Loading...
HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 06/23/2021REGULAR BOARD MEETING& PUBLIC HEARINGVia TeleconferenceJune 23, 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 PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. AGENDA - This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. 1.Approval of Agenda 2.AP P RO VAL O F C ON SE N T C AL E N D AR All matters listed under the C onsent C alendar are considered by the Board of Directors to be routine and will be enacted in one motion. T here will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the C onsent C alendar. a.May 12, 2021 Regular Board Meeting Minutes b.May 19, 2021 Special Board Meeting Minutes c.May 2021 Disbursements: Accounts payable disbursements for the period include check numbers 257703 through 257846, bank drafts, and A C H Payments in the amount of $8,198,157.77 and $359,488.89 for payroll. d.Financial Statements for May 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 3.Consider Adoption of Resolution 2021.11 - Adopting the 2020 Upper Santa Ana River Watershed Integrated Regional Urban Water Management Plan, Public Hearing 4.Consider Adoption of Resolution 2021.12 - Adopting the Water Shortage Contingency Plan, Public Hearing 5.Consider Adoption of Resolution 2021.10 to Approve the O perating and Capital Budgets for Fiscal Year 2021-22 6.Consider Approval of Sterling Natural Resource C enter Project Enhancements RE P O RT S 7.Board of Directors' Reports 8.General Manager/C EO Report 9.Legal C ounsel Report 10.Board of Directors' Comments AD J O U RN P LEAS E NO T E: Materials related to an item on this agenda s ub mitted to the Board after dis trib utio n of the agend a pac ket are available for p ublic ins p ectio n in the Dis tric t's o ffice lo cated at 31111 G reens pot R d., Highland, during no rmal b usines s hours . Also, s uc h d o cuments are available o n the Dis tric t's web s ite at www.eas tvalley.o rg sub ject to s taff's ab ility to post the d o cuments b efo re the meeting. P urs uant to G overnment C o d e S ec tion 54954.2(a), any reques t fo r a d is ab ility-related mo dific ation or ac commod ation, inc luding auxiliary aids or s ervic es , that is s ought in order to participate in the abo ve- agendized p ublic meeting s hould b e d irected to the Dis tric t C lerk at (909) 885-4900 at leas t 72 hours prior to said meeting. 1 Minutes 05/12/2021 sma Draft pending approval EAST VALLEY WATER DISTRICT May 12, 2021 REGULAR BOARD MEETING/PUBLIC HEARING VIA TELECONFERENCE MINUTES The Chairman of the Board called the meeting to order at 5:31 p.m. Director Goodrich led the flag salute. PRESENT: Directors: Carrillo, Coats, Goodrich, Morales, Smith ABSENT: None STAFF: John Mura, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Jeff Noelte, Director of Engineering and Operations; Kelly Malloy, Director of Strategic Services; Justine Hendricksen, District Clerk; Shayla Antrim, Sr. Administrative Assistant LEGAL COUNSEL: Jean Cihigoyenetche GUEST(s): Members of the public PUBLIC COMMENTS Chairman Smith declared the public participation section of the meeting open at 5:32 p.m. There being no written or verbal comments, the public participation section was closed. APPROVAL OF AGENDA M/S/C (Carrillo-Goodrich) by unanimous roll call vote that the May 12, 2021 agenda be approved as submitted. APPROVE THE MARCH 24, 2021 REGULAR BOARD MEETING MINUTES M/S/C (Coats-Goodrich) by unanimous roll call vote that the Board approve the March 24, 2021 regular board meeting minutes as submitted. DIRECTORS’ FEES AND EXPENSES FOR APRIL 2021 M/S/C (Coats-Goodrich) by unanimous roll call vote that the Board approve the Directors’ fees and expenses for April 2021 as submitted. 2 Minutes 05/12/2021 sma APPROVE THE FINANCIAL STATEMENTS FOR MARCH 2021 M/S/C (Coats-Goodrich) by unanimous roll call vote that the Board approve the financial statements for March 2021 as submitted. ADOPT ORDINANCE NO. 400 - EAST VALLEY WATER DISTRICT SEWER REGULATIONS AND SERVICE CHARGE ORDINANCE, PUBLIC HEARING The Chief Financial Officer reviewed proposed changes to the District’s Sewer Regulations and Service Charge Ordinance. He stated that in reviewing the ordinance, the purpose was to review the description of the fees and charges and to establish new fees related to Engineering services. He stated that in order to include new fees in the District’s Schedule of Rates and Charges, the fees first need to be adopted in the District’s Sewer Regulations and Service Charges Ordinance. He noted additional minor updates to coincide with current procedures and titles. THE CHAIRMAN OPENED THE PUBLIC HEARING AT 5:38 P.M. PUBLIC COMMENTS Chairman Smith declared the public participation section of the meeting open at 5 :38 p.m. There being no written or verbal comments, the public participation section was closed. ADJOURN TO REGULAR BOARD MEETING AT 5:40 P.M. BOARD DISCUSSION Director Morales stated that he reviewed the document and changes; and has no further questions. There were no additional questions or comments from the Board. M/S/C (Morales-Goodrich) by unanimous roll call vote that the Board adopt Ordinance No. 400 as submitted. AYE: Directors: Carrillo, Coats, Goodrich, Morales, Smith NOES: None ABSENT: None ADOPT ORDINANCE NO. 401 - EAST VALLEY WATER DISTRICT WATER REGULATIONS AND SERVICE CHARGE ORDINANCE, PUBLIC HEARING The Chief Financial Officer reviewed proposed changes to the District’s Water Regulations and Service Charge Ordinance. He stated that similarly to the Sewer Ordinance, the purpose was to review the description of the fees and charges and to include new miscellaneous fees and charges that resulted from the User Fee Study 3 Minutes 05/12/2021 sma performed by IB Consulting. He reviewed the most significant changes to the ordinance which include but were not limited to: AMI Op-Out definition and fees, calculations for Tier-1 budgets, clarifying language regarding property owners, and add new Engineering related fees. THE CHAIRMAN OPENED THE PUBLIC HEARING AT 5:45 P.M. PUBLIC COMMENTS Chairman Smith declared the public participation section of the meeting open at 5 :45 p.m. There being no written or verbal comments, the public participation section was closed. ADJOURN TO REGULAR BOARD MEETING AT 5:46 P.M. BOARD DISCUSSION There were no questions or comments from the Board. M/S/C (Carrillo-Goodrich) by unanimous roll call vote that the Board adopt Ordinance No. 401 as submitted. AYE: Directors: Carrillo, Coats, Goodrich, Morales, Smith NOES: None ABSENT: None ADOPT RESOLUTION 2021.07 AND RESOLUTION 2021.08 – UPDATING THE SCHEDULE OF WATER AND WASTEWATER RATES AND CHARGES AND CERTAIN MISCELLANEOUS FEES, PUBLIC HEARING The Chief Financial Officer provided information regarding proposed changes to the District’s Water and Wastewater Schedule of Rates and Charges and updates to miscellaneous fees included in the District’s water and sewer ordinance. He also provided information on the proposed changes relates to water and wastewater rates based on the Cost-of-Service analysis performed by IB Consulting. The Chief Financial Officer provided a brief presentation to the Board: User Fee and Miscellaneous Fee Update. He noted that the information on page 5 of the presentation was updated from what was initially sent out with the packet. Mr. Habib Isaac, IB Consulting, provided a detailed presentation to the Board: Water and Wastewater Cost of Service Rate Study. The presentation included but was not limited to the following: goals of the study, the District’s current financial position, proposed financial plan, rate design structure, components of the cost of service, water supplies, fixed charges, variable rates and components, proposed water and wastewater rates and charges 4 Minutes 05/12/2021 sma THE CHAIRMAN OPENED THE PUBLIC HEARING AT 6:23 P.M. PUBLIC COMMENTS Chairman Smith declared the public participation section of the meeting open at 6 :23 p.m. There being no written or verbal comments, the public participation section was closed. ADJOURN TO REGULAR BOARD MEETING AT 5:24 P.M. BOARD DISCUSSION Director Carrillo stated that he appreciates the work that was put into the Cost-of Service analysis and presentations. Director Morales expressed appreciation to those that reached out with questions and comments regarding the update to rates and invited those on the line to participate in future Board meetings. He stated that he reviewed the document and found it to be very thorough. He made a comment regarding the impact that legislation has on District’s services and reviewed steps the District has taken to control costs. Director Coats stated that he appreciates all that goes into calculating rates. He thanked staff and Mr. Isaac for their presentations. Vice Chairman Goodrich commended staff on all the work they put into creating the document. There were no other questions or comments from the Board. M/S/C (Coats-Goodrich) by unanimous roll call vote that the Board adopt Resolutions 2021.07 and 2021.08 as submitted. AYE: Directors: Carrillo, Coats, Goodrich, Morales, Smith NOES: None ABSENT: None BOARD OF DIRECTORS’ REPORTS Director Coats reported on the following: April 29 he discussed District business with the General Manager/CEO; May 3 he participated in the Association of San Bernardino County Special Districts meeting; May 4 he participated in the San Bernardino Valley Municipal Water District Board meeting where the Director of Strategic Services provided a presentation; May 6 he attended the Advanced Metering Infrastructure completion event; and May 11 he discussed District business with the General Manager/CEO. Director Morales reported on the following: May 10 he participated San Bernardino Valley Municipal Water District Board meeting where they held a workshop on personnel needs; 5 Minutes 05/12/2021 sma and May 11 he participated in the San Bernardino Board of Water Commissioners meeting. Director Carrillo reported on the following: May 5 he participated in the Inland Action meeting via Zoom; and May 11 he participated in a conference call with the General Manager/CEO to discuss the agenda. Vice Chairman Goodrich reported that on May 6 he met with the General Manager/CEO to review the agenda and attended the Advanced Metering Infrastructure completion event. Chairman Smith reported on the following: May 6 he met with the General Manager/CEO to review the agenda; and May 12 he participated in the San Bernardino Valley Water Conservation District Board meeting. Information only. GENERAL MANAGER/CEO REPORT The General Manager/CEO reported on the following: • The Customer Service Department is now open to the public. Customers can make payments and conduct property related business Monday thru Friday. To protect customers and staff, all social distancing protocols will remain in place. • Governor Newsom signed an Executive Order to issue an emergency drought declaration for the counties of Mendocino and Sonoma. The Executive Order sets a framework for drought preparation but does not set any mandates for San Bernardino County. Staff will continue to monitor the drought declaration. The State Water Project allocation has been reduced from 10% to 5% with the State reporting a 59% snowpack. • In observance of Memorial Day, the District’s offices will be closed on Monday, May 31, 2021. The General Manager/CEO thanked the public for their continued support during these trying times and for participating in the District’s teleconferencing meetings. He stated that meetings will continue to be held via teleconference until further notice. Information only. LEGAL COUNSEL REPORT Legal Counsel commended staff on a job well done in regards to meeting Prop 218 legal requirements. 