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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 02/24/2021REGULAR BOARD MEETING February 24, 2021 - 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. Anyone wishing to join the meeting may do so using the following information: DIAL: 1-209-425-5876 and enter CONFERENCE ID: 381 567 063# You may also join by clicking HERE to join the meeting via Microsoft Teams. 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 PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. AGENDA - This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. 1.Approval of Agenda 2.AP P RO VAL O F C ON SE N T C AL E N D AR All matters listed under the C onsent C alendar are considered by the Board of Directors to be routine and will be enacted in one motion. T here will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. a.J anuary 27, 2021 Regular Meeting Minutes b.J anuary 2021 Disbursements: Accounts payable disbursements for the period include check numbers 257185 through 257317, bank drafts, and A C H Payments in the amount of $3,784,274.03 and $366,896.03 for payroll. D I SC U SSI ON AN D P O SSI B L E AC T I O N I T E MS 3.C onsider Approval of Self-Generation Incentive Program (SG IP) Deposit for the Sterling Natural Resource C enter 4.Schedule Public Hearing to C onsider Adopting Water and Wastewater Rate Increases RE P O RT S 5.Board of Directors' Reports 6.General Manager/C EO Report 7.Legal Counsel Report 8.Board of Directors' Comments AD J O U RN P LEAS E NO T E: Materials related to an item on this agenda s ubmitted to the Board after dis tribution of the agenda packet are availab le fo r pub lic ins p ectio n in the District's o ffic e lo cated at 31111 G reens p o t R d., Highland , during normal bus ines s ho urs. Also, s uc h d o cuments are available on the District's website at www.eastvalley.org subject to staff's ability to pos t the doc uments before the meeting. P urs uant to G overnment C o d e S ec tio n 54954.2(a), any reques t for a d is ab ility-related modific ation or ac commodation, inc luding auxiliary aid s o r s ervic es , that is s o ught in order to p artic ip ate in the above- agendized p ublic meeting s ho uld be d irected to the District C lerk at (909) 885-4900 at leas t 72 ho urs prior to said meeting. 1 Minutes 01/27/2021 sma Draft pending approval EAST VALLEY WATER DISTRICT January 27, 2021 REGULAR BOARD MEETING/PUBLIC HEARING VIA TELECONFERENCE MINUTES The Chairman of the Board called the meeting to order at 5:39 p.m. Director Coats 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, Marty Cihigoyenetche GUEST(s): Members of the public PUBLIC COMMENTS Chairman Smith declared the public participation section of the meeting open at 5:40 p.m. There being no written or verbal comments, the public participation section was closed. APPROVAL OF AGENDA M/S/C (Coats-Goodrich) by unanimous roll call vote that the January 27, 2021 agenda be approved as submitted. DISBURSEMENTS M/S/C (Morales-Goodrich) by unanimous roll call vote that the General Fund Disbursements #257041 through #257184 which were distributed during the period of December 1, 2020 through December 31, 2020, bank drafts, and ACH Payments in the amount of $17,572,787.91 and $416,407.15 for payroll and benefit contributions, totaling $17,989,195.06 be approved. 2 Minutes 01/27/2021 sma APPROVE INVESTMENT REPORT FOR QUARTER ENDED DECEMBER 31, 2020 M/S/C (Morales-Goodrich) by unanimous roll call vote that the Board accept and file the investment report for the quarter ended December 31, 2020. ADOPT RESOLUTION 2021.04 - A RESOLUTION OF NECESSITY AUTHORIZING EMINENT DOMAIN PROCEEDINGS TO ACQUIRE PROPERTY; PUBLIC HEARING. Legal Counsel provided information regarding the steps the District has taken to acquire remaining shares of the North Fork Water Company. He stated that the District sent letters to each remaining shareholder to purchase their shares at the appraised value. He stated that the District now owns more than 99% of all North Fork Water Company shares. The Board authorized Web and Associates to review the project for compliance under the California Environmental Quality Act (CEQA); it was deemed exempt and notice of exemption became final October 21, 2020. The few remaining shareholders listed in Exhibit “A” have been sent written offers but have not yet responded to the District. He stated that adopting the Resolution of Necessity being brought to the Board is a legal prerequisite to initiate the eminent domain process. THE CHAIRMAN OPENED THE PUBLIC HEARING AT 5:50 P.M. PUBLIC COMMENTS Chairman Smith declared the public participation section of the meeting open at 5 :50 p.m. The District Clerk read an email statement received by the District January 27, from Mr. Santiago Avina in opposition of agenda item #3 as follows: “I am opposed to the approval of acquisition of my North Fork Water shares.” There being no further written or verbal comments, the public participation section was closed at 5:52. ADJOURN TO REGULAR BOARD MEETING AT 5:52 P.M. BOARD DISCUSSION Director Morales asked if any of the remaining shareholders have the ability to take water deliveries. Legal Counsel responded by stating that he does not have the information on hand but will provide it to him at a later date. Director Carrillo stated that approving this item is in the best interest of the public. There were no other questions or comments from the Board. M/S/C (Carrillo-Coats) by unanimous roll call vote that the Board adopt Resolution 2021.04 as submitted. 