 Wastewater Cost of Service Analysis 50,000 Plant 134 Membrane Replacement 350,000 Server Room Exhaust Fan 20,000 Storage Tank / Reservoir Rehabilitation 600,000 Regional UWMP / SAR Watershed Survey 100,000 Plant 120 - Reactivation 100,000 SCADA Master Plan / Radio Upgrades 200,000 Plant 101 - Rehab Hydro System 100,000 Upgrade HVAC at Various Plants 30,000 East Side Surface Water Treatment Plant 175,000 Backhoe / Trailer Jetter / Asphalt Grinder 275,000 Water Main Replacement Mirada & 14 Streets 200,000 CCTV Truck 250,000 General Facilities Rehab / Relocation 345,000 Service Trucks, Crew Truck 375,000 Well & Booster Improvements 50,000 Sewer Overflow Sensors 50,000 Wastewater Main Rehabilitations 200,000 SNRC 81,195,000 TOTAL CIP EXPENDITURES $85,365,000 TOTAL CAPITAL OUTLAY $ 1,630,000 FISCAL YEAR BUDGET 2020-2021168 CAPITAL OUTLAY The District defines Capital Outlay expenditures as an individually significant acquisition of capital assets (not involving construction) that have expected useful lives of more than two years and have a cost of $5,000 or more. This threshold is applied at the individual asset level. Each year as part of the budget process the District’s Program Managers and Supervisors compile and submit a list of Capital Outlay requests for consideration. The requests are reviewed and prioritized by the Finance Department based on the assessment of need, and the amount of funding available. Funding for Capital Outlay is paid out of the Operating Revenue from the funds (water and/or wastewater) that will benefit from use of the capital item. Items that benefit both the Water and Wastewater funds are allocated accordingly. FY 2020-21 Capital Outlay Water WasteWater Total FUNDED BY OPERATING REVENUE Wastewater Wastewater Cost of Service Analysis $ - $ 50,000 $ 50,000 Sewer Overflow Sensors - 50,000 50,000 CCTV Truck - 250,000 250,000 Software Hardware Replacements (Servers/Laptops) 50,000 8,000 58,000 vSphere Enterprise Plus 56,000 14,000 70,000 Server Chassis & Switches 66,000 14,000 80,000 Microsoft Server Licensing 32,000 - 32,000 Facilities Server Room Exhaust Fan 16,000 4,000 20,000 HVAC Upgrades (Plants 56,59,129) 30,000 - 30,000 Storage Tank Mixers - Plant 129 40,000 - 40,000 Project Planning Regional Urban Water Master Plan 50,000 - 50,000 Santa Ana River Watershed Survey 50,000 - 50,000 SCADA SCADA Master Plan 150,000 - 150,000 SCADA Radio Upgrades 50,000 - 50,000 Tool and Equipment Asphalt Grinding Tool 25,000 - 25,000 Trailer Mounted Jetter for Manholes - 50,000 50,000 Backhoe 160,000 40,000 200,000 Fleet Crew Truck 150,000 - 150,000 Light Duty Trucks 225,000 - 225,000 TOTAL CAPITAL OUTLAY $1,150,000 $480,000 $1,630,000 EAST VALLEY WATER DISTRICT 169 CAPITAL BUDGET CAPITAL IMPROVEMENT PROGRAM (CIP) The District’s Capital Improvement Program (CIP) is a five-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 it's 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 based on the results of planning analysis efforts. The primary sources for these planning efforts are the District’s Water Master Plan and Wastewater Collection System Master Plan - both were updated during FY 2018-19. The Master Plans identify the infrastructure improvements needed to serve a growing population and changes in regulations. 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 2020-21, East Valley Water 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 CIP projects for $85,365,000 – total project costs for the projects in process are approximately $155 million over the next five years. Projects funded for the current year include: • Automated Metering Infrastructure – This project which has been accomplished within several phases to replace all District water meters with automated metering technology, is near completion. All remaining AMI meters were purchased in FY 2019-20. The FY 2020-21 budget includes $450,000 to install the remaining meters. This project will be paid out of Water Fund 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 $1,900,000 to be paid out of Water Fund Operating Revenue and State Revolving Fund grants and/or loans, if approved. • East-Side Surface Water Treatment Plant – This project is proposed to add operational efficiency, flexibility and redundancy to the District’s water production and distribution system. Current year budgeted costs for a preliminary design report are $175,000 to be paid out of Water Fund Operating Revenue. • Storage Tank Rehabilitation – involves systematic rehabilitation of existing tanks in order to ensure their dependability and years of future service. Current year costs are $600,000 to be paid out of Water Fund Operating Revenue. • Water Main Replacements – The District has scheduled the replacement of approximately 750 linear feet of undersized water main. Planned expenditures during FY 2020-21 on these pipelines are $200,000, to be funded by Water Fund 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. Planned expenditures during FY 2020-21 on these mains are $200,000, to be funded by Wastewater Operating Revenue. FISCAL YEAR BUDGET 2020-2021170 Capital Expenditure 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 Plant 134 Treatment Modifications 30,000 Increased power costs Plant 134 Treatment Modifications 50,000 Increased filter media cost 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 CIP EXPENDITURES $ (8,614,000) • 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 2020-21 are $345,000 to be funded by Water Fund 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 2020-21 are $81,195,000, 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. Impact Of Capital Improvement Program Project Investments On Operating Budgets A large majority of the FY 2020-21 proposed Capital Budget of $86,995,000 is funded by proceeds of a low interest loan from the California State Water Resources Control Board for construction of the Sterling Natural Resources Center. However, most projects in the Capital Improvement Program are funded by contributions from the current year operating budget. For FY 2020-21, Water Fund Operating Revenue will contribute $3,070,000 to CIP, and Wastewater Fund Operating Revenue will contribute $395,000. These amounts remain consistent year