6 Minutes 05/12/2021 sma BOARD OF DIRECTORS’ COMMENTS Director Morales commended staff for their hard work, and congratulated staff for completing the Advanced Metering Infrastructure project. Director Carrillo echoed Director Morales’ comments. Director Coats thanked staff for their hard work. Vice Chairman Goodrich agreed with the other Board members’ comments. Chairman Smith thanked everyone for attending the meeting; and thanked staff and those that provided presentations. Information only. ADJOURN Chairman Smith adjourned the meeting at 6:39 p.m. ___________________________ David E. Smith, Board President __________________________ John Mura, Secretary 1 Minutes 05/19/2021 sma Draft pending approval EAST VALLEY WATER DISTRICT May 19, 2021 SPECIAL BOARD MEETING VIA TELECONFERENCE MINUTES The Chairman of the Board called the meeting to order at 5:31 p.m. Director Coats led the flag salute. PRESENT: Directors: Carrillo, Coats, Goodrich, Morales, Smith ABSENT: None STAFF: John Mura, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Kelly Malloy, Director of Strategic Services; Kerrie Bryan, Director of Administrative Services; Patrick Milroy, Operations Manager; Justine Hendricksen, District Clerk; Nate Paredes, Business Services Manager; Shayla Antrim, Sr. Administrative Assistant LEGAL COUNSEL: Jean Cihigoyenetche GUEST(s): Members of the public PUBLIC COMMENTS Chairman Smith declared the public participation section of the meeting open at 5 :32 p.m. There being no written or verbal comments, the public participation section was closed. REVIEW FY 2021-22 REVENUE PROJECTIONS The Chief Financial Officer provided the Board with a FY 2021-22 Revenue Projections presentation. He stated that the revenue projections have been developed using the rates adopted at the May 12, 2021 Public Hearing. He stated that this year there are additional elements to be considered when calculating revenue projections: water rate adjustments that start at the beginning of 2022 and wastewater rates will begin once the Sterling Natural Resource Center goes online, which is predicted to be in May 2022. The Chief Financial Officer’s presentation included but was not limited to a comparison of FY 2020-21 water and wastewater revenue to the past two fiscal years, anticipated water sales and wastewater system collection charges, a chart that compared the projected rate revenue to the last four fiscal years, and the projected FY 2021-22 operating budget summary broken down between water and wastewater funds. 2 Minutes 05/19/2021 sma Information only. GENERAL MANAGER/CEO REPORT No report at this time. LEGAL COUNSEL REPORT No report at this time. BOARD OF DIRECTORS’ COMMENTS Director Morales stated that he reviewed the Sterling Natural Resource Center Spring update video and commended staff on how well the video was made. He also praised staff for their accomplishment of receiving two financial awards for the District. Chairman Smith thanked the Chief Financial Officer for the presentation. ADJOURN The meeting adjourned at 6:09 p.m. ___________________________ David E. Smith, Board President __________________________ John Mura, Board Secretary B OAR D AG E N D A S TAF F R E P O RT Agend a Item #2.c. Meeting Date: June 23, 2021 C ons ent Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: May 2021 Dis b urs ements: Ac c ounts p ayab le d is b urs ements fo r the period includ e check numb ers 257703 through 257846, bank d rafts , and A C H P ayments in the amo unt o f $8,198,157.77 and $359,488.89 fo r payroll. R E COMME N D AT IO N: S taff rec o mmend s that the Board o f Directo rs (Bo ard ) review and ap prove the Dis trict’s expense dis b urs ements fo r the period May 1, 2021 thro ugh May 31, 2021 in the amount o f $8,557,646.66. B AC KG R O UN D / AN ALYS IS : In the c o ntinued effort to b e fis c ally trans parent, the payment register fo r sup p lies, materials , servic es , and p ayro ll fo r May 2021 is attac hed for review and appro val. T his p roc es s p ro vid es the Board and the pub lic an o pportunity to review the exp ens es o f the Dis tric t. Acc o unts P ayable is p roc es s ed weekly, while p ayro ll is p roc es s ed b i-weekly. I nfo rmatio n to jus tify each expend iture is available through the F inance Department. Ac counts p ayab le dis b urs ements fo r the perio d inc lude c hec k numbers 257703 through 257846, b ank drafts, and AC H P ayments in the amo unt o f $8,198,157.77 and $359,488.89, 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 M ay 2 021 P ayment Register Backup Material PAYMENT REGISTER MAY 1, 2021 - MAY 31, 2021 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/6/2021 257703 AMERICAN FIDELITY ASSURANCE COMPANY 2,670.51 5/6/2021 257704 BURRTEC WASTE/ 5455 Industrial pkwy 395.63 5/6/2021 257705 BURRTEC WASTE/ E. 111 MILL ST 306.78 5/6/2021 257706 CHARLES W HIPPENSTIEL, CHR SERVICES 1,020.00 5/6/2021 257707 CULLIGAN OF ONTARIO 139.10 5/6/2021 257708 DIRECTV 258.98 5/6/2021 257709 EYE MED VISION CARE 1,400.24 5/6/2021 257710 FedEx 29.71 5/6/2021 257711 FIRST CHOICE SERVICES 602.70 5/6/2021 257712 IB CONSULTING, LLC 3,014.00 5/6/2021 257713 INLAND WATER WORKS SUPPLY CO 5,898.35 5/6/2021 257714 K & L HARDWARE 50.49 5/6/2021 257715 PETTY CASH 243.95 5/6/2021 257716 SO CAL GAS 510.08 5/6/2021 257717 SOUTH COAST AQMD 275.26 5/6/2021 257718 SOUTHERN CALIFORNIA EMERGENCY MEDICINE/COLTON/REDLANDS 1,155.00 5/6/2021 257719 UNITED SITE SERVICES OF CALIFORNIA, INC 676.45 5/6/2021 257720 VALLEY OFFICE EQUIPMENT 11.62 5/12/2021 257726 ACS SUPPORT 26.00 5/12/2021 257727 AMERICAN FIDELITY ASSURANCE COMPANY (FSA) 1,164.98 5/12/2021 257728 ARROYO INSURANCE SERVICES 35.00 5/12/2021 257729 BALFOUR BEATTY INFRASTRUCTURE, INC 5,935,225.70 5/12/2021 257730 BURRTEC WASTE/ 5455 Industrial pkwy 848.40 5/12/2021 257731 BURRTEC WASTE/ E. 111 MILL ST 1,254.77 5/12/2021 257732 CALIFORNIA WATER EFFICIENCY PARTNERSHIP 4,191.87 5/12/2021 257733 CARB/PERP 633.75 5/12/2021 257734 DAILY JOURNAL CORPORATION 972.40 5/12/2021 257735 EVERSOFT, INC 228.82 5/12/2021 257736 EXPERIAN 282.28 5/12/2021 257737 FIRST CHOICE SERVICES 89.11 5/12/2021 257738 FLEET MANAGEMENT DEPARTMENT 765.26 5/12/2021 257739 FRANCHISE TAX BOARD 800.00 5/12/2021 257740 FRANCHISE TAX BOARD 300.00 5/12/2021 257741 FRANCHISE TAX BOARD 75.00 5/12/2021 257742 FRANCHISE TAX BOARD 100.00 5/12/2021 257743 HATFIELD BUICK 31.61 5/12/2021 257744 HIGHLAND COMMUNITY NEWS/PUBLISHING INC 2,551.00 5/12/2021 257745 INLAND WATER WORKS SUPPLY CO 2,932.83 5/12/2021 257746 KONICA MINOLTA 402.48 5/12/2021 257747 LOGICALIS, INC 5,640.00 5/12/2021 257748 PACIFIC HYDROTECH CORPORATION 134,470.00 5/12/2021 257749 SERGIO D. FIERRO 1,500.00 5/12/2021 257750 SOUTH COAST AQMD 137.63 PAYMENT REGISTER MAY 1, 2021 - MAY 31, 2021 Page 1 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/12/2021 257751 SOUTHERN CALIFORNIA EDISON COMPANY 24.10 5/12/2021 257752 UNIFIRST CORPORATION 534.47 5/12/2021 257753 UNITED SITE SERVICES OF CALIFORNIA, INC 676.45 5/12/2021 257754 WATER SYSTEMS CONSULTING, INC 11,881.13 5/12/2021 257755 YARDLEY ORGILL CO. INC. YO FIRE 2,241.20 5/13/2021 257721 STEPHANIE BRUCE 148.40 5/13/2021 257722 SABRINA INZUNZA 23.83 5/13/2021 257723 DEMAR BROWNING 12.15 5/13/2021 257724 LACOSTA INVESTMENTS, LLC 58.50 5/13/2021 257725 FELICIANO E SOLORZANO 84.91 5/14/2021 257756 THE HO AND LAM FAMILY TRUST 290.53 5/14/2021 257757 ZULLI BRUNSON 150.00 5/14/2021 257758 HERBERT O REITSAM 55.55 5/14/2021 257759 LUPOID LLC 60.41 5/14/2021 257760 CHRISTIAN REIMER 343.33 5/14/2021 257761 ANNA KHARATYAN 273.86 5/20/2021 257763 AT&T 528.17 5/20/2021 257764 ATS, ALPINE TECHNICAL SERVICES, LLP 3,545.47 5/20/2021 257765 CalPERS- FRAS 186,785.00 5/20/2021 257766 CITY OF HIGHLAND 1,620.00 5/20/2021 257767 DENTAL HEALTH SERVICES 189.40 5/20/2021 257768 EUCLID MANAGERS, INSURANCE SERVICES INC. 504.00 5/20/2021 257769 EWING IRRIGATION PRODUCTS INC 105.17 5/20/2021 257770 FIRST CHOICE SERVICES 215.88 5/20/2021 257771 HARPER & ASSOCIATES ENGINEERING, INC 4,958.00 5/20/2021 257772 INLAND DESERT SECURITY & COMMUNICATIONS, INC 647.30 5/20/2021 257773 INLAND WATER WORKS SUPPLY CO 2,440.05 5/20/2021 257774 K & L HARDWARE 11.60 5/20/2021 257775 LOWE'S 1,158.46 5/20/2021 257776 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 19,565.22 5/20/2021 257777 SOUTH COAST AQMD 137.63 5/20/2021 257778 SOUTHERN CALIFORNIA EDISON COMPANY 12,294.91 5/20/2021 257779 UNIFIRST CORPORATION 462.58 5/20/2021 257780 US BANCORP SERVICE CENTER 14,689.29 5/26/2021 257784 AMADOR & ROSE MARY NAVARRO 34.89 5/26/2021 257785 MATTHEW R JONES 62.80 5/26/2021 257786 KEYNASIA BUFFONG 56.50 5/26/2021 257787 HECTOR MARTINEZ 115.86 5/27/2021 257788 ACS SUPPORT 26.00 5/27/2021 257789 AGENDUM, A CL7 COMMUNICATION COMPANY 5,000.00 5/27/2021 257790 AIR CHIEF, INC. 480.03 5/27/2021 257791 AMERICAN FIDELITY ASSURANCE COMPANY (FSA) 1,164.98 5/27/2021 257792 AT&T 1,257.79 5/27/2021 257793 CAL VALVE 6,072.91 5/27/2021 257794 CHEM-TECH INTERNATIONAL INC 7,055.50 5/27/2021 257795 CLIFTONLARSONALLEN LLP 3,000.00 5/27/2021 257796 CMUA, CALIFORNIA MUNICIPAL UTILITIES ASSO. 4,055.00 5/27/2021 257797 COLONIAL LIFE, PREMIUM 547.00 5/27/2021 257798 DONEGAN TREE SERVICE 6,500.00 5/27/2021 257799 FRANCHISE TAX BOARD 100.00 5/27/2021 257800 FRANCHISE TAX BOARD 300.00 5/27/2021 257801 FRANCHISE TAX BOARD 75.00 5/27/2021 257802 HACH COMPANY 220.05 PAYMENT REGISTER MAY 1, 2021 - MAY 31, 2021 Page 2 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/27/2021 257803 INLAND WATER WORKS SUPPLY CO 2,977.17 5/27/2021 257804 K & L HARDWARE 115.71 5/27/2021 257805 METALPHOTO OF CINCINNATI 500.20 5/27/2021 257806 METLIFE SMALL BUSINESS CENTER (Dental) 9,227.40 5/27/2021 257807 METROPOLITAN LIFE INS CO 93.30 5/27/2021 257808 MORTON SALT, INC. 3,299.01 5/27/2021 257809 PDQ.COM CORPORATION 3,000.00 5/27/2021 257810 PETTY CASH 118.44 5/27/2021 257811 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 696,379.86 5/27/2021 257812 SO CAL GAS 14.30 5/27/2021 257813 SOUTH COAST AQMD 275.26 5/27/2021 257814 SOUTHERN CALIFORNIA EDISON COMPANY 157,315.52 5/27/2021 257815 UNIFIRST CORPORATION 2,061.40 5/27/2021 257817 V.I.P. DOORS & GATES INC 9,250.00 5/27/2021 257818 VALLEY OFFICE EQUIPMENT 4.50 5/27/2021 257819 VERIZON 1,219.50 5/27/2021 257820 CALIFORNIA CONDEMNATION FUND 14,500.00 5/27/2021 257821 BRUCE BORG 200.00 5/27/2021 257822 CHRISTOPHER FISHER 99.99 5/27/2021 257823 CHRISTOPHER HERILY 100.00 5/27/2021 257824 CRISTINA VELAZQUEZ 300.00 5/27/2021 257825 DIANA RAINS 60.00 5/27/2021 257826 EMILY HODGES 150.00 5/27/2021 257827 FLOYD DIBBLE 99.99 5/27/2021 257828 GENTZANE ZARRABE 150.00 5/27/2021 257829 HEATHER GIDEON 350.00 5/27/2021 257830 JOSE MOLINA 150.00 5/27/2021 257831 KENNETH CHRISTOPHER 100.00 5/27/2021 257832 LANE STAFFORD 150.00 5/27/2021 257833 LUCIA GIBSON 230.00 5/27/2021 257834 NATHANIEL OKANDEY 83.07 5/27/2021 257835 RANDALL S. EMON 650.00 5/27/2021 257836 ROBERT BURTON 300.00 5/27/2021 257837 RONALD BONE 100.00 5/27/2021 257838 TERRY YOUNG 100.00 5/27/2021 257839 VICTOR BISHERA 100.00 5/27/2021 257840 WALTER HORN 98.10 5/28/2021 257844 JULIE NEWELL 186.70 5/28/2021 257845 RAUL MUNAR 49.83 5/28/2021 257846 JUSTIN LEE 131.62 BANK DRAFTS 5/3/2021 DFT0004203 GLOBAL PAYMENTS 8,980.23 5/3/2021 DFT0004204 MERCHANT BANKCD 440.67 5/3/2021 DFT0004206 CA SDI Tax 62.60 5/3/2021 DFT0004207 Federal Payroll Tax 1,107.94 5/3/2021 DFT0004208 Medicare 181.52 5/3/2021 DFT0004209 State Payroll Tax 189.88 5/3/2021 DFT0004210 CalPERS- FRAS 17.33 5/3/2021 DFT0004211 CALPERS/ MEDICAL 100,264.17 5/5/2021 DFT0004205 PayNearMe, Inc. 71.64 5/11/2021 DFT0004212 FORTE, ACH DIRECT INC, ACH FEES 3,703.48 5/12/2021 DFT0004214 CALPERS/ DEFERRED COMPENSATION 20,503.25 PAYMENT REGISTER MAY 1, 2021 - MAY 31, 2021 Page 3 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/12/2021 DFT0004215 CALPERS/ RETIREMENT 46,779.99 5/12/2021 DFT0004219 STATE DISBURSEMENT UNIT 2,678.62 5/12/2021 DFT0004221 PayNearMe, Inc. 256.71 5/14/2021 DFT0004213 CA SDI Tax 2,513.31 5/14/2021 DFT0004216 Federal Payroll Tax 29,298.72 5/14/2021 DFT0004217 Medicare 7,642.54 5/14/2021 DFT0004218 Social Security 71.42 5/14/2021 DFT0004220 State Payroll Tax 11,605.03 5/26/2021 DFT0004223 CALPERS/ DEFERRED COMPENSATION 21,362.62 5/26/2021 DFT0004224 CALPERS/ RETIREMENT 46,775.34 5/26/2021 DFT0004228 STATE DISBURSEMENT UNIT 2,678.62 5/26/2021 DFT0004230 PayNearMe, Inc. 372.13 5/28/2021 DFT0004222 CA SDI Tax 2,567.04 5/28/2021 DFT0004225 Federal Payroll Tax 29,186.19 5/28/2021 DFT0004226 Medicare 7,798.28 5/28/2021 DFT0004227 Social Security 992.08 5/28/2021 DFT0004229 State Payroll Tax 11,431.69 5/28/2021 DFT0004231 PayNearMe, Inc. 35.82 ACH PAYMENTS 5/6/2021 10008977 ALLEN WILLIAMS 652.57 5/6/2021 10008978 ALLISON MECHANICAL, INC 1,625.20 5/6/2021 10008979 AMAZON CAPITAL SERVICES, INC 1,244.14 5/6/2021 10008981 AMERICAN RENTALS, INC 600.28 5/6/2021 10008982 APPLIED MAINTENANCE SUPPLIES & SOLUTIONS 202.99 5/6/2021 10008983 ARCADIS U.S., INC 38,090.00 5/6/2021 10008984 BARRY'S SECURITY SERVICES, INC 9,997.50 5/6/2021 10008985 BOOT BARN, INC 594.34 5/6/2021 10008986 CAROL CALES 660.58 5/6/2021 10008987 CINTAS CORPORATION (FIRST AID) 984.36 5/6/2021 10008988 CLARK PEST CONTROL 48.00 5/6/2021 10008989 CLA-VAL CO 5,403.70 5/6/2021 10008990 DANIEL DAVIS 577.72 5/6/2021 10008991 DAVID HERNANDEZ 437.37 5/6/2021 10008992 ELISEO OCHOA 667.32 5/6/2021 10008993 EZEQUIEL ELECTRIC, INC. 7,112.49 5/6/2021 10008994 GARY STURDIVAN 660.53 5/6/2021 10008995 GORDON GRANT 599.92 5/6/2021 10008996 HUB CONSTRUCTION SPECIALTIES, INC. 517.39 5/6/2021 10008997 INLAND ACTION, INC 3,596.00 5/6/2021 10008998 KOFF & ASSOCIATES, INC 7,950.00 5/6/2021 10008999 MANAGED HEALTH NETWORK 221.76 5/6/2021 10009000 MARTHA T DURAN 750.00 5/6/2021 10009001 MICHAEL HENDERSON 645.41 5/6/2021 10009002 MOBILE OCCUPATIONAL SERVICES, INC 255.00 5/6/2021 10009003 NATIONAL CONSTRUCTION RENTALS 158.49 5/6/2021 10009004 PLUMBERS DEPOT INC. 7,047.01 5/6/2021 10009005 