3 Minutes 01/27/2021 sma AYE: Directors: Carrillo, Coats, Goodrich, Morales, Smith NOES: None ABSENT: None ADOPT RESOLUTION 2021.05 – CERTIFYING ADDENDUM NO. 2 TO THE FINAL ENVIRONMENTAL IMPACT REPORT FOR THE STERLING NATURAL RESOURCE CENTER The Director of Engineering and Operations provided a brief overview of the Environmental Impact Report (EIR) for the Sterling Natural Resource Center (SNRC) and adoption of Addendum No. 1. He stated that the District has prepared Addendum No. 2 pursuant to CEQA guidelines for the potential of new or significant environmental impacts not identified in the 2016 EIR. He stated that in March of 2016, the Board certified the original Environmental Impact Report (EIR) for the Sterling Natural Resource Center project and since then, there have been potential modifications that will improve the overall value of the project to the community; that the project modifications will not create substantial or any new impacts from the original EIR, and that there was no new mitigation that was identified, and no new litigation would be required as a result of implementing the project modifications. M/S/C (Coats-Goodrich) by unanimous roll call vote that the Board adopt Resolution 2021.05 as submitted. APPROVAL OF PROJECT MODIFICATIONS TO THE STERLING NATURAL RESOURCE CENTER The Director of Engineering and Operations stated that following approval of Addendum No. 2 to the Sterling Natural Resource Center Environmental Impact Report (EIR), he requested that the Board formally approve modifications outlined in Addendum No. 2 to the Sterling Natural Resource Center EIR. M/S/C (Morales-Goodrich) by unanimous roll call vote that the Board approve the modifications to the Sterling Natural Resource Center (SNRC) project as described in the Addendum No. 2 to the SNRC Environmental Impact Report. BOARD OF DIRECTORS’ REPORTS Director Coats reported on the following: January 14 he participated in the Advisory Commission on Water Policy meeting; January 19 he participated in the San Bernardino Valley Municipal Water District Board meeting; January 22 visited the Sterling Natural Resource Center with the Director of Strategic Services; January 25 he participated in the Engineering and Operations Committee meeting; January 25 he participated in the Association of San Bernardino County Special Districts meeting; January 26 he participated in the Highland Chamber of Commerce meeting; and January 26 he discussed District business with the General Manager/CEO. Director Carrillo reported on the following: January 20 he participated in the City of San Bernardino City Council meeting where they provided a public safety update; January 4 Minutes 01/27/2021 sma 21 he visited the Sterling Natural Resource Center with the Director of Strategic Services; and January 26 he participated in the Inland Action meeting via Zoom. Director Morales reported on the following: January 15 he participated in the East Valley Association of Realtors meeting; January 19 he participated in the Association of California Water Agencies Region 9 meeting where they held a leadership session; January 21 he met with the General Manager/CEO for Sterling Natural Resource Center updates; January 22 he met with the Director of Engineering and Operations for a tour of the Sterling Natural Resource Center; and January 26 he participated in the San Bernardino Board of Water Commissioners meeting. Vice Chairman Goodrich reported on the following: January 19 he toured the Sterling Natural Resource Center; January 21 he met with the General Manager/CEO to review the agenda; January 25 he participated in the Association of San Bernardino County Special Districts meeting; and January 26 he participated in the Highland Chamber of Commerce monthly meeting. Chairman Smith reported on the following: January 19 he toured the Sterling Natural Resource Center; January 21 he met with the General Manager/CEO to review the agenda; January 25 he participated in the Engineering & Operations Committee meeting; January 25 he participated in the Association of San Bernardino County Special Districts meeting; and January 26 he participated in the Highland Chamber of Commerce monthly meeting. Information only. GENERAL MANAGER/CEO REPORT The General Manager/CEO reported on the following: • Construction for the SNRC is now going vertical with work happening above ground. The January bill insert highlights construction progress and the installation of co-digesters. • Starting in February, the District’s contractor, Crosno, will begin rehabilitation work at Plant 108. Residents living within close proximity of the facility have been notified of the work. • The District will begin work on Elm Street to replace the 6” water main with an upgraded 8” pipe. Crews will begin survey work starting January 25. Impacted residents will receive a mailer notifying them of the upcoming work and service impacts. • He reminded the public that it is important to continue saving water through the winter months: avoid irrigating during and two days after measurable rainfall, avoid overwatering by irrigating 2-3 times per week and water between 6:00 p.m. - 6:00 a.m. 5 Minutes 01/27/2021 sma • January 28 he will be hosting a virtual All Hands meeting to provide staff with District updates. The General Manager/CEO thanked the public for their continued support during these trying times and for participating in the District’s teleconferencing meetings. He stated that meetings will continue to be held via teleconference until further notice. Information only. LEGAL COUNSEL REPORT No report at this time. BOARD OF DIRECTORS’ COMMENTS Director Morales thanked staff the General Manager/CEO and Legal Counsel for the information they provided on North Fork Water Company. He congratulated the District on its reaccreditation for the Special Districts Leadership Foundations’ Transparency of Excellence Award. He thanked IT Manager, Ryan Ritualo, for his technological