after year, but can fluctuate based on Capital Outlay requests, which are also funded by operations. The capital projects described in this section will have varying impacts on future operating expenses, both in increased costs and cost savings specifically the Sterling Natural Resource Center (SNRC) will also provide new revenue streams. Proposed treatment processes at the District's surface water treatment plant (Plant 134) will allow the District to operate the plant at a higher capacity and fully utilizing the 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 co-generation 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: EAST VALLEY WATER DISTRICT 171 CAPITAL BUDGET CIP FIVE YEAR SCHEDULE (FY 2021-25) Year 1 FY 2020-21 Year 2 FY 2021-22 Year 3 FY 2022-23 Year 4 FY 2023-24 Year 5 FY 2024-25 5-Year Project Total GENERAL Habitat Conservation Plan $ - $ 310,000 $ 384,000 $ 383,000 $ - $ 1,077,000 AMI Meter Replacement Program 450,000 - - - - 450,000 GENERAL SUBTOTAL $ 450,000 $ 310,000 $ 384,000 $ 383,000 $ - $ 1,527,000 WATER Canal Zone Storage Reservoir (Pending Highland Hills and Mediterra) $ - $ - $ 1,100,000 $ 1,100,000 $ 1,100,000 $ 3,300,000 Transmission Main Plant 134 to Canal Zone - - - - 500,000 500,000 Plant 134 Process Improvements 900,000 1,300,000 1,500,000 - - 3,700,000 Plant 134 Sludge Management 100,000 700,000 - - - 800,000 Plant 134 Site Improvements 600,000 - - - - 600,000 Plant 134 Membrane Replacement/Valves 350,000 250,000 - - - 600,000 Plant 108 Tank/Reservoir Rehabilitation 600,000 700,000 650,000 900,000 650,000 3,500,000 Plant 120 Forebay Repair/SCADA Installation 100,000 - - - - 100,000 Plant 101 Rehabilitate Hydro System 100,000 300,000 - - - 400,000 Highland Hills (CFD 2020-1) - - - - - - East Surface Water Treatment Plant 175,000 6,000,000 6,000,000 6,000,000 - 18,175,000 Water Mains Mirada & 14th Streets 200,000 - - - - 200,000 Water Mains Dwight & Glasgow - 800,000 800,000 800,000 - 2,400,000 Water Mains Fisher & Stratford - - - - 920,000 920,000 Facility Relocations 100,000 100,000 100,000 100,000 100,000 500,000 Facility Rehabilitations Plant 34 245,000 75,000 75,000 75,000 75,000 545,000 Well & Booster Improvements/ Rehabilitations 50,000 50,000 50,000 50,000 50,000 250,000 WATER SUBTOTAL $ 3,520,000 $ 10,275,000 $ 10,275,000 $ 9,025,000 $ 3,395,000 $ 36,490,000 FISCAL YEAR BUDGET 2020-2021172 Year 1 FY 2020-21 Year 2 FY 2021-22 Year 3 FY 2022-23 Year 4 FY 2023-24 Year 5 FY 2024-25 5-Year Project Total WASTEWATER Wastewater Main Rehabilitation Projects Lillian Lane & 11th Street $ 200,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 1,600,000 SNRC Compliance, Mgt 195,000 60,000 - - - 255,000 SNRC 75,500,000 34,493,764 - - - 109,993,764 SNRC Del Rosa Drive Trunk Wastewater 5,500,000 - - - - 5,500,000 WASTEWATER SUBTOTAL $81,395,000 $34,903,764 $ 350,000 $ 350,000 $ 350,000 $ 117,348,764 TOTAL $ 85,365,000 $ 45,488,764 $ 11,009,000 $ 9,758,000 $ 3,745,000 $ 155,365,764 CIP FIVE YEAR FUNDING SCHEDULE (FY 2021-25) Year 1 FY 2020-21 Year 2 FY 2021-22 Year 3 FY 2022-23 Year 4 FY 2023-24 Year 5 FY 2024-25 5-Year Project Total Water Operating Revenue $ 3,070,000 $ 3,035,000 $ 3,159,000 $ 3,408,000 $ 3,395,000 $ 16,067,000 Water Replacement Reserve - 250,000 - - - 250,000 Water Capacity Fees - - - - - - Water Revenue Bonds/SRF 900,000 7,300,000 7,500,000 6,000,000 - 21,700,000 Wastewater Operating Revenue 395,000 410,000 350,000 350,000 350,000 1,855,000 Wastewater Replacement Reserve - - - - - - Wastewater Capacity Fees - - - - - - Wastewater Revenue Bonds - - - - - - Grants / Loans 81,000,000 34,493,764 - - - 115,493,764 TOTAL $ 85,365,000 $ 45,488,764 $ 11,009,000 $ 9,758,000 $ 3,745,000 $ 155,365,764 EAST VALLEY WATER DISTRICT 173 CAPITAL BUDGET CIP FY 2020-21 PROPOSED FUNDING Water Fund Operating Revenue Wastewater Fund Operating Revenue Replacement Reserves Grants/ Loans Other Fund Developer Fees Project Total GENERAL AMI Meter Retrofit Program $ 450,000 $ - $ - $ - $ - $ 450,000 GENERAL SUBTOTAL 450,000 - - - - 450,000 WATER Plant 134 Process Improvements 100,000 - - 900,000 - 1,000,000 Plant 134 Site Improvements 600,000 - - - - 600,000 Plant 134 Membrane Replacement/Valves 350,000 - - - - 350,000 Plant 108 Tank/Reservoir Rehabilitation 600,000 - - - - 600,000 Plant 120 Forebay Repair/SCADA Installation 100,000 - - - - 100,000 Plant 101 Rehabilitate Hydro System 100,000 - - - - 100,000 Facility Relocations 100,000 - - - - 100,000 Facility Rehabilitations Plant 34 245,000 - - - - 245,000 Well & Booster Improvements/ Rehabilitations 50,000 - - - 50,000 Water Mains Mirada & 14th Streets 200,000 - - - - 200,000 East Surface Water Treatment Plant 175,000 - - - - 175,000 WATER SUBTOTAL $ 2,620,000 $ - $ - $ 900,000 $ - $ 3,520,000 WASTEWATER Wastewater Main Rehabilitation Projects Lillian Lane & 11th Street $ - $ 200,000 $ - $ - $ - $ 200,000 SNRC Compliance, Mgt - 195,000 - - - 195,000 SNRC - - - 81,000,000 - 81,000,000 WASTEWATER SUBTOTAL $ - $ 395,000 $ - $81,000,000 $ - $ 81,395,000 TOTAL $ 3,070,000 $ 395,000 $ - $ 81,900,000 $ - $ 85,365,000 FISCAL YEAR BUDGET 2020-2021174 intentionally THIS PAGE LEFT BLANK projectsCAPITAL IMPROVEMENT CI P P R O J E C T S 15 Capital planning involves identifying current and future needs and prioritizing them through an assessment process. PLANT 134 PROCESS IMPROVEMENTS (THMS AND SLUDGE MANAGEMENT) AMI METER REPLACEMENT PROGRAM PLANT 134 SITE IMPROVEMENTS PLANT 134 TREATMENT MEMBRANE REPLACEMENT TANK / RESERVOIR REHABILITATION PLANT 120 REACTIVATION PLANT 101 HYDRO TANK REHABILITATION EAST END SURFACE WATER TREATMENT PLANT MIRADA & 14TH STREETS WATER MAIN REPLACEMENTS FACILITY RELOCATIONS With so many critical projects underway, the District continues to partner with other agencies in an effort to support our community and maximize resources. 