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Agenda Packet - EVWD Board of Directors - 03/24/2021
REGULAR BOARD MEETINGVia TeleconferenceClosed Session Begins at 3:30 PMMarch 24, 2021 - 5:30 PM31111 Greenspot Road, Highland, CA 92346 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 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 REC ESS IN TO C LO SED SESSIO N C L OSE D SE S SI ON 2.C O N FEREN C E WIT H REA L P RO PERT Y N EG O T IATO RS (Government C ode Section 54956.8) Property: A P N: 0279-201-24-0000 District N egotiators: J ohn Mura, G eneral Manager/C EO Negotiating Parties: Southeastern C alifornia C onference of Seventh Day Adventist Under Negotiation: Price and Terms of Payment 3.PUBLIC EMPLO Y EE PERFO RMA N C E EVA LUAT IO N (Government C ode Section 54957) Title: General Manager/C EO 5:30 P M RE C ON VE N E ME E T I N G PLED G E O F A LLEG IA N C E RO LL C A LL O F BO A RD MEMBERS A N N O UN C EMEN T O F C LO S ED S ESS IO N A C T IO N S IT EMS P U B L I C C OMME N T S 4.AP P RO VAL O F C ON SE N T C AL E N D AR All matters listed under the C onsent C alendar are considered by the Board of Directors to be routine and will be enacted in one motion. T here will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the C onsent C alendar. a.February 2021 Disbursements: Accounts payable disbursements for the period include check numbers 257318 through 257450, bank drafts, and A C H Payments in the amount of $5,853,098.62 and $350,972.48 for payroll. b.Financial Statements for J anuary 2021 D I SC U SSI O N AN D P OS SI B L E AC T I O N I T E MS 5.Consider Adoption of Updated Grant Strategy 6.Consider Adoption of Resolution 2021.06 Updating Investment Policy 7.6 7.Consider Approval of Budget Amendment to Fully Fund Purchase C ontract for Sterling Natural Resource C enter Network Software/Licensing 8.Review General Manager/C EO Achievement of Goals & Objectives and Determination of Performance Award 9.Consider Approval of General Manager/C EO's 2021/22 Goals and Objectives RE P O RT S 10.Board of Directors' Reports 11.General Manager/C EO Report 12.Legal C ounsel Report 13.Board of Directors' Comments AD J O U RN P LEAS E NO T E: Materials related to an item on this agenda s ub mitted to the Board after dis trib utio n of the agend a pac ket are available for p ublic ins p ectio n in the Dis tric t's o ffice lo cated at 31111 G reens pot R d., Highland, during no rmal b usines s hours . Also, s uc h d o cuments are available o n the Dis tric t's web s ite at www.eas tvalley.o rg sub ject to s taff's ab ility to post the d o cuments b efo re the meeting. P urs uant to G overnment C o d e S ec tion 54954.2(a), any reques t fo r a d is ab ility-related mo dific ation or ac commod ation, inc luding auxiliary aids or s ervic es , that is s ought in order to participate in the abo ve- agendized p ublic meeting s hould b e d irected to the Dis tric t C lerk at (909) 885-4900 at leas t 72 hours prior to said meeting. B OAR D AG E N D A S TAF F R E P O RT Agenda Item #4.a. Meeting Date: Marc h 24, 2021 C ons ent Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: F ebruary 2021 Disburs ements : Acc o unts payable d is burs ements fo r the perio d inc lude c hec k numbers 257318 through 257450, bank drafts , and AC H P ayments in the amo unt of $5,853,098.62 and $350,972.48 for p ayro ll. R E COMME N D AT IO N: S taff rec o mmend s that the Board o f Directo rs (Bo ard ) review and ap prove the Dis trict’s expense dis b urs ements fo r the period F ebruary 1, 2021 through F eb ruary 28, 2021 in the amo unt of $6,204,071.10. B AC KG R O UN D / AN ALYS IS : In the c o ntinued effort to b e fis c ally trans parent, the payment register fo r sup p lies, materials , servic es , and p ayro ll for F ebruary 2021 is attac hed for review and ap p ro val. T his proc ess p ro vides the Board and the public an o p p o rtunity to review the expens es of the Dis tric t. Acc o unts P ayab le is proc es sed weekly, while p ayro ll is p roc es s ed b i-weekly. I nfo rmatio n to jus tify each expend iture is available through the F inance Department. Ac counts p ayab le dis b urs ements fo r the perio d inc lude c hec k numbers 257318 through 257450, b ank drafts, and AC H P ayments in the amo unt o f $5,853,098.62 and $350,972.48, for payro ll. S ignific ant expenses greater than or equal to $50,000 are further explained b elo w: R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: Brian Tomp kins C hief F inancial O fficer AGE N C Y GOALS AN D OB J E C T IVE S: G oal and O b jec tives I I - Maintain a C o mmitment to S us tainab ility, Trans p arency, and Ac countability a) P rac tic e Transparent and Ac countable F isc al Management R E VIE W B Y O T HE R S : T his agend a item has been reviewed b y the F inanc e Department. F IS CAL IMPAC T S uffic ient fund s have b een b ud geted in the ad o p ted F Y 2020-21 Bud get. ATTAC H M E NTS: Description Type February 2021 P ayment Register Backup Material PAYMENT REGISTER FEBRUARY 1, 2021 - FEBRUARY 28, 2021 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 2/3/2021 257318 ADRIAN PACHECO 93.33 2/3/2021 257319 BRIAN SIRIN 49.31 2/3/2021 257320 LETOA PEPE MITAINA 19.55 2/3/2021 257321 JAWAID RASUL 247.64 2/3/2021 257322 MIDNIGHT PROPERTIES 118.96 2/3/2021 257323 EARL L ROBERTS 13.07 2/3/2021 257324 ACS SUPPORT 26.00 2/3/2021 257325 AMERICAN FIDELITY ASSURANCE COMPANY (FSA) 1,164.98 2/3/2021 257326 AWWA 4,394.00 2/3/2021 257327 BALFOUR BEATTY INFRASTRUCTURE, INC 3,258,006.00 2/3/2021 257328 BURRTEC WASTE/ 5455 Industrial pkwy 791.26 2/3/2021 257329 CULLIGAN OF ONTARIO 142.10 2/3/2021 257330 DAILY JOURNAL CORPORATION 460.00 2/3/2021 257331 DIRECTV 258.98 2/3/2021 257332 EXPERIAN 283.24 2/3/2021 257333 EYE MED VISION CARE 1,414.40 2/3/2021 257334 FedEx 11.55 2/3/2021 257335 FIRST CHOICE SERVICES 50.00 2/3/2021 257336 GLADWELL GOVERNMENTAL SERVICES INC 250.00 2/3/2021 257337 HACH COMPANY 8,947.00 2/3/2021 257338 INLAND WATER WORKS SUPPLY CO 721.93 2/3/2021 257339 SO CAL GAS 835.83 2/3/2021 257340 SOUTHERN CALIFORNIA EMERGENCY MEDICINE/COLTON 2,925.00 2/3/2021 257341 TYLER BUSINESS FORMS 108.51 2/3/2021 257342 UNIFIRST CORPORATION 1,010.10 2/3/2021 257344 UPS FREIGHT 6.19 2/3/2021 257345 VALLEY OFFICE EQUIPMENT 0.38 2/10/2021 257346 CINDY MEYER 50.16 2/10/2021 257347 DAVID J RAZO JR 84.89 2/10/2021 257348 OOSRR LLC 106.97 2/10/2021 257349 JASON HOUSE 24.01 2/10/2021 257350 PAVING COMPANY INC. ONYX 58.68 2/10/2021 257351 INLAND PROPERTY SOLUTIONS INC 803.93 2/10/2021 257352 INLAND PROPERTY SOLUTIONS INC 2,143.65 2/10/2021 257353 TRUONG THO DOAN 129.26 2/10/2021 257354 FALCONS TRAILER REPAIR 1,710.16 2/10/2021 257355 AIR CHIEF, INC. 366.50 2/10/2021 257356 AMERICAN FIDELITY ASSURANCE COMPANY 2,670.51 2/10/2021 257357 BURRTEC WASTE/ 5455 Industrial pkwy 1,260.61 2/10/2021 257358 BURRTEC WASTE/ E. 111 MILL ST 1,851.92 2/10/2021 257359 CHEM-TECH INTERNATIONAL INC 3,115.38 2/10/2021 257360 CLIFTONLARSONALLEN LLP 850.00 2/10/2021 257361 EWING IRRIGATION PRODUCTS INC 515.39 2/10/2021 257362 HARPER & ASSOCIATES ENGINEERING, INC 950.00 PAYMENT REGISTER FEBRUARY 1, 2021 - FEBRUARY 28, 2021 Page 1 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 2/10/2021 257363 HIGHLAND COMMUNITY NEWS/PUBLISHING INC 1,320.50 2/10/2021 257364 IB CONSULTING, LLC 15,600.00 2/10/2021 257365 INLAND WATER WORKS SUPPLY CO 18,696.68 2/10/2021 257366 IPMA-HR 417.00 2/10/2021 257367 K & L HARDWARE 10.76 2/10/2021 257368 LOWE'S 389.18 2/10/2021 257370 SOUTHERN CALIFORNIA EDISON COMPANY 152,941.90 2/10/2021 257371 UPS FREIGHT 146.77 2/10/2021 257372 VALERO FLEET, WEX BANK 7,640.46 2/10/2021 257373 VALLEY OFFICE EQUIPMENT 0.33 2/10/2021 257374 WATER SYSTEMS CONSULTING, INC 6,520.00 2/17/2021 257375 JON MACKIE 60.89 2/17/2021 257376 VINCENT DELGADO 15.44 2/17/2021 257377 GUARANTY INVESTMENT COMPANY, INC 72.54 2/17/2021 257378 SUNALY PHOSY 60.12 2/17/2021 257379 GERBER PINEDA 59.06 2/17/2021 257380 SEABOARD 89.28 2/17/2021 257381 ADRIANA ROCHA 35.76 2/17/2021 257382 HY CHHUN 105.37 2/17/2021 257383 AIDA FRIAS-TOULOUSE 141.86 2/17/2021 257384 ANTHONY PASCO 94.00 2/17/2021 257385 CHARLES PETERSON 150.00 2/17/2021 257386 DENISE PETERS 112.58 2/17/2021 257387 DIANE FUENTES 200.00 2/17/2021 257388 FREDDY IBARRA 30.00 2/17/2021 257389 GASPER DIAZ 200.00 2/17/2021 257390 JENNIFER STAHL 200.00 2/17/2021 257391 LOI TRAN 84.00 2/17/2021 257392 PAUL DZIAK 150.00 2/17/2021 257393 PETER GONZALEZ 99.00 2/17/2021 257394 RICHARD WILLIAMS 100.00 2/17/2021 257395 RUBEN BANUELOS 200.00 2/17/2021 257396 TAMMY BALLESTEROS 200.00 2/17/2021 257397 THERESA GOINES 93.37 2/17/2021 257398 ACS SUPPORT 26.00 2/17/2021 257399 ALTERNATIVE HOSE INC 757.06 2/17/2021 257400 AMERICAN FIDELITY ASSURANCE COMPANY (FSA) 1,164.98 2/17/2021 257401 AT&T 50.14 2/17/2021 257402 EUCLID MANAGERS, INSURANCE SERVICES INC. 528.00 2/17/2021 257403 FedEx 27.23 2/17/2021 257404 FIELDMAN, ROLAPP & ASSOCIATES 921.03 2/17/2021 257405 FIRST CHOICE SERVICES 208.06 2/17/2021 257406 FLEET MANAGEMENT DEPARTMENT 383.72 2/17/2021 257407 INTERSTATE BATTERY 97.94 2/17/2021 257408 K & L HARDWARE 101.18 2/17/2021 257409 KONICA MINOLTA 240.56 2/17/2021 257410 MIKE'S GOPHER AND BEE CONTROL 50.00 2/17/2021 257411 NATIONAL AUTO FLEET GROUP, CHEVROLET OF WATSONVILL 93,569.97 2/17/2021 257412 PRIME GOVERNMENT SOLUCTIONS INC 8,500.00 2/17/2021 257413 RUHNAU CLARKE ARCHITECTS 497.50 2/17/2021 257414 SAN BDNO AREA CHAMBER OF COMMERCE 220.00 2/17/2021 257415 SOUTH COAST A Q M D 557.42 2/17/2021 257416 SOUTHERN CALIFORNIA NEWS GROUP 1,635.00 PAYMENT REGISTER FEBRUARY 1, 2021 - FEBRUARY 28, 2021 Page 2 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 2/17/2021 257417 UNIFIRST CORPORATION 461.02 2/17/2021 257418 UNITED SITE SERVICES OF CALIFORNIA, INC 609.06 2/17/2021 257419 UNIVERSAL SELF STORAGE HIGHLAND 294.00 2/17/2021 257420 US BANCORP SERVICE CENTER 11,192.08 2/17/2021 257424 WATER EDUCATION FOUNDATION 3,059.00 2/18/2021 257425 MA DOLORES MENDOZA 39.71 2/18/2021 257426 ZARA GONZALEZ 15.44 2/18/2021 257427 MELISSA ARREOLA 39.74 2/18/2021 257428 ALAN SMITH 277.44 2/18/2021 257429 PATRICIA AGUILAR 61.41 2/18/2021 257430 GEORGE DEFRANCESCO 37.95 2/18/2021 257431 WILLIAM FARIA 50.14 2/22/2021 257432 NIGEL SMITH 853.50 2/25/2021 257433 AT&T 3,325.22 2/25/2021 257434 AUTO ZONE, INC. 36.05 2/25/2021 257435 CITY OF HIGHLAND 383.05 2/25/2021 257436 DENTAL HEALTH SERVICES 189.40 2/25/2021 257437 ESRI 25,000.00 2/25/2021 257438 FedEx 89.46 2/25/2021 257439 FIRST CHOICE SERVICES 114.17 2/25/2021 257440 INLAND WATER WORKS SUPPLY CO 1,022.27 2/25/2021 257441 INTERSTATE BATTERY 129.18 2/25/2021 257442 K & L HARDWARE 50.15 2/25/2021 257443 LOWE'S 12.78 2/25/2021 257444 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 693,625.14 2/25/2021 257445 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 18,865.98 2/25/2021 257446 SO CAL GAS 19.27 2/25/2021 257447 SOUTHERN CALIFORNIA EDISON COMPANY 9,337.69 2/25/2021 257448 UNIFIRST CORPORATION 461.02 2/25/2021 257449 VALLEY OFFICE EQUIPMENT 7.14 2/25/2021 257450 VERIZON 1,219.50 BANK DRAFTS 2/1/2021 DFT0004102 CALPERS/ MEDICAL 103,843.19 2/2/2021 DFT0004109 GLOBAL PAYMENTS 9,894.25 2/3/2021 DFT0004101 CALPERS/ DEFERRED COMPENSATION 22,438.59 2/3/2021 DFT0004103 CALPERS/ RETIREMENT 47,215.29 2/3/2021 DFT0004107 STATE DISBURSEMENT UNIT 2,678.62 2/3/2021 DFT0004110 MERCHANT BANKCD 582.84 2/3/2021 DFT0004111 PayNearMe, Inc. 115.42 2/4/2021 DFT0004112 PayNearMe, Inc. 25.87 2/5/2021 DFT0004100 CA SDI Tax 2,597.66 2/5/2021 DFT0004104 Federal Payroll Tax 28,324.91 2/5/2021 DFT0004105 Medicare 7,533.30 2/5/2021 DFT0004106 Social Security 63.00 2/5/2021 DFT0004108 State Payroll Tax 11,256.15 2/10/2021 DFT0004113 FORTE, ACH DIRECT INC, ACH FEES 4,015.41 2/10/2021 DFT0004115 PayNearMe, Inc. 173.13 2/10/2021 DFT0004116 TRANSFIRST DISCOUNT 105.50 2/11/2021 DFT0004114 PayNearMe, Inc. 53.73 2/17/2021 DFT0004127 PayNearMe, Inc. 183.08 2/18/2021 DFT0004119 CALPERS/ DEFERRED COMPENSATION 20,668.84 2/18/2021 DFT0004120 CALPERS/ RETIREMENT 47,215.30 PAYMENT REGISTER FEBRUARY 1, 2021 - FEBRUARY 28, 2021 Page 3 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 2/18/2021 DFT0004122 Medicare 7,811.30 2/18/2021 DFT0004124 STATE DISBURSEMENT UNIT 2,678.62 2/18/2021 DFT0004126 PayNearMe, Inc. 29.85 2/19/2021 DFT0004118 CA SDI Tax 2,693.55 2/19/2021 DFT0004121 Federal Payroll Tax 29,729.40 2/19/2021 DFT0004123 Social Security 977.08 2/19/2021 DFT0004125 State Payroll Tax 11,541.75 2/24/2021 DFT0004128 PayNearMe, Inc. 