REBECCA KASTEN 577.89 5/6/2021 10009006 REDLINE MOBILE FLEET SERVICE & REPAIR 3,809.11 5/6/2021 10009007 SHRED-IT US JV LLC 144.24 5/6/2021 10009008 SSCI, INC. DBA-SAFETY COMPLIANCE COMPANY 200.00 5/6/2021 10009009 SUPERIOR AUTOMOTIVE WAREHOUSE, INC. 64.61 5/12/2021 10009010 AMAZON CAPITAL SERVICES, INC 847.71 PAYMENT REGISTER MAY 1, 2021 - MAY 31, 2021 Page 4 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/12/2021 10009011 ANTHONY POOL SERVICE, JAMES ANTHONY LOGSDON 280.00 5/12/2021 10009012 BACKFLOW PREVENTION DEVICE INSPECTIONS INC 3,513.04 5/12/2021 10009013 BARRY'S SECURITY SERVICES, INC 5,080.81 5/12/2021 10009014 CLA-VAL CO 9,370.87 5/12/2021 10009015 CLEARFLY COMMUNATIONS 978.72 5/12/2021 10009016 CORE & MAIN LP 527.22 5/12/2021 10009017 EVWD EMPLOYEES EVENTS ASSOC 315.50 5/12/2021 10009018 EXCEL LANDSCAPE, INC 10,505.80 5/12/2021 10009019 FERGUSON ENTERPRISES, INC. 8,145.90 5/12/2021 10009020 FRONTIER COMMUNICATIONS 1,055.11 5/12/2021 10009021 GENESIS INDUSTRIAL SUPPLY, INC 1,075.86 5/12/2021 10009022 GOLDEN STATE LABOR COMPLIANCE, LLC 4,750.00 5/12/2021 10009023 HUB CONSTRUCTION SPECIALTIES, INC. 1,286.71 5/12/2021 10009024 INFOSEND, INC 300.00 5/12/2021 10009025 JC LAW FIRM 12,570.00 5/12/2021 10009026 MANAGED MOBILE, INC. 2,610.67 5/12/2021 10009027 MCMASTER-CARR 111.60 5/12/2021 10009028 MIKE J. ROQUET CONSTRUCTION INC 37,117.00 5/12/2021 10009029 MINUTEMAN PRESS OF RANCHO CUCAMONGA 3,899.61 5/12/2021 10009030 NATIONAL AUTO FLEET GROUP, CHEVROLET OF WATSONVILLE 126,504.91 5/12/2021 10009031 NEOGOV 3,472.88 5/12/2021 10009032 PATTON'S SALES CORP 50.90 5/12/2021 10009033 PR DIAMOND PRODUCTS, INC 2,255.00 5/12/2021 10009034 REDLINE MOBILE FLEET SERVICE & REPAIR 2,346.07 5/12/2021 10009035 RESOLUTE 4,200.00 5/12/2021 10009036 SG CREATIVE, LLC 5,650.00 5/12/2021 10009037 STAPLES BUSINESS ADVANTAGE 644.80 5/12/2021 10009038 UNDERGROUND SERVICE ALERT 333.40 5/12/2021 10009039 VALERO FLEET, WEX BANK 3,671.08 5/12/2021 10009040 VERIZON WIRELESS 7,889.25 5/12/2021 10009042 VULCAN MATERIALS CO/ CALMAT CO 716.98 5/20/2021 10009043 ALLISON MECHANICAL, INC 6,713.00 5/20/2021 10009044 AMAZON CAPITAL SERVICES, INC 1,504.56 5/20/2021 10009046 ANTHESIS 10,203.75 5/20/2021 10009047 ASHOK K. DHINGRA, AKD CONSULTING 15,964.00 5/20/2021 10009048 AZTECA SYSTEMS, INC/ CITYWORKS 40,000.00 5/20/2021 10009049 BARRY'S SECURITY SERVICES, INC 5,068.19 5/20/2021 10009050 CLINICAL LAB OF S B 7,693.00 5/20/2021 10009051 EZEQUIEL ELECTRIC, INC. 2,830.83 5/20/2021 10009052 FERGUSON ENTERPRISES, INC. 278.70 5/20/2021 10009053 FLEETWASH, INC 400.00 5/20/2021 10009054 FRONTIER COMMUNICATIONS 190.17 5/20/2021 10009055 HAAKER EQUIPMENT COMPANY & TOTAL CLEAN 2,579.41 5/20/2021 10009056 JC LAW FIRM 4,260.00 5/20/2021 10009057 LESLIE'S POOL SUPPLIES, INC. 464.99 5/20/2021 10009058 ORION SYSTEMS INTEGRATORS LLC 2,000.00 5/20/2021 10009059 PETAS CAR CARE- KEVIN KOHRELL 1,542.88 5/20/2021 10009060 PLUS 1 PERFORMANCE 19.08 5/20/2021 10009061 ROUNSVILLE'S AUTO BODY 404.30 5/20/2021 10009062 SOLARWINDS, INC. 8,452.80 5/20/2021 10009063 STAPLES BUSINESS ADVANTAGE 208.80 5/27/2021 10009064 ACI PAYMENTS INC. 47.90 PAYMENT REGISTER MAY 1, 2021 - MAY 31, 2021 Page 5 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/27/2021 10009065 ADCOMP SYSTEMS 319.29 5/27/2021 10009066 AMAZON CAPITAL SERVICES, INC 1,021.57 5/27/2021 10009067 BURGESS MOVING & STORAGE 1,233.75 5/27/2021 10009068 CHERRY VALLEY NURSERY MAR-LYN BUILDERS, INC. 75.41 5/27/2021 10009069 CLARK PEST CONTROL 118.00 5/27/2021 10009070 COMPUTERIZED EMBROIDERY COMPANY, INC 1,073.11 5/27/2021 10009071 CORE & MAIN LP 440.56 5/27/2021 10009072 EVWD EMPLOYEES EVENTS ASSOC 900.43 5/27/2021 10009073 EXCEL LANDSCAPE, INC 13,550.00 5/27/2021 10009074 FERGUSON ENTERPRISES, INC. 7,863.05 5/27/2021 10009075 FLEETWASH, INC 425.00 5/27/2021 10009076 FMB TRUCK OUTFITTERS, INC 214.21 5/27/2021 10009077 FRONTIER COMMUNICATIONS 828.15 5/27/2021 10009078 HAAKER EQUIPMENT COMPANY & TOTAL CLEAN 2,422.32 5/27/2021 10009079 JEREMY SUBRIAR 278.95 5/27/2021 10009080 JOSE MILLAN 3,050.00 5/27/2021 10009081 KRIEGER & STEWART, INCORPORATED 1,590.75 5/27/2021 10009082 LESLIE'S POOL SUPPLIES, INC. 131.26 5/27/2021 10009083 MANAGED MOBILE, INC. 1,901.59 5/27/2021 10009084 MINUTEMAN PRESS OF RANCHO CUCAMONGA 657.38 5/27/2021 10009085 MOBILE OCCUPATIONAL SERVICES, INC 92.50 5/27/2021 10009086 MUSICK, PEELER & GARRETT LLP 5,100.00 5/27/2021 10009087 PATTON'S SALES CORP 59.60 5/27/2021 10009088 S & J PLUMBING, INC. 819.00 5/27/2021 10009089 SCN, SECURITY COMMUNICATION NETWORK, INC 159.50 5/27/2021 10009090 SSCI, INC. DBA-SAFETY COMPLIANCE COMPANY 400.00 5/27/2021 10009091 STAPLES BUSINESS ADVANTAGE 304.30 5/27/2021 10009092 SUPERIOR AUTOMOTIVE WAREHOUSE, INC. 184.15 5/27/2021 10009093 VISTA PAINTS 172.74 5/27/2021 10009094 VULCAN MATERIALS CO/ CALMAT CO 2,769.53 5/27/2021 10009095 WAXIE SANITARY SUPPLY 874.26 5/27/2021 10009096 DONNA BERG 109.00 TOTAL 8,198,157.77$ PAYMENT REGISTER MAY 1, 2021 - MAY 31, 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 #2.d. Meeting Date: June 23, 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 May 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, May 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 May 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 M ay 2 021 Financial Statement Monthly Review Backup Material M ay 2 021 Financial Statements Backup Material FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING MAY 31, 2021   page | 1 The following is a highlight summary of the District’s financial results as of May 31, 2021. Please note all values presented are in millions (unless otherwise noted). Statement of Net Position Total assets at May 31, 2021 are $345.76 million. CLASSIFICATION WATER WASTEWATER DISTRICT TOTAL Cash and Investments $ 16.58 $ 6.40 $ 22.98 Utility Plant, Net 105.97 19.09 125.06 Other Assets 38.83 158.89 197.72 Current Liabilities 3.21 15.79 19.00 Long Term Liabilities 50.02 128.42 178.44 Beginning Net Position 96.60 38.07 134.67 Change in Equity 11.55 2.09 13.64 TOTAL NET POSITION $ 108.15 $ 40.16 $ 148.31 Cash and Investments are $22.98 million for the month of May, a decrease of $5.36 million from the prior month. In May, the District paid $5.96 million for construction costs incurred in April. The Water Fund’s Due from Other Governments includes Claims 19 and 20 for construction costs incurred for the SNRC bringing the ending balance to $7.62 million. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING MAY 31, 2021   page | 2 $0 $5 $10 $15 $20 $25 $30 $35 $40 Mi l l i o n s CASH & INVESTMENTS Restricted Unrestricted Comparing current assets to current liabilities, the District has a current ratio at May 31, 2021 of 2.21 to 1, with 2 to 1 being an indication of sound financial condition. Statement of Revenues & Expenses Operating results are presented in three ways in the attached financial statements for the period ending May 31, 2021. First is a one-page summary with monthly and year-to-date totals for revenue and expenses, presented by Expense Category. Second is a one-page summary with monthly and year-to-date totals for Revenues and Expense by Program. Third is a Budget-to-Actual presentation of program expense detail. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING MAY 31, 2021   page | 3 Total Revenues & Expenses through May 31, 2021 are summarized below (in millions): Column1 WATER WASTEWATER DISTRICT TOTAL Revenue $ 26.62 $ 13.11 $ 39.73 Expense 15.07 11.01 26.08 Water Sales for the month ending May 31, 2021 were $1.3M; $183K under staff projections for the month and $1.14 over projections, year-to-date. $- $0.5 $1.0 $1.5 $2.0 $2.5 Mi l l i o n s WATER SALES BY TIER Tier 1 Tier 2 Tier 3 FY 2020-21 Amended Projection FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING MAY 31, 2021   page | 4 Water Sales by Customer Class The table below shows the District’s water sales for the month of May 2021 by customer class. The following icons are to compliment the graph below: positive change, no change, negative change when comparing actuals versus projections. CUSTOMER CLASS ACTUAL PROJECTION $ VARIANCE % VARIANCE Residential 770,119$ 834,000$ (63,881)$ -8% Multi-Family 242,673 297,000 (54,327) -18% Commercial 96,379 132,000 (35,621) -27% Irrigation 191,234 221,000 (29,766) -13% TOTAL $1,300,405 $ 1,484,000 $ (183,595) -12% The following table displays customer class by tier for the month of May 2021: CUSTOMER CLASS TIER ACTUAL PROJECTION $ VARIANCE % VARIANCE Residential Tier 1 320,335$ 387,000$ (66,665)$ -17% Residential Tier 2 375,451 372,000 3,451 1% Residential Tier 3 74,333 75,000 (667) -1% Multi-Family Tier 1 133,471 167,000 (33,529) -20% Multi-Family Tier 2 76,765 95,000 (18,235) -19% Multi-Family Tier 3 32,437 35,000 (2,563) -7% Commercial Tier 1 70,517 87,000 (16,483) -19% Commercial Tier 2 6,781 10,000 (3,219) -32% Commercial Tier 3 19,081 35,000 (15,919) -45% Irrigation Tier 2 129,409 142,000 (12,591) -9% Irrigation Tier 3 61,825 79,000 (17,175) -22% TOTAL $ 1,300,405 $ 1,484,000 $ (183,595) -12% Legend - Positive Change in Actuals - Neutral Change in Actuals - Negative Change in Actuals FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING MAY 31, 2021   page | 5 The chart below is a comparative illustration of Water Revenue year-to-date compared to last year’s Water Revenue year-to-date as of May 2020. As noted in the graph, Water Revenue experienced an increase over last year. Water consumption increased 672.38 million gallons (898K HCF) compared to May of 2020. $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 5/31/2020 5/31/2021 M i l l i o n s COMPARATIVE MONTHLY WATER REVENUE (WATER SALES & METER CHARGES) Meter Tier 1 Tier 2 Tier 3 Total - $23,186,237 Total - $25,616,512 FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING MAY 31, 2021   page | 6 Water Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Water Fund operating cost centers for FY 2019-20 and FY 2020-21. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING MAY 31, 2021   page | 7 Wastewater Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Wastewater Fund operating cost centers for FY 2019-20 and FY 2020-21. WATER WASTEWATER DISTRICT TOTAL Assets: Current Assets: 01 Cash and Cash Equivalents 9,083,063.99$ -$ 9,083,063.99$ 02 Investments 3,054,098.85 1,473,229.69 4,527,328.54 03 Accounts Receivable, Net 5,223,023.69 272,217.82 5,495,241.51 04 ‐ Interest Receivable - 3,377.19 3,377.19 14*05 Other Receivables 773,339.26 - 773,339.26 07 Due from Sewer Fund 8,411,701.74 - 8,411,701.74 06 Due from Other Governments 7,619,282.37 5,212,264.30 12,831,546.67 08 Inventory 458,832.82 6,721.16 465,553.98 09 Prepaid Expenses 351,513.74 51,560.21 403,073.95 34,974,856.46 7,019,370.37 41,994,226.83 Non-Current Assets: 10 Restricted Cash and Cash Equivalents 4,441,045.61 4,928,353.44 9,369,399.05 11 Capital Assets not being Depreciated 12,311,785.66 152,084,263.51 164,396,049.17 13 Capital Assets, Net 105,971,612.97 19,086,958.01 125,058,570.98 122,724,444.24 176,099,574.96 298,824,019.20 Total Assets:157,699,300.70 183,118,945.33 340,818,246.03 Deferred Outflow Of Resources 24*Deferred Charge on Refunding 660,840.08 309,869.81 970,709.89 25 Deferred Outflows - Pensions 3,021,838.35 947,122.44 3,968,960.79 161,381,979.13 184,375,937.58 345,757,916.71 Current Liabilities: 22 Accounts Payable and Accrued Expenses 583,729.43 27,441.76 611,171.19 29 Due to Water Fund - 8,411,701.74 8,411,701.74 23 Accrued Payroll and Benefits 3,805.66 - 3,805.66 15 Customer Service Deposits 1,338,166.55 - 1,338,166.55 16 Construction Advances and Retentions 106,000.00 7,223,311.70 7,329,311.70 17 Accrued Interest Payable 34,754.27 - 34,754.27 18 Current Portion of Compensated Absences 396,686.02 120,469.30 517,155.32 19 Current Portion of Long-Term Debt 746,028.45 7,499.15 753,527.60 3,209,170.38 15,790,423.65 18,999,594.03 Non-Current Liabilities: 20 Compensated Absences, less current portion - 3,437.57 3,437.57 28 Net Pension Liability 9,065,574.49 2,739,565.75 11,805,140.24 21 Long Term Debt, Less Current Portion 40,394,126.31 125,493,544.10 165,887,670.41 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 50,024,068.69 128,418,561.29 178,442,629.98 53,233,239.07 144,208,984.94 197,442,224.01 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 26,622,120.72 13,106,054.40 39,728,175.12 Tot Total Expense 15,069,492.88 11,011,263.63 26,080,756.51 11,552,627.84 2,094,790.77 13,647,418.61 108,148,740.06 40,166,952.64 148,315,692.70 161,381,979.13$ 184,375,937.58$ 345,757,916.71$ Total Liabilities, Equity and Current Surplus (Deficit): Total Total Beginning Equity: Equity: Revenues Over/Under Expenses Total Current Liabilities: Total Non-Current and Deferred Inflows of Resources: Total Liabilities and Deferred Inflows of Resources: Unaudited As of May 31, 