16 FACILITY REHABILITATIONS WELL & BOOSTER IMPROVEMENTS/REHABILITATIONS LILLIAN & 11TH STREETS WASTEWATER MAIN REHABILITATION STERLING NATURAL RESOURCE CENTER EAST VALLEY WATER DISTRICT 175 AMI Meter PROJECT DESCRIPTION This project consists of updating manual read meters throughout the District with Advanced Metering Infrastructure (AMI) hardware, software, and meters. Phases 1 through 5 of this project replaced 15,404 meters. Phases 6 and 7 were included in the CIP for the next two years. However, in February 2020 to avoid a significant increase in material costs, the Governing Board approved the purchase of the remaining meters needed to complete the AMI program during FY 2019-20, leaving only the installation costs for the remaining meters to the FY 2020-21 budget. As a result, $450,000 is budgeted for installation of the remaining 4,891 which will complete the AMI Meter Replacement program. Implementation of the AMI infrastructure will provide customers and District staff the ability to monitor water usage in real time beyond the usage identified within the monthly bill, receive ‘leak alerts’ when customer usage is outside of a normal range, and save on labor and fleet expenses required to manually read meters monthly. Operating Budget Impact 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. Project Type Replacement Water Distribution Location All service connections throughout the District Project Manager Engineering/Information Technology Total Project Cost $7,468,156 Prior Years Budget $7,018,156 Start Date July 2016 Estimated Completion June 2021 Capital Requests Previously Programmed Project CAPITAL BUDGET REPLACEMENT PROGRAM FISCAL YEAR BUDGET 2020-2021176 AMI Meter Replacement Program PROJECT COST YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 450,000 - - - - 450,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal)- - - - - - ANNUAL TOTAL $ 450,000 $ - $ - $ - $ - $ 450,000 PROJECT FUNDING YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 450,000 $ - $ - $ - $ - $ 450,000 Replacement Reserve - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 450,000 $ - $ - $ - $ - $ 450,000 EAST VALLEY WATER DISTRICT 177 CAPITAL BUDGET PROJECT DESCRIPTION Plant 134 is currently 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 source 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 the organic content in the water is high, it interacts with chlorine added during treatment processes, and the by-product Trihalomethane (THM) can reach unacceptable levels leading to water quality concerns. Pilot studies have determined that installation of a Granular Activated Carbon (GAC) filter will remove organics and mitigate the occurance of high THM levels. The estimated cost of the GAC system is $3.7 million. During the same period, the District will explore methods for disposal of higher levels of sludge removal from surface water, which has increased due to higher treatment levels of the membrane filtration and the expansion of Plant 134 capacity from 4 to 8 million gallons per day. The estimated cost to increase sludge management capacity is $800,000. Operating Budget Impact ADDITIONAL STAFF SALARIES N/A DEBT SERVICE This District has applied for a 0% loan form the State Water Resources Control Board State Revolving Fund to finance the GAC filtration system. Annual debt service on the estimated project cost of $3.7 million would be $124,000. 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. Project Type Water Location Treatment Plant 134 4588 Highland Avenue, Highland, CA Project Manager Operations Total Project Cost $4,500,000 Prior Years Budget N/A Start Date July 2019 Estimated Completion June 2022 Capital Requests Previously Programmed Project Plant 134 Process IMPROVEMENTS (THMS AND SLUDGE MANAGEMENT) FISCAL YEAR BUDGET 2020-2021178 Plant 134 Process Improvements (THMs and Sludge Management) PROJECT COST YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 200,000 $ - $ - $ - $ - $ 200,000 Land and Land Preparation - - - - - - Construction (Contract) 800,000 2,000,000 1,500,000 - - 4,300,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 1,000,000 $2,000,000 $ 1,500,000 $ - $ - $4,500,000 PROJECT FUNDING YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 100,000 $ 700,000 $ - $ - $ - $ 800,000 Replacement Reserve - - - - - Grants/Loans 900,000 1,300,000 1,500,000 - - 3,700,000 Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 1,000,000 $ 2,000,000 $ 1,500,000 $ - $ - $ 4,500,000 EAST VALLEY WATER DISTRICT 179 PROJECT DESCRIPTION Plant 134 is currently the District’s only surface water treatment plant. Its security and communications reliability are essential. In FY 2018-19, the District contracted to significantly upgrade the plants perimeter fencing. In FY 2020-21 the District will contract for installation of fiber-optic line to replace wireless connections currently in use, upgrade security video cameras, and upgrade digital access to the plant. In addition, the workspace for plant operators will be remodeled to maximize functionality. Operating Budget Impact ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES The installation of communication lines will cost the District approximately $24,000 annually. Project Type Water Location Treatment Plant 134 4588 Highland Avenue, Highland, CA Project Manager Operations Total Project Cost $1,150,000 Prior Years Budget N/A Start Date July 2019 Estimated Completion TBD Capital Requests Previously Programmed Project CAPITAL BUDGET Plant 134 SITE IMPROVEMENTS FISCAL YEAR BUDGET 2020-2021180 Plant 134 Site Improvements PROJECT COST YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract)600,000 - - - - 600,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal)- - - - - - ANNUAL TOTAL $ 600,000 $ - $ - $ - $ - $ 600,000 PROJECT FUNDING YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 600,000 $ - $ - $ - $ - $ 600,000 Replacement Reserve - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 600,000 $ - $ - $ - $ - $ 600,000 EAST VALLEY WATER DISTRICT 181 PROJECT DESCRIPTION Plant 134 has five treatment trains that consist of 180 membrane filters per train. The manufacturer of the filters recommends replacing the filter every 5 to 7 years. In FY 2017-18 staff replaced one full train with new filters which drastically reduced staff time in making membrane repairs. Two more full trains of membranes were replaced in each of the two succeeding years. In FY 2020-21, staff plans to complete phase four, by replacing a fourth full train of filters, along with replacing air actuated valves that control the trains and permeate pumps. Operating Budget Impact ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A Project Type Water Location Treatment Plant 134 4588 Highland Avenue, Highland, CA Project Manager Water Treatment Total Project Cost $993,577.55 Prior Years Budget $1,215,000 Start Date January 2018 Estimated Completion February 2023 Capital Requests On-going Project CAPITAL BUDGET Plant 134 Treatment MEMBRANE REPLACEMENT FISCAL YEAR BUDGET 2020-2021182 Plant 134 Treatment Membrane Replacement Phase 4 PROJECT COST YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) - - - - - - Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials 350,000 250,000 - - - 600,000 EVWD Labor - - - - - - Other (Legal)- - - - - - ANNUAL TOTAL $ 350,000 $ 250,000 $ - $ - $ - $ 600,000 PROJECT FUNDING YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 350,000 $ - $ - $ - $ - $ 350,000 Replacement Reserve - 250,000 - - - 250,000 Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 350,000 $ 250,000 $ - $ - $ - $ 600,000 EAST VALLEY WATER DISTRICT 183 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 has pre-qualified a list of three contractors to provide bids as the reservoir/plant to be rehabilitated in the upcoming year has been identified. In October 2019, the District awarded a contract to Crosno Construction for the rehabilitations of Tank 39-1; that project was completed in May 2020. For FY 2020-21, the District will receive bids and enter into a contract for the rehabilitation of the tank at Plant 108, a 2 million gallon reservoir serving the District’s Foothill zone. The preliminary estimated cost for this project is $600,000. Operating Budget Impact ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A Project Type Water Replacement / Rehabilitation Project Location 29572 Crest View Lane, Highland, CA Project Manager Engineering Total Project Cost $3,900,000 Prior Years Budget $400,000 Start Date December 2019 Estimated Completion April 2021 Capital Requests New Project Tank / Reservoir REHABILITATION CAPITAL BUDGET FISCAL YEAR BUDGET 2020-2021184 Tank/Reservoir Rehabilitation PROJECT COST YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 45,000 $ 60,000 $ 50,000 $ 60,000 $ 15,000 $ 230,000 Land and Land Preparation - - - - - - Construction (Contract) 550,000 630,000 590,000 830,000 630,000 3,230,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials 5,000 10,000 10,000 10,000 5,000 40,000 EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 600,000 $ 700,000 $ 650,000 $ 900,000 $ 650,000 $3,500,000 PROJECT FUNDING YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 600,000 $ 700,000 $ 650,000 $ 900,000 $ 650,000 $ 3,500,000 Replacement Reserve - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 600,000 $ 700,000 $ 650,000 $ 900,000 $ 650,000 $3,500,000 EAST VALLEY WATER DISTRICT 185 PROJECT DESCRIPTION This project includes bringing a plant, which has been out of service for several years, back online for water production. Prior to shut down, Plant 120 consisted of a groundwater well that produced water at a rate of 1,500 gallons per minute (gpm), a 60,000 gallon forebay tank, and three booster pumps that delivered water to the Foothill and Upper pressure zones. In 2009, the well started malfunctioning, and the determination was made that the well had collapsed making it no longer functional. In 2019, a consulting firm conducted tests on the well, and found that the well was not actually collapsed, and that it could produce potable water, but at a lower volume than was previously produced. In FY 2020-21, the District will perform moderate maintenance to the shaft and motor, upgrade the Plant’s telemetry system, and return it to production. The amount of water produced in GPM will be determined after reactivation. Operating Budget Impact ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES This well sits at a higher elevation than other wells serving the same geographic area and should save approximately $10,000 in annual power costs. Project Type Water Location Silver Buckle Road, South of Gold Buckle Road, Highland, CA Project Manager Engineering Total Project Cost $100,000 Prior Years Budget N/A Start Date July 2020 Estimated Completion September 2020 Capital Requests New Project Plant 120 REACTIVATION CAPITAL BUDGET FISCAL YEAR BUDGET 2020-2021186 Plant 120 Reactivation PROJECT COST YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Paving)100,000 - - - - 100,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal)- - - - - - ANNUAL TOTAL $ 100,000 $ - $ - $ - $ - $ 100,000 PROJECT FUNDING YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 100,000 $ - $ - $ - $ - $ 100,000 Replacement Reserve - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 100,000 $ - $ - $ - $ - $ 100,000 EAST VALLEY WATER DISTRICT 187 PROJECT DESCRIPTION The Hydro-pneumatic tank (hydro tank) at Plant 101 boosts water to 35 homes that are situated at elevations above the plant site, and therefore cannot be gravity fed by the plant’s 1.4 million gallon reservoir. The hydro tank is the only means of serving these customers. An inspection of Plant 101 revealed that the hydro tank and booster pumps need rehabilitation or replacement. This project includes an assessment of the rehabilitation or replacement alternative with consideration, for serving customers with water while the hydro tank is off line, minimizing the length of time the homes dependent on the hydro tank will be without water and project cost. Operating Budget Impact ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A Project Type Water Location 3045 N. Mountain Top Drive, Highland, CA Project Manager Engineering Total Project Cost $400,000 Prior Years Budget N/A Start Date July 2018 Estimated Completion June 2019 Capital Requests New Project Plant 101 Hydro Tank REHABILITATION CAPITAL BUDGET FISCAL YEAR BUDGET 2020-2021188 Plant 101 Hydro Tank Rehabilitation PROJECT COST YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 100,000 $ - $ - $ - $ - $ 100,000 Land and Land Preparation - - - - - - Construction (Paving) - 300,000 - - - 300,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 100,000 $ 300,000 $ - $ - $ - $ 400,000 PROJECT FUNDING YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 100,000 $ 300,000 $ - $ - $ - $ 400,000 