assistance. Director Coats commended the Director of Engineering and Operations and the Operations Manager for the information they provided at the Engineering & Operations Committee meeting. He stated that they make the information easy to understand. Chairman Smith thanked everyone for attending the Board meeting. Information only. ADJOURN Chairman Smith adjourned the meeting at 6:15 p.m. ___________________________ David E. Smith, Board President __________________________ John Mura, Secretary B O AR D AGE N D A S TAF F R E P ORT Agenda Item #2.b . Meeting Date: F eb ruary 24, 2021 C ons ent Item To: G o verning Board Memb ers F rom: G eneral Manager/C EO Subject: January 2021 Dis bursements : Acc o unts p ayab le dis bursements fo r the period includ e c heck numbers 257185 through 257317, b ank drafts, and AC H P ayments in the amo unt of $3,784,274.03 and $366,896.03 fo r p ayroll. 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 January 1, 2021 thro ugh January 31, 2021 in the amount of $4,151,170.06. 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 January 2021 is attached fo r review and ap proval. T his p ro cess 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 257185 thro ugh 257317, bank drafts , and A C H P ayments in the amo unt of $3,784,274.03 and $366,896.03, 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 2020-21 Bud get. ATTACH M E N TS: Description Type J anuary 2 021 P ayment Register Backup Material PAYMENT REGISTER JANUARY 1, 2021 - JANUARY 31, 2021 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 1/6/2021 257185 ACS SUPPORT 26.00 1/6/2021 257186 AMERICAN FIDELITY ASSURANCE COMPANY (FSA) 1,164.98 1/6/2021 257187 AT&T 1,119.83 1/6/2021 257188 CHEM-TECH INTERNATIONAL INC 6,356.80 1/6/2021 257189 COLONIAL LIFE, PREMIUM 547.00 1/6/2021 257190 COUNTY OF SAN BERNARDINO, DEPT OF PUBLIC WORKS 852.00 1/6/2021 257191 CULLIGAN OF ONTARIO 139.10 1/6/2021 257192 DIRECTV 248.98 1/6/2021 257193 ELROD FENCE COMPANY 72,880.00 1/6/2021 257194 EXPERIAN 630.36 1/6/2021 257195 FedEx 150.56 1/6/2021 257196 FIRST CHOICE SERVICES 50.00 1/6/2021 257197 FISCHER, INC. 4,014.29 1/6/2021 257198 GNA FIRE ELECTRIC, INC. 485.00 1/6/2021 257199 INLAND WATER WORKS SUPPLY CO 52.92 1/6/2021 257200 KEENAN & ASSOCIATES 198.00 1/6/2021 257201 KONICA MINOLTA 39.71 1/6/2021 257202 LOWE'S 938.13 1/6/2021 257203 METLIFE SMALL BUSINESS CENTER (dental) 9,242.11 1/6/2021 257204 METROPOLITAN LIFE INS CO 93.30 1/6/2021 257206 SO CAL GAS 617.54 1/6/2021 257207 SWRCB 53,322.93 1/6/2021 257208 THE PIN CENTER/DP TRADING INC. 509.50 1/6/2021 257209 UNIFIRST CORPORATION 461.02 1/6/2021 257210 VALERO FLEET, WEX BANK 8,183.36 1/6/2021 257211 GUSTINA SHERRON 29.78 1/6/2021 257212 MICHELLE DOUGLAS 51.97 1/11/2021 257213 JENNIFER YUST 61.84 1/11/2021 257214 MANUEL JIMENEZ 79.88 1/11/2021 257215 CLASSIC LLC 63.71 1/11/2021 257216 STEVE VENEZIA 61.44 1/11/2021 257217 PYONG SU PAK 49.94 1/11/2021 257218 NICOLE STUMP 99.07 1/11/2021 257219 VEASNA LONG 61.94 1/11/2021 257220 SANDEEP GANDHI 267.61 1/12/2021 257221 Tina Padgett 2,895.26 1/13/2021 257222 AMERICAN FIDELITY ASSURANCE COMPANY 2,670.51 1/13/2021 257223 BALFOUR BEATTY INFRASTRUCTURE, INC 287,563.63 1/13/2021 257224 BODY METRX- MARLY PAULUS 234.00 1/13/2021 257225 BURRTEC WASTE (GROUP) INDUSTRIES, INC. 153.39 1/13/2021 257226 BURRTEC WASTE (GROUP) INDUSTRIES, INC. 153.39 1/13/2021 257227 BURRTEC WASTE (GROUP) INDUSTRIES, INC. 1,097.47 1/13/2021 257228 BURRTEC WASTE (GROUP) INDUSTRIES, INC. 1,320.90 1/13/2021 257229 CARB/PERP 735.00 PAYMENT REGISTER JANUARY 1, 2021 - JANUARY 31, 2021 Page 1 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 1/13/2021 257230 DONEGAN TREE SERVICE 5,900.00 1/13/2021 257231 EVERSOFT, INC 228.82 1/13/2021 257232 EYE MED VISION CARE 1,444.64 1/13/2021 257233 FLEET MANAGEMENT DEPARTMENT 449.86 1/13/2021 257234 HIGHLAND COMMUNITY NEWS/PUBLISHING INC 2,551.00 1/13/2021 257235 IB CONSULTING, LLC 7,800.00 1/13/2021 257236 IEPMA-HR 45.00 1/13/2021 257237 INLAND DESERT SECURITY & COMMUNICATIONS, INC 657.75 1/13/2021 257238 INLAND WATER WORKS SUPPLY CO 3,449.12 1/13/2021 257239 KONICA MINOLTA 44.17 1/13/2021 257240 KOPPEL & GRUBER PUBLIC FINANCE 920.00 1/13/2021 257241 LIFTOFF, LLC RONALD C. BRAATZ, 240.00 1/13/2021 257242 NASSAU LIFE INSURANCE COMPANY 66.74 1/13/2021 257243 PILAR ONATE 14,175.00 1/13/2021 257244 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 19,750.12 1/13/2021 257245 SERGIO D. FIERRO 1,500.00 1/13/2021 257246 SOUTHERN CALIFORNIA EDISON COMPANY 158,603.28 1/13/2021 257247 SOUTHERN CALIFORNIA EMERGENCY MEDICINE/COLTON 2,055.00 1/13/2021 257248 TYLER BUSINESS FORMS 387.59 1/13/2021 257249 UNIFIRST CORPORATION 922.04 1/13/2021 257251 VALERO FLEET, WEX BANK 6,749.80 1/13/2021 257252 MICHAEL MCNEELY 270.00 1/14/2021 257253 ALVIN KEITHLY 200.00 1/14/2021 257254 APRIYANTO APRIYANTO 200.00 1/14/2021 257255 CHARLES CORBETT 500.00 1/14/2021 257256 CHRISTINE WINTER 100.00 1/14/2021 257257 GLORIA MAKHOLM 150.00 1/14/2021 257258 HERMINA M REYES 29.98 1/14/2021 257259 JACINTA VALDEZ 100.00 1/14/2021 257260 JUDY NGUYEN 150.00 1/14/2021 257261 LARRY MINK 150.00 1/14/2021 257262 LEON GAGNON 94.18 1/14/2021 257263 MARY POLANSKY 100.00 1/14/2021 257264 ROBIN THOMPSON 150.00 1/14/2021 257265 SATURNINA MCJUNKIN 100.00 1/14/2021 257266 WILLIAM WILLSEY 200.00 1/20/2021 257269 ACS SUPPORT 26.00 1/20/2021 257270 AMERICAN FIDELITY ASSURANCE COMPANY (FSA) 1,164.98 1/20/2021 257271 AT&T 50.14 1/20/2021 257272 DENTAL HEALTH SERVICES 66.70 1/20/2021 257273 FIELDMAN, ROLAPP & ASSOCIATES 2,653.91 1/20/2021 257274 FIRST CHOICE SERVICES 261.23 1/20/2021 257275 INLAND WATER WORKS SUPPLY CO 2,628.59 1/20/2021 257276 METLIFE SMALL BUSINESS CENTER (dental) 135.37 1/20/2021 257277 METLIFE SMALL BUSINESS CENTER (dental) 9,377.48 