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 1,300,405.29$ 17,295,863.05$ 17,798,000.00$ -$ -$ -$ 17,798,000.00$ 502,136.95$ 42 Meter Charges 757,743.97 8,320,349.38 9,020,000.00 - - - 9,020,000.00 699,650.62 43 Penalties 14,469.91 150,068.69 195,000.00 6,908.61 65,978.71 130,000.00 325,000.00 108,952.60 44 Wastewater System Charges - - - 374,805.73 4,255,433.17 4,656,000.00 4,656,000.00 400,566.83 45 Wastewater Treatment Charges - - - 670,517.34 7,760,018.67 8,586,000.00 8,586,000.00 825,981.33 46 Other Operating Revenue 65,446.29 469,801.73 56,000.00 - 294,041.68 65,000.00 121,000.00 (642,843.41) 47 Non Operating Revenue 1,819.97 386,037.87 259,000.00 - 730,582.17 30,000.00 289,000.00 (827,620.04) 48 Gain or Loss on Disposition - - - - - - - - 56 Benefits - - - - - - - - 68 Depreciation - - - - - - - - Revenue Total: 2,139,885.43 26,622,120.72 27,328,000.00 1,052,231.68 13,106,054.40 13,467,000.00 40,795,000.00 1,066,824.88 - - - - - Expense by Category 51 Labor 383,658.45 4,410,259.83 5,334,400.00 108,087.74 1,254,920.80 1,542,600.00 6,877,000.00 1,211,819.37 56 Benefits 137,839.60 2,492,149.18 2,893,400.00 36,906.53 686,224.14 750,600.00 3,644,000.00 465,626.68 63 Contract Services 259,394.71 2,712,298.71 3,832,243.00 738,994.19 8,518,506.09 9,423,050.00 13,255,293.00 1,824,488.20 65 Professional Development 13,606.28 123,111.73 283,357.00 3,230.33 40,622.37 107,350.00 390,707.00 226,972.90 53 Overtime 31,840.60 358,349.53 357,100.00 691.98 14,703.13 27,900.00 385,000.00 11,947.34 62 Materials and Supplies 56,155.97 1,025,951.72 1,189,200.00 9,787.87 78,572.68 115,800.00 1,305,000.00 200,475.60 64 Utilities 186,826.25 2,500,884.75 2,500,900.00 4,204.25 107,966.29 163,100.00 2,664,000.00 55,148.96 52 Temporary Labor - - - - - - - - 67 Other 146,236.37 514,026.38 672,600.00 59,166.84 213,375.29 72,400.00 745,000.00 17,598.33 54 Standby 2,880.00 30,955.60 33,000.00 180.00 5,206.13 2,000.00 35,000.00 (1,161.73) 61 Water Supply - 262,650.11 826,000.00 - - - 826,000.00 563,349.89 71 -Debt Service - 638,855.34 3,961,000.00 - 91,166.71 276,000.00 4,237,000.00 3,506,977.95 81 -Capital Improvement 245,911.88 2,311,898.45 4,553,000.00 24,344.00 48,063,619.45 432,000.00 4,985,000.00 (45,390,517.90) 82 -Capital Outlay 133,054.90 1,125,550.68 1,321,000.00 3,014.00 451,274.15 550,000.00 1,871,000.00 294,175.17 83 -Accounting Income Add back (378,966.78) (3,437,449.13) - (27,358.00) (48,514,893.60) - - 51,952,342.73 Expense Total: 1,218,438.23 15,069,492.88 27,757,200.00 961,249.73 11,011,263.63 13,462,800.00 41,220,000.00 14,939,243.49 Total Surplus (Deficit): 921,447.20$ 11,552,627.84$ -$ 90,981.95$ 2,094,790.77$ -$ -$ -$ Unaudited Revenue and Expense Budget-to-Actual by Category Month Ended May 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 1,300,405.29$ 17,295,863.05$ 17,798,000.00$ -$ -$ -$ 17,798,000.00$ 502,136.95$ 42 Meter Charges 757,743.97 8,320,349.38 9,020,000.00 - - - 9,020,000.00 699,650.62 43 Penalties 14,469.91 150,068.69 195,000.00 6,908.61 65,978.71 130,000.00 325,000.00 108,952.60 44 Wastewater System Charges - - - 374,805.73 4,255,433.17 4,656,000.00 4,656,000.00 400,566.83 45 Wastewater Treatment Charges - - - 670,517.34 7,760,018.67 8,586,000.00 8,586,000.00 825,981.33 46 Other Operating Revenue 65,446.29 469,801.73 56,000.00 - 294,041.68 65,000.00 121,000.00 (642,843.41) 47 Non Operating Revenue 1,819.97 386,037.87 259,000.00 - 730,582.17 30,000.00 289,000.00 (827,620.04) Revenue Total: 2,139,885.43 26,622,120.72 27,328,000.00 1,052,231.68 13,106,054.40 13,467,000.00 40,795,000.00 1,066,824.88 - - - - - Program1000 - Board of Directors 10,951.68 134,605.22 179,900.00 4,693.57 57,662.06 77,100.00 257,000.00 64,732.72 Program2000 - General Administration 55,443.86 740,039.66 912,600.00 21,890.79 295,194.11 389,400.00 1,302,000.00 266,766.23 Program2100 - Human Resources 168,352.00 838,609.54 1,079,500.00 71,598.70 350,194.94 245,500.00 1,325,000.00 136,195.52 Program2200 - Public Affairs 71,907.20 607,807.58 1,074,400.00 35,784.74 450,203.08 394,600.00 1,469,000.00 410,989.34 Program2300 - Conservation 23,259.15 237,429.78 569,000.00 - - - 569,000.00 331,570.22 Program3000 - Finance 56,572.63 748,267.03 890,700.00 24,245.32 320,380.71 381,300.00 1,272,000.00 203,352.26 Program3200 - Information Technology 52,108.18 452,802.95 673,100.00 25,975.43 234,567.23 249,900.00 923,000.00 235,629.82 Program3300 - Customer Service 45,399.82 728,635.82 1,112,100.00 19,810.28 340,553.61 394,900.00 1,507,000.00 437,810.57 Program3400 - Meter Service 19,682.27 238,436.07 290,000.00 - 19.85 - 290,000.00 51,544.08 Program4000 - Engineering 55,385.01 675,949.97 912,800.00 17,867.06 274,309.38 392,200.00 1,305,000.00 354,740.65 Program5000 - Water Production 252,184.66 3,836,809.86 4,493,000.00 - - - 4,493,000.00 656,190.14 Program5100 - Water Treatment 48,314.21 776,956.45 905,000.00 - - - 905,000.00 128,043.55 Program5200 - Water Quality 35,885.76 372,534.06 480,000.00 - - - 480,000.00 107,465.94 Program6000 - Field Maintenance Administration 24,086.39 404,150.49 390,600.00 2,664.63 38,665.49 43,400.00 434,000.00 (8,815.98) Program6100 - Water Maintenance 158,494.10 2,282,922.25 2,635,000.00 - - - 2,485,000.00 202,077.75 Program6200 - Wastewater Maintenance - - - 708,049.12 8,318,285.78 9,389,000.00 9,389,000.00 1,070,714.22 Program7000 - Facilities Maintenance 106,072.65 875,343.28 824,500.00 20,497.79 177,426.83 197,500.00 1,022,000.00 (30,770.11) Program7100 - Fleet Maintenance 34,338.66 479,337.53 450,000.00 8,172.30 62,633.85 50,000.00 500,000.00 (41,971.38) Program8000 - Capital - 638,855.34 9,835,000.00 - 91,166.71 1,258,000.00 11,093,000.00 10,362,977.95 Total Surplus (Deficit):921,447.20$ 11,552,627.84$ -$ 90,981.95$ 2,094,790.77$ -$ -$ -$ Revenue and Expense Budget-to-Actual by Program Month Ended May 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 1,300,405.29$ 17,295,863.05$ 17,598,000.00$ -$ -$ -$ 17,598,000.00$ 302,136.95$ 42 Meter Charges 757,743.97 8,320,349.38 9,020,000.00 - - - 9,020,000.00 699,650.62 43 Penalties 14,469.91 150,068.69 195,000.00 6,908.61 65,978.71 130,000.00 325,000.00 108,952.60 44 Wastewater System Charges - - - 374,805.73 4,255,433.17 4,656,000.00 4,656,000.00 400,566.83 45 Wastewater Treatment Charges - - - 670,517.34 7,760,018.67 8,586,000.00 8,586,000.00 825,981.33 46 Other Operating Revenue 65,446.29 469,801.73 56,000.00 - 294,041.68 65,000.00 121,000.00 (642,843.41) 47 Non Operating Revenue 1,819.97 386,037.87 259,000.00 - 730,582.17 30,000.00 289,000.00 (827,620.04) 48 Gain or Loss on Disposition - - - - - - - - 56 Benefits - - - - - - - - 68 Depreciation - - - - - - - - Revenue Total: 2,139,885.43 26,622,120.72 27,128,000.00 1,052,231.68 13,106,054.40 13,467,000.00 40,595,000.00 866,824.88 Program: 1000 - Board of Directors - - - 51 Labor 5,635.00$ 51,940.00$ 73,500.00$ 2,415.00$ 22,260.00$ 31,500.00$ 105,000.00$ 30,800.00$ 56 Benefits 5,039.83 47,999.04 56,000.00 2,159.92 20,571.06 24,000.00 80,000.00 11,429.90 62 Materials and Supplies - 136.96 700.00 - 58.70 300.00 1,000.00 804.34 63 Contract Services - 33,107.90 38,993.00 - 14,189.10 9,300.00 48,293.00 996.00 65 Professional Development 276.85 1,421.32 10,707.00 118.65 583.20 12,000.00 22,707.00 20,702.48 Program: 1000 - Board of Directors Total: 10,951.68 134,605.22 179,900.00 4,693.57 57,662.06 77,100.00 257,000.00 64,732.72 Program: 2000 - General Administration - - - 51 Labor 27,291.89 327,410.83 367,500.00 11,641.95 139,959.37 157,500.00 525,000.00 57,629.80 53 Overtime 173.42 1,150.71 2,100.00 74.31 493.17 900.00 3,000.00 1,356.12 56 Benefits 11,033.06 223,581.47 232,400.00 2,912.18 76,097.60 99,600.00 332,000.00 32,320.93 62 Materials and Supplies 20.80 1,023.48 3,500.00 8.91 438.62 1,500.00 5,000.00 3,537.90 63 Contract Services 11,096.68 121,866.38 215,600.00 4,755.72 52,228.45 92,400.00 308,000.00 133,905.17 64 Utilities 149.32 1,552.72 2,100.00 64.00 665.46 900.00 3,000.00 781.82 65 Professional Development 5,678.69 63,454.07 89,400.00 2,433.72 25,311.44 36,600.00 126,000.00 37,234.49 Program: 2000 - General Administration Total: 55,443.86 740,039.66 912,600.00 21,890.79 295,194.11 389,400.00 1,302,000.00 266,766.23 Program: 2100 - Human Resources - - - - 51 Labor 13,926.64 153,214.79 170,100.00 5,968.57 65,650.81 72,900.00 243,000.00 24,134.40 52 Temporary Labor - - - - - - - - 53 Overtime - 289.30 2,100.00 - 123.98 900.00 3,000.00 2,586.72 56 Benefits 4,493.75 91,560.21 105,700.00 1,925.80 39,231.89 45,300.00 151,000.00 20,207.90 62 Materials and Supplies 126.11 3,986.83 7,000.00 20.04 569.44 3,000.00 10,000.00 5,443.73 63 Contract Services 11,190.72 81,461.08 104,700.00 4,258.60 26,843.48 36,300.00 141,000.00 32,695.44 64 Utilities 48.20 624.47 700.00 20.65 267.65 300.00 1,000.00 107.88 65 Professional Development 555.80 9,642.28 33,600.00 238.20 4,132.40 14,400.00 48,000.00 34,225.32 67 Other 138,010.78 497,830.58 655,600.00 59,166.84 213,375.29 72,400.00 728,000.00 16,794.13 Program: 2100 - Human Resources Total: 168,352.00 838,609.54 1,079,500.00 71,598.70 350,194.94 245,500.00 1,325,000.00 136,195.52 Month Ended May 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 May 31, 2021 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 2200 - Public Affairs - - - - 51 Labor 27,530.57 295,094.14 372,500.00 11,123.04 120,763.19 159,500.00 532,000.00 116,142.67 52 Temporary Labor - - - - - - - - 53 Overtime 228.15 5,550.13 11,900.00 97.77 2,378.60 5,100.00 17,000.00 9,071.27 56 Benefits 7,255.34 113,780.37 188,300.00 2,972.02 66,454.66 80,700.00 269,000.00 88,764.97 62 Materials and Supplies 550.53 17,452.35 81,200.00 549.98 13,158.09 34,800.00 116,000.00 85,389.56 63 Contract Services 35,229.01 156,198.66 354,700.00 20,498.16 236,530.03 86,300.00 441,000.00 48,271.31 64 Utilities 116.38 6,483.69 38,500.00 116.39 5,240.69 16,500.00 55,000.00 43,275.62 65 Professional Development 997.22 13,248.24 27,300.00 427.38 5,677.82 11,700.00 39,000.00 20,073.94 Program: 2200 - Public Affairs Total: 71,907.20 607,807.58 1,074,400.00 35,784.74 450,203.08 394,600.00 1,469,000.00 410,989.34 Program: 2300 - Conservation - - - - 51 Labor 10,228.16 103,098.90 107,000.00 - - - 107,000.00 3,901.10 52 Temporary Labor - - - - - - - - 53 Overtime - 72.81 7,000.00 - - - 7,000.00 6,927.19 56 Benefits 2,998.67 32,801.77 36,000.00 - - - 36,000.00 3,198.23 62 Materials and Supplies 4,301.64 51,917.89 167,000.00 - - - 167,000.00 115,082.11 63 Contract Services 1,500.00 40,954.47 203,000.00 - - - 203,000.00 162,045.53 64 Utilities 38.81 1,188.07 39,000.00 - - - 39,000.00 37,811.93 65 Professional Development 4,191.87 7,395.87 10,000.00 - - - 10,000.00 2,604.13 Program: 2300 - Conservation Total: 23,259.15 237,429.78 569,000.00 - - - 569,000.00 331,570.22 Program: 3000 - Finance - - - - 51 Labor 38,955.26 449,062.55 501,200.00 16,695.14 192,181.28 214,800.00 716,000.00 74,756.17 52 Temporary Labor - - - - - - - - 53 Overtime 246.24 4,664.36 9,100.00 105.54 1,999.00 3,900.00 13,000.00 6,336.64 56 Benefits 12,880.73 244,161.64 269,500.00 5,520.18 104,573.11 115,500.00 385,000.00 36,265.25 62 Materials and Supplies 642.53 5,171.08 7,700.00 275.37 2,216.18 3,300.00 11,000.00 3,612.74 63 Contract Services 3,717.00 39,729.86 77,000.00 1,593.00 17,063.63 33,000.00 110,000.00 53,206.51 64 Utilities 128.07 2,077.88 2,800.00 54.89 890.51 1,200.00 4,000.00 1,031.61 65 Professional Development 2.80 3,399.66 22,400.00 1.20 1,457.00 9,600.00 32,000.00 27,143.34 67 Other - - 1,000.00 - - - 1,000.00 1,000.00 Program: 3000 - Finance Total: 56,572.63 748,267.03 890,700.00 24,245.32 320,380.71 381,300.00 1,272,000.00 203,352.26 Program: 3200 - Information Technology - - - - 51 Labor 9,082.72 150,081.19 236,600.00 6,595.68 94,759.34 101,400.00 338,000.00 93,159.47 52 Temporary Labor - - - - - - - - 53 Overtime - - - - - - - - 56 Benefits 2,458.38 54,749.33 84,000.00 1,993.83 33,533.92 36,000.00 120,000.00 31,716.75 62 Materials and Supplies 1,171.65 29,616.26 30,100.00 502.16 12,692.72 12,900.00 43,000.00 691.02 63 Contract Services 38,943.16 209,020.53 307,000.00 16,689.93 89,580.26 93,000.00 400,000.00 101,399.21 64 Utilities 452.27 6,051.81 4,200.00 193.83 2,593.64 1,800.00 6,000.00 (2,645.45) 65 Professional Development - 3,283.83 11,200.00 - 1,407.35 4,800.00 16,000.00 11,308.82 Program: 3200 - Information Technology Total: 52,108.18 452,802.95 673,100.00 25,975.43 234,567.23 249,900.00 923,000.00 235,629.82 Page 5 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended May 31, 2021 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 3300 - Customer Service - - - - 51 Labor 17,579.21 203,497.01 236,500.00 10,110.40 113,529.36 178,500.00 415,000.00 97,973.63 52 Temporary Labor - - - - - - - - 53 Overtime 189.95 1,205.39 4,900.00 165.94 607.19 2,100.00 7,000.00 5,187.42 56 Benefits 7,796.93 157,458.10 194,300.00 4,559.02 78,743.22 47,700.00 242,000.00 5,798.68 