Replacement Reserve - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 100,000 $ 300,000 $ - $ - $ - $ 400,000 EAST VALLEY WATER DISTRICT 189 PROJECT DESCRIPTION The District’s surface water treatment plant (Plant 134) is located on the northern edge, and at about mid-point east to west, within the District’s service area. Source water for Plant 134 is a pressurized water line for the State Water Project and gravity-fed intake from the Santa Ana River on the east end of the District. Rights to Santa Ana River water were obtained through the purchased of shares in the North Fork Water Company (NFWC). The NFWC was established in 1885 to provide water for citrus farmers, whose groves once covered the entire eastern half of the District. Two circumstances now make continued operations of the NFWC pipeline less than optimal. First, almost all of the citrus groves have been replaced by homes, and treated water is now pumped uphill to serve those homes from Plant 134. Second, the District State Water Project turnout at Plant 134 is capable of supplying enough water for the plant to run at full capacity. For these reasons the District is exploring alternative methods for supplying customers in the eastern endof the District. A new surface water treatment plant at the east end of the service area, near the intake for Santa Ana River water, was determined to be a viable option by an independent feasibility study. The purpose of this project is to complete a preliminary design report for an east end surface water treatment plant, and develop construction estimates for the facility. The District will pursue low-cost financing for the plant through Clean Water State Revolving Fund grants and loans. Operating Budget Impact Project Type Water Location Santa Ana River Intake Project Manager Engineering Total Project Cost $18,200,000 Prior Years Budget N/A Start Date July 2020 Estimated Completion June 2025 Capital Requests New Project East End SURFACE WATER TREATMENT PLANT CAPITAL BUDGET ADDITIONAL STAFF SALARIES N/A DEBT SERVICE This District will apply for a low interest loan from the State Water Resources Control Board State Revolving Fund. Annual debt service on the estimated project cost of $18.2 million would be approximately $840,000. MAINTENANCE The annual operating costs, including funding of replacement reserves such as treatment membranes, would be approximately $1 million. UTILITIES An additional treatment process will increase power costs by approximately $30,000 annually. FISCAL YEAR BUDGET 2020-2021190 East End Surface Water Treatment Plant PROJECT COST YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 175,000 $ - $ - $ - $ - $ 175,000 Land and Land Preparation - - - - - - Construction (Contract) - 6,000,000 6,000,000 6,000,000 - 18,000,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 175,000 $6,000,000 $6,000,000 $6,000,000 $ - $18,175,000 PROJECT FUNDING YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 175,000 $ - $ - $ - $ - $ 175,000 Replacement Reserve - - - - - - Grants/Loans - 6,000,000 6,000,000 6,000,000 - 18,000,000 Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 175,000 $6,000,000 $6,000,000 $ 6,000,000 $ - $ 18,175,000 EAST VALLEY WATER DISTRICT 191 PROJECT DESCRIPTION This project will replace 500 linear feet of existing water main in 14th Street, and 250 linear feet of existing main in Mirada Street. While consistent with the District's standards at the time of installation, the existing mains for both projects are less than the District's current minimum water main size. Replacement 6-inch ductile iron will enhance fire flow capacity while contributing to more efficient system circulation. Work will be performed in-house by District field maintenance crews and will take approximately four weeks for 14th Street and three weeks for Mirada Street to complete. Operating Budget Impact ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE The useful life for water mains is approximately 50 years. This project will result in minimal planned maintenance costs. UTILITIES N/A Project Type Replacement – Water Distribution Main Location 14th Street South of Baseline Avenue Mirada Street South of Baseline Avenue Project Manager Engineering Total Project Cost $200,000 Prior Years Budget N/A Start Date September 2020 Estimated Completion November 2020 Capital Requests New Project Mirada & 14th Streets WATER MAIN REPLACEMENTS CAPITAL BUDGET N 14th Street La P r a i x S t r e e t Stratford Street Se i n e A v e n u e Ca t a l p a A v e n u e N Mirada St r e e t La P r a i x A v e n u e Sei n e A v e n u e FISCAL YEAR BUDGET 2020-2021192 Mirada & 14th Streets Water Main Replacements PROJECT COST YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR 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 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 200,000 $ - $ - $ - $ - $ 200,000 Replacement Reserve - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 200,000 $ - $ - $ - $ - $ 200,000 EAST VALLEY WATER DISTRICT 193 PROJECT DESCRIPTION The District’s service area includes the City of Highland, along with portions of the City and County of San Bernardino. When these agencies plan and construct improvements within their jurisdiction, there are occasionally alignment or location conflicts with existing District facilities. When this occurs, the District is frequently obligated to relocate its facilities such as manholes, fire hydrants, and meter boxes. This project budget serves to fund relocation costs as they arise. Operating Budget Impact ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A Project Type Replacement Water Distribution System Location District-Wide Project Manager Engineering Total Project Cost $100,000 for FY 2019-20 Budgeted Annually Prior Years Budget N/A Start Date July 2020 Estimated Completion June 2021 Capital Requests Annual Budget Request Facility RELOCATIONS CAPITAL BUDGET FISCAL YEAR BUDGET 2020-2021194 Facility Relocations PROJECT COST YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR 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 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 Replacement Reserve - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 EAST VALLEY