185.07 2/26/2021 DFT0004129 PayNearMe, Inc. 55.72 ACH PAYMENTS 2/3/2021 10008550 ALLEN WILLIAMS 652.57 2/3/2021 10008551 ALLISON MECHANICAL, INC 2,500.00 2/3/2021 10008552 AMAZON CAPITAL SERVICES, INC 142.71 2/3/2021 10008553 AMERICAN RENTALS, INC 41.81 2/3/2021 10008554 BARRY'S SECURITY SERVICES, INC 2,019.25 2/3/2021 10008555 BOOT BARN, INC 379.06 2/3/2021 10008556 CAROL CALES 674.98 2/3/2021 10008557 CINTAS CORPORATION (FIRST AID) 219.95 2/3/2021 10008558 CLARK PEST CONTROL 191.00 2/3/2021 10008559 CLA-VAL CO 387.00 2/3/2021 10008560 CLEARFLY COMMUNATIONS 979.57 2/3/2021 10008561 COMPUTERIZED EMBROIDERY COMPANY, INC 452.55 2/3/2021 10008562 DANIEL DAVIS 577.72 2/3/2021 10008563 DAVID HERNANDEZ 437.37 2/3/2021 10008564 ELISEO OCHOA 696.62 2/3/2021 10008565 EVWD EMPLOYEES EVENTS ASSOC 320.66 2/3/2021 10008566 FLEETWASH, INC 700.00 2/3/2021 10008567 GARY STURDIVAN 660.53 2/3/2021 10008568 GOLDEN STATE LABOR COMPLIANCE, LLC 4,750.00 2/3/2021 10008569 GORDON GRANT 599.92 2/3/2021 10008570 GROUP DELTA CONSULTANTS, INC 38,217.50 2/3/2021 10008571 JOSE MILLAN 150.00 2/3/2021 10008572 KOFF & ASSOCIATES, INC 3,562.50 2/3/2021 10008573 MANAGED HEALTH NETWORK 225.12 2/3/2021 10008574 MANAGED MOBILE, INC. 2,673.47 2/3/2021 10008575 MARTHA T DURAN 750.00 2/3/2021 10008576 MICHAEL HENDERSON 645.41 2/3/2021 10008577 MIKE J. ROQUET CONSTRUCTION INC 63,872.30 2/3/2021 10008578 MINUTEMAN PRESS OF RANCHO CUCAMONGA 9,789.70 2/3/2021 10008579 MOBILE OCCUPATIONAL SERVICES, INC 55.00 2/3/2021 10008580 NATIONAL CONSTRUCTION RENTALS 158.49 2/3/2021 10008581 NEOGOV 3,750.71 2/3/2021 10008582 PETAS CAR CARE- KEVIN KOHRELL 4,105.27 2/3/2021 10008583 PLUS 1 PERFORMANCE 471.92 2/3/2021 10008584 QUINN COMPANY 1,436.00 2/3/2021 10008585 REBECCA KASTEN 577.89 2/3/2021 10008586 ROBERT MARTIN 750.00 2/3/2021 10008587 SAFETY KLEEN SYSTEMS, INC. 294.92 2/3/2021 10008588 SCN, SECURITY COMMUNICATION NETWORK, INC 285.00 2/3/2021 10008589 SHRED-IT US JV LLC 124.94 2/3/2021 10008590 SSCI, INC. DBA-SAFETY COMPLIANCE COMPANY 200.00 2/3/2021 10008591 SSCI, INC. DBA-SAFETY COMPLIANCE COMPANY 200.00 PAYMENT REGISTER FEBRUARY 1, 2021 - FEBRUARY 28, 2021 Page 4 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 2/3/2021 10008592 STAPLES BUSINESS ADVANTAGE 595.31 2/3/2021 10008593 ULTIMATE TOWING & RECOVERY 125.00 2/3/2021 10008594 UNDERGROUND SERVICE ALERT 339.13 2/3/2021 10008595 VULCAN MATERIALS CO/ CALMAT CO 709.70 2/3/2021 10008596 WAXIE SANITARY SUPPLY 160.09 2/10/2021 10008597 AIRGAS, USA LLC 354.26 2/10/2021 10008598 AMAZON CAPITAL SERVICES, INC 355.53 2/10/2021 10008599 BARRY'S SECURITY SERVICES, INC 2,019.25 2/10/2021 10008600 CINTAS CORPORATION (FIRST AID) 176.04 2/10/2021 10008601 CLARK PEST CONTROL 115.00 2/10/2021 10008602 COMPUTERIZED EMBROIDERY COMPANY, INC 143.49 2/10/2021 10008603 CORE & MAIN LP 3,508.14 2/10/2021 10008604 CORELOGIC SOLUTIONS, LLC 350.00 2/10/2021 10008605 DIAMOND FENCE COMPANY 9,160.00 2/10/2021 10008606 DOCUSIGN, INC. 22,785.52 2/10/2021 10008607 FERGUSON ENTERPRISES, INC. 53,880.55 2/10/2021 10008608 FRONTIER COMMUNICATIONS 50.05 2/10/2021 10008609 GENESIS INDUSTRIAL SUPPLY, INC 1,724.04 2/10/2021 10008610 LANDS END INC 20.70 2/10/2021 10008611 LEGEND PUMP AND WELL 2,750.00 2/10/2021 10008612 LINCOLN NATIONAL LIFE INS CO. 1,844.53 2/10/2021 10008613 MCCALL'S METER SALES & SERVICE 2,820.00 2/10/2021 10008614 MCMASTER-CARR 195.10 2/10/2021 10008615 MERLIN JOHNSON CONSTRUCTION 6,271.93 2/10/2021 10008616 POWERSTRIDE BATTERY CO. 736.27 2/10/2021 10008617 PR DIAMOND PRODUCTS, INC 2,291.64 2/10/2021 10008618 REDLANDS OFFICE CLEANING SOLUTIONS, LLC 2,000.00 2/10/2021 10008619 RESOLUTE 4,200.00 2/10/2021 10008620 SG CREATIVE, LLC 5,150.00 2/10/2021 10008621 SOUTHERN CALIFORNIA EDISON 300.00 2/10/2021 10008622 SUPERIOR AUTOMOTIVE WAREHOUSE, INC. 157.81 2/10/2021 10008623 VERIZON WIRELESS 6,795.83 2/10/2021 10008625 VULCAN MATERIALS CO/ CALMAT CO 714.74 2/10/2021 10008626 WOODARD & CURRAN INC. 51,757.98 2/17/2021 10008627 ADCOMP SYSTEMS 319.29 2/17/2021 10008628 AMAZON CAPITAL SERVICES, INC 582.84 2/17/2021 10008629 ANTHESIS 7,710.77 2/17/2021 10008630 ANTHONY POOL SERVICE, JAMES ANTHONY LOGSDON 1,953.00 2/17/2021 10008631 APPLIED MAINTENANCE SUPPLIES & SOLUTIONS 1,131.73 2/17/2021 10008632 B&A BLAIS & ASSOCIATES INC 1,483.75 2/17/2021 10008633 BARRY'S SECURITY SERVICES, INC 2,019.25 2/17/2021 10008634 CLINICAL LAB OF S B 5,435.00 2/17/2021 10008635 EVWD EMPLOYEES EVENTS ASSOC 365.50 2/17/2021 10008636 EZEQUIEL ELECTRIC, INC. 2,402.24 2/17/2021 10008637 FLEETWASH, INC 350.00 2/17/2021 10008638 FRONTIER COMMUNICATIONS 1,192.86 2/17/2021 10008639 HUB CONSTRUCTION SPECIALTIES, INC. 296.24 2/17/2021 10008640 ICMA RETIREMENT CORPORATION 250.00 2/17/2021 10008641 JC LAW FIRM 18,000.00 2/17/2021 10008642 MANAGED MOBILE, INC. 3,903.15 2/17/2021 10008643 MINUTEMAN PRESS OF RANCHO CUCAMONGA 1,879.59 2/17/2021 10008644 MUSICK, PEELER & GARRETT LLP 10,412.50 2/17/2021 10008645 ORION SYSTEMS INTEGRATORS LLC 2,000.00 PAYMENT REGISTER FEBRUARY 1, 2021 - FEBRUARY 28, 2021 Page 5 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 2/17/2021 10008646 THE GRANT FARM (MOMENTUM) 4,561.35 2/17/2021 10008647 TYLER TECHNOLOGIES, INC 474.10 2/17/2021 10008648 VULCAN MATERIALS CO/ CALMAT CO 703.78 2/25/2021 10008649 AIRGAS, USA LLC 71.73 2/25/2021 10008650 AMAZON CAPITAL SERVICES, INC 825.64 2/25/2021 10008651 APPLIED BEST PRACTICES, LLC 1,500.00 2/25/2021 10008652 APPLIED MAINTENANCE SUPPLIES & SOLUTIONS 28.04 2/25/2021 10008653 ASHOK K. DHINGRA, AKD CONSULTING 14,122.00 2/25/2021 10008654 BARRY'S SECURITY SERVICES, INC 2,019.25 2/25/2021 10008655 BOOT BARN, INC 359.62 2/25/2021 10008656 BURGESS MOVING & STORAGE 1,233.75 2/25/2021 10008657 ENVIRONMENTAL SCIENCE ASSOCIATES/ESA 12,229.00 2/25/2021 10008658 EXCEL LANDSCAPE, INC 13,746.95 2/25/2021 10008659 FERGUSON ENTERPRISES, INC. 2,935.41 2/25/2021 10008660 FMB TRUCK OUTFITTERS, INC 161.19 2/25/2021 10008661 FRONTIER COMMUNICATIONS 761.66 2/25/2021 10008662 GRAINGER 189.01 2/25/2021 10008663 GROUP DELTA CONSULTANTS, INC 152,614.15 2/25/2021 10008664 HARRINGTON INDUSTRIAL PLASTIC 133.25 2/25/2021 10008665 JOSE MILLAN 3,850.00 2/25/2021 10008666 LEGEND PUMP AND WELL 8,700.00 2/25/2021 10008667 MCMASTER-CARR 35.99 2/25/2021 10008668 NTT AMERICA SOLUTIONS, INC 1,555.56 2/25/2021 10008669 QUINN COMPANY 1,610.76 2/25/2021 10008670 REDLINE MOBILE FLEET SERVICE & REPAIR 4,591.23 2/25/2021 10008672 SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT 14,004.00 2/25/2021 10008673 SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT 461,747.75 2/25/2021 10008674 SUPERIOR AUTOMOTIVE WAREHOUSE, INC. 121.36 2/25/2021 10008675 TOTAL SAFETY SUPPLIES & SOLUTIONS 367.21 2/25/2021 10008676 TYLER TECHNOLOGIES, INC 300.00 2/25/2021 10008677 USA BLUE BOOK, HD SUPPLY FACILITIES MAINT, LTD 634.85 2/25/2021 10008678 WAXIE SANITARY SUPPLY 606.93 TOTAL 5,853,098.62 PAYMENT REGISTER FEBRUARY 1, 2021 - FEBRUARY 28, 2021 Page 6 of 6 R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: Brian Tomp kins C hief F inancial O fficer B OAR D AG E N D A S TAF F R E P O RT Agenda Item #4.b. Meeting Date: Marc h 24, 2021 C ons ent Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: F inanc ial S tatements fo r January 2021 R E COMME N D AT IO N: S taff recommends that the Board o f Direc tors (Board ) ac cept and file the attached financial s tatements as o f, and fo r the perio d end ed, January 31, 2021. B AC KG R O UN D / AN ALYS IS : Inc luded herewith fo r the Board’s review is a summary of Eas t Valley Water Dis trict’s financial res ults , as o f January 31, 2021. AGE N C Y GOALS AN D OB J E C T IVE S: G oal and O b jec tives I I - Maintain a C o mmitment to S us tainab ility, Trans p arency, and Ac countability a) P rac tic e Transparent and Ac countable F isc al Management R E VIE W B Y O T HE R S : T his agend a item has been reviewed b y the F inanc e Department. F IS CAL IMPAC T T here is no fis cal imp ac t as s oc iated with this agend a item. ATTAC H M E NTS: Description Type J anuary 2021 Financial Stateme nt M onthly Re view Backup Material J anuary 2021 Financial Stateme nts Backup Material FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING JANUARY 31, 2021 page | 1 FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING JANUARY 31, 2021 page | 2 FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING JANUARY 31, 2021 page | 3 FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING JANUARY 31, 2021 page | 4 327,445 328,000 98,294 95,000 FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING JANUARY 31, 2021 page | 5 FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING JANUARY 31, 2021 page | 6 FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING JANUARY 31, 2021 page | 7 WATER WASTEWATER DISTRICT TOTAL Assets: Current Assets: 01 Cash and Cash Equivalents 10,322,331.77$ -$ 10,322,331.77$ 02 Investments 3,054,098.85 1,473,229.69 4,527,328.54 03 Accounts Receivable, Net 5,170,680.06 272,217.82 5,442,897.88 04 ‐ Interest Receivable - 3,377.19 3,377.19 14*05 Other Receivables 432,783.29 - 432,783.29 07 Due from Sewer Fund 5,958,847.14 - 5,958,847.14 06 Due from Other Governments 12,807,550.37 717,136.00 13,524,686.37 08 Inventory 490,574.06 6,721.16 497,295.22 09 Prepaid Expenses 312,487.93 46,587.31 359,075.24 38,549,353.47 2,519,269.17 41,068,622.64 Non-Current Assets: 10 Restricted Cash and Cash Equivalents 3,167,715.07 4,480,411.69 7,648,126.76 11 Capital Assets not being Depreciated 11,014,906.39 137,966,456.19 148,981,362.58 13 Capital Assets, Net 105,179,205.38 18,824,927.86 124,004,133.24 119,361,826.84 161,271,795.74 280,633,622.58 Total Assets:157,911,180.31 163,791,064.91 321,702,245.22 Deferred Outflow Of Resources 24*Deferred Charge on Refunding 84,674.77 - 84,674.77 25 Deferred Outflows - Pensions 3,021,838.35 947,122.44 3,968,960.79 161,017,693.43 164,738,187.35 325,755,880.78 Current Liabilities: 22 Accounts Payable and Accrued Expenses 3,836,392.99 27,441.76 3,863,834.75 29 Due to Water Fund - 5,958,847.14 5,958,847.14 23 Accrued Payroll and Benefits 2,777.10 - 2,777.10 15 Customer Service Deposits 1,405,289.70 - 1,405,289.70 16 Construction Advances and Retentions 106,000.00 6,279,412.55 6,385,412.55 17 Accrued Interest Payable 369,819.91 51,181.25 421,001.16 18 Current Portion of Compensated Absences 413,999.70 120,469.30 534,469.00 19 Current Portion of Long-Term Debt 2,494,952.71 117,499.15 2,612,451.86 8,629,232.11 12,554,851.15 21,184,083.26 Non-Current Liabilities: 20 Compensated Absences, less current portion 57,640.54 31,635.03 89,275.57 28 Net Pension Liability 9,065,574.49 2,739,565.75 11,805,140.24 21 Long Term Debt, Less Current Portion 38,463,032.09 109,699,181.07 148,162,213.16 27 Other Liabilities 1,173.64 - 1,173.64 Deferred Inflows Of Resources 26 Deferred Inflows - Pensions 563,194.25 182,013.87 745,208.12 48,150,615.01 112,652,395.72 160,803,010.73 56,779,847.12 125,207,246.87 181,987,093.99 31 Equity 96,596,112.22 38,072,161.87 134,668,274.09 96,596,112.22 38,072,161.87 134,668,274.09 Tot Total Revenue 18,370,833.92 8,695,731.39 27,066,565.31 Tot Total Expense 10,729,099.83 7,236,952.78 17,966,052.61 7,641,734.09 1,458,778.61 9,100,512.70 104,237,846.31 39,530,940.48 143,768,786.79 161,017,693.43$ 164,738,187.35$ 325,755,880.78$ 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 January 31, 2021 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 1,389,494.83$ 12,754,117.50$ 17,068,000.00$ -$ -$ -$ 17,068,000.00$ 4,313,882.50$ 42 Meter Charges 756,767.26 5,292,210.81 9,020,000.00 - - - 9,020,000.00 3,727,789.19 43 Penalties 13,518.50 90,887.77 195,000.00 6,010.25 37,876.55 130,000.00 325,000.00 196,235.68 44 Wastewater System Charges - - - 387,652.62 2,762,661.04 4,656,000.00 4,656,000.00 1,893,338.96 45 Wastewater Treatment Charges - - - 713,375.26 5,105,864.95 8,586,000.00 8,586,000.00 3,480,135.05 46 Other Operating Revenue 36,070.88 174,856.05 56,000.00 9,289.00 58,746.68 65,000.00 121,000.00 (112,602.73) 47 Non Operating Revenue 2,137.98 58,761.79 259,000.00 - 730,582.17 30,000.00 289,000.00 (500,343.96) 48 Gain or Loss on Disposition - - - - - - - - 56 Benefits - - - - - - - - 68 Depreciation - - - - - - - - Revenue Total: 2,197,989.45 18,370,833.92 26,598,000.00 1,116,327.13 8,695,731.39 13,467,000.00 40,065,000.00 12,998,434.69 - - - - - Expense by Category 51 Labor 372,027.47 2,660,396.88 5,334,400.00 108,738.33 759,363.27 1,542,600.00 6,877,000.00 3,457,239.85 56 Benefits 138,583.24 1,896,883.82 