1/20/2021 257278 PETAS CAR CARE- KEVIN KOHRELL 539.23 1/20/2021 257279 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 665,683.50 1/20/2021 257280 UNITED SITE SERVICES OF CALIFORNIA, INC 609.06 1/20/2021 257281 US BANCORP SERVICE CENTER 16,520.04 1/20/2021 257285 KHOSROW SALEHPOUR 15.10 1/20/2021 257286 NICHOLE YOUNG 50.16 1/20/2021 257287 INLAND MAPLE PARTNERS, LLC 288.84 1/20/2021 257288 SHOBHA GEORGE 54.96 PAYMENT REGISTER JANUARY 1, 2021 - JANUARY 31, 2021 Page 2 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 1/27/2021 257289 ANDRA M RAMIREZ 63.86 1/27/2021 257290 JJR DEVELOPMENT INC 8.50 1/27/2021 257291 GREEN GROUP PROPERTIES 26.24 1/27/2021 257292 HIGHLAND SERVICE CORP 57.31 1/27/2021 257293 AIRWAVE COMMUNICATION ENT. 3,072.13 1/27/2021 257294 AT&T 1,652.62 1/27/2021 257295 CHEM-TECH INTERNATIONAL INC 2,992.08 1/27/2021 257296 CITY OF HIGHLAND 270.00 1/27/2021 257297 COLONIAL LIFE, PREMIUM 547.00 1/27/2021 257298 DAILY JOURNAL CORPORATION 189.20 1/27/2021 257299 EUCLID MANAGERS, INSURANCE SERVICES INC. 528.00 1/27/2021 257300 EVERSOFT, INC 228.82 1/27/2021 257301 FedEx 68.09 1/27/2021 257302 FIRST CHOICE SERVICES 472.25 1/27/2021 257303 METROPOLITAN LIFE INS CO 93.30 1/27/2021 257304 MIKE'S GOPHER AND BEE CONTROL 100.00 1/27/2021 257305 SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT 5,880.00 1/27/2021 257306 SO CAL GAS 15.78 1/27/2021 257307 SOUTH COAST A Q M D 557.42 1/27/2021 257308 SOUTHERN CALIFORNIA EDISON COMPANY 8,523.84 1/27/2021 257309 TYLER BUSINESS FORMS 40.77 1/27/2021 257310 UNIFIRST CORPORATION 922.04 1/27/2021 257312 VERIZON 1,219.50 1/29/2021 257317 SAN BERNARDINO COUNTY 50.00 BANK DRAFTS 1/4/2021 DFT0004071 CALPERS/ MEDICAL 98,952.75 1/4/2021 DFT0004078 GLOBAL PAYMENTS 11,578.41 1/4/2021 DFT0004079 MERCHANT BANKCD 754.29 1/6/2021 DFT0004069 CalPERS- FRAS 1,033.80 1/6/2021 DFT0004070 CALPERS/ DEFERRED COMPENSATION 20,257.23 1/6/2021 DFT0004072 CALPERS/ RETIREMENT 47,211.60 1/6/2021 DFT0004076 STATE DISBURSEMENT UNIT 2,678.62 1/6/2021 DFT0004080 PayNearMe, Inc. 85.57 1/7/2021 DFT0004081 PayNearMe, Inc. 37.81 1/8/2021 DFT0004068 CA SDI Tax 2,651.95 1/8/2021 DFT0004073 Federal Payroll Tax 28,129.17 1/8/2021 DFT0004074 Medicare 7,690.84 1/8/2021 DFT0004075 Social Security 101.18 1/8/2021 DFT0004077 State Payroll Tax 11,352.60 1/11/2021 DFT0004082 TRANSFIRST DISCOUNT 47.90 1/12/2021 DFT0004083 FORTE, ACH DIRECT INC, ACH FEES 4,049.43 1/13/2021 DFT0004084 PayNearMe, Inc. 240.79 1/20/2021 DFT0004087 CALPERS/ DEFERRED COMPENSATION 19,180.29 1/20/2021 DFT0004088 CALPERS/ RETIREMENT 47,252.13 1/20/2021 DFT0004092 STATE DISBURSEMENT UNIT 2,678.62 1/20/2021 DFT0004094 PayNearMe, Inc. 151.24 1/22/2021 DFT0004086 CA SDI Tax 2,736.43 1/22/2021 DFT0004089 Federal Payroll Tax 28,496.69 1/22/2021 DFT0004090 Medicare 7,935.58 1/22/2021 DFT0004091 Social Security 726.48 1/22/2021 DFT0004093 State Payroll Tax 11,097.17 1/25/2021 DFT0004095 CALIFORNIA DEPT OF TAX AND FEE ADMIN 359.00 PAYMENT REGISTER JANUARY 1, 2021 - JANUARY 31, 2021 Page 3 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 1/27/2021 DFT0004096 PayNearMe, Inc. 224.87 1/28/2021 DFT0004097 PayNearMe, Inc. 23.88 1/29/2021 DFT0004098 PayNearMe, Inc. 21.89 ACH PAYMENTS 1/6/2021 10008421 ALLEN WILLIAMS 652.57 1/6/2021 10008422 ANAERGIA TECHNOLOGIES LLC 669,133.83 1/6/2021 10008423 ANTHESIS 6,957.88 1/6/2021 10008424 ASBCSD 375.00 1/6/2021 10008425 BARRY'S SECURITY SERVICES, INC 8,238.70 1/6/2021 10008426 BURGESS MOVING & STORAGE 1,242.55 1/6/2021 10008427 CALIFORNIA FUELS & LUBRICANTS 1,233.01 1/6/2021 10008428 CARBON ACTIVATED CORP 63,646.00 1/6/2021 10008429 CAROL CALES 646.18 1/6/2021 10008430 CLEARFLY COMMUNATIONS 420.46 1/6/2021 10008431 CONSUMERS PIPE & SUPPLY COMPANY 2,159.80 1/6/2021 10008432 DALE BRENDT MARSDEN, dba TOMORROW'S TALENT, LLC 2,175.00 1/6/2021 10008433 DANGELO CO INC 929.32 1/6/2021 10008434 DANIEL DAVIS 577.72 1/6/2021 10008435 DAVID HERNANDEZ 437.37 1/6/2021 10008436 ELISEO OCHOA 638.02 1/6/2021 10008437 EVWD EMPLOYEES EVENTS ASSOC 367.42 1/6/2021 10008438 EXCEL LANDSCAPE, INC 13,955.73 1/6/2021 10008439 EZEQUIEL ELECTRIC, INC. 1,711.52 1/6/2021 10008440 FLEETWASH, INC 275.00 1/6/2021 10008441 FRONTIER COMMUNICATIONS 806.46 1/6/2021 10008442 GARY STURDIVAN 660.53 1/6/2021 10008443 GORDON GRANT 599.92 1/6/2021 10008444 LANDS END INC 43.54 1/6/2021 10008445 MANAGED HEALTH NETWORK 225.12 1/6/2021 10008446 MICHAEL HENDERSON 645.41 1/6/2021 10008447 MIKE J. ROQUET CONSTRUCTION INC 11,911.60 1/6/2021 10008448 MOBILE OCCUPATIONAL SERVICES, INC 55.00 1/6/2021 10008449 NATIONAL CONSTRUCTION RENTALS 158.49 1/6/2021 10008450 NEOGOV 972.00 1/6/2021 10008451 REBECCA KASTEN 577.89 1/6/2021 10008452 REDLINE MOBILE FLEET SERVICE & REPAIR 2,867.11 1/6/2021 10008453 ROBERT MARTIN 750.00 1/6/2021 10008454 SCN, SECURITY COMMUNICATION NETWORK, INC 105.00 1/6/2021 10008455 SHRED-IT US JV LLC 68.12 1/6/2021 10008456 TYLER TECHNOLOGIES, INC 58.09 1/6/2021 10008457 UNDERGROUND SERVICE ALERT 209.65 1/6/2021 10008458 VERIZON WIRELESS 7,172.56 1/6/2021 10008460 VULCAN MATERIALS CO/ CALMAT CO 3,479.59 1/13/2021 10008461 AMAZON CAPITAL SERVICES, INC 223.35 1/13/2021 10008462 ANTHONY'S IRRIGATION 10,295.00 1/13/2021 10008463 BARRY'S SECURITY SERVICES, INC 3,925.29 1/13/2021 10008464 CLARK PEST CONTROL 115.00 1/13/2021 10008465 CLA-VAL CO 388.47 1/13/2021 10008466 CLINICAL LAB OF S B 4,330.50 1/13/2021 10008467 CORELOGIC SOLUTIONS, LLC 360.50 1/13/2021 10008468 FERGUSON ENTERPRISES, INC. 58,202.00 1/13/2021 10008469 FRONTIER COMMUNICATIONS 50.05 PAYMENT REGISTER JANUARY 1, 2021 - JANUARY 31, 2021 Page 4 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 1/13/2021 10008470 GENESIS INDUSTRIAL SUPPLY, INC 553.35 1/13/2021 10008471 JAMES SMOTHERS 2,000.00 1/13/2021 10008472 JC LAW FIRM 10,005.00 