WATER DISTRICT 195 PROJECT DESCRIPTION This project involves scheduled capital improvements to District facilities. Improvements planned for FY 2020-21 include new security fencing around the plant perimeter and repairs to the asphalt access road at Plant 34. Operating Budget Impact ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A Project Type Water Location South of Highland Avenue, East of Monte Vista Road, San Bernardino, CA Project Manager Operations Total Project Cost $245,000 for FY 2020-21 Budgeted Annually Prior Years Budget N/A Start Date July 2020 Estimated Completion June 2021 Capital Requests Annual Budget Request Facility REHABILITATIONS CAPITAL BUDGET FISCAL YEAR BUDGET 2020-2021196 Facility Rehabilitations PROJECT COST YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 245,000 75,000 75,000 75,000 75,000 545,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal)- - - - - - ANNUAL TOTAL $ 245,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 545,000 PROJECT FUNDING YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 245,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 545,000 Replacement Reserve - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 245,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 545,000 EAST VALLEY WATER DISTRICT 197 PROJECT DESCRIPTION The District has approximately 65 booster pumps and 16 wells in the water distribution system. This budget item will proactively ensure that these facilities operate properly by providing funding to rehabilitate existing booster pumps and wells prior to failure or major reductions in performance. Proactive maintenance is cost effective and mitigates the need for expensive emergency and reactive repairs. Operating Budget Impact ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE Maintenance costs will be reduced by allowing work to be scheduled proactively rather than reactive in emergencies, which avoids overtime charges in addition to the cost of the emergency repairs. UTILITIES Improving pump and well performance through scheduled repairs and rehabilitation will result in improved efficiency and lower energy costs. Project Type Water Location TBD Project Manager Operations Total Project Cost $50,000 for FY 2020-21 Budgeted Annually Prior Years Budget N/A Start Date July 2020 Estimated Completion June 2021 Capital Requests Annual Budget Request Well & Booster IMPROVEMENTS/REHABILITATIONS CAPITAL BUDGET FISCAL YEAR BUDGET 2020-2021198 Well & Booster Improvements/Rehabilitations PROJECT COST YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR 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 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 Replacement Reserve - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 EAST VALLEY WATER DISTRICT 199 PROJECT DESCRIPTION The District has a proactive pipeline video monitoring program to inspect sewer mains to help prioritize this CIP project. This program identified two segments of 6-inch diameter sewer main for replacement. One segment on Lillian Lane is approximately 650 linear feet and one segment on 11th Street is approximately 390 linear feet. Operating Budget Impact Project Type Replacement - Wastewater Location On Lillian Lane south of Baseline through 11th Street north of 10th Street 11th Street east of Cole Avenue west of Palm Avenue Project Manager Engineering Total Project Cost $200,000 for FY 2020-21 Budgeted Annually Prior Years Budget N/A Start Date September 2020 Estimated Completion March 2021 Capital Requests Annual Budget Request Lillian & 11th Streets WASTEWATER MAIN REHABILITATION CAPITAL BUDGET ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A N 11th Street Ol i v e T r e e L a n e Co l e A v e n u e Li l l i a n L a n e Crest Street Baseline Street FISCAL YEAR BUDGET 2020-2021200 Lillian & 11th Streets Wastewater Main Rehabilitation PROJECT COST YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 190,000 350,000 350,000 350,000 350,000 1,590,000 Project Mgmt/Inspection 7,500 - - - - 7,500 Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor 2,500 - - - - 2,500 Other (Legal) - - - - - - ANNUAL TOTAL $ 200,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 1,600,000 PROJECT FUNDING YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 200,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 1,600,000 Replacement Reserve - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 200,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 1,600,000 EAST VALLEY WATER DISTRICT 201 PROJECT DESCRIPTION The District is currently building a wastewater reclamation facility known as the Sterling Natural Resource Center. The plant will have the capability to treat all wastewater flows currently generated by District customers. 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 purposes. 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. Plant construction is being funded by grants and low interest loans from the State Water Resources Control Board. Through June 2020, East Valley Water District has incurred approximately $67.2 million of total plant construction costs of $182.9 million. Operating Budget Impact ADDITIONAL STAFF SALARIES $1,800,000 DEBT SERVICE $6,820,000 annually on 1.8% Interest State Revolving Fund loan for a 30-year term MAINTENANCE $3,220,000 (estimated) for contract services and supplies. Contracted wastewater treatment currently paid to a third party agency of $8,600,000 annually, would be eliminated UTILITIES Anaerobic digesters at the plant will convert wastewater solids, along with high grade food waste offloaded by waste haulers, to produce enough energy to power SNRC operation and sell energy back to the Edison power grid. Project Type New – Wastewater Recycling Plant Location 25318 and 25376 5th Street, Highland Project Manager Engineering Total Project Cost $182,917,000 Prior Years Budget N/A Start Date January 2014 Estimated Completion March 2022 Capital Requests Previously Programmed Project Sterling Natural RESOURCE CENTER CAPITAL BUDGET FISCAL YEAR BUDGET 2020-2021202 Sterling Natural Resource Center PROJECT COST YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - - $ - Land and Land Preparation - - - - - - Construction (Contract) 81,000,000 34,493,764 - - - 115,493,764 Project Mgmt/Inspection 195,000 60,000 - - - 210,000 Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 81,195,000 $34,553,764 $ - $ - $ - $115,703,764 PROJECT FUNDING YEAR 1 FY 2020-21 YEAR 2 FY 2021-22 YEAR 3 FY 2022-23 YEAR 4 FY 2023-24 YEAR 5 FY 2024-25 5-YEAR PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 195,000 $ 60,000 $ - $ - $ - $ 210,000 Replacement Reserve - - - - - - Grants/Loans 81,000,000 34,493,764 - - - 115,493,764 Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 81,195,000 $ 34,553,764 $ - $ - $ - $115,703,764* * Project cost and funding for years prior to FY 2020-21 not included in this table. Total project budget is $182,917,000. 