62 Materials and Supplies - 5,553.36 6,300.00 - 2,380.02 2,700.00 9,000.00 1,066.62 63 Contract Services 10,942.54 264,235.06 525,800.00 4,689.67 110,797.63 113,200.00 639,000.00 263,967.31 64 Utilities 665.60 80,491.10 115,100.00 285.25 34,496.19 45,900.00 161,000.00 46,012.71 65 Professional Development - - 13,200.00 - - 4,800.00 18,000.00 18,000.00 67 Other 8,225.59 16,195.80 16,000.00 - - - 16,000.00 (195.80) Program: 3300 - Customer Service Total: 45,399.82 728,635.82 1,112,100.00 19,810.28 340,553.61 394,900.00 1,507,000.00 437,810.57 Program: 3400 - Meter Service - - - - 51 Labor 14,001.18 163,075.16 197,000.00 - (22.10) - 197,000.00 33,946.94 53 Overtime - 559.46 6,000.00 - - - 6,000.00 5,440.54 56 Benefits 4,824.71 69,936.08 72,000.00 - 12.13 - 72,000.00 2,051.79 62 Materials and Supplies 545.04 1,257.57 5,000.00 - - - 5,000.00 3,742.43 63 Contract Services 203.24 2,088.34 8,000.00 - 29.82 - 8,000.00 5,881.84 64 Utilities 108.10 1,519.46 2,000.00 - - - 2,000.00 480.54 65 Professional Development - - - - - - - - Program: 3400 - Meter Service Total: 19,682.27 238,436.07 290,000.00 - 19.85 - 290,000.00 51,544.08 Program: 4000 - Engineering - - - - 51 Labor 32,747.09 389,026.62 514,500.00 14,034.51 166,712.95 220,500.00 735,000.00 179,260.43 52 Temporary Labor - - - - - - - - 53 Overtime - - 2,100.00 - - 900.00 3,000.00 3,000.00 56 Benefits 8,527.61 194,397.65 184,100.00 3,654.63 83,177.06 78,900.00 263,000.00 (14,574.71) 62 Materials and Supplies - 1,801.62 16,100.00 - 536.00 6,900.00 23,000.00 20,662.38 63 Contract Services 12,468.00 40,288.53 104,300.00 63.00 8,340.95 45,700.00 150,000.00 101,370.52 64 Utilities 1,642.31 49,530.10 67,200.00 114.92 15,154.37 28,800.00 96,000.00 31,315.53 65 Professional Development - 905.45 24,500.00 - 388.05 10,500.00 35,000.00 33,706.50 Program: 4000 - Engineering Total: 55,385.01 675,949.97 912,800.00 17,867.06 274,309.38 392,200.00 1,305,000.00 354,740.65 Program: 5000 - Water Production - - - - 51 Labor 53,134.90 596,870.80 723,000.00 - - - 723,000.00 126,129.20 53 Overtime 2,948.66 45,020.95 22,000.00 - - - 22,000.00 (23,020.95) 54 Standby 1,140.00 13,422.68 15,000.00 - - - 15,000.00 1,577.32 56 Benefits 17,209.11 370,099.77 452,000.00 - - - 452,000.00 81,900.23 61 Water Supply - 262,650.11 826,000.00 - - - 826,000.00 563,349.89 62 Materials and Supplies 9,240.32 179,749.32 300,000.00 - - - 300,000.00 120,250.68 63 Contract Services 15,118.36 421,915.87 381,000.00 - - - 381,000.00 (40,915.87) 64 Utilities 151,795.31 1,941,161.86 1,764,000.00 - - - 1,764,000.00 (177,161.86) 65 Professional Development 1,598.00 5,918.50 10,000.00 - - - 10,000.00 4,081.50 Program: 5000 - Water Production Total: 252,184.66 3,836,809.86 4,493,000.00 - - - 4,493,000.00 656,190.14 Page 6 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended May 31, 2021 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 5100 - Water Treatment - - - - 51 Labor 18,068.80 207,109.21 252,000.00 - - - 252,000.00 44,890.79 53 Overtime 2,921.40 38,587.71 39,000.00 - - - 39,000.00 412.29 56 Benefits 6,675.46 131,113.36 150,000.00 - - - 150,000.00 18,886.64 62 Materials and Supplies 6,844.48 164,204.66 165,000.00 - - - 165,000.00 795.34 63 Contract Services 1,267.57 115,948.45 149,000.00 - - - 149,000.00 33,051.55 64 Utilities 12,536.50 119,993.06 150,000.00 - - - 150,000.00 30,006.94 Program: 5100 - Water Treatment Total: 48,314.21 776,956.45 905,000.00 - - - 905,000.00 128,043.55 Program: 5200 - Water Quality - - - - 51 Labor 13,852.80 158,922.70 184,000.00 - - - 184,000.00 25,077.30 53 Overtime 154.11 1,559.36 13,000.00 - - - 13,000.00 11,440.64 56 Benefits 3,909.10 118,803.32 90,000.00 - - - 90,000.00 (28,803.32) 62 Materials and Supplies 638.94 13,197.67 18,000.00 - - - 18,000.00 4,802.33 63 Contract Services 17,051.86 79,332.06 167,000.00 - - - 167,000.00 87,667.94 64 Utilities - - 2,000.00 - - - 2,000.00 2,000.00 65 Professional Development 278.95 718.95 6,000.00 - - - 6,000.00 5,281.05 Program: 5200 - Water Quality Total: 35,885.76 372,534.06 480,000.00 - - - 480,000.00 107,465.94 Program: 6000 - Field Maintenance Administration - - - - 51 Labor 13,166.36 151,101.51 180,000.00 1,450.68 16,636.46 20,000.00 200,000.00 32,262.03 52 Temporary Labor - - - - - - - - 53 Overtime - - 1,800.00 - - 200.00 2,000.00 2,000.00 54 Standby 1,740.00 17,532.92 18,000.00 180.00 5,206.13 2,000.00 20,000.00 (2,739.05) 56 Benefits 5,583.64 184,910.30 129,600.00 626.08 12,109.36 14,400.00 144,000.00 (53,019.66) 62 Materials and Supplies - 9,446.36 2,700.00 - - 300.00 3,000.00 (6,446.36) 63 Contract Services 114.52 1,666.98 900.00 12.72 185.23 100.00 1,000.00 (852.21) 64 Utilities 3,455.77 25,768.86 36,900.00 383.97 2,863.20 4,100.00 41,000.00 12,367.94 65 Professional Development 26.10 13,723.56 20,700.00 11.18 1,665.11 2,300.00 23,000.00 7,611.33 Program: 6000 - Field Maintenance Administration Total: 24,086.39 404,150.49 390,600.00 2,664.63 38,665.49 43,400.00 434,000.00 (8,815.98) Program: 6100 - Water Maintenance - - - - 51 Labor 73,205.86 835,627.70 1,012,000.00 - - - 1,012,000.00 176,372.30 53 Overtime 24,867.36 253,618.49 219,000.00 - - - 219,000.00 (34,618.49) 56 Benefits 31,431.68 352,786.30 516,000.00 - - - 516,000.00 163,213.70 62 Materials and Supplies 23,534.37 422,364.06 301,000.00 - - - 301,000.00 (121,364.06) 63 Contract Services 5,454.83 401,245.70 437,000.00 - - - 437,000.00 35,754.30 64 Utilities - 17,280.00 - - - - - (17,280.00) Program: 6100 - Water Maintenance Total: 158,494.10 2,282,922.25 2,485,000.00 - - - 2,485,000.00 202,077.75 Program: 6200 - Wastewater Maintenance - - - - 51 Labor - - - 24,268.52 279,034.71 335,000.00 335,000.00 55,965.29 53 Overtime - - - 211.32 7,565.02 9,000.00 9,000.00 1,434.98 56 Benefits - - - 9,057.86 144,209.41 176,000.00 176,000.00 31,790.59 62 Materials and Supplies - - - 3,273.24 19,805.75 36,000.00 36,000.00 16,194.25 Wastewater Treatment - - - 670,517.34 7,760,018.67 7,610,000.00 7,610,000.00 (150,018.67) 63 Contract Services - - - 720.84 107,652.22 1,223,000.00 1,223,000.00 1,115,347.78 Program: 6200 - Wastewater Maintenance Total:- - - 708,049.12 8,318,285.78 9,389,000.00 9,389,000.00 1,070,714.22 Page 7 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended May 31, 2021 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 7000 - Facilities Maintenance - - - - 51 Labor 9,403.25 107,978.89 126,000.00 3,134.39 35,994.52 42,000.00 168,000.00 24,026.59 53 Overtime 111.31 4,290.73 16,500.00 37.10 1,430.23 5,500.00 22,000.00 16,279.04 56 Benefits 4,002.59 63,436.18 76,500.00 1,334.04 22,910.92 25,500.00 102,000.00 15,652.90 62 Materials and Supplies 2,703.51 30,191.50 45,500.00 783.49 8,407.57 10,500.00 56,000.00 17,400.93 63 Contract Services 78,225.62 521,514.50 396,250.00 12,689.90 73,914.60 62,750.00 459,000.00 (136,429.10) 64 Utilities 11,626.37 147,931.48 163,000.00 2,518.87 34,768.99 51,000.00 214,000.00 31,299.53 65 Professional Development - - 750.00 - - 250.00 1,000.00 1,000.00 Program: 7000 - Facilities Maintenance Total: 106,072.65 875,343.28 824,500.00 20,497.79 177,426.83 197,500.00 1,022,000.00 (30,770.11) - - Program: 7100 - Fleet Maintenance - - - - 51 Labor 5,848.76 67,147.83 81,000.00 649.86 7,460.91 9,000.00 90,000.00 15,391.26 53 Overtime - 2,069.43 2,700.00 - 229.92 300.00 3,000.00 700.65 56 Benefits 1,719.01 40,284.99 54,900.00 190.97 4,475.82 6,100.00 61,000.00 16,239.19 62 Materials and Supplies 5,836.05 88,880.75 32,400.00 4,374.68 18,309.59 3,600.00 36,000.00 (71,190.34) 63 Contract Services 16,871.60 181,724.34 162,000.00 2,505.31 21,132.02 18,000.00 180,000.00 (22,856.36) 64 Utilities 4,063.24 99,230.19 113,400.00 451.48 11,025.59 12,600.00 126,000.00 15,744.22 65 Professional Development - - 3,600.00 - - 400.00 4,000.00 4,000.00 Program: 7100 - Fleet Maintenance Total: 34,338.66 479,337.53 450,000.00 8,172.30 62,633.85 50,000.00 500,000.00 (41,971.38) - - Program: 8000 - Capital - - - 71 -Debt Service - 638,855.34 3,961,000.00 - 91,166.71 276,000.00 4,237,000.00 3,506,977.95 81 -Capital Improvement 245,911.88 2,311,898.45 4,553,000.00 24,344.00 48,063,619.45 432,000.00 4,985,000.00 (45,390,517.90) 82 -Capital Outlay 133,054.90 1,125,550.68 1,321,000.00 3,014.00 451,274.15 550,000.00 1,871,000.00 294,175.17 83 -Accounting Income Add back (378,966.78) (3,437,449.13) - (27,358.00) (48,514,893.60) - - 51,952,342.73 Program: 8000 - Capital Total: - 638,855.34 9,835,000.00 - 91,166.71 1,258,000.00 11,093,000.00 10,362,977.95 Total Surplus (Deficit): 921,447.20$ 11,552,627.84$ -$ 90,981.95$ 2,094,790.77$ -$ -$ -$ Page 8 of 8 B OAR D AG E N D A S TAF F R E P O RT Agenda Item #3. Meeting Date: June 23, 2021 P ublic Hearing 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 2021.11 - Adopting the 2020 Upp er S anta Ana R iver Waters hed Integrated R egional Urb an Water Management P lan, P ub lic Hearing R E COMME N D AT IO N: S taff rec o mmend s that the Board o f Direc tors adop t R esolutio n 2021.11 – Adop ting the 2020 Up p er S anta Ana R iver Waters hed Integrated R egio nal Urban Water Management P lan. B AC KG R O UN D / AN ALYS IS : East Valley Water Dis trict (EVW D) and other water managers in the up per S anta Ana R iver waters hed have lo ng rec o gnized the importance of regio nal collabo ration and integratio n o f single p urp o s e efforts and regularly work ac ro s s juris d ictio nal b o und aries to imp lement regional multi-benefit pro jects and pro grams that addres s multip le water resourc e management is s ues, inc luding lo cal and imported water s up p lies , recycled water, s tormwater management, gro und water management, water use effic iency, hab itat and open s p ace management. T he S tate lawmakers created the Integrated R egio nal Water Management P lanning Ac t (I RW M Ac t) in 2002 to encourage integrated , regio nal strategies for managing water res ources . In 2005, 16 agencies in the up p er S anta Ana R iver waters hed dec id ed to d evelop the region’s firs t I RW M P lan (I RW MP ) to c o llaborate on regional water management is s ues. T he Upper S anta Ana R iver Waters hed I RW MP was comp leted in 2007 and up dated in 2015. EVW D partic ip ated in the d evelo p ment of the 2007 and 2015 I RW MP s and adopted the 2007 and 2015 I RW MP s (R es o lutio n 2015.07). T he I RW MP es tab lis hed an update s ched ule of every five years and is d ue to b e updated. T he C alifo rnia Department of Water R esourc es (DW R ) has es tablis hed P rogram G uid elines for the IRW M P ro gram, whic h were most recently updated in 2016 (2016 I RW M G uidelines ). Ano ther S tate law, the C alifo rnia Urban Water Management P lanning Ac t enacted in 1983, mandates that every urb an s upplier o f water p rovid ing water fo r municipal p urpo s es to more than 3,000 cus to mers or s upplying mo re than 3,000 ac re feet of water annually, p repare an Urb an Water Management P lan (UW MP ). EVW D meets the d efinition o f an urban water s upplier for p urp o s es of the UW MP Ac t. T he UW MP Act req uires that said UW MP be up d ated and adop ted at leas t onc e every five years o n or befo re July 1, in years end ing in six and o ne. T he UW MP Ac t allo ws for water s up p liers to wo rk together to develop a c o o p erative regional U W MP and in 2010 and 2015, the S an Bernard ino Valley R egional UW MP (R UW MP ) was p repared b y ten different water s uppliers to collectively meet the req uirements of the UMW P Ac t. EVW D p articipated in the 2010 and 2015 R UW MP. Both the I RW MP and R UW MP are both due to b e up dated . With approval from DW R , EVW D and 19 other water s uppliers and water management o rganizatio ns in the up p er S anta Ana R iver watershed dec ided to c o mb ine the I RW MP and the R U W MP into a s ingle c o mp rehensive planning doc ument known as the 2020 Upper S anta Ana R iver Waters hed Integrated R egional Urban Water Management P lan (I R UW MP ) which is the first o f its kind in C alifo rnia. T he I R UW MP evaluates the Dis tric t’s and the R egion’s near-term and long-term water s ervice reliab ility under various hydrolo gic s c enarios , pres ents c o ns ervatio n effo rts and o utc o mes , and meets the District’s repo rting req uirements under the UW MP Ac t. T he 2020 I R UW MP d o c ument is o rganized into four p arts : P art 1 – R egional C ontext, P art 2 – Individual Agenc y UW MP s , P art 3 – R egional S upporting Info rmatio n and P art 4 – Ind ividual Agency S up p orting Information. As a partic ip ant in the 2020 I R UW MP, EVW D has prepared tho s e p o rtions o f the I R UW MP applic ab le to EVW D to meet the req uirements of the I R W M Ac t, the UW MP Ac t and other ap p lic ab le laws and regulations whic h include P art 1, P art 2 C hapter 6: East Valley Water Dis tric t UW MP, P art 3, and P art 4 Append ix F : East Valley Water Dis trict S up porting Info rmatio n. In acc o rd ance with ap p lic ab le legal requirements , E VW D has undertaken certain c o o rd ination, notic e, public involvement, public c o mment, and o ther p roc ed ures in relation to the 2020 I R UW MP. In ac cordanc e with the UW MP Act, EVW D has prep ared the 2020 I R UW MP with staff fro m its own agency, with the as s istanc e of c o nsulting profes s io nals , and in cooperation with other go vernmental agenc ies, and has utilized and relied up on ind ustry s tandards and the exp ertis e of indus try profes s io nals in p reparing its 2020 I R UW MP, and has also utilized the DW R G uidebook for Urban Water S uppliers to P repare 2020 Urban Water Management P lans , includ ing its related appendic es and the 2016 I R W M G uid elines . In acc o rd ance with ap p lic ab le law, a No tice o f a P ublic Hearing regarding E VW D’s adoption of P art 1, P art 2 C hap ter 6, P art 3 and P art 4 Ap p endix F o f the 2020 I R UW MP was published within the juris d ic tion o f EVW D o n June 9 and June 16, 2021. C onclus ions from P art 2 C hap ter 6 are as fo llo ws : EVW D’s c o ns ervatio n has s urpass ed the 2020 S Bx7-7 target. EVW D has a ro bus t water s up p ly p o rtfo lio and lo ng-term water s ervic e reliab ility und er No rmal Year, S ingle Dry Year, and F ive consec utive drought years. EVW D has suffic ient near-term s upply reliability fo r a drought perio d las ting five c o ns ecutive years . EVW D’s ongoing partic ip ation in collab o rative regio nal water res ources planning and pro jects have been key to enhanc ing the reliab ility o f the R egio n’s water resourc es . 