1/13/2021 10008473 KEN TAYLOR 90.00 1/13/2021 10008474 KOFF & ASSOCIATES, INC 1,875.00 1/13/2021 10008475 LANDS END INC 136.53 1/13/2021 10008476 LEGEND PUMP AND WELL 9,997.97 1/13/2021 10008477 MCMASTER-CARR 211.61 1/13/2021 10008478 MICHAEL BAFFA 390.00 1/13/2021 10008479 MINUTEMAN PRESS OF RANCHO CUCAMONGA 5,775.32 1/13/2021 10008480 ORION SYSTEMS INTEGRATORS LLC 2,000.00 1/13/2021 10008481 PLUS 1 PERFORMANCE 19.05 1/13/2021 10008482 QUADIENT, INC 815.24 1/13/2021 10008483 RESOLUTE 4,200.00 1/13/2021 10008484 SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT 27,038.82 1/13/2021 10008485 SDRMA, SPECIAL DISTRICT RISK MGMT 45.70 1/13/2021 10008486 SG CREATIVE, LLC 3,075.00 1/13/2021 10008487 SHI INTERNATIONAL CORP. 2,170.65 1/13/2021 10008488 SUPERIOR AUTOMOTIVE WAREHOUSE, INC. 351.22 1/13/2021 10008490 TROY ALARM, INC. 264.00 1/13/2021 10008491 VULCAN MATERIALS CO/ CALMAT CO 716.71 1/14/2021 10008492 ERICA HERNANDEZ 200.00 1/20/2021 10008493 ADCOMP SYSTEMS 319.29 1/20/2021 10008494 AMAZON CAPITAL SERVICES, INC 686.64 1/20/2021 10008495 ANTHESIS 2,542.00 1/20/2021 10008496 ANTHONY POOL SERVICE, JAMES ANTHONY LOGSDON 225.00 1/20/2021 10008497 APPLIED MAINTENANCE SUPPLIES & SOLUTIONS 940.95 1/20/2021 10008498 BARRY'S SECURITY SERVICES, INC 2,735.72 1/20/2021 10008499 BOOT BARN, INC 27.42 1/20/2021 10008500 ELEPHANT FIRE EXTINSUISHER 2,621.82 1/20/2021 10008501 EVWD EMPLOYEES EVENTS ASSOC 417.42 1/20/2021 10008502 FILARSKY & WATT LLP 310.00 1/20/2021 10008503 FLEETWASH, INC 400.00 1/20/2021 10008504 FRONTIER COMMUNICATIONS 1,177.39 1/20/2021 10008505 iWATER, INC 5,000.00 1/20/2021 10008506 KATHLEEN R BURKE 730.83 1/20/2021 10008507 KELLY MALLOY 561.58 1/20/2021 10008508 LEGEND PUMP AND WELL 5,876.69 1/20/2021 10008509 LINCOLN NATIONAL LIFE INS CO. 2,175.63 1/20/2021 10008510 MANAGED MOBILE, INC. 1,620.53 1/20/2021 10008511 MERLIN JOHNSON CONSTRUCTION 64,206.09 1/20/2021 10008512 MIKE J. ROQUET CONSTRUCTION INC 6,778.00 1/20/2021 10008513 MUSICK, PEELER & GARRETT LLP 3,825.00 1/20/2021 10008514 POWERSTRIDE BATTERY CO. 816.42 1/20/2021 10008515 REDLINE MOBILE FLEET SERVICE & REPAIR 1,987.59 1/20/2021 10008516 SDRMA, SPECIAL DISTRICT RISK MGMT 1.80 1/20/2021 10008517 SUPERIOR AUTOMOTIVE WAREHOUSE, INC. 171.56 1/27/2021 10008518 ACI PAYMENTS INC. 58.60 1/27/2021 10008519 AMAZON CAPITAL SERVICES, INC 160.55 1/27/2021 10008520 ANAERGIA TECHNOLOGIES LLC 852,483.83 1/27/2021 10008521 APPLIED MAINTENANCE SUPPLIES & SOLUTIONS 204.24 1/27/2021 10008522 ASHOK K. DHINGRA, AKD CONSULTING 10,745.00 1/27/2021 10008523 B&A BLAIS & ASSOCIATES INC 5,175.00 PAYMENT REGISTER JANUARY 1, 2021 - JANUARY 31, 2021 Page 5 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 1/27/2021 10008524 BARRY'S SECURITY SERVICES, INC 2,009.78 1/27/2021 10008525 BOOT BARN, INC 178.19 1/27/2021 10008526 CLARK PEST CONTROL 48.00 1/27/2021 10008527 COMPUTERIZED EMBROIDERY COMPANY, INC 585.51 1/27/2021 10008528 CORE & MAIN LP 2,041.88 1/27/2021 10008529 ENVIRONMENTAL SCIENCE ASSOCIATES/ESA 13,265.00 1/27/2021 10008530 EXCEL LANDSCAPE, INC 13,550.00 1/27/2021 10008531 FRONTIER COMMUNICATIONS 812.89 1/27/2021 10008532 HOPKINS TECHNICAL PRODUCTS INC 2,393.21 1/27/2021 10008533 HUB CONSTRUCTION SPECIALTIES, INC. 559.22 1/27/2021 10008534 INFOSEND, INC 15,323.70 1/27/2021 10008535 JOSE MILLAN 2,900.00 1/27/2021 10008536 KRIEGER & STEWART, INCORPORATED 1,555.50 1/27/2021 10008537 MANAGED MOBILE, INC. 1,920.18 1/27/2021 10008538 MCMASTER-CARR 111.05 1/27/2021 10008539 MIKE J. ROQUET CONSTRUCTION INC 12,300.00 1/27/2021 10008540 MINUTEMAN PRESS OF RANCHO CUCAMONGA 459.61 1/27/2021 10008541 PLUS 1 PERFORMANCE 19.05 1/27/2021 10008542 POLLARDWATER 362.45 1/27/2021 10008543 ROUNSVILLE'S AUTO BODY 2,998.18 1/27/2021 10008544 SITEONE LANDSCAPE SUPPLY , LLC 275.98 1/27/2021 10008545 SSCI, INC. DBA-SAFETY COMPLIANCE COMPANY 200.00 1/27/2021 10008546 STAPLES BUSINESS ADVANTAGE 278.40 1/27/2021 10008547 THE GRANT FARM (MOMENTUM) 948.05 1/27/2021 10008548 TYLER TECHNOLOGIES, INC 440.00 1/27/2021 10008549 VULCAN MATERIALS CO/ CALMAT CO 944.63 TOTAL 3,784,274.03 PAYMENT REGISTER JANUARY 1, 2021 - JANUARY 31, 2021 Page 6 of 6 B O AR D AGE N D A S TAF F R E P ORT Agenda Item #3. Meeting Date: F eb ruary 24, 2021 Dis c ussion Item To: G o verning Board Memb ers F rom: G eneral Manager/C EO Subject: C ons id er Approval o f S elf-G eneration Inc entive P rogram (S G IP ) Dep o s it fo r the S terling Natural R esourc e C enter R E C O MME N D AT IO N: S taff recommends that the Bo ard o f Directo rs authorize the payment o f a refund ab le d ep o s it in the amount o f $225,000 to reserve $4,500,000 o f antic ip ated incentive fund s for the S NR C energy generatio n s ys tem. B AC KGR O UN D / AN ALYS IS : T he S elf-G eneratio n Inc entive P rogram (S G I P ), offered b y the C alifo rnia P ublic Utilities C o mmis s io n (C P UC ), provid es inc entives for renewab le energy s ys tems like the o ne inc luded in the S terling Natural R es o urc e C enter (S NR C ) P ro ject. T his sys tem will generate elec tric ity for o n-s ite us e and exp o rt to the grid fro m the methane prod uc ed by the anaero b ic diges tion p ro cess. T he Distric t rec ently sub mitted an app licatio n fo r $4,500,000 of S G I P fund ing, whic h is the allowable inc entive fo r the S NR C sys tem. If approved, a res ervation d ep o s it of $225,000 (5% of $4,500,000) will be required in o rd er to res erve the fund ing fo r the projec t. T he purp ose of this d ep o s it is to increas e the chanc es of projec ts b eing comp leted. In the past, when a smaller res ervatio n d ep o s it was required , a relatively large p erc entage of p ro jects were not being c o mp leted , thus reducing the o verall effec tivenes s of the inc entive p ro gram. T he res ervatio n