15 The District's demonstration garden features a colorful display of more than 60 low water use plant species. accomplishments IN F R A S T R U C T U R E AC C O M P L I S H M E N T S INFRASTRUCTURE The budget reflects the District's commitment to allocating resources to meet the needs of its stakeholders. 16 EAST VALLEY WATER DISTRICT 203 Accomplishments2019—2020 INFRASTRUCTURE 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 under budget in FY 2019-20 that focused on system improvements for both water and wastewater systems. PROJECT • Project Budget $40,000 • Actual Cost $28,390 • Completed May 2020Plant 108 Tank Mixer Addition Plant 134 Security Fence Upgrade • Project Budget $400,000 • Actual Cost $216,785 • Completed December 2019 Water Main Replacements • Project Budget $200,000 • Actual Cost $216,020 • Completed June 2020 Plant 134 Membrane Replacement • Project Budget $405,000 • Actual Cost $248,145 • Completed January 2020 Plant 39A Rehabilitation • Project Budget $400,000 • Actual Cost $389,590 • Completed June 2020 CAPITAL BUDGET FISCAL YEAR BUDGET 2020-2021204 intentionally THIS PAGE LEFT BLANK glossary LEADERSHIP | PARTNERSHIP | STEWARDSHIP GL O S S A R Y GLOSSARY 16 The budget is formally reviewed each quarter, allowing for an opportunity to take formal budget adjustments to the Governing Board for consideration. CHART OF ACCOUNTS 205 PAGE EAST VALLEY WATER DISTRICT Definitions TECHNICAL TERMS AND ACRONYMS FOUND IN THE BUDGET DOCUMENT GLOSSARY A • Acre Foot (AF): A water measurement equal to 325,851 gallons. - pg. 49 • AMI: Advanced Metering Infrastructure is the technology of collecting meter reads via a network. - pg. 10 • 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. - pg. 199 • 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. 95 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. 133 • CalFire: California Department of Forestry and Fire and Protection. - pg. 25 • 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. 37 • CARB: California Air Resources Board. - pg. 199 • CEO: Chief Executive Officer • CHEF: Community Heritage and Education Foundation. - pg. 107 • CIP: Capital Improvement Program. - pg. 10 • Cityworks: This platform is designed to help local governments and utilities manage public assets and their associated data, work activities, and business processes.- pg. 107 • 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. 237 • COLA: Cost of Living Adjustment. - pg. 10 • 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. - pg. 12 • Cool-Season Turfgrass: Grass species which require 80% replenishment of evapotranspiration. Species do not go dormant during winter months and include tall fescue, ryegrass, bentgrass, and Kentucky bluegrass. • CSMFO: California Society of Municipal Officers - pg. 104 • CWEA: California Water Environment Association is a nonprofit public benefit corporation dedicated to the educational development and certification of wastewater professionals. - pg. 189 FISCAL YEAR BUDGET 2020-2021206 D • DMV: Department of Motor Vehicles. - pg. 199 • DWR: Department of Water Resources. - pg. 55 E • Enterprise Fund: Revenues and expenditures of services are separated into separate funds with its own financial statements. - pg. 6 • EPA: Environmental Protection Agency. - pg. 119 • EVWD: East Valley Water District • EVWDEP: East Valley Water District Employee Partnership. - pg. 113 F • Fees: Charges for service that are based upon the cost of providing the service. - pg. 33 • 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. 119 • Fiscal Year (FY): The time frame in which the budget applies. This period is from July 1 through June 30. - pg. 6 • FOG: Fats, oils, and grease. - pg. 175 • Full-Time Employee: 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. - pg. 48 • 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. 6 • Fund Equity: The excess of an entity’s assets over its liabilities; a negative Fund Equity is sometimes called a deficit. - pg. 58 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. 169 • 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. 59 • 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. 59 • 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. 37 • GC: San Bernardino Basin Area Groundwater Council. - pg. 49 • 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. 52 • GFOA: The Government Finance Officers Association represents public finance officials throughout the United States and Canada. - pg. 20 • GMP: Guranteed Maximum Price. - pg. 119 • Global Positioning System (GPS): A global positioning system provides geolocation and time information to a GPS receiver. - pg. 138 H • Hundred Cubic Feet (HCF): Water billing measurement equal to 748 gallons. - pg. 42 • HVAC: Heating, Ventilation, and Air Conditioning. pg. 193 K • KPI: A Key Performance Indicator monitors progress towards meeting program objectives. - pg. 9 EAST VALLEY WATER DISTRICT 207 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. 54 • Linear Feet: A linear foot is a 12-inch measurement of length. - pg. 227 M • MG: Million Gallon. - pg. 183 • MGD: Million Gallons Per Day. - pg. 171 • MOU: Memorandum of Understanding. - pg. 10 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. 49 P • PAFR: Popular Annual Financial Report. - pg. 132 • PRV: Pressure Regulating Valve. - pg. 161 • PVC: Polyvinyl Chloride. - pg. 11 R • RUSD: Redlands Unified School District. - pg. 23 • Revenue: Income generated by assessments, investments, connection fees, stand-by fees, and user charges. - pg. 6 • Reserve: An account set aside to meet unexpected costs. - pg. 7 S • SAR: Santa Ana River. - pg. 22 • SBCUSD: San Bernardino City Unified School District. - pg. 23 • SBVMWD: 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. 