2,893,400.00 36,953.44 522,587.02 750,600.00 3,644,000.00 1,224,529.16 63 Contract Services 626,781.53 1,754,942.81 4,093,950.00 749,213.06 5,548,051.24 9,508,050.00 13,602,000.00 6,099,005.95 65 Professional Development 388.50 86,531.66 300,650.00 126.00 31,395.34 107,350.00 408,000.00 290,073.00 53 Overtime 36,075.32 234,323.20 357,100.00 3,790.39 9,055.43 27,900.00 385,000.00 141,621.37 62 Materials and Supplies 178,411.50 644,133.09 1,189,200.00 4,210.02 44,066.19 115,800.00 1,305,000.00 616,800.72 64 Utilities 48,050.31 1,758,277.40 2,570,900.00 4,918.01 72,506.57 193,100.00 2,764,000.00 933,216.03 52 Temporary Labor - - - - - - - - 67 Other 7,352.06 336,381.33 672,600.00 3,097.49 143,623.09 72,400.00 745,000.00 264,995.58 54 Standby 3,609.41 19,639.50 33,000.00 917.55 3,942.13 2,000.00 35,000.00 11,418.37 61 Water Supply - 646,900.11 826,000.00 - - - 826,000.00 179,099.89 71 -Debt Service - 690,690.03 4,066,000.00 - 102,362.50 313,000.00 4,379,000.00 3,585,947.47 81 -Capital Improvement (28,879.71) 780,921.39 3,070,000.00 (3,496,457.50) (10,072,690.27) 395,000.00 3,465,000.00 12,756,768.88 82 -Capital Outlay 2,170.65 333,143.09 1,195,000.00 - 189,244.00 435,000.00 1,630,000.00 1,107,612.91 83 -Accounting Income Add back 26,709.06 (1,114,064.48) - 3,496,457.50 9,883,446.27 - - (8,769,381.79) Expense Total: 1,411,279.34 10,729,099.83 26,602,200.00 911,964.29 7,236,952.78 13,462,800.00 40,065,000.00 21,898,947.39 Total Surplus (Deficit): 786,710.11$ 7,641,734.09$ -$ 204,362.84$ 1,458,778.61$ -$ -$ -$ Unaudited Revenue and Expense Budget-to-Actual by Category Month Ended January 31, 2021 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 1,389,494.83$ 12,754,117.50$ 17,068,000.00$ -$ -$ -$ 17,068,000.00$ 4,313,882.50$ 42 Meter Charges 756,767.26 5,292,210.81 9,020,000.00 - - - 9,020,000.00 3,727,789.19 43 Penalties 13,518.50 90,887.77 195,000.00 6,010.25 37,876.55 130,000.00 325,000.00 196,235.68 44 Wastewater System Charges - - - 387,652.62 2,762,661.04 4,656,000.00 4,656,000.00 1,893,338.96 45 Wastewater Treatment Charges - - - 713,375.26 5,105,864.95 8,586,000.00 8,586,000.00 3,480,135.05 46 Other Operating Revenue 36,070.88 174,856.05 56,000.00 9,289.00 58,746.68 65,000.00 121,000.00 (112,602.73) 47 Non Operating Revenue 2,137.98 58,761.79 259,000.00 - 730,582.17 30,000.00 289,000.00 (500,343.96) Revenue Total: 2,197,989.45 18,370,833.92 26,598,000.00 1,116,327.13 8,695,731.39 13,467,000.00 40,065,000.00 12,998,434.69 - - - - - Program1000 - Board of Directors 7,702.63 63,279.62 179,900.00 3,299.21 27,097.77 77,100.00 257,000.00 166,622.61 Program2000 - General Administration 41,163.57 472,516.93 912,600.00 15,844.17 190,069.35 389,400.00 1,302,000.00 639,413.72 Program2100 - Human Resources 29,795.30 553,044.86 1,079,500.00 12,769.35 230,515.27 245,500.00 1,325,000.00 541,439.87 Program2200 - Public Affairs 39,099.02 352,849.04 1,162,400.00 17,418.04 234,747.52 426,600.00 1,589,000.00 1,001,403.44 Program2300 - Conservation 20,673.32 150,565.26 624,000.00 - - - 624,000.00 473,434.74 Program3000 - Finance 52,277.19 498,242.79 890,700.00 22,321.73 213,372.79 381,300.00 1,272,000.00 560,384.42 Program3200 - Information Technology 23,230.46 266,587.91 711,100.00 13,542.81 138,795.04 261,900.00 973,000.00 567,617.05 Program3300 - Customer Service 50,317.17 500,046.10 1,112,100.00 25,296.50 232,252.15 394,900.00 1,507,000.00 774,701.75 Program3400 - Meter Service 18,912.60 153,062.76 290,000.00 - (9.97) - 290,000.00 136,947.21 Program4000 - Engineering 48,602.80 470,722.66 1,080,800.00 18,309.70 193,698.82 463,200.00 1,544,000.00 879,578.52 Program5000 - Water Production 406,196.71 3,239,276.73 4,493,000.00 - - - 4,493,000.00 1,253,723.27 Program5100 - Water Treatment 56,435.79 540,689.74 905,000.00 - - - 905,000.00 364,310.26 Program5200 - Water Quality 34,087.85 252,976.94 480,000.00 - - - 480,000.00 227,023.06 Program6000 - Field Maintenance Administration 21,376.91 305,817.60 390,600.00 3,271.10 27,143.40 43,400.00 434,000.00 101,039.00 Program6100 - Water Maintenance 466,749.15 1,378,390.06 2,635,000.00 - - - 2,485,000.00 1,106,609.94 Program6200 - Wastewater Maintenance - - - 763,715.76 5,497,839.93 9,389,000.00 9,389,000.00 3,891,160.07 Program7000 - Facilities Maintenance 69,078.13 537,656.75 824,500.00 10,195.80 111,151.64 197,500.00 1,022,000.00 373,191.61 Program7100 - Fleet Maintenance 25,580.74 302,684.05 500,000.00 5,980.12 37,916.57 50,000.00 500,000.00 159,399.38 Program8000 - Capital - 690,690.03 8,331,000.00 - 102,362.50 1,143,000.00 9,474,000.00 17,450,329.26 Total Surplus (Deficit):786,710.11$ 7,641,734.09$ -$ 204,362.84$ 1,458,778.61$ -$ -$ -$ Revenue and Expense Budget-to-Actual by Program Month Ended January 31, 2021 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 1,389,494.83$ 12,754,117.50$ 17,068,000.00$ -$ -$ -$ 17,068,000.00$ 4,313,882.50$ 42 Meter Charges 756,767.26 5,292,210.81 9,020,000.00 - - - 9,020,000.00 3,727,789.19 43 Penalties 13,518.50 90,887.77 195,000.00 6,010.25 37,876.55 130,000.00 325,000.00 196,235.68 44 Wastewater System Charges - - - 387,652.62 2,762,661.04 4,656,000.00 4,656,000.00 1,893,338.96 45 Wastewater Treatment Charges - - - 713,375.26 5,105,864.95 8,586,000.00 8,586,000.00 3,480,135.05 46 Other Operating Revenue 36,070.88 174,856.05 56,000.00 9,289.00 58,746.68 65,000.00 121,000.00 (112,602.73) 47 Non Operating Revenue 2,137.98 58,761.79 259,000.00 - 730,582.17 30,000.00 289,000.00 (500,343.96) 48 Gain or Loss on Disposition - - - - - - - - 56 Benefits - - - - - - - - 68 Depreciation - - - - - - - - Revenue Total: 2,197,989.45 18,370,833.92 26,598,000.00 1,116,327.13 8,695,731.39 13,467,000.00 40,065,000.00 12,998,434.69 Program: 1000 - Board of Directors - - - 51 Labor 3,920.00$ 30,870.00$ 73,500.00$ 1,680.00$ 13,230.00$ 31,500.00$ 105,000.00$ 60,900.00$ 56 Benefits 3,778.13 31,357.69 56,000.00 1,619.21 13,439.02 24,000.00 80,000.00 35,203.29 62 Materials and Supplies - 136.96 700.00 - 58.70 300.00 1,000.00 804.34 63 Contract Services - - 21,700.00 - - 9,300.00 31,000.00 31,000.00 65 Professional Development 4.50 914.97 28,000.00 - 370.05 12,000.00 40,000.00 38,714.98 Program: 1000 - Board of Directors Total: 7,702.63 63,279.62 179,900.00 3,299.21 27,097.77 77,100.00 257,000.00 166,622.61 Program: 2000 - General Administration - - - 51 Labor 26,737.90 187,648.86 367,500.00 11,459.10 80,115.89 157,500.00 525,000.00 257,235.25 53 Overtime 30.15 620.25 2,100.00 12.93 265.85 900.00 3,000.00 2,113.90 56 Benefits 10,935.15 159,553.77 232,400.00 2,889.13 56,247.32 99,600.00 332,000.00 116,198.91 62 Materials and Supplies 90.43 699.86 3,500.00 38.75 299.92 1,500.00 5,000.00 4,000.22 63 Contract Services 3,107.44 70,554.00 215,600.00 1,331.76 30,237.43 92,400.00 308,000.00 207,208.57 64 Utilities - 943.82 2,100.00 - 404.50 900.00 3,000.00 1,651.68 65 Professional Development 262.50 52,496.37 89,400.00 112.50 22,498.44 36,600.00 126,000.00 51,005.19 Program: 2000 - General Administration Total: 41,163.57 472,516.93 912,600.00 15,844.17 190,069.35 389,400.00 1,302,000.00 639,413.72 Program: 2100 - Human Resources - - - - 51 Labor 13,528.05 91,420.44 170,100.00 5,797.75 39,167.54 72,900.00 243,000.00 112,412.02 52 Temporary Labor - - - - - - - - 53 Overtime 164.79 223.39 2,100.00 70.62 95.73 900.00 3,000.00 2,680.88 56 Benefits 4,455.19 71,679.03 105,700.00 1,909.31 30,719.09 45,300.00 151,000.00 48,601.88 62 Materials and Supplies - 3,285.20 7,000.00 - 332.16 3,000.00 10,000.00 6,382.64 63 Contract Services 4,388.27 40,723.64 104,700.00 1,880.68 12,037.98 36,300.00 141,000.00 88,238.38 64 Utilities - 428.49 700.00 - 183.65 300.00 1,000.00 387.86 65 Professional Development 31.50 10,164.10 33,600.00 13.50 4,356.03 14,400.00 48,000.00 33,479.87 67 Other 7,227.50 335,120.57 655,600.00 3,097.49 143,623.09 72,400.00 728,000.00 249,256.34 Program: 2100 - Human Resources Total: 29,795.30 553,044.86 1,079,500.00 12,769.35 230,515.27 245,500.00 1,325,000.00 541,439.87 Month Ended January 31, 2021 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 January 31, 2021 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 2200 - Public Affairs - - - - 51 Labor 27,628.71 171,183.31 372,500.00 11,165.09 70,699.61 159,500.00 532,000.00 290,117.08 52 Temporary Labor - - - - - - - - 53 Overtime 2,166.10 4,444.10 11,900.00 928.33 1,904.60 5,100.00 17,000.00 10,651.30 56 Benefits 6,434.21 82,815.25 188,300.00 2,621.57 53,773.03 80,700.00 269,000.00 132,411.72 62 Materials and Supplies - 7,481.70 81,200.00 - 8,086.32 34,800.00 116,000.00 100,431.98 63 Contract Services 2,870.00 83,806.49 442,700.00 2,703.05 97,235.90 118,300.00 561,000.00 379,957.61 64 Utilities - 1,091.72 38,500.00 - 2,179.56 16,500.00 55,000.00 51,728.72 65 Professional Development - 2,026.47 27,300.00 - 868.50 11,700.00 39,000.00 36,105.03 Program: 2200 - Public Affairs Total: 39,099.02 352,849.04 1,162,400.00 17,418.04 234,747.52 426,600.00 1,589,000.00 1,001,403.44 Program: 2300 - Conservation - - - - 51 Labor 10,107.32 54,340.16 107,000.00 - - - 107,000.00 52,659.84 52 Temporary Labor - - - - - - - - 53 Overtime - - 7,000.00 - - - 7,000.00 7,000.00 56 Benefits 3,016.84 20,146.44 36,000.00 - - - 36,000.00 15,853.56 62 Materials and Supplies 2,424.16 47,592.92 167,000.00 - - - 167,000.00 119,407.08 63 Contract Services 5,125.00 27,823.10 258,000.00 - - - 258,000.00 230,176.90 64 Utilities - 662.64 39,000.00 - - - 39,000.00 38,337.36 65 Professional Development - - 10,000.00 - - - 10,000.00 10,000.00 Program: 2300 - Conservation Total: 20,673.32 150,565.26 624,000.00 - - - 624,000.00 473,434.74 Program: 3000 - Finance - - - - 51 Labor 38,797.87 270,997.54 501,200.00 16,565.78 115,975.92 214,800.00 716,000.00 329,026.54 52 Temporary Labor - - - - - - - - 53 Overtime 1,153.87 2,798.84 9,100.00 494.52 1,199.48 3,900.00 13,000.00 9,001.68 56 Benefits 12,073.34 189,573.15 269,500.00 5,153.38 81,195.84 115,500.00 385,000.00 114,231.01 62 Materials and Supplies 223.42 2,487.40 7,700.00 95.75 1,066.05 3,300.00 11,000.00 7,446.55 63 Contract Services - 29,115.73 77,000.00 - 12,534.00 33,000.00 110,000.00 68,350.27 64 Utilities 28.69 1,373.94 2,800.00 12.30 588.85 1,200.00 4,000.00 2,037.21 65 Professional Development - 1,896.19 22,400.00 - 812.65 9,600.00 32,000.00 29,291.16 67 Other - - 1,000.00 - - - 1,000.00 1,000.00 Program: 3000 - Finance Total: 52,277.19 498,242.79 890,700.00 22,321.73 213,372.79 381,300.00 1,272,000.00 560,384.42 Program: 3200 - Information Technology - - - - 51 Labor 14,620.08 103,706.93 236,600.00 8,889.32 62,838.87 101,400.00 338,000.00 171,454.20 52 Temporary Labor - - - - - - - - 53 Overtime - - - - - - - - 56 Benefits 4,093.34 42,500.63 84,000.00 2,717.60 24,364.58 36,000.00 120,000.00 53,134.79 62 Materials and Supplies 523.80 21,689.13 30,100.00 224.50 9,295.34 12,900.00 43,000.00 12,015.53 63 Contract Services 3,993.24 93,696.16 345,000.00 1,711.39 40,155.51 105,000.00 450,000.00 316,148.33 64 Utilities - 3,613.26 4,200.00 - 1,548.54 1,800.00 6,000.00 838.20 65 Professional Development - 1,381.80 11,200.00 - 592.20 4,800.00 16,000.00 14,026.00 Program: 3200 - Information Technology Total: 23,230.46 266,587.91 711,100.00 13,542.81 138,795.04 261,900.00 973,000.00 567,617.05 Page 5 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended January 31, 2021 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 3300 - Customer Service - - - - 51 Labor 16,667.15 122,860.31 236,500.00 9,705.36 67,376.78 178,500.00 415,000.00 224,762.91 52 Temporary Labor - - - - - - - - 53 Overtime 165.73 559.79 4,900.00 71.03 245.97 2,100.00 7,000.00 6,194.24 56 Benefits 7,793.67 125,034.94 194,300.00 4,563.21 59,790.94 47,700.00 242,000.00 57,174.12 62 Materials and Supplies - 3,300.34 6,300.00 - 1,414.44 2,700.00 9,000.00 4,285.22 63 Contract Services 18,000.28 200,680.46 525,800.00 7,714.43 83,559.93 113,200.00 639,000.00 354,759.61 64 Utilities 7,565.78 46,349.50 115,100.00 3,242.47 19,864.09 45,900.00 161,000.00 94,786.41 65 Professional Development - - 13,200.00 - - 4,800.00 18,000.00 18,000.00 67 Other 124.56 1,260.76 16,000.00 - - - 16,000.00 14,739.24 Program: 3300 - Customer Service Total: 50,317.17 500,046.10 1,112,100.00 25,296.50 232,252.15 394,900.00 1,507,000.00 774,701.75 Program: 3400 - Meter Service - - - - 51 Labor 13,902.18 100,069.84 197,000.00 - (22.10) - 197,000.00 96,952.26 53 Overtime - 510.69 6,000.00 - - - 6,000.00 5,489.31 56 Benefits 4,920.96 49,353.99 72,000.00 - 12.13 - 72,000.00 22,633.88 62 Materials and Supplies - 712.53 5,000.00 - - - 