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 c ) S trengthen R egio nal, S tate and Natio nal P artners hips 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 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: Jeff No elte Direc tor of Engineering and O p erations R E VIE W B Y O T HE R S : T his agend a item has been reviewed b y the exec utive management team. 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 Resolution 202 1.11 Resolution Lette r Draft 2 020 IRU W M P Executive Summary Backup Material Draft 2 020 IRU W M P P art 1 Regional Context Backup Material Draft 2 020 IRU W M P P art 2 Chapter 6 E VW D Backup Material Draft 2 020 IRU W M P P art 3 Regional Supporting Information Backup Material Draft 2 020 IRU W M P P art 4 Appendix F_EVW D Backup Material East Valley Water District Resolution 2021.11 Page 1 of 6 RESOLUTION NO. 2021.11 RESOLUTION OF THE BOARD OF DIRECTORS OF EAST VALLEY WATER DISTRICT ADOPTING THE 2020 UPPER SANTA ANA RIVER WATERSHED INTEGRATED REGIONAL URBAN WATER MANAGEMENT PLAN WHEREAS, the East Valley Water District and other water managers in the upper Santa Ana River watershed have long recognized the importance of regional collaboration and integration of single purpose efforts and regularly work across jurisdictional boundaries to implement regional multi-benefit projects and programs that address multiple water resource management issues, including local and imported water supplies, recycled water, stormwater management, groundwater management, water use efficiency, habitat and open space management, and many others; and WHEREAS, the State lawmakers created the Integrated Regional Water Management Planning Act (IRWM Act) in 2002 to encourage integrated, regional strategies for managing water resources; and WHEREAS, in 2005, 16 agencies in the upper Santa Ana River watershed decided to develop the region’s first IRWM Plan (IRWMP) to collaborate on regional water management issues; and WHEREAS, the Upper Santa Ana River Watershed IRWMP was completed in 2007 and updated in 2015; and WHERAS, the East Valley Water District participated in the development of the 2007 and 2015 IRWMPs and adopted the 2007 and 2015 IRWMPs; and WHEREAS, the IRWMP established an update schedule of every five years and is due to be updated; and WHERAS, the California Department of Water Resources (DWR) has established Program Guidelines for the IRWM Program, which were most recently updated in 2016 (2016 IRWM Guidelines); and East Valley Water District Resolution 2021.11 Page 2 of 6 WHEREAS, The California Urban Water Management Planning Act, Water Code Section 10610 et seq. (UWMP Act), mandates that every urban supplier of water providing water for municipal purposes to more than 3,000 customers or supplying more than 3,000 acre feet of water annually, prepare an Urban Water Management Plan (UWMP); and WHEREAS, the East Valley Water District meets the definition of an urban water supplier for purposes of the UWMP Act; and WHEREAS, the UWMP Act requires that said UWMP be updated and adopted at least once every five years on or before July 1, in years ending in six and one; and WHERAS, the UWMP Act allows for water suppliers to work together to develop a cooperative regional UWMP and in 2010 and 2015, the San Bernardino Valley Regional UWMP (RUWMP) was prepared by ten different water suppliers to collectively meet the requirements of the UMWP Act; and WHERAS, the East Valley Water District participated in the 2010 and 2015 RUWMP; and WHERAS, both the IRWMP and RUWMP are both due to be updated; and WHERAS, the East Valley Water District and nineteen other water suppliers and water management organizations in the upper Santa Ana River watershed decided to combine the IRWMP and the RUWMP into a single comprehensive planning document known as the 2020 Upper Santa Ana River Watershed Integrated Regional Urban Water Management Plan (IRUWMP) which is the first of its kind in California; and WHERAS, valuable synergies are realized by combining these two documents into one, including reduced preparation costs, a single integrated dataset, a consolidated reference document, enhanced collaboration, and more robust integrated planning and decision- making; and WHERAS, the 2020 IRUWMP document is organized into four parts: Part 1 – Regional Context, Part 2 – Individual Agency UWMPs, Part 3 – Regional Supporting Information and Part 4 – Individual Agency Supporting Information; and WHEREAS, as a participant in the 2020 IRUWMP, the East Valley Water District has prepared those portions of the IRUWMP applicable to the East Valley Water District East Valley Water District Resolution 2021.11 Page 3 of 6 to meet the requirements of the IRWM Act, the UWMP Act and other applicable laws and regulations which include Part 1, Part 2 Chapter 6: East Valley Water District UWMP, Part 3, and Part 4 Appendix F: East Valley Water District Supporting Information; and WHEREAS, in accordance with applicable legal requirements, the East Valley Water District has undertaken certain coordination, notice, public involvement, public comment, and other procedures in relation to the 2020 IRUWMP; and WHEREAS, in accordance with the UWMP Act, The East Valley Water District has prepared the 2020 IRUWMP with staff from its own agency, with the assistance of consulting professionals, and in cooperation with other governmental agencies, and has utilized and relied upon industry standards and the expertise of industry professionals in preparing its 2020 IRUWMP, and has also utilized the DWR Guidebook for Urban Water Suppliers to Prepare 2020 Urban Water Management Plans, including its related appendices and the 2016 IRWM Guidelines; and WHEREAS, in accordance with applicable law, a Notice of a Public Hearing regarding the East Valley Water District’s adoption of Part 1, Part 2 Chapter 6, Part 3 and Part 4 Appendix F of the 2020 IRUWMP was published within the jurisdiction of the East Valley Water District on June 9, 2021 and June 16, 2021; and WHEREAS, in accordance with applicable law, including but not limited to Water Code sections 10608.26 and 10642, a public hearing was held on June 23, 2021 at 5:30 pm, or soon thereafter, virtually via Microsoft Teams, in order to provide members of the public and other interested entities with the opportunity to be heard in connection with proposed adoption of the 2020 IRUWMP and issues related thereto; and WHEREAS, pursuant to said public hearing on the 2020 IRUWMP, The East Valley Water District, among other things, encouraged the active involvement of diverse social, cultural, and economic members of the community within the East Valley Water District’s service area with regard to the preparation of the Plan, encouraged community input regarding the 2020 IRUWMP; and WHEREAS, the Board of Directors has reviewed and considered the purposes and requirements of the IRWM Act and the UWMP Act, the contents of the 2020 IRUWMP, and East Valley Water District Resolution 2021.11 Page 4 of 6 the documentation contained in the administrative record in support of the 2020 IRUWMP, and has determined that the factual analyses and conclusions set forth in the 2020 IRUWMP are legally sufficient; and WHEREAS, the Board of Directors desires to adopt Part 1, Part 2 Chapter 6, Part 3 and Part 4, Appendix F of the 2020 IRUWMP in order to comply with the IRWM Act and UWMP Act. NOW THEREFORE BE IT RESOLVED, the Board of Directors of East Valley Water District hereby resolve as follows: 1. Part 1, Part 2 Chapter 6, Part 3 and Part 4 Appendix F of the 2020 IRUWMP is hereby adopted as amended by changes incorporated by the Board of Directors as a result of input received (if any) at the public hearing and ordered filed with the Secretary of the Board of Directors; 2. The General Manager/CEO is hereby authorized and directed to include a copy of this Resolution in the East Valley Water District’s 2020 IRUWMP; 3. The General Manager/CEO is hereby authorized and directed, in accordance with Water Code sections 10621(d) and 10644(a)(1)-(2), to electronically submit a copy of the East Valley Water District portions of the 2020 IRUWMP to DWR no later than July 1, 2021; 4. The General Manager/CEO is hereby authorized and directed, in accordance with Water Code section 10644(a), to submit a copy of the 2020 IRUWMP to the California State Library, and any city of county within which the East Valley Water District provides water supplies no later than thirty (30) days after this adoption date; 5. The General Manager/CEO is hereby authorized and directed, in accordance with Water Code section 10645, to make the 2020 IRUWMP available for public review at The East Valley Water District offices during normal business hours and on East Valley Water District website no later than thirty (30) days after filing a copy of the 2020 IRUWMP with DWR; 6. The General Manager/CEO is hereby authorized and directed, in accordance with Water Code Section 10635(b), to provide that portion of the 2020 IRUWMP prepared pursuant to Water Code Section 10635(a) to any city or county within which the East Valley East Valley Water District Resolution 2021.11 Page 5 of 6 Water District provides water supplies no later than sixty (60) days after submitting a copy to DWR; 7. The General Manager/CEO is hereby authorized and directed to implement the 2020 Plan in accordance with the IRWM Act and UWMP Act and to provide recommendations to the Board of Directors regarding the necessary budgets, procedures, rules, regulations, or further actions to carry out the effective and equitable implementation of the 2020 IRUWMP in collaboration with the regional partners. ADOPTED, this 23rd day of June 2021. ROLL CALL: Ayes: Noes: Absent: Abstain: David E. Smith, Board President ATTEST: John Mura, Secretary, Board of Directors June 23, 2021 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2021.11 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held June 23, 2021. East Valley Water District Resolution 2021.11 Page 6 of 6 John Mura, Secretary, Board of Directors 2020 IRUWMP EXECUTIVE SUMMARY 1 EXECUTIVE SUMMARY UPPER SANTA ANA RIVER WATERSHED 2020 INTEGRATED REGIONAL URBAN WATER MANAGEMENT PLAN 2020 IRUWMP EXECUTIVE SUMMARY 2 Due to the dedicated and collaborative efforts of the regional water community, water resources in the upper Santa Ana River watershed continue to support thriving communities and are vital to protect and enhance natural resources. Water supply reliability over the next 25 years continues to remain strong and will be able to withstand uncertainties, including a 30-year drought. 