depos it will b e refunded when the projec t is complete. Based o n the experienc e of the S NR C P rojec t Team, the review and approval of the S G I P fund ing ap p licatio n is o ften completed within two to three weeks of sub mittal. C o nsequently, authorizatio n is being req ues ted in anticipation of ap p ro val to avo id p o tential d elays in res erving the inc entive funds. AG E N C Y G O ALS AN D OB J E C T IVE S : G oal and O b jectives I - Implement Effec tive S o lutio ns T hrough Visionary Leadership a) Identify O pportunities to O p timize Natural R esourc es R ecommended b y: Jo hn Mura G eneral Manager/C EO R espec tfully sub mitted: Jeff No elte Direc tor o f Engineering and O p eratio ns G o al and O bjec tives I V - P romo te P lanning, Maintenanc e and P res ervatio n o f Dis tric t R esources a) Develop P ro jec ts and P ro grams to Ens ure S afe and R eliable S ervices R E VIE W B Y O T HE R S : T his agenda item has been reviewed by the executive management team. F IS C AL IMPAC T T his item has no long-term fis cal impac t s inc e the deposit will be refunded upon p ro ject c o mpletio n. T he temp o rary funding o f the depos it will b e done with S NR C P ro jec t fund s . B O AR D AGE N D A S TAF F R E P ORT Agenda Item #4. Meeting Date: F eb ruary 24, 2021 Dis c ussion Item To: G o verning Board Memb ers F rom: G eneral Manager/C EO Subject: S c hedule P ublic Hearing to C onsider Adopting Water and Was tewater R ate Inc reas es R E C O MME N D AT IO N: S c hedule a pub lic hearing for May 12, 2021, to consider the ad o p tion o f water rates and was tewater rates c o nduc ted p ursuant to Article XI I D o f the C alifornia C o nstitution. B AC KGR O UN D / AN ALYS IS : Eas t Valley Water Dis tric t, like other rate s etting p ublic agencies in the S tate o f C alifornia, mus t regularly cond uc t a C ost of S ervic e Analys is (C O S A) to evaluate whether rates are s uffic ient to maintain pub lic s ervic es . T he results of this s tudy then p ro d uc e rec o mmend ations for c o ns ideration as to the neces s ary rates to meet o p erational need s with rates ad o p ted for no mo re than a five-year p erio d , at whic h p o int the o rganizatio n mus t refres h the C O S A. T he Dis trict’s las t C O S A was c o mpleted in 2019 and pres ented to the Board on January 22, 2020; that C O S A inc luded b o th Water and Was tewater C ollectio n servic es . After the C O S A was p res ented, the Board ap p ro ved s ending o ut P ro p 218 notices fo r a p ublic hearing to b e held o n Ap ril 8, 2020. T hat hearing was c anc elled due to C O VID 19 related res tric tions on pub lic meetings and the unc ertainty about the financ ial impac t of the pand emic o n o ur c ommunity. With the pub lic hearing o n hold, s taff b egan working with I B C o ns ulting to broad en the s cope o f the 2019 Wastewater C ost o f S ervice Analys is to inc lude future operatio ns at the S NR C . As with other s ervic es , the S NR C analys is invo lved build ing a 10-year financ ial mo d el with o p erating and capital expens e p ro jec tions , and res erve fund ing. T he mo d el also (c o ns ervatively) ac c ounted fo r new revenue streams that would b e generated b y the S NR C d iges ters, and the recyc led water that will be produced, in order to alleviate s o me o f the burd en for cost rec o very fro m the was tewater utility rates . T he up d ated Was tewater C O S A resulted in a rate d es ign that is s imilar to rates p revious ly develo p ed b y the C ity o f S an Bernard ino, with two s ignificant d ep artures: Multi-F amily residential ac counts are assessed a fixed charge for each dwelling unit served by the ac count, rather than b ased o n water cons umption rec o rd ed b y the meter. T his b rings billing of s ingle family and multi-family ac c o unts into alignment. 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 No n-res id ential (commerc ial) cus tomers are catego rized and charged b ased o n was tewater s trength fac tors - high, medium, or lo w - rather than c ategorized in one of 12 s p ecific c us tomer typ es. T he 2019 Water C O S A was als o up d ated with F Y 2019-20 d ata fo r water cons umption, and actual o p erating revenue and exp ens es fo r that year, and d eb t s ervic e s ched ules were updated to reflec t the 2020 b o nd refinanc ing. T he most s ignific ant facto r in modeling the rates , however, c o ntinues to be the s ignificant c ap ital imp ro vement p ro gram whic h inc ludes P lant 134 p ro c es s upgrad es (G AC ) and the East End S urface Water Treatment P lant, both for whic h the Distric t will s eek S R F lo an/grant funding. T he up dated C os t o f S ervic e Analys is’ and rate studies for all of the Dis tric t’s water and was tewater services have been c o mp leted b y I B C o ns ulting. T he s tudies prop o s e modest rate ad jus tments fo r exis ting servic es and p ro p o s e inaugural rates fo r the S NR C . S inc e the c o nsultant’s wo rk has d etermined that rate adjustments are warranted, a recommendatio n for adoption of the adjus ted rates mus t be c onsidered by the G overning Bo ard at a pub lic hearing c o nduc ted p urs uant to Artic le XI I D o f the C alifornia C o ns titutio n. S taff rec o mmend s that the Board sc hedule a public hearing for cons ideratio n of water and was tewater rates o n May 12, 2021 and authorize staff to mail no tices ab o ut the pub lic hearing to cus tomers , p ro p erty owners , and o thers who c o uld b e affected by the rates in acc o rd anc e with regulato ry guid elines . 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 agend a item has been reviewed b y the Adminis tration and F inance Dep artments and the C o mmunity Advis o ry C ommis s io n. 