5,000.00 4,287.47 63 Contract Services 89.46 1,327.35 8,000.00 - - - 8,000.00 6,672.65 64 Utilities - 1,088.36 2,000.00 - - - 2,000.00 911.64 65 Professional Development - - - - - - - - Program: 3400 - Meter Service Total: 18,912.60 153,062.76 290,000.00 - (9.97) - 290,000.00 136,947.21 Program: 4000 - Engineering - - - - 51 Labor 32,643.17 241,839.57 514,500.00 13,989.93 103,632.80 220,500.00 735,000.00 389,527.63 52 Temporary Labor - - - - - - - - 53 Overtime - - 2,100.00 - - 900.00 3,000.00 3,000.00 56 Benefits 9,500.44 158,243.65 184,100.00 4,071.54 67,682.92 78,900.00 263,000.00 37,073.43 62 Materials and Supplies - 1,071.25 16,100.00 - 415.54 6,900.00 23,000.00 21,513.21 63 Contract Services - 22,971.85 202,300.00 - 6,945.95 86,700.00 289,000.00 259,082.20 64 Utilities 6,459.19 45,998.89 137,200.00 248.23 14,765.56 58,800.00 196,000.00 135,235.55 65 Professional Development - 597.45 24,500.00 - 256.05 10,500.00 35,000.00 34,146.50 Program: 4000 - Engineering Total: 48,602.80 470,722.66 1,080,800.00 18,309.70 193,698.82 463,200.00 1,544,000.00 879,578.52 Program: 5000 - Water Production - - - - 51 Labor 41,156.10 358,542.44 723,000.00 - - - 723,000.00 364,457.56 53 Overtime 3,842.88 26,219.24 22,000.00 - - - 22,000.00 (4,219.24) 54 Standby 1,176.68 8,362.68 15,000.00 - - - 15,000.00 6,637.32 56 Benefits 17,641.08 297,048.40 452,000.00 - - - 452,000.00 154,951.60 61 Water Supply - 646,900.11 826,000.00 - - - 826,000.00 179,099.89 62 Materials and Supplies 47,460.85 140,496.90 300,000.00 - - - 300,000.00 159,503.10 63 Contract Services 294,829.12 370,342.64 381,000.00 - - - 381,000.00 10,657.36 64 Utilities - 1,388,059.54 1,764,000.00 - - - 1,764,000.00 375,940.46 65 Professional Development 90.00 3,304.78 10,000.00 - - - 10,000.00 6,695.22 Program: 5000 - Water Production Total: 406,196.71 3,239,276.73 4,493,000.00 - - - 4,493,000.00 1,253,723.27 Page 6 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended January 31, 2021 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 5100 - Water Treatment - - - - 51 Labor 17,527.14 125,799.61 252,000.00 - - - 252,000.00 126,200.39 53 Overtime 3,460.50 23,196.14 39,000.00 - - - 39,000.00 15,803.86 56 Benefits 6,459.62 102,473.22 150,000.00 - - - 150,000.00 47,526.78 62 Materials and Supplies 28,700.67 133,660.28 165,000.00 - - - 165,000.00 31,339.72 63 Contract Services 287.86 80,678.77 149,000.00 - - - 149,000.00 68,321.23 64 Utilities - 74,881.72 150,000.00 - - - 150,000.00 75,118.28 Program: 5100 - Water Treatment Total: 56,435.79 540,689.74 905,000.00 - - - 905,000.00 364,310.26 Program: 5200 - Water Quality - - - - 51 Labor 13,753.80 96,585.10 184,000.00 - - - 184,000.00 87,414.90 53 Overtime 435.72 1,079.49 13,000.00 - - - 13,000.00 11,920.51 56 Benefits 4,029.00 102,143.19 90,000.00 - - - 90,000.00 (12,143.19) 62 Materials and Supplies 3,993.94 8,800.69 18,000.00 - - - 18,000.00 9,199.31 63 Contract Services 11,875.39 43,928.47 167,000.00 - - - 167,000.00 123,071.53 64 Utilities - - 2,000.00 - - - 2,000.00 2,000.00 65 Professional Development - 440.00 6,000.00 - - - 6,000.00 5,560.00 Program: 5200 - Water Quality Total: 34,087.85 252,976.94 480,000.00 - - - 480,000.00 227,023.06 Program: 6000 - Field Maintenance Administration - - - - 51 Labor 13,087.52 91,852.93 180,000.00 1,442.07 10,108.36 20,000.00 200,000.00 98,038.71 52 Temporary Labor - - - - - - - - 53 Overtime - - 1,800.00 - - 200.00 2,000.00 2,000.00 54 Standby 2,432.73 11,276.82 18,000.00 917.55 3,942.13 2,000.00 20,000.00 4,781.05 56 Benefits 5,770.77 162,712.56 129,600.00 901.94 9,538.19 14,400.00 144,000.00 (28,250.75) 62 Materials and Supplies - 9,446.36 2,700.00 - - 300.00 3,000.00 (6,446.36) 63 Contract Services 85.89 1,112.01 900.00 9.54 123.59 100.00 1,000.00 (235.60) 64 Utilities - 16,107.39 36,900.00 - 1,789.71 4,100.00 41,000.00 23,102.90 65 Professional Development - 13,309.53 20,700.00 - 1,641.42 2,300.00 23,000.00 8,049.05 Program: 6000 - Field Maintenance Administration Total: 21,376.91 305,817.60 390,600.00 3,271.10 27,143.40 43,400.00 434,000.00 101,039.00 Program: 6100 - Water Maintenance - - - - 51 Labor 72,767.64 506,187.17 1,012,000.00 - - - 1,012,000.00 505,812.83 53 Overtime 23,602.08 171,100.43 219,000.00 - - - 219,000.00 47,899.57 56 Benefits 31,735.35 222,419.89 516,000.00 - - - 516,000.00 293,580.11 62 Materials and Supplies 90,877.39 184,749.58 301,000.00 - - - 301,000.00 116,250.42 63 Contract Services 232,646.69 278,812.99 587,000.00 - - - 587,000.00 308,187.01 64 Utilities 15,120.00 15,120.00 - - - - - (15,120.00) Program: 6100 - Water Maintenance Total: 466,749.15 1,378,390.06 2,635,000.00 - - - 2,635,000.00 1,256,609.94 Program: 6200 - Wastewater Maintenance - - - - 51 Labor - - - 24,282.71 169,813.29 335,000.00 335,000.00 165,186.71 53 Overtime - - - 1,895.77 4,439.71 9,000.00 9,000.00 4,560.29 56 Benefits - - - 8,889.23 104,737.79 176,000.00 176,000.00 71,262.21 62 Materials and Supplies - - - - 6,958.23 36,000.00 36,000.00 29,041.77 Wastewater Treatment - - - 713,375.26 5,105,864.95 7,610,000.00 7,610,000.00 2,504,135.05 63 Contract Services - - - 15,272.79 106,025.96 1,223,000.00 1,223,000.00 1,116,974.04 Program: 6200 - Wastewater Maintenance Total:- - - 763,715.76 5,497,839.93 9,389,000.00 9,389,000.00 3,891,160.07 Page 7 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended January 31, 2021 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 7000 - Facilities Maintenance - - - - 51 Labor 9,334.09 65,664.26 126,000.00 3,111.35 21,889.77 42,000.00 168,000.00 80,445.97 53 Overtime 1,136.03 2,602.19 16,500.00 378.67 867.39 5,500.00 22,000.00 18,530.42 56 Benefits 4,070.62 46,707.46 76,500.00 1,356.66 17,335.38 25,500.00 102,000.00 37,957.16 62 Materials and Supplies 787.57 19,886.95 45,500.00 262.54 5,407.41 10,500.00 56,000.00 30,705.64 63 Contract Services 41,385.96 298,176.24 396,250.00 4,395.22 40,907.19 62,750.00 459,000.00 119,916.57 64 Utilities 12,363.86 104,619.65 163,000.00 691.36 24,744.50 51,000.00 214,000.00 84,635.85 65 Professional Development - - 750.00 - - 250.00 1,000.00 1,000.00 Program: 7000 - Facilities Maintenance Total: 69,078.13 537,656.75 824,500.00 10,195.80 111,151.64 197,500.00 1,022,000.00 373,191.61 - - Program: 7100 - Fleet Maintenance - - - - 51 Labor 5,848.75 40,828.41 81,000.00 649.87 4,536.54 9,000.00 90,000.00 44,635.05 53 Overtime 82.26 1,192.04 2,700.00 9.14 132.43 300.00 3,000.00 1,675.53 56 Benefits 1,710.74 32,897.17 54,900.00 190.04 3,655.06 6,100.00 61,000.00 24,447.77 62 Materials and Supplies 3,329.27 58,635.04 32,400.00 3,588.48 10,732.08 3,600.00 36,000.00 (33,367.12) 63 Contract Services 8,096.93 111,192.91 212,000.00 818.94 12,422.85 18,000.00 230,000.00 106,384.24 64 Utilities 6,512.79 57,938.48 113,400.00 723.65 6,437.61 12,600.00 126,000.00 61,623.91 65 Professional Development - - 3,600.00 - - 400.00 4,000.00 4,000.00 Program: 7100 - Fleet Maintenance Total: 25,580.74 302,684.05 500,000.00 5,980.12 37,916.57 50,000.00 550,000.00 209,399.38 - - Program: 8000 - Capital - - - 71 -Debt Service - 690,690.03 4,066,000.00 - 102,362.50 313,000.00 4,379,000.00 3,585,947.47 81 -Capital Improvement (28,879.71) 780,921.39 3,070,000.00 (3,496,457.50) (10,072,690.27) 395,000.00 3,465,000.00 12,756,768.88 82 -Capital Outlay 2,170.65 333,143.09 1,195,000.00 - 189,244.00 435,000.00 1,630,000.00 1,107,612.91 83 -Accounting Income Add back 26,709.06 (1,114,064.48) - 3,496,457.50 9,883,446.27 - - (8,769,381.79) Program: 8000 - Capital Total: - 690,690.03 8,331,000.00 - 102,362.50 1,143,000.00 9,474,000.00 8,680,947.47 Total Surplus (Deficit): 786,710.11$ 7,641,734.09$ -$ 204,362.84$ 1,458,778.61$ -$ -$ -$ Page 8 of 8 B OAR D AG E N D A S TAF F R E P O RT Agenda Item #5. Meeting Date: Marc h 24, 2021 Dis c ussion Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: C o ns id er Adoption of Updated G rant S trategy R E COMME N D AT IO N: S taff rec o mmend s that the Board o f Directors ad o pt the up d ated G rant S trategy. B AC KG R O UN D / AN ALYS IS : T he District is an infras truc ture-based organization that values s trategic and thoughtful planning. T hrough a s eries o f c ollaborative processes , the Dis tric t id entifies p rojec ts need ed both in a s ho rt-term and lo ng-term timeframe. With the comp letion o f this proc ess comes the identificatio n of fund ing s o urces whic h includ e general funds, development fees , munic ip al bo nds , grants , o r other loans . G rant funding c an b e an opp o rtunity to align the Dis tric t's p riorities with tho s e of o ther agenc ies . T hes e s ourc es c an o ffs et the c o s ts of large capital inves tments and avo id the need to pass tho s e c o sts along to ratepayers. As an organization that s erves a large d is ad vantaged p opulatio n, this s o urce o f funding is mo re widely available. However, it is imp o rtant to note that with grant fund ing come add itional conditio ns and rep o rting req uirements that wo uld no t be req uired if the Dis trict self funded . G iven the pros and cons o f grant funding it is important that the Dis trict have a s trategy for guidance. T he District o riginally adopted the G rant S trategy in 2012, s inc e then the o rganization has undergone a d ynamic transformation. S taff has d evelo p ed an upd ated doc ument for Bo ard cons id eratio n that will facilitate an approac h to grant pursuits . T his allo ws fo r maximum flexibility when fund ing is made availab le, while avoid ing the p o tential for purs uing funding for a p ro jec t inc o ns is tent with the organizational p rio rities . As with other elements o f the Dis tric t's policy and o p eratio nal direc tio n, the grant s trategy requires a high d egree o f coordinatio n and c o mmunicatio n ac ro s s p ro grams . AGE N C Y GOALS AN D OB J E C T IVE S: G oal and O b jec tives I I - Maintain a C o mmitment to S us tainab ility, Trans p arency, and Ac countability c ) P urs ue Alternative F unding S ourc es R E VIE W B Y O T HE R S : R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: Kelly Malloy Direc tor of S trategic S ervices R E VIE W B Y O T HE R S : T his item has b een reviewed b y the Legislative and P ublic O utreach C ommittee and the C o mmunity Ad vis ory C o mmission. F IS CAL IMPAC T T here is no fis cal imp ac t as s oc iated with this item. ATTAC H M E NTS: Description Type Draft Grant Strategy Backup Material East Valley Water District (EVWD) has been very successful at securing and completing projects with the help of grant funding. Using this experience, the District continues to develop a strategy for the approach and prioritization of funding in a manner that supports the District’s Strategic Plan. Funding opportunities may include methods such as competitive grants, appropriations, formula-based funding and per capita allocations to reduce ratepayer expenses. Grant Strategy EAST VALLEY WATER DISTRICT ROLES & RESPONSIBILITIES Board of Directors • Review, advise and adopt the Grant Strategy. • Consider approval of Resolutions, delegation of authority, applications, letters of support and other policy level documentation, as necessary. • Consider signing acknowledgements and certifications, as necessary. • Should the consideration of a grant opportunity not be consistent with the adopted Strategic Initiatives, Five-Year Plan or other adopted planning document, the Board of Directors would consider authorizing the application prior to submission. • Update the Grant Strategy, as approved by the Board of Directors. • Monitor grant availability and evaluate the potential benefits to the District. • Coordinate Grant Strategy with the Board of Directors to promote the interests of EVWD to decision makers at all levels of government. • The General Manager/CEO is authorized to submit grant program applications on behalf of the Board of Directors, so long as the grant is consistent with the adopted Strategic Initiatives, Five-Year Plan, and other adopted planning documents. • Participate in meetings with funding agency representatives, legislators, Board of Directors and other public officials, as needed. • Work with Consultants to develop grant applications, maintain application logs and priorities and maintain Grant Strategy, as needed. • Develop and submit grant reporting requirements as required by secured funding sources. • The General Manager/CEO and designated staff may participate in grant discussions on behalf of the District, so long as it is consistent with the Strategic Initiatives and