2020 IRUWMP EXECUTIVE SUMMARY 3 The 2020 Integrated Regional Urban Water Management Plan for the Upper Santa Ana River Watershed Region sets a new standard for integrated water resources planning in California Leading the Way in Integrated Regional Water Management The water management agencies within the Upper Santa Ana River (SAR) Watershed Region (Region) have a long history of collaboration to deliver regional water resource solutions. They collaborate to collect and manage water resource data and prepare multiple planning documents to meet regulatory requirements while guiding effective regional and local decision- making. Two of the Region’s foundational documents are the Upper Santa Ana River Watershed Integrated Regional Water Management Plan (IRWMP) and the San Bernardino Valley Regional Urban Water Management Plan (RUWMP). Since both documents were due to be updated for the 2020 planning cycle and considering the overlap and interdependence of these two documents, Valley District and its regional partners envisioned a consolidated document that combines these two plans, merges the common elements, and creates a cohesive water resources planning framework for the future. This document is called the Integrated Regional Urban Water Management Plan (IRUWMP or Plan) and is the first of its kind, setting a new standard for integrated water resources planning and reporting in California. PART 3 Regional Supporting Information UWMP Agency Supporting InformationLocal Agency Information Part 2 provides supplemental information for the eleven retail agencies who are using this Plan to meet their 2020 UWMP requirements. Regional Supporting Information Part 3 includes all of the supporting documentation referenced in Part 1 that is applicable to the region as well as the regulatory compliance guide that DWR will use to verify that Part 1 meets the IRWM requirements. UWMP Agency Suporting Information Part 4 includes a set of supporting documentation for each UWMP Agency corresponding to their respective chapters in Part 2. Documents will include the regulatory compliance guide that DWR will use to verify the agency has met the UWMP Act requirements, the agency’s Water Shortage Contingency Plan and other documents specific to each agency Regional Context Part 1 contains the information needed to meet the requirements of the IRWM Planning Act for the Region and a portion of the UWMP Act requirements for the local agencies who are using this Plan to meet their 2020 UWMP Requirements 1. Introduction 2. Region Description 3. Regional Water Sources and Management 4. Regional Water Use 5. Comparison of Regional Supplies and Demands 6. Water Management Goals, Objectives, and Strategies 7. Projects 8. Implementation, Performance and Adaptive Management 1. San Bernardino Valley Municipal Water District 2. City of Colton 3. City of Loma Linda 4. City of Redlands 5. City of Rialto 6. East Valley Water District 7. Riverside Highland Water Company 8. San Bernardino Municipal Water Department 9. South Mesa Water Company 10. West Valley Water District 11. Yucaipa Valley Water District CO N T E N T S CO N T E N T S SBVMWD EXECUTIVE SUMMARY 4 San t a A n a R i v e r E a s t T w i n C r e e k Lytl e C r e e k Prado Dam Area Lit t l e S a n Go r g o n i o Cre e k De e r C r e e k Bal d w i n La k e C a j o n C r e e k Lytl e C r e e k W a s h San T i m o t e o C r e e k Te m e s c a l C r e e k Baker Lake Mi l l C r e e k War m C r e e k Pl u n g e C r e e k C u c a m o n g a C r e e k San A n t o n i o C r e e k Big Bear Lak e Caj o n C r e e k W a s h Da y C r e e k Santa Ana River Ci t y C r e e k Tw i n C r e e k Be a r C r e e k Mill Creek Cuc a m o n g a C y n W a s h Lake Pe r r i s W a t e r m a n C y n Sev e n Oak s D a m Rea c h 6 Reach 2 Reac h 3 Rea c h 4 Reach 5 Reach 6 ¬«210¬«210 ¬«71 ¬«71 ¬«60 ¬«91 ¬«210 ¬«60 §¨¦215 §¨¦10 §¨¦210 §¨¦15 116°58'57"W 116°58'57"W 34 ° 2 ' 4 " N 34 ° 2 ' 4 " N Fi l e N a m e : ±0 3 61.5 Mi 0 4.5 92.25 Km 1 in : 3.8 mi 0 1 i n . Date: 5/26/2021Coordinate System: NAD 1983 StatePlane California V FIPS 0405 Feet San Bernardino County Riverside County Legend County Boundary San Bernardino Valley Municipal Water District Upper Santa Ana River IRWM Plan Area Western Municipal Water District Eastern Municipal Water District Big Bear City Community Services District City of Big Bear Lake City of Colton Fontana Water Company City of Loma Linda Marigold Mutual Water CompanyCities and Water Companies Muscoy Mutual Water Company City of Redlands City of Rialto City of Riverside Riverside Highland Water Company City of San Bernardino South Mesa Water Company Terrace Water Company Western Heights Water Company Water Districts and Agencies Big Bear Municipal Water District East Valley Water District Jurupa Community Services District Rubidoux Community Services District San Bernardino Valley Water Conservation District San Gorgonio Pass Water Agency San Bernardino Valley Municipal Water District Eastern Municipal Water DistrictWestern Municipal Water District Big Bear Municipal Water District San Gorgonio Pass Water Agency Big Bear City Community Services District City of Big Bear Lake City of Colton Fontana Water Company City of Loma Linda Marigold Mutual Water Company Muscoy Mutual Water Company City of Redlands San Bernardino Valley Water Conservation District City of Rialto City of Riverside Riverside Highland Water Company City of San Bernardino South Mesa Water Company Terrace Water Company Western Heights Water \Company East Valley Water District Jurupa Community Services District Rubidoux Community Services District West Valley Water District Yucaipa Valley Water District Beaumont-Cherry Valley Water District West Valley Water District Yucaipa Valley Water District Running Springs Water DistrictBeaumont-Cherry Valley Water District The San Bernardino Valley Municipal Water District (Valley District), 11 retail water agencies, and numerous other stakeholders collaborated to produce this Integrated Regional Urban Water Management Plan. The Region encompasses more than 850 square miles extending from the Big Bear Valley in the San Bernardino mountains to the Riverside Narrows, and includes a vast metropolitan area that is home to more than 1 million residents and a robust and diverse economy. 2020 IRUWMP EXECUTIVE SUMMARY 5 The Plan integrates with many other regional and local planning efforts for planning consistency The 2020 IRUWMP is a Foundational Part of Water Planning in the Region The agencies within the Region regularly coordinate with neighboring and overlapping entities at the local, regional, and state level. The Santa Ana Watershed Project Authority (SAWPA), a JPA comprised of San Bernardino Valley Municipal Water District, Western Municipal Water District, Inland Empire Utilities Agency, Eastern Municipal Water District and Orange County Water District, has developed an IRWM Plan for the entire SAR watershed titled the One Water One Watershed (OWOW) Plan. The OWOW Plan is a “macro-level” broad planning document that is the framework for overall water management in the watershed. This 2020 IRUWMP for the Upper SAR Region is a complementary planning process that informs the SAWPA OWOW Plan. The purpose of the Upper SAR planning process is to focus on local issues specific to the upper watershed and to assess water management opportunities in greater detail. Two neighboring regions also prepare integrated regional water management plans. The Mojave IRWM Region encompasses the entire Mojave River watershed in the California High Desert area of San Bernardino County. The San Gorgonio IRWM Region is located in the San Gorgonio Pass area between the Upper Santa Ana River Watershed and the Coachella Valley IRWM Region. Within the Region, local planning is conducted by counties, cities, local agencies, and special districts. San Bernardino County, cities, and water agencies within the Region also inform the Water Element of the the San Bernardino Countywide Vision Process. Part of this process involves collaboration between water resource managers and land use planners on the water element to create mutually beneficial opportunities that ensure adequate water supplies and quality to support future population and economic growth within the County. The Upper Santa Ana River Wash Habitat Conservation Plan (Wash Plan HCP), which was approved in 2020, and the Upper Santa Ana River Habitat Conservation Plan (River HCP), which is nearing completion, are separate coordinated regional conservation and compliance efforts that will help balance the protection of local natural resources with critical water supply management activities. The plans specify how species and their habitats will be protected, enhanced, restored and managed in the future and enable the incidental take permits needed by the water resource agencies under the federal and State endangered species acts to maintain, operate, and improve their water resource infrastructure. 2020 IRUWMP EXECUTIVE SUMMARY 6 The Region’s water agencies are committed to informing and engaging stakeholders and the general public Connecting with Stakeholders and the Public Agencies that participate in the Basin Technical Advisory Committee (BTAC) at the time of this plan include: • Bear Valley Mutual Water Company • City of Colton • East Valley Water District • Elsinore Valley Municipal Water District • City of Loma Linda • City of Redlands Municipal Utilities and Engineering Department • City of Rialto • City of Riverside Public Utilities Department (Riverside Public Utilities) • Fontana Water Company • San Bernardino County Flood Control District • San Bernardino Municipal Water Department • San Bernardino Valley Municipal Water District • San Bernardino Valley Water Conservation District • West Valley Water District • Western Municipal Water District • Yucaipa Valley Water District Stakeholder participation and public engagement are critical to the success of the Plan. The agencies in the Region and the larger SAR watershed have a long history of working together to solve water resources related issues. These agencies recognize planning efforts such as IRWM and urban water management planning as additional opportunities to work together to manage water resources on a regional level. In general, the stakeholders for this planning process include: (1) members of the BTAC as listed to the right, (2) other regional stakeholders and water agencies located in the Upper SAR watershed region, (3) watershed-based stakeholders located in the SAR watershed that are part of the larger integrated planning for the region discussed in the SAWPA Plan, and (4) federal and State of California agencies that were encouraged to participate throughout development of the Plan. The BTAC has encouraged local agencies to be active in the development of the Plan and to participate in the planning process. The IRUWMP process continued to include efforts to coordinate with disadvantaged communities (DACs) and Tribes to identify potential water resource needs. Since DAC areas are encompassed within water agencies’ service areas, they are represented by the agencies participating in the Plan. In addition to inviting stakeholders from DACs and Tribes to Plan workshops, a larger watershed wide outreach effort was recently conducted by SAWPA The Basin Technical Advisory Committee (BTAC) is the regional water management group responsible for developing and implementing the Plan. The BTAC is open to any agency in the Region that chooses to participate and is a forum for discussion and early resolution of water issues in the Region. The BTAC members provide recommendations to their respective governing bodies who then make decisions regarding water resources planning and projects in the Region. • SAWPA and its member agencies (Eastern Municipal Water District, Inland Empire Utilities Agency, Orange County Water District, Western Municipal Water District) Santa Ana Watershed-based Stakeholders 2020 IRUWMP EXECUTIVE SUMMARY 7 Other Regional Water Agencies and Stakeholders • San Bernardino County Board of Supervisors • Riverside County Board of Supervisors • Beaumont-Cherry Valley Water District • Bear Valley Mutual Water Company • Big Bear City Community Services District • Big Bear Lake Department of Water and Power • Big Bear Municipal Water District • City of Beaumont • City of Calimesa • City of Fontana • Marygold Mutual Water Company • Muscoy Mutual Water Company • Regents of the University of California • Riverside County Flood Control and Water Conservation District • Southern California Edison • Orange County Flood Control District • Terrace Water Company • Western Heights Mutual Water Company • San Manuel Band of Mission Indians • California Department of Fish and Game • California Department of Public Health • California Department of Toxic Substances Control • California Department of Water Resources • Santa Ana Regional Water Quality Control Board • State Water Resources Control Board • U.S. Army Corps of Engineers • U.S. Forest Service State and Federal Stakeholders to evaluate the strengths and needs of disadvantaged, economically distressed or underrepresented communities in the SAR Watershed. This effort, funded through DWR’s Disadvantaged Communities Involvement Program, was completed in 2019 and included listening sessions with local communities, Tribal communities, elected officials, water agencies, and mutual water companies. The findings of this effort are recorded in the Community Water Ethnography of the Santa Ana Watershed, and needs relevant to the Upper SAR Watershed are incorporated into this Plan. The BTAC solicited public involvement in the planning process by presenting updates at regularly scheduled BTAC meetings, regularly scheduled Board and Council meetings of some BTAC agencies, at the Valley District Advisory Commission on Water Policy and by soliciting public comments on the draft IRUWMP via email announcements and website postings. In addition, several stakeholder workshops were conducted to develop additional information needed for the IRUWMP to meet the IRWM Plan requirements in the 2016 Integrated Regional Water Management Grant Program Guidelines and UWMP requirements as described in the 2020 Urban Water Management Plan Guidebook. The BTAC encouraged public participation in preparation of this Plan to ensure the public’s comments were considered in decisions about water management in the Region. Due to the COVID-19 pandemic, stakeholder collaboration for plan development was conducted remotely. Stakeholders participated in a series of interactive virtual workshops where they broke into small groups to provide input on needs, goals and objectives using a virtual whiteboard and sticky notes. 