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 P resentation P resentation East Valley Water District Water and Wastewater Cost of Service Rate Study February 24, 2021 Study Goals Develop a Long-term Financial Plan for Both Water and Wastewater Enterprises Account for New Capital Improvements and SNRC Operations Reconstruct Wastewater Rates to Reflect the District’s Characteristics and Transition from San Bernardino Treatment Rates Ensure Rates are Equitable and Meet Industry Standards while Complying with Proposition 218 Support the District through Rate Adoption and Prepare Report Main Objectives 2 Water Enterprise Financial Plan and Cost of Service Rates i l l i o n s et Cash ow ro ected Re enue era n enses District’s Current Financial Position Water Enterprise 4 Financial Plan Metrics ➢Generate Positive Annual Operating Net Income ➢Comply with Debt Covenants ➢Sufficiently Fund Capital Needs ➢Meet Reserve Targets District’s Financial Position Current Rates 5 Results From Review ➢District is Currently in a Strong Financial Position ➢Upcoming Capital Improvements Include Ongoing Reinvestment, Plant 134 Rehabilitation and Construction of the Eastside Surface Water Treatment Plant (ESWTP) ▪Plant 134 and ESWTP improvement cost is $18M over next 3 years ➢Note: Reserves Would be Depleted Maintaining Current Capital Improvement Plan Without Adjusting Water Rates i l l i o n s et Cash ow ro ected Re enue era n enses FY 2022: Plant 134 Improvements –SRF Loan FY 2023 & 24: Eastside SWTP –SRF Loan Proposed Financial Plan 10-Year Planning Period 6 Proposed Financial Plan ➢Positive Annual Operating Net Income ➢Comply with Debt Covenants ➢Level Adjustments to Reduce Impact ➢Sufficiently Fund Capital Needs ➢Meet Reserve Targets Rate Design ➢Maintain Current Budget-Based Rate Structure ▪Adjust baseline Indoor Water Budget (IWB) to reflect 55 Gallons Per Capita Per Day (GPCD) ▪Proactive signaling tool between District and customers reflecting upcoming State Mandates ➢Cost of Service Recalibration ▪Incorporate recent usage trends ▪Update cost allocations to ensure rates reflect the cost of delivering water ▪Tiered costs updated to reflect proportionate share based on demand ➢Fixed / Variable Recovery ▪Maintain current revenue recovery split (~35% Fixed / 65% Variable) Structure 7 FY 2022 Revenue Requirements Water Enterprise 8 Water Supply -$3.2M O&M / Debt -$18.9M Revenue Offsets -($0.5M) Rate Revenue -$26.8M 9 Account Services $2,648,598 Meter Capacity $6,629,591 Well Water $2,223,000 Surface Water $122,000 State Water Project $859,000 Water Efficiency $618,538 Delivery $8,941,904 Peaking $4,757,369 Cost of Service Cost Components for Rate Development Fixed Components 34.6% Variable Components 65.4% Similar to Current Split $4,757,369 10 $2,648,598 $6,629,591 $2,223,000 $122,000 $859,000 $618,538 $8,941,904 Cost of Service Cost Components with Units of Service Units of Service Total Bills 256,320 Units of Service Total MEs 323,344 Units of Service GW Supply 5,529,703 Units of Service Water Sales 7,181,432 Units of Service State Water 1,651,729 Units of Service Tier 2 & 3 Usage 3,495,238 Units of Service Weighted Peak 16,368,444 Units of Service Water Sales 7,181,432 Fixed Charges Fixed Charge Components 11 Meter Size Number of Meters Customer Service Charge [A] Capacity Ratios Meter Service Charge [B] Proposed Charge [A + B] 5/8" 4,202 $10.34 0.67 $13.67 $24.01 3/4"12,327 $10.34 1.00 $20.51 $30.85 1"4,175 $10.34 1.67 $34.18 $44.52 1 1/2"262 $10.34 3.33 $68.35 $78.69 2"287 $10.34 5.33 $109.36 $119.70 3"62 $10.34 10.67 $218.71 $229.05 4"22 $10.34 16.67 $341.73 $352.07 6"12 $10.34 33.33 $683.45 $693.79 8"11 $10.34 93.33 $1,913.64 $1,923.98 Current Charge Change ($) $23.06 $0.95 $29.27 $1.58 $41.71 $2.81 $72.81 $5.88 $110.13 $9.57 $228.30 $0.75 $402.44 -$50.37 $819.14 -$125.35 $1,503.28 $420.70 Majority of accounts Water Supplies Groundwater, State Water Project, Surface Water 12 Projected Usage Groundwater SWP Water Supply Costs Effective Rate ($/CCF)$0.40 $0.52 Available Supply 5,529,703 1,651,729 Tier 1 3,686,194 3,636,194 -$0.41 Tier 2 2,409,300 1,843,509 565,791 $0.43 Tier 3 1,085,938 -1,085,938 $0.53 Blended rate based on water supply mix to support demand Rounded up to penny *CCF: One-hundred Cubic Feet Variable Charges Variable Rate Components 13 Tiers Projected Usage (ccf)Supply Surface Water Water Efficiency Delivery Peaking Water Supply Costs Tier 1 3,686,194 $0.41 $0.02 -$1.25 $0.30 $1.98 Tier 2 2,409,300 $0.43 $0.02 $0.18 $1.25 $0.66 $2.54 Tier 3 1,085,938 $0.53 $0.02 $0.18 $1.25 $1.95 $3.93 Current Rate Change ($) $1.83 $0.15 $2.61 ($0.07) $3.64 $0.29 Proposed Water Charges FY 2022 –FY 2024 14 Wastewater Enterprise Financial Plan and Cost of Service Rates i l l i o n s Rate Reser e unded otal C i l l i o n s ndin alance ini u Reser e ar et Reser e i l l i o n s et Cash ow ro ected Re enue era n enses Treatment Plant online: Expenses New Revenues Current Financial Position Sewer Enterprise 16 Financial Plan Metrics ➢Generate Positive Annual Operating Net Income ➢Comply with Debt Covenants ➢Sufficiently Fund Capital Needs ➢Meet Reserve Targets $500,000 for Collection R&R $500,000 for Treatment Plant Financial Position Outlook Current Position 17 Results from Review ➢New Capital Improvement Plan Includes: ▪Increased reinvestment in the collection system from $200,000 up to ~$500,000 ▪Set aside funding for Treatment Plant of $500,000 annually ➢SNRC Treatment Plant Generates New Revenue ▪New revenue streams include Onsite Power Offsets and Hauler Tipping Fees ▪Recycled water revenue and GW basin replenishment credits ➢Note: Reserves are Currently Healthy, but Would be Depleted by Increased System Reinvestment Without Adjusting Water Rates i l l i o n s ndin alance ini u Reser e ar et Reser e Proposed