Grant Strategy. General Manager/CEO & Staff Consultant • Monitor, review, and advise staff of funding opportunities that align with the District’s Grant Strategy. • As necessary, work with District staff to draft grant applications in a manner that is both competitive and consistent with the organizational priorities and application requirements. • As necessary, assist with grant management and reporting requirements. • Provide an exceptional level of transparency, ethics, and customer service in representing East Valley Water District’s interest to all funding agency officials, staff, and agencies. • As necessary, participate in workshops, technical discussions, and agency interactions on behalf of the District. LEADERSHIP | PARTNERSHIP | STEWARDSHIP Organizational Evaluation The Grant Strategy reflects the priorities adopted by the Board of Directors through the Strategic Initiatives, Five-Year Plan, and other planning documents. It is designed to serve as a guide for EVWD’s efforts in pursuit of funding from local, State, and Federal agencies. East Valley Water District puts extensive effort into developing Planning Documents that balance the needs of proactive efforts with day-to-day needs. These documents are developed in a collaborative setting and have been adopted by the Governing Board including, but not limited to: PLANNING EFFORTS • Strategic Initiatives (Organization Vision, Core Values, Agency Goals and Objectives) • Five-Year Plan • Annual Budget • Capital Improvement Plan • Water/ Wastewater Master Plans • Hazard Mitigation Plan • Legislative Platform • Internal Policies FINANCIAL ELEMENTS Grant funding can be a resourceful means of financing projects while minimizing the impact on ratepayers. These programs are ideal when the Strategic Priorities of the District align with the funding agency. While there are many funding sources available, few will be consistent with the District’s planning efforts. When considering the submission of a grant application, the District shall assess the following financial considerations: • The District should monitor the cost for active grant funded projects and ensure that they will not interfere with existing funding and that there are adequate resources to ensure the application commitments could be fulfilled. • Recognize that the cost for application preparation averages 10% of the request including staff and consultant expenditures. When pursued, this is an investment in the District that will not be reimbursable by the grant, if successful. • Understand the funding requirements of the grant including maximum request amount, funding match requirement, and reporting/audit requirements. • Utilization of specialized grant consultants can strategically invest resources in the pursuit and monitoring of constantly changing funding opportunities. In addition to financial consideration, each grant or loan opportunity will be focused to support the funding agencies priorities and regulatory obligations. When monitoring calls for application and considering grant opportunities, the District should ensure that programs are consistent with existing strategic planning efforts. The grants, appropriations, formula-based funding, and per capita allocations should assess: PROGRAM ASSESSMENT • Evaluating programs to determine where the District will be the most competitive. • The funding source’s consistency with the District’s plan and vision as identified in the planning documents. • Upcoming and new legislation incentivizing the District’s participation in the funding program. • Current staff capacity to seek, pursue and manage the particular grant. • Previous experience, if any, with the funding agency. • The planned program timing and the alignment with the District’s effort. Understand that if successful, funding awards typically occur no less than six months after application submittal, and in many cases 12-18 months later. • District’s access to the data requested in the application or in the subsequent reporting requirements. • Cost benefit review to pursuing the funding source, considering commitments, reporting requirements, staff resources, and funding request amount. In general, this amount should be no less than $100,000 to justify necessary funding administration efforts. • Funding source schedule and whether the source is cyclical to assess the cycle the District would be the most competitive. Grant Funding SUCCESSFUL GRANT AWARDS PROJECT ENTITY TYPE GRANT LOAN SNRC Project State Water Resources Control Board (SWRCB) /Department of Natural Resources / CAEATFA SRF/Prop 1 /Urban Greening Grant / Sales Tax Exclusion $ 6,742,125 $ 150,257,875 Arroyo Verde Consolidation SWRCB (CA Department of Public Health)Safe Drinking Water 676,209 169,052 Baseline Gardens Consolidation SWRCB (CA Department of Public Health)Safe Drinking Water 3,475,835 AMI Meter Water/Energy Department of Natural Re-sources 2014 Water-Energy Grant Program 1,990,612 Eastwood Farms Consolidation SWRCB (CA Department of Public Health)Safe Drinking Water 1,561,929 390,482 Plant 134 Cook Creek Bridge FEMA Disaster Reimbursement 607,939 Earthquake Seismic Valve Study California Office of Emergency Services (CalOES)HMGP 124,918 Santa Ana River Water Transmission line (North Fork Canal Replacement FEMA/CalOES 4,135,793 AGENCY GENERAL PROJECT TYPE GRANT/ LOAN POTENTIAL PROJECTS STATE OF CALIFORNIA Office of Emergency Services Planning, Disaster Mitigation, Disaster Recovery Grants Pipeline Replacement, Reservoir Study, Emergency Cost Recovery Department of Natural Resources Carbon Emission Reduction, Park Space Grants SNRC Public Space Energy Commission Alternative Energy Generation Grants/ Loans SNRC Digesters CalRecycle Waste Diversion, Alternative Energy Generation Grants SNRC Digester State Water Resources Control Board Planning, Capital Construction Grants/ Loans Surface Water Treatment Plant, Facility Treatment FEDERAL Bureau of Reclamation Water Efficiency Grants Conservation Planning, Capital Projects, Water Conservation Rebates Environmental Protection Agency Water infrastructure, Water quality Grants Pipeline Replacement, Reservoir Construction, Surface Water Treatment Plant, Facility Treatment Enhancements Federal Emergency Management Agency Planning, Disaster Mitigation, Disaster Recovery Grants Reservoir Construction, Pipeline Replacement, Generator Installation, Emergency Cost Recovery Potential Grant Funding As a California Special District that provides water and wastewater services, the District is eligible to submit applications for many grants offered by multiple state and federal agencies. Funding agency initiatives that are consistent with District projects include: disaster mitigation, water quality, alternative energy/waste diversion, and carbon emission reduction. While new funding opportunities are generated following the implementation of legislation, the following are examples of potential funding agencies with goals that align with the District’s priorities: B OAR D AG E N D A S TAF F R E P O RT Agenda Item #6. Meeting Date: Marc h 24, 2021 Dis c ussion Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: C o ns id er Adoption of R esolutio n 2021.06 Upd ating Inves tment P olicy 7.6 R E COMME N D AT IO N: S taff rec o mmend s that the Board o f Direc tors (Bo ard ) review and ap prove R es o lution 2021.06 up d ating the S tatement o f Investment P o lic y 7.6 (P olic y) for fis c al year 2021-22. B AC KG R O UN D / AN ALYS IS : C alifornia Government C ode section 53646(a) requires that the C F O /T reasurer of a local agency annually render to the legislative body a S tatement of I nvestment P olicy for consideration at a public meeting. Accordingly, a proposed S tatement of I nvestment P olicy for fiscal year 2021-22 is attached. T he policy submitted to and approved by the Board on M ay 13, 2020 was subsequently submitted to the C alifornia M unicipal T reasurers Association (C M TA) for peer review. T he reviewers at C M TA scored the policy and gave their remarks and awarded the D istrict the C M TA I nvestment P olicy C ertification. T his C ertifications recognizes that the D istrict’s P olicy adheres to the S tate of California G overnment C ode and meets program requirements within 18 different topic areas deemed to be best practices for investment policies. T he policy submitted herewith shows the changes recommended by the C M TA as a result of their peer review. S taff recommends adoption of R esolution 2021.06 adopting the attached S tatement of I nvestment P olicy for fiscal year 2021-22 and incorporating the changes as shown. AGE N C Y GOALS AN D OB J E C T IVE S: G oal and O b jec tives I I - Maintain a C o mmitment to S us tainab ility, Trans p arency, and Ac countability a) P rac tic e Transparent and Ac countable F isc al Management R E VIE W B Y O T HE R S : T his agenda item has been reviewed b y the F inanc e Department and F inance and Human R es o urces C o mmittee. R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: Brian Tomp kins C hief F inancial O fficer F IS CAL IMPAC T T here is no fis cal imp ac t as s oc iated with this agend a item. ATTAC H M E NTS: Description Type Resolution 202 1.06 Resolution Lette r Exhibit A - State ment o f Investment P olicy 7.6 Exhibit East Valley Water District Resolution 2021.06 Page 1 of 2 RESOLUTION NO. 2021.06 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ESTABLISHING AN INVESTMENT POLICY FOR PUBLIC FUNDS WHEREAS, the Board of Directors of the East Valley Water District (the “District”) desires to maintain a formal policy regarding the investment of public funds pursuant to the requirements of Government Code Sections 5921 and 53600 et seq.; and WHEREAS, the Board of Directors of the District has employed qualified staff to invest those funds in accordance with the law and the terms of the District’s investment policy , as well as in a manner that advances the District’s investment objectives of safety, liquidity and yield; and NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the District that the East Valley Water District Investment Policy attached hereto as Exhibit “A” and incorporated in full herein by this reference is hereby adopted as the formal investment policy of the District; and BE IF FURTHER RESOLVED that the General Manager/CEO and the Treasurer/Chief Financial Officer of the District are hereby authorized and directed to invest the District’s funds in a manner consistent with the terms hereof and in accordance with any further directions of the District’s Board of Directors; and BE IT FURTHER RESOLVED that this Resolution supersedes Resolution No. 2020.03 adopted by the Board of Directors of the District on May 13, 2020. This Resolution shall take effect on July 1, 2021. ADOPTED this 24th day of March 2021. ROLL CALL: Ayes: Noes: Absent: Abstain: David E. Smith, Board President East Valley Water District Resolution 2021.06 Page 2 of 2 ATTEST: John Mura, Secretary, Board of Directors March 24, 2021 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2021.06 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held March 24, 2021. John Mura, Secretary, Board of Directors EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: May 13, 2020March 24, 2021 Policy No: 7.6 Page 1 of 14 Purpose The purpose of this policy is to establish guidelines for the prudent investment of East Valley Water District (District) funds in conformance with California Government Code requirements. Funds will be managed to provide for daily cash flow requirements and to meet the objectives of this policy. Policy It is the policy of the District to invest public funds in a manner which ensures the safety and preservation of capital while meeting reasonably anticipated operating needs, achieving a reasonable rate of return, and conforming to all state and local statutes governing the investment of public funds. Scope This policy applies to the investment of all operating funds; it does not apply to investments held in trust for the District retirement plan, or post-employment health benefits, as these investments are subject to policies established by the plan trustees. Indenture agreements specify how bond proceeds will be invested, but generally they will be invested in securities permitted by this policy. Invested funds are accounted for, and are identified in, the District’s Comprehensive Annual Financial Report. Objectives As specified in CGC §53600.5, when investing and managing public funds, the primary objectives, in priority order, of the District’s investment activities shall be: 1.Safety: Safety of principal is the foremost objective of the investment program. Investments of the East Valley Water District shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio by mitigating certain risks. Some of those risks are: A.Interest Rate Risk – the District will minimize the risk that the market value of securities in the portfolio will fall due to changes in general interest rates by: EXHIBIT "A" EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: May 13, 2020March 24, 2021 Policy No: 7.6 Page 2 of 14 Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operation and avoiding the need to sell securities on the open market prior to maturity. Investing operating funds primarily in short-term securities, money market mutual funds, or investment pools. B. Credit Risk – the risk that an issuer or other counterparty to an investment will not fulfill its obligations, will be reduced by: Limiting investments to higher rated securities as further described in this policy. Diversifying the investment portfolio so that potential losses on individual securities will be reduced. 