2020 IRUWMP EXECUTIVE SUMMARY 8 The Regions Supports a diverse population, economy and environment. Description of the Upper Santa Ana River Watershed Region The SAR watershed is the largest stream system in Southern California and nearly all of the surface flow generated in the headwaters of the San Bernardino Mountains flows through the IRUWMP region before being discharged to the Pacific Ocean approximately 100 miles to the southwest between Newport Beach and Huntington Beach. The SAR watershed covers over 2,650 square miles of widely varying forested, rural, and urban terrain and covers the more populated urban areas of San Bernardino, Riverside, and Orange Counties, as well as a lesser portion of Los Angeles County. The Upper SAR watershed covers 852 square miles, approximately 32% of the total SAR watershed, and is primarily located in San Bernardino and Riverside Counties. The Region includes the Big Bear Valley as well as the cities and communities of San Bernardino, Yucaipa, Redlands, Highland, Rialto, Mentone, Colton, Grand Terrace, Loma Linda, Beaumont, and Riverside. Total population in the Region is estimated at just over 1 million people in 2020 and is projected to grow to over 1.25 million people by 2045. The Upper SAR watershed covers 852 square miles, approximately 32% of the total SAR watershed, and is primarily located in San Bernardino and Riverside Counties. SBVMWD EXECUTIVE SUMMARY 9 Many census tracts in the Region are classified as disadvantaged communities (DAC) or severely disadvantaged communities (SDAC) meaning the average household income is below 80% or 60% of the median household income (MHI) for California, respectively SBVMWD EXECUTIVE SUMMARY 10 The largest land uses in the Region are national forest (55%) and urban area (22%). Agriculture represents only 3% of the land use in the Region, and continued conversion to urban use is anticipated in the future. SBVMWD EXECUTIVE SUMMARY 11 §¨¦10 §¨¦210 §¨¦15§¨¦5 §¨¦10 §¨¦405 §¨¦215 §¨¦15 §¨¦215 UV74 UV74 RIVERSIDE ONTARIO CORONA FONTANA PERRIS HESPERIA HEMET REDLANDS SAN BERNARDINO YUCAIPA RIALTO MORENO VALLEY CHINO BEAUMONT BANNING LAKE ELSINORE COLTON NORCO SAN JACINTO RANCHO CUCAMONGA HIGHLAND CALIMESA UPLAND LOMA LINDA BIG BEAR LAKE CANYON LAKE CHINO HILLS GRAND TERRACE MURRIETA Sources: Esri, USGS, NOAA . Y:\2021\1683_RUWMP\VegMap.mxd FIGURE 3-17 Vegetation Communities & Land Cover in the Planning Area General Land Cover Agriculture Shrublands Riparian Forests Woodlands Barren Developed Grasslands Rock Outcrops Wetlands Water Upper Santa Ana River Habitat Conservation Plan 0 5 102.5 Miles The Region contains unique and valuable ecological and environmental resources including riparian habitats along the SAR, forests, shrublands and grasslands. Many of these resources are managed through a variety of local, state and federal plans and jurisdictions, such as the Wash Plan HCP and the River HCP. 2020 IRUWMP EXECUTIVE SUMMARY 12 Climate in the Region is characterized by relatively hot, dry summers and cool winters with intermittent precipitation. The historical record indicates that periods of above or below-average precipitation can last more than 30 years, such as the recent dry period that extended from 1947 to 1977, and the ongoing dry period that began around 1998. 2020 IRUWMP EXECUTIVE SUMMARY 13 The Region’s diverse and plentiful water supplies support the regional economy, environment and quality of life. Water Sources and Uses in the Region The region’s water supplies include both local and imported sources. The local surface water is derived from the Santa Ana River and its tributaries and developed local supplies are either treated for domestic use or delivered for irrigation or groundwater recharge. Nearly all of the Region’s groundwater is produced from seven distinct groundwater basins. Five basins provide the majority of the groundwater supply to the region: San Bernardino Basin (SBB), Rialto-Colton, Riverside-Arlington, Yucaipa and San Timoteo. Together, these five basins provide over 12 million acre-feet (AF) of available local storage for use in dry years. Recycled water is produced at several water resource recovery facilities in the region for irrigation, industrial use and groundwater recharge. A portion of the recycled water produced in the Region is discharged to the SAR and its tributaries to support habitat and meet downstream flow obligations. Imported water for most of the Region is provided by Valley District, who is a State Water Project (SWP) contractor. San Gorgonio Pass Water Agency, also a SWP contractor, and Western Municipal Water District, a member agency of Metropolitan Water District of Southern California, provide supplemental imported water to the portions of the Region within Riverside County. The Region’s water sources include local groundwater, local surface water, imported surface water and recycled water. Local Groundwater Local Surface Water Recycled Water Imported Surface Water San Bernadino Basin Rialto-Colton Riverside-Arlington Yucaipa San Timoteo Chino Bear Valley Basin City of Redlands City of Rialto City of Riverside East Valley Water District IEUA RIX San Bernadino County Special Districts Yucaipa Valley WD SBBA Surface Water Seven Oaks Supply Oak Glen State Water Project SBVMWD EXECUTIVE SUMMARY 14 Local surface water is provided by the Santa Ana River and its tributaries. SBVMWD EXECUTIVE SUMMARY 15 Santa Ana Ri v e r E a s t T w i n C r e e k L y t l e C r e e k Prado Dam Area Lit t l e S a n Go r g o n i o Cre e k De e r C r e e k Bal d w i n La k e Lake Perris C a j o n C r e e k Lytl e C r e e k W a s h Sa n T i m o t e o C r e e k Baker Lake Mi l l C r e e k Wa r m C r e e k Pl u n g e C r e e k C u c a m o n g a C r e e k Te m e s c a l Cr e e k San A n t o n i o C r e e k Big Bear Lake Caj o n C r e e k W a s h D a y C r e e k Santa Ana River Tw i n Cr e e k C i t y C r e e k Be a r C r e e k Mill Creek Cuc a m o n g a C y n W a s h W a t e r m a n C y n Seven Oaks Dam ¬«210 ¬«210 ¬«71 ¬«71 ¬«91 ¬«60 ¬«210 ¬«60 §¨¦215 §¨¦10 §¨¦210 §¨¦15 SEVEN OAKS VALLEY BIG MEADOWS VALLEY BEAR VALLEY SAN TIMOTEO SUB-BASIN YUCAIPA SUB-BASINRIVERSIDE-ARLINGTON SUB-BASIN CHINO SUB-BASIN SAN BERNARDINO BASIN RIALTO-COLTON SUB-BASIN CAJON SUB-BASIN 116°58'57"W 116°58'57"W 34 ° 2 ' 4 " N 34 ° 2 ' 4 " N Fi l e N a m e : I R U W M P 2 0 _ G W B a s i n s _ L _ M A H ±0 3 61.5 Mi 0 4.5 92.25 Km 1 in : 3.8 mi 0 1 i n . Date: 5/27/2021Coordinate System: NAD 1983 StatePlane California V FIPS 0405 Feet San Bernardino County Riverside County Legend County Boundary Upper Santa Ana River IRWM Plan Area Fault Bulletin 118 Groundwater Basins and Sub-Basins SAN BERNARDINO CAJON CHINO RIALTO-COLTON RIVERSIDE-ARLINGTON SAN TIMOTEO YUCAIPA BEAR VALLEY BIG MEADOWS VALLEY SEVEN OAKS VALLEY Of the ten groundwater basins in the Region, five basins provide the majority of the groundwater supply: San Bernardino Basin, Rialto- Colton, Riverside-Arlington, Yucaipa and San Timoteo. Together, these five basins provide over 12 million acre- feet AF of available local storage for use in dry years SBVMWD EXECUTIVE SUMMARY 16 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q Colton WRF IEUA Recycled Plant No. 4 RIX Rialto WWTP Riverside RWQCP Lytle Creek North WRP WMWD WRCWRA YVWD WRWRF Redlands WWTF Beaumont WWTP San Bernardino WRP ¬«210¬«210 ¬«71 ¬«71 ¬«60 ¬«91 ¬«210 ¬«60 §¨¦215 §¨¦10 §¨¦210 §¨¦15 S W P C a l i f o r n i a A q u e d u c t G a g e C anal R iv e r s id e C a nal S W P C alifornia A qu e d uct S W PEa s t B r a n c h E xtens ion FoothillPipeline G r e en s po tPipeline Baseline Feeder Rive r s i d e C o r o n a F e e d e r Inland Feeder Central Feeder Ment o neFeeder Azusa Pipeline P l u n ge Pool P ipeline SARI S outh End Feeder C o lo r a do River Aqueduc t LowerFeeder E t i w a n d a P i p e l i n e Devil Canyon Az us a P ip e l in e Upper Feeder 116°58'57"W 116°58'57"W 34 ° 2 ' 4 " N 34 ° 2 ' 4 " N Fi l e N a m e : I R U W M P 2 0 _ M a j o r W a t e r S u p p l y _ L _ M A H ±0 3 61.5 Mi 0 4.5 92.25 Km 1 in : 3.8 mi 0 1 i n . Date: 5/13/2021Coordinate System: NAD 1983 StatePlane California V FIPS 0405 Feet San Bernardino County Riverside County Legend County Boundary SBVMWD Boundary Upper Santa Ana River IRWM Plan Area Pipeline Canal/Aqueduct Recharge Basins 3Q Waste Water Treatment Plants State Water Project supplies are delivered by Valley District, Metropolitan Water District of Southern California and the California Department of Water Resources through a vast network of pipelines, storage and pump stations throughout the region. 2020 IRUWMP EXECUTIVE SUMMARY 17 Population growth projections developed by the Southern California Association of Governments (SCAG) have declined significantly in the last 10 years. While SCAG’s latest 2020 Demographics and Growth Forecast projects slower growth than previous plans, the result is still a substantial increase in population within the Valley District service area and the Region. The population within the Valley District service area is projected to reach 870,000 by 2045 and the population of the Region as a whole is projected to reach over 1.25 million people. 500,000 550,000 600,000 650,000 700,000 750,000 800,000 850,000 900,000 950,000 1,000,000 2010 2015 2020 2025 2030 2035 2040 2045 2010 RUWMP 2015 RWUMP 2020 IRUWMP Since the last planning cycle in 2015, total demand projections for the 9 agencies who participated in the 2015 RUWMP have dropped slightly due to slower population growth projections and increased water use efficiency. 100,000 110,000 120,000 130,000 140,000 150,000 160,000 170,000 180,000 2020 2025 2030 2035 2040 2045 2015 Demand Projections 2020 Demand Projections Actual 2020 Demand Population Projection Trends for the Valley District Service Area Comparison of Demand Projections for the Valley District Service Area, AFY 2020 IRUWMP EXECUTIVE SUMMARY 18 Total projected water demands for all of the retail water agencies within the Region are expected to reach nearly 400,000 AFY by 2045. Normal year supplies meet or exceed regional demands including a 15% reliability factor that accounts for uncertainty factors in the projections, including population growth, per capita water use, climate change impacts, SWP project hyrdology and local surface water hyrdology. 0 100,000 200,000 300,000 400,000 500,000 600,000 2025 2030 2035 2040 2045 Stormwater Capture (Precip)SWP Table A - Into Storage Groundwater (Precip)Surface Water (Precip) SWP Table A - Direct Deliveries Recycled Water Total Supply Target with 15% Reliability Factor Total Demands Region Wide Supply and Demand Comparison for a Normal Year (AFY) 2020 IRUWMP EXECUTIVE SUMMARY 19 The Region’s water suppliers prioritize conservation and efficient use of water. Using Water Wisely The Region has been successful at improving water use efficiency and every retail water agency in the Region has reduced demand. For the nine (9) participating agencies in the 2015 RUWMP, their collective 2020 actual demand was almost 40,000 acre-feet lower than projected and 15% lower than 2009 actual demand, despite a 7% increase in population. Currently, every retail agency develops and implements its own water conservation plan and programs. Now with California state law “Making Water Conservation a Way of Life” (SB 606 and AB 1668), increasingly stringent indoor and outdoor water use standards are expected. Therefore, Valley District and its retail agency partners are considering a coordinated regional and