Financial Plan 5-Year Planning Period 18 Proposed Financial Plan ➢Positive Annual Operating Net Income ➢Adjust Revenue Starting as Early as FY 2022 Prior to SNRC Opening ➢Fund Capital Needs While Maintaining Prudent Reserves ➢Meet Reserve Targets by FY 2024 FY 2022 Revenue Requirements with SNRC Wastewater Enterprise 19 Treatment Plant -$10.27M Collection / Debt -$4.4M Revenue Offsets -$2.2M Rate Revenue -$14.6M 20 Cost of Service Cost Components for Rate Development Biological Oxygen Demand (BOD) Total Suspended Solids (TSS) Collection Fixed Treatment Fixed $3,961,923 $3,778,350 Units of Service Accounts/Units 365,916 Units of Service Accounts/Units 365,916 $1,585,761 $2,148,125 Units of Service Flow 2,817,840 Units of Service Flow 2,817,840 $1,566,420 $1,566,420 Units of Service Weighted TSS 444,191 Treatment Flow Collection Variable Units of Service Weighted BOD 458,310 21 Adjustments to Rate Design Wastewater Rate Structure Restructuring ➢Multi-Family Residential (MFR) Customers Should be Charged per Dwelling Unit and not per Master Account for Fixed Charges ▪Flows from SFR and MFR are similar and can be projected on a per capita basis (just like indoor water budgets) ➢San Bernardino Treatment Rates Include 13 Different Customer Classes ▪Restructuring includes 4 Non-Residential customer classes for Treatment ▪Patton State Hospital –currently charged based on actual flow and loading factors ▪Low Strength, Medium Strength, and High Strength ▪Provides more flexibility for the District to assign future users / customers based on strength characteristics as opposed to a specific land use Fixed Charges Collection and Treatment 22 Treatment Fixed Component - Unit Rate Revenue Requirement $3,961,923 ÷ Annual Dwelling Units 365,916 Monthly Unit Rate $10.83 Collection Fixed Component - Unit Rate Revenue Requirement $3,778,350 ÷ Annual Dwelling Units 365,916 Monthly Unit Rate $10.33 Variable Components 23 Collection Variable Customer Class Projected Flow (ccf)% Allocation Revenue Requirement Single-Family 1,605,561 56.98%$903,542 Multi-Family 711,661 25.26%$400,492 Patton State Hospital 100,341 3.56%$56,467 Non-Res - Low Strength 243,090 8.63%$136,801 Non-Res - Med Strength 49,678 1.76%$27,956 Non-Res - High Strength 107,510 3.82%$60,502 Total 2,817,840 100%$1,585,761 Variable Components 24 Treatment Variable -Flow Customer Class Projected Flow (ccf)% Allocation Revenue Requirement Single-Family 1,605,561 56.98%$1,223,968 Multi-Family 711,661 25.26%$542,521 Patton State Hospital 100,341 3.56%$76,493 Non-Res - Low Strength 243,090 8.63%$185,315 Non-Res - Med Strength 49,678 1.76%$37,871 Non-Res - High Strength 107,510 3.82%$81,958 Total 2,817,840 100%$2,148,125 Variable Components 25 Treatment -Biological Oxygen Demand (BOD) and Total Suspended Solids (TSS) Customer Class Weighted BOD % Allocation Revenue Requirement Single-Family 240,208 52.41%$820,988 Multi-Family 106,472 23.23%$363,901 Patton State Hospital 14,468 3.16%$49,448 Non-Res - Low Strength 27,277 5.95%$93,226 Non-Res - Med Strength 9,569 2.09%$32,705 Non-Res - High Strength 60,317 13.16%$206,152 Total 458,310 100%$1,566,420 Customer Class Weighted TSS % Allocation Revenue Requirement Single-Family 240,208 54.08%$847,083 Multi-Family 106,472 23.97%$375,467 Patton State Hospital 15,200 3.42%$53,601 Non-Res - Low Strength 27,277 6.14%$96,189 Non-Res - Med Strength 6,782 1.53%$23,916 Non-Res - High Strength 48,254 10.86%$170,164 Total 444,191 100%$1,566,420 Proposed Wastewater Rates 26 Residential Customer Class Annual Dwelling Units [A] Collection (Fixed + Variable) [B] Treatment (Fixed + Flow + BOD + TSS) [C] Proposed Collection Charge [D] = B / A Proposed Treatment Charge [E] = C / A Total Proposed Residential Charge [F] = D + E Residential Single-Family 230,748 $3,286,184 $5,390,443 $14.25 $23.37 $37.62 Multi-Family 127,848 $1,720,616 $2,666,151 $13.46 $20.86 $34.32 SFR Current = $36.91 Difference = +$0.71 Proposed Wastewater Rates 27 Non-Residential Customer Class # of Bills [A] Collection Fixed [B] Treatment Fixed [C] Proposed Collection Fixed [D] = B / A Proposed Treatment Fixed [E] = C / A Proposed Fixed Charge [F] = D + E Non-Residential Monthly Monthly Monthly Patton State Hospital 12 $124 $130 $10.33 $10.83 $21.16 Non-Res - Low Strength 5,628 $58,113 $60,937 $10.33 $10.83 $21.16 Non-Res - Med Strength 852 $8,798 $9,225 $10.33 $10.83 $21.16 Non-Res - High Strength 828 $8,550 $8,965 $10.33 $10.83 $21.16 Customer Class Water Usage (ccf) [A] Collection Variable [B] Treatment Variable (Flow + BOD + TSS) [C] Proposed Collection Variable Rate [D] = B / A Proposed Treatment Variable Rate [E] = C / A Total Proposed Variable Rate [F] = D + E Non-Residential Per CCF Per CCF Per CCF Patton State Hospital 100,341 $56,467 $179,542 $0.57 $1.79 $2.36 Non-Res - Low Strength 394,185 $136,801 $374,730 $0.35 $0.96 $1.31 Non-Res - Med Strength 62,097 $27,956 $94,492 $0.46 $1.53 $1.99 Non-Res - High Strength 134,387 $60,502 $458,274 $0.46 $3.42 $3.88 Proposed Wastewater Charges FY 2022 –FY 2024 28 Wastewater Rates Customer Class Existing FY 2022 FY 2023 FY 2024 Fixed Charges Single-Family Residential $36.91 $37.62 $40.26 $43.09 Multi-Family Residential $21.32 $34.32 $36.74 $39.32 Non-Residential / Commercial $7.42 $21.16 $22.65 $24.25 Variable Flow Rates (per ccf)0%0% Patton Varied by Month $2.36 $2.53 $2.72 Low Strength $1.33 $1.31 $1.41 $1.52 Medium Strength $2.55 $1.99 $2.14 $2.30 High Strength $3.28 $3.88 $4.16 $4.46 SAMPLE FY 2022 Monthly Bill Single-Family Residential within Total Water Budget 29 Thank You Andrea Boehling IB Consulting Principal | Managing Partner Phone: 615-870-9371 | Email:aboehling@IBConsultingInc.com 30 Habib Isaac IB Consulting Principal | Managing Partner Phone: 951-595-9354 | Email:hisaac@IBConsultingInc.com