2. Liquidity: The investment portfolio will remain sufficiently liquid to enable the East Valley Water District to meet all operating requirements that might be reasonably anticipated. 3. Return on Investments: The investment portfolio shall be designed with the objective of attaining the best yield or returns on investments, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives. Prudence The standard of prudence to be used by District officials involved in the investment program shall be the “prudent investor” standard and shall be applied in the context of managing the overall portfolio. The meaning of the standard of prudent investor is explained in CGC Section 53600.3, which states that “when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.” EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: May 13, 2020March 24, 2021 Policy No: 7.6 Page 3 of 14 The CFO/Treasurer and delegated investment officers, acting in accordance with written procedures and this Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. Delegation of Authority The authority of the District’s Board of Directors to invest District funds is derived from California Government Code (CGC) section 53601. Section 53607 of the CGC grants the Board the authority to delegate that authority to the District’s Chief Financial Officer (CFO)/Treasurer. Such delegation shall expire and be renewed annually, by Board Resolution, in conjunction with the annual investment policy reviewThe authority to invest District funds is hereby delegated to the CFO/Treasurer. The CFO/Treasurer shall be responsible for all transactions undertaken, andundertaken and shall establish a system of controls to regula te the activities of subordinate officials in the absence of the Treasurer. All transactions will be reviewed by the Treasurer on a regular basis to ensure compliance with this Policy. No Person may engage in an investment transaction except as provided under the terms of this Investment Policy and the procedures established by the Treasurer. Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the District’s General Manager/CEO any material financial interest in financial institutions that conduct business within the District, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the District. All bond issue participants, including but not limited to, underwriters, bond counsel, financial advisors, brokers, and dealers will disclose any fee sharing arrangements or fee splitting to the CFO/Treasurer prior to the execution of any transaction. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: May 13, 2020March 24, 2021 Policy No: 7.6 Page 4 of 14 Authorized Broker-Dealers The CFO/Treasurer will maintain a list of approved financial institutions authorized to provide investment services to the District. These may include primary dealers authorized to buy and sell government securities in direct dealings with the Federal Reserve Bank of New York, or regional dealers that qualify under Securities and Exchange Commission Rule 15C33-1 (uniform net capital rule). The list of approved financial institutions will be reviewed by the CFO/Treasurer on an annual basis. All Broker Dealers who desire to conduct investment transactions with the District must supply the CFO/Treasurer with the following: Audited Financial Statements Proof of Financial Industry Regulatory Authority (FINRA) certification Proof of State of California registration Completed broker/dealer questionnaire (except Certificate of Deposit counterparties) Certification of having read the District’s investment policy and depository contracts Authorized and Suitable Investments The East Valley Water District as empowered by California Government Code (CGC) §53600, et. Seq., establishes the following as authorized investments: A. Local Agency Investment Fund (LAIF). The District may invest in the Local Agency Investment Fund established by the State Treasurer for the benefit of local agencies (CGC §16429.1). The fund must have 24 hour24-hour liquidity. There is no limitation on the percentage of the District portfolio that may be invested with LAIF, however, LAIF does impose a maximum deposit of $65$75 million. B. United States Treasury Securities. United States Treasury notes, bonds, or bills for which the full faith and credit of the United States is pledged for the payment of principal and interest (CGC §53601(b)). There is no limitation as to the percentage of the District’s portfolio that may be invested in these securities, however, maximum investment maturities are limited to five years from the date of purchase. C. Federal Agency Obligations. The District is permitted to invest in federal agency EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: May 13, 2020March 24, 2021 Policy No: 7.6 Page 5 of 14 or United States government sponsored enterprise obligations, participations, mortgage backed securities or other instruments, including those issued by or fully guaranteed as to principal and interest by Federal agencies or United States government sponsored enterprises (CGC §53601(f)). Maximum maturity is limited to five years from the date of purchase. There is no limitation as to the percentage of the District’s portfolio that may be invested in agencies. D. Bank Depository Accounts. The District may invest in insured or collateralized certificates of deposit, savings accounts, market rate accounts, or other bank deposits issued by a state or national bank, savings and loan associations, or state or federal credit unions located in California (CGC §53630 et. Seq.). A written depository contract is required with all institutions that hold District deposits requiring that deposits be collateralized in accordance with the CGC. Under provisions of the Code, California banks and savings and loan associations are required to secure the District’s deposits by pledging government securities with a value of 110% principal and accrued interest. State law also allows financial institutions to secure the District deposits by pledging first trust deed mortgage notes having a value of 150% of the District’s total deposits. The Treasurer may waive collateral requirement for the portion of any deposit insured pursuant to federal law. Securities placed in a collateral pool must provide coverage for at least 110% of all deposits that are placed in the institution. Acceptable pooled collateral is governed by CGC §53651. Real estate mortgages are not considered acceptable collateral by the District, even though they are permitted in CGC §53651(m). All financial institutions holding District deposits are required to provide the District with a regular statement of pooled collateral. This report will state that they are meeting the 110% collateral rule, a listing of all collateral with location and market value, plus an accountability of the total amount of deposits secured by the pool. Deposits are allowable in any institution that insures its deposits with the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), and a maximum deposit of up to the federal insurance limits may be deposited in any one institution without collateral. No bank shall receive District deposits in excess of the federal insurance limits that has a long-term debt rating by Moody’s investors Service, Standard & Poor’s, or Fitch Ratings of less that ‘A’. The maximum maturity is restricted to three years. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: May 13, 2020March 24, 2021 Policy No: 7.6 Page 6 of 14 In accordance with CGC §53638, no deposit shall exceed the shareholder’s equity of any depository bank, nor shall a deposit exceed the total net worth of any institution. No deposits shall be made at a state or federal credit union if a member of the Board of Directors or the General Manager/CEO or CFO/Treasurer of the District serves on the Board of Directors or a committee of the credit union. E. Municipal Securities. Registered treasury notes or bonds issued by the State of California or any of the other 49 states, including bonds payable solely out of the revenues from a revenue producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any states (CGC §53601 (c)(d)). Bonds, notes, or other evidence of debt issued by a local agency within the State of California, including issues by East Valley Water District if allowed under the bond indenture. This includes bonds payable solely out of revenue form a revenue- producing property owned, controlled, or operated by the local agency, or by an authority of the local agency (CGC §53601 (a)(e)). Securities must have a debt rating of at least ‘AA’ by a Nationally Recognized Statistical Rating Organization (NRSRO). Maximum maturity is limited to five years from the date of purchase, and holdings of this type of security are limited to a maximum of 20% of the District’s investment portfolio. F. Commercial Paper. Commercial paper of ‘prime’ quality of the highest ranking of the highest letter and number rating as provided for by a NRSRO and must be issued only by general corporations that are organized and operating within the United States and have total assets in excess of $500 million. The general corporation must have an ‘A’ rating or better on debt other than commercial paper, if any, assigned by an NRSRO (CGC §53601(h)). Purchases shall not exceed 5% of the outstanding paper of the issuing corporation, and maximum maturity is restricted to 270 days. This type of investment shall not exceed 15% of the District’s investment portfolio. G. Placement Service Deposits. The District may invest in Certificates of Deposit placed with a private sector entity that assists in the placement of deposits with eligible financial institutions located in the United States (CGC §53601.8). The full amount of the principal and the interest that may be accrued during the maximum term of each deposit shall at all times be insured by federal deposit insurance. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: May 13, 2020March 24, 2021 Policy No: 7.6 Page 7 of 14 Placement Service Deposits, in combination with bank certificates of deposit shall not exceed 25% of the value of the District’s investments at any time. The maximum investment maturity will be restricted to three years. H. Medium Term Notes. The District may invest in corporate and depository institution debt securities issued by corporations organized and operating within the United States, or by depository institutions licensed by the United States or any state and operating within the United States (CGC §53601(k)). Securities eligible for investment under this section shall be rated ‘AA’ or better by an NRSRO. The maximum maturity is restricted to five years, and investment in this category of security shall not exceed 30% of the District’s investible funds, and not more than 5% from a single issuer. I. Money Market Funds. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission (CGC §53601(l)(2)). The Company shall either 1) have attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs or 2) retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years of experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000). A maximum of 15% of the District’s investible funds can be invested in Money Market Mutual funds. J. Local Government Investment Pools. Shares of beneficial interest in an investment pool created by a joint powers authority organized pursuant to CGC §6509.7 and that invest in securities and obligations authorized in the California Government Code (CGC §53601(p)). Investment is limited to pools that seek to maintain a stable Net Asset Value (NAV) and must be rated at least ‘AA’ or better by a NRSRO. A maximum of 25% of the District’s portfolio may be invested in Local Government Investment Pools. K. Prohibited Investments. Under the provision of CGC §53601.6 and §53631.5, the District shall not invest any funds covered by this Investment Policy in inverse floaters, range notes, interest-only strips derived from mortgage pools or any investment that may result in a zero interest accrual if held to maturity. Notwithstanding the prohibition above, the District may invest in securities issued EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: May 13, 2020March 24, 2021 Policy No: 7.6 Page 8 of 14 by, or backed by, the United States government that could result in zero or negative- interest accrual if held to maturity, in the event of, and for the duration of, a period of negative market interest rates (CA SB 998). Review of Investment Portfolio The securities held by East Valley Water District must be in compliance with the above section ‘Authorized and Suitable Investments’ at the time of purchase. Because some securities may not complyIf a security falls out of compliance with this section subsequent to the date of purchase, the CFO/Treasurer shall at least quarterly review the portfolio to identify those securities that do not comply. The CFO/Treasurer shall establish procedures to report this change to the District’s Board of Directors with the following monthly Investment Transaction report. Discussion in the monthly report will include the reasons for the change, prognosis for recovery, and a recommended course of action, major and critical incidences of non-compliance identified through the review of the portfolio. Investment Pools / Mutual Funds When the District’s investment portfolio includes Investment Pools and Mutual Funds, as permitted in the section ‘Authorized and Suitable Investments’, the CFO/Treasurer shall as a matter of due diligence, monitor the assets held by the pools/funds. At least quarterly, the CFO/Treasurer will conduct an investigation to determine the following: 1. A description of eligible investment securities, and a written statement of investment policy and objectives. 2. A description of interest calculation and how it is distributed, and how gains and losses are treated. 3. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. 4. A description of who may invest in the program, how often, what size deposit and withdrawal are allowed. 5. A schedule for receiving statements and portfolio listings. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: May 13, 2020March 24, 2021 Policy No: 7.6 Page 9 of 14 6. Are reserves, retained earnings, etc. utilized by the pool/fund? 7. A fee schedule, and when and how it is assessed. 8. Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? Safekeeping and Custody Agreements To protect against potential losses caused by collapse of individual securities dealers, all securities owned by the East Valley Water District shall be kept in safekeeping by a third party bank trust department, acting as agent for the District under the terms of a custody agreement executed by the bank and the District. All securities will be received and delivered using standard delivery versus payment (DVP) procedures with the District’s custodial bank, and evidenced by safekeeping receipts. Diversification and Maximum Maturities The District will diversify its investment by security type and institution. With the exception of the US Government, its agencies and instrumentalities, and the Local Agency Investment Fund, no more than 5% of the District’s total investment portfolio will be invested in a single security type with a single financial institution. To the extent possible, East Valley Water District will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the District will not directly invest in securities maturing more than 5 years from the date of purchase. Reserve funds may be invested in securities exceeding 5 years if the maturity of such investments is made to coincide as nearly as practicable with the expected use of the funds. Internal Controls The CFO/Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the District are protected from loss, theft, or misuse. The internal control structures shall be designed to provide reasonable assurance that these objectives are met. Internal controls shall be in writing and shall address the following: separation of transaction authority from accounting and record EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: May 13, 2020March 24, 2021 Policy No: 7.6 Page 10 of 14 keeping, safekeeping of assets and written confirmation of telephone transactions for investments and wire transfers. The external auditors will annually review the investments and general activities associated with the investment program. This review will provide internal control by assuring compliance with the Investment Policy and District policies and procedures. Performance Standards The investment portfolio will be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints, and the cash flow needs. The District’s investment strategy is passive. The performance of the District’s investment portfolio will be evaluated and compared to an appropriate benchmark in order to assess the success of the investment portfolio relative to the District’s Safety, Liquidity, and Return on Investments’ objectives. Investment Reporting In accordance with California Government Code §53607, the CFO/Treasurer will submit a monthly report to the Board of Directors showing all investment transactions occurring in the previous month. Further, iIn accordance with California Government Code §53646, the CFO/Treasurer will also prepare a quarterly Investment Report and render the report to the Board of Directors no later than 30 days after the close of each calendar quarter. The report shall provide the type of investment, issuers, the date of maturity, par values and market values of each investment, transactions occurring during the reporting period, and identification of funds managed by third party managers. The report will also include 1) certification that all investment transactions have been made in compliance with the District’s Investment Policy, and 2) a statement that the District has the ability to meet all of its expenditure requirements during the next six months. Policy Adoption EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: May 13, 2020March 24, 2021 Policy No: 7.6 Page 11 of 14 Adoption. This policy shall be reviewed annually with the Board of Directors and adopted by Board Resolution. Amendments. Any changes to the policy, or persons charged with maintaining internal controls over investments, must be approved by the Board. Glossary of Terms (Note: All words of a technical nature should be included. Following is an example of common treasury terminology.) Agencies: Federal agency securities and/or Government-sponsored enterprises. Benchmark: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments. Broker: A broker brings buyers and sellers together for a commission. Certificate of Deposit (CD): A time deposit with a specific maturity evidenced by a Certificate. Large-denomination CDs are typically negotiable. Collateral: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. Comprehensive Annual Financial Report (CAFR): The official annual report of the (East Valley Water District). It includes four combined financial statements prepared in conformity with Generally Accepted Accounting Principles (GAAP). It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. Coupon: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date. Dealer: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. Delivery versus Payment: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: May 13, 2020March 24, 2021 Policy No: 7.6 Page 12 of 14 an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. Derivatives: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities, or commodities). Discount: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. Diversification: A Dividing investment funds among a variety of securities offering independent returns. Duration: A measure of the sensitivity of the price (the value of principal) of a fixed- income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices. Federal Credit Agencies: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals (e.g., S & L’s, small business firms, students, farmers, farm cooperatives, and exporters). Federal Deposit Insurance Corporation (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per entity. Federal Funds Rate: The rate of interest at which Federal funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. Federal Home Loan Banks (FHLB): Government sponsored wholesale banks (currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions, and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank. Federal Reserve System: The central bank of the United States created by Congress and consisting of a seven memberseven-member Board of Governors in Washington, D.C., 12 regional banks, and about 5,700 commercial banks that are members of the system. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: May 13, 2020March 24, 2021 Policy No: 7.6 Page 13 of 14 Liquidity: A liquidity asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. Local Government Investment Pool (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. Market Value: The price at which a security is trading and could presumably be purchased or sold. Maturity: The date upon which the principal or stated value of an investment becomes due and payable. Money Market: The marker in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded. Offer: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid. Portfolio: Collection of securities held by an investor. Primary Dealer: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker-dealers, banks, and a few unregulated firms. “Prudent Investor” Standard: A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.” Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. Safekeeping: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: May 13, 2020March 24, 2021 Policy No: 7.6 Page 14 of 14 Secondary Market: A market made for the purchase and sale of outstanding issues following the initial distribution. Securities & Exchange Commission: Agency created by Congress to protect investors in securities transactions by administering securities legislation. Sec Rule 15(C)3-1: See Uniform Net Capital Rule. Treasury Bills: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. Treasury Bonds: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. Treasury Notes: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. Uniform Net Capital Rule: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. Yield: The rate of annual income return on an investment, expressed as a percentage. (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. Revised 4/27/16 Revised 4/12/17 Revised 4/25/18 Revised 5/13/20 B OAR D AG E N D A S TAF F R E P O RT Agenda Item #7. Meeting Date: Marc h 24, 2021 Dis c ussion Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: C o ns id er Approval o f Bud get Amend ment to F ully F und P urchas e C o ntrac t fo r S terling Natural R esource C enter Network S o ftware/Lic ensing R E COMME N D AT IO N: S taff rec o mmend s that the Bo ard o f Direc tors appro ve a b ud get inc rease o f $250,000 for ins tallation and licens ing of netwo rk s o ftware at the S terling Natural R es ourc e C enter (S NR C ), and a $250,000 inc reas e in water s ales . B AC KG R O UN D / AN ALYS IS : During the mid-year budget review staff requested an increase in capital budgets for network technology to be installed at the S N R C . T he biggest piece of the S N R C technology installation is the server and virtualization manager software installation and licensing. T his is a 3-year E nterprise L icensing Agreement and the vendor gave two options for payment: a $384,000 lump sum now, or equal $135,000 payments over three years. S