22 • SBX7-7: The Water Conservation Act of 2009 was enacted in November 2009 and requires that all water suppliers increase their water use efficiency. -pg. 239 • SCADA: Supervisory Control and Data Acquisition generally refers to an industrial computer system that monitors and controls a process. - pg. 52 • SCE: Southern California Edison. - pg. 131 • Section Sign (§): Typographical glyph for referencing numbered sections of a document. - pg. 28 • Single Family Residential (SFR): A stand-alone residential building. - pg. 42 • Sterling Natural Resource Center (SNRC): The District is planning and constructing a water recycling center called the Sterling Natural Resource Center. - pg. 10 • SWRCB: State Water Resources Control Board. - pg. 54 T • TTHM/THM: Total Trihalomethanes is a disinfectant by product when chlorine used to treat water reacts with organic materials in the water. - pg. 11 • Tyler Accounting System: - pg. 131 V • VCP: Vitrified Clay Pipe - pg. 237 U • UCMR: Unregulated Contaminant Monitoring Rule. - pg. 176 W • Warm-Season Turfgrass: Grass species which require 60% replenishment of evapotranspiration. The more water efficient species go dormant during winter months and include bermudagrass, zoysiagrass, and St. Augustinegrass. • 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. 207 • 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. 156 • WBIC: Weather-Based Irrigation Controller systems are sprinkler control devices that automatically adjust irrigation schedules in response to changing weather or environmental conditions. GLOSSARY FISCAL YEAR BUDGET 2020-2021208 intentionally THIS PAGE LEFT BLANK accountsCHART OF CH A R T O F AC C O U N T S 15 By setting clear expectations, all staff members are encouraged to be active participants in the operations while also looking for opportunities to positively impact the community. 16 The District actively enhances communication methods to reach a variety of stakeholders. EAST VALLEY WATER DISTRICT 209 • 5101 - Regular Labor: Regular salaries and wages for permanent full-time and part-time employees • 5102 - Temporary Labor: Costs for labor not permanently employed by the District • 5103 - Overtime: Employees that work more than their regular 40 hours per week • 5104 - Standby: Employees that are on call for emergencies during non-business hours, weekends, and holidays • 5200 - Benefits: Medical, dental, vision, retirement, and related benefits offered by the District • 6101 - Purchased Water: Cost to purchase imported water • 6102 - Groundwater Replenishment: Cost to pump groundwater from the basin • 6103 - Water Assessment: Cost of water shares directly related to North Fork Water Company • 6201 - Materials & Supplies: Items used in daily operations, repair, and maintenance • 6202 - Tools: Items used to perform repair and maintenance activities • 6203 - Office Supplies: Items such as pens, paper, and other related desk accessories • 6204 - Chemicals: Used for the treatment of water and cleaning equipment and tools • 6205 - Conservation Rebates: Costs to reimburse customers for eligible conservation efforts • 6301 - Contract Services: Services rendered by consultants and contractors; 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 AccountsCHART OF A COMPLETE LISTING OF EVERY ACCOUNT USED IN THE ACCOUNTING SYSTEM In order to maintain consistency across programs and ease the ability to compare expenses, each program budget detail has allocated District resources within a specific list of revenue and expense accounts. This budget includes specific accounts 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. GLOSSARY FISCAL YEAR BUDGET 2020-2021210 • 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 • 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 partneringTOGETHER District Headquarters 31111 Greenspot Road Highland, California 92346 District Board Meetings Second and fourth Wednesday of each month District Headquarters Board Room, 5:30pm @eastvalleywaterdistrict | @eastvalleywater | @eastvalleywaterdistrict Budget Adopted June XX, 2020 Teamwork is the ability to work together towarda common vision. The ability to direct individual accomplishments toward organizational objectives. It is the fuel that allows common people to attain uncommon results. – Andrew Carnegie East Valley Water District Resolution 2020.17 Page 1 of 2 RESOLUTION 2020.17 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT APPROVING THE OPERATING AND CAPITAL BUDGETS FOR FISCAL YEAR 2020-21 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 2020-21, 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 2020-21; and Section 2. The provisions of this Resolution shall take effect on July 1, 2020. ADOPTED this 24th day of June 2020. Ayes: Noes: Abstain: Absent: David E. Smith Board President East Valley Water District Resolution 2020.17 Page 2 of 2 ATTEST: _____________________________ John Mura Secretary, Board of Directors June 24, 2020 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2020.17 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held June 24, 2020. _____________________________ John Mura Secretary, Board of Directors DESCRIPTION WATER FUND WASTEWATER FUND TOTAL Colu mn1 FY 2019-20 BUDGETED CHANGE Water Production Administration 600,000 - 600,000 579,000 4% Source of Supply 2,834,000 - 2,834,000 2,994,000 -5% Pumps & Boosters 611,000 - 611,000 652,000 -6% Transmission & Distribution 448,000 - 448,000 442,000 1% Water Treatment 905,000 - 905,000 870,000 4% Water Quality 480,000 - 480,000 461,000 4% Water Maintenance 390,600 43,400 434,000 435,000 0% Maintenance Administration 2,485,000 - 2,485,000 2,467,000 1% Wastewater Maintenance - 803,000 803,000 814,000 -1% Wastewater Treatment - 8,586,000 8,586,000 8,665,000 -1% Facilities Maintenance 824,500 197,500 1,022,000 998,000 2% Fleet Maintenance 450,000 50,000 500,000 536,000 -7% TOTAL $18,067,000 $ 12,324,000 $30,391,000 $30,169,000 1% 7 PROGRAM EXPENDITURE SUMMARY (CONTINUED)