taff included the $135,000 first year payment in the mid-year budget revisions but failed to request authorization for the G eneral M anager/C E O to sign a 3-year financing agreement. S taff is hesitant to ask for approval for the financing agreement as it represents a form of debt, which the District is trying to avoid while seeking additional S R F funding for T reatment P lant projects. As a result, staff is requesting authorization to issue a P urchase O rder for the lump sum payment of $384,000. S taff proposes to fund the additional $250,000 commitment with excess water sales. T hrough the end of F ebruary, water sales exceeded projections by $1.1 million; by the end of M arch that number will likely exceed $1.2 million. S taff only requested that $400,000 in excess water sales be recognized and appropriated for the mid-year budget revisions and is confident that increasing that amount to $650,000 through tonight’s requested action will still be conservative with respect to projected revenues. I n the unlikely event that actual water sales do not exceed projections at the end of the fiscal year, the District has sufficient reserves to cover the requested expenditure. S taff recommends that the Board of Directo rs ap p rove a budget increas e of $250,000 fo r installatio n and lic ensing of netwo rk s oftware at the S NR C , and that bud geted water s ales b e inc reas ed b y $250,000 as funding. R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: Brian Tomp kins C hief F inancial O fficer AGE N C Y GOALS AN D OB J E C T IVE S: G oal and O b jec tives I I - Maintain a C o mmitment to S us tainab ility, Trans p arency, and Ac countability a) P rac tic e Transparent and Ac countable F isc al Management R E VIE W B Y O T HE R S : T his agend a item has been reviewed b y the F inanc e and Info rmatio n Technology Departments . F IS CAL IMPAC T T he ad d itional funds reques ted will ad d $250,000 to the F Y 2020-21 C apital Bud get and add an ad d itio nal $250,000 in p rojec ted water s ales as an o ffs et. ATTAC H M E NTS: Description Type Logicalis Quo te Budget Amendment EVWD - SNRC VMware Quotation # 2020-103068v3 Prepared By Logicalis for: East Valley Water District To the attention of : March 15, 2021 Executive Summary VMware Enterprise License Agreement (ELA) for East Valley Water Term: 3 Years Support Level: Production/ Premium Deliverables: •VMware vCenter Server 7 Standard for vSphere 7 (Per Instance) QTY 1 •Upgrade: VMware vSphere 7 Standard to vSphere 7 Enterprise Plus for 1 Processor QTY 10 •VMware SLED Consulting & Learning Credits - Prepaid Services PSO Credit 2304 •VMware NSX Data Center Enterprise Plus per Processor QTY 10 •VMware Site Recovery Manager 8 Enterprise (25 VM Pack) QTY 1 •VMware vRealize Cloud Universal Standard Edition - per CPU Commitment Plan - 36 month Prepaid QTY 10 •VMware vRealize True Visibility Suite Advanced - Per CPU Commitment Plan - 36 month Prepaid QTY 10 •VMware Subscription Purchasing Program Credits QTY 1 March 15, 2021 Page 2 Logicalis, Inc. Quotation # 2020-103068v3 Pricing Summary The following is a price summary of Logicalis’ proposed solution. Price Summary Amount Software $384,406.13 If you’re interested in leasing the equipment contained in this Quotation, Logicalis estimates the monthly lease payment to be $11,767. This is a budgetary number only based on a 36 month term and subject to credit approval, so please contact your Logicalis Account Executive for full details and a complete leasing quote. • Payments do not include any applicable sales, rental or use taxes. • Payments do not include any Logicalis professional services. • Payments are valid for monthly payment structures only with deferrals 30 days or less. • Please call for non-monthly payment structures and payment deferrals greater than 30 days. • All transactions are subject to credit and documentation requirements, review and approval. • Additional terms may apply. Logicalis offers a range of services, from helping you define and design a cloud strategy to assisting with server and storage selection for your current environment. We provide a variety of assessments and health checks, perfect for those who need help determining what the next steps are. Find out more at www.us.logicalis.com To address your most pressing challenges during COVID-19, Logicalis has instituted Rapid Deployment Services designed to support your needs to deploy remote workers, maintain security and infrastructure readiness, and provide supplemental IT staff support. All services are designed to be delivered remotely by a Logicalis Engineer. Find out more at http://bit.ly/3b6Gnzp Ask us about Logicalis Leasing Solutions—a value-added service tailored to our customers. Leasing offers strategic, operational and financial benefits that can help meet your company’s goals and get your project funded. Logicalis financing experts work with more than a dozen trusted leasing partners to assist you as our valued customer. We can deliver competitive rates and flexible terms and make the leasing process easy. Learn more today at www.us.logicalis.com/logicalis-financial-services/ March 15, 2021 Page 3 Logicalis, Inc. Quotation # 2020-103068v3 EVWD - SNRC VMware Quotation # 2020-103068v3 Customer Name & Address Logicalis Account Executive Lisa Waelde 391 N. Main Street, Suite 103 Corona, CA 92880 +1 9513932315 lisa.waelde@us.logicalis.com Bill To Address Ship to Address East Valley Water District 31111 Greenspot Rd Highland, CA 92346-4427 Quotation expiration date: April 11, 2021 Item Qty Part Number Description Unit Price Extended Price Products 1 1 ELA-HOLDER-C-2 Enterprise Licensing Agreement for East Valley Water VMware Inc. - ELA-HOLDER-C $384,406.13 $384,406.13 Products Subtotal $384,406.13 Grand Total Products Subtotal: $384,406.13 Grand Total: $384,406.13 March 15, 2021 Page 4 Logicalis, Inc. Quotation # 2020-103068v3 Terms and Conditions Terms Applicable to All Sales 1. In the event Customer chooses to lease the Products and/or Services from a third party leasing company, Customer remains liable for payment to Logicalis for all Products and/or Services purchased until Logicalisreceives payment from such leasing company. 2. All items not specifically included in this document are out of scope. 3. Prices are valid for 30 days from date of the document unless otherwise stated. 4. The information in this document is considered proprietary and confidential to Logicalis. By acceptance of this Quotation, Customer agrees to maintain this confidentiality and use such information for internal purposes only. Terms Applicable for Product Sales 1. Logicalis’ Terms and Conditions of Sale, found at us.logicalis.com/tcsales, are incorporated herein by reference. 2. Any variation in quantity or requested delivery may result in price changes. 3. Prices are subject to change without notice in the event the Product's manufacturer/distributor changes the price to Logicalis. 4. Shipping and taxes are added at time of invoice. Shipping charges are subject to handling fees for specifying carriers and same day shipments. 5. Logicalis collaborates with the OEM/distributor to schedule delivery to Customer’s loading dock; inside delivery is available upon request and may increase the cost of delivery. 6. To the extent this Quotation includes Cisco Cloud Services, the following link shall apply: www.cisco.com/c/en/us/about/legal/cloud-and-software/cloud-terms.html. “Cisco Cloud Services” shall mean any of the offerings described on the aforementioned link. If Customer does not issue a purchase order to Logicalis or otherwise accept a Logicalis quotation to renew such Cisco Cloud Services, or does not otherwise provide written notice of non-renewal, at least forty-five (45) days prior to the end of the then-current subscription term thereof, then the Cisco Cloud Services shall automatically renew and Customer agrees to pay Logicalis for such renewed subscription term at the rates charged by Logicalis therefor. March 15, 2021 Page 5 Logicalis, Inc. Quotation # 2020-103068v3 Quotation Acceptance By signing below, the undersigned accepts this offer and confirms that he/she is authorized to purchase these items on behalf of Customer. This offer may be accepted by purchase order or other acknowledgement of acceptance, including, without limitation, by signing this document. Any reference to a Customer's Purchase Order or P.O. number does not indicate Logicalis' acceptance of terms and conditions referenced on/attached to any such P.O. Accepted By: Accepted By: Logicalis, Inc. \s1\ Signature \s2\ Signature \n1\ Printed Name \n2\ Printed Name \t1\ Title \t2\ Title \d1\ Date \d2\ Date © 2021 Logicalis, Inc. All trademarks are acknowledged. All rights reserved. March 15, 2021 Page 6 Logicalis, Inc. Quotation # 2020-103068v3 BOARD AGENDA STAFF REPORT Agenda Item #9. Meeting Date: March 24, 2021 Discussion Item To: Governing Board Members From: Chairman of the Board Subject: Cons ider Approval of General Manager/CEO's 2021/22 Goals and Objectives RECOMMEND ATION: Staff recommends that the Board of Directors Approve the 2021/22 General Manager/CEO’s Goals and Ob jectives. BACKGROUND / ANALYSIS: Each year, as part of the General Manager/CEO’s annual performance evaluation, the Board of Directors develops updated goals and objectives to provide d irection and measure degrees of organizational success that are expected to be comp leted within a one-year time frame. The FY 2021/22 Goals and Objectives have been developed to reflect the priorities included in the recently adopted Five Year Plan. Add itionally, these goals will serve as the District-wide goals in the annual budget. The draft General Manager/CEO FY 2020/21 Goals include: Optimize Infrastructure Continue making progress on design and construction of essential Capital Improvement Projects. Prepare for the completion and operation of the Sterling Natural Resource Center. Financial Stability with Full Understanding of Operational Complexities Consider short and long-term impacts of COVID on District operations and capital needs. Develop a 5-year financial plan once more knowns are determined for the SNRC to include in budget development and projections. Protect Organizational Investments Conduct staffing analyses including updates to the Succession Planning, Staffing Plan, and a Classification & Compensation Study. Conduct and develop the education programs to foster an interest of future water and wastewater professionals. Have Others See the District as a Premier Agency Increase District engagement with regional and industry activities to share the success experienced through the District’s Vision. AGENCY GOALS AND OBJECTIVES: R ec o mmend ed b y: David E. S mith C hairman of the Board AGE N C Y GOALS AN D OB J E C T IVE S: G o al and O bjectives I - Implement Effective S olutio ns T hrough Visionary Lead ers hip a) Id entify O p portunities to O ptimize Natural R es ources b) Maximize Internal C ap ab ilities thro ugh O ngo ing P ro fessional Develop ment c ) S trengthen R egio nal, S tate and Natio nal P artners hips d) Encourage P erfo rmance Bas ed R es ults T hro ugh S taff Emp o werment G oal and O b jec tives I I - Maintain a C o mmitment to S us tainab ility, Trans p arency, and Ac countability a) P rac tic e Transparent and Ac countable F isc al Management b) Utilize Effective C ommunicatio n Metho ds c ) P urs ue Alternative F unding S ourc es d) P ro vid e Q uality Info rmatio n to Encourage C ommunity Engagement G oal and O b jec tives I I I - Deliver P ub lic S ervice with P urpose W hile Embrac ing C o ntinuous G rowth a) Advance Emergenc y P repared nes s Efforts b) S trive to P rovid e World C lass C us tomer R elations c ) P romo te a P o s itive O rganizational C ulture d) Emb rac e an Enviro nment o f Active Learning and Kno wled ge S haring G oal and O b jec tives I V - P romo te P lanning, Maintenanc e and P res ervation of Distric t R es o urces a) Develo p P rojects and P ro grams to Ens ure S afe and R eliable S ervic es b) Enhance P lanning Efforts that R espond to F uture Demands c ) Dedicate Effo rts To ward S ys tem Maintenanc e and Mod ernization d) Enable F ac t-Based Dec is ion Making T hro ugh S tate-of-the-Art Data Management F IS CAL IMPAC T T he G eneral Manager/C EO ’s go als and o b jec tives are the b as is by which the Board of Directors d etermines the G eneral Manager/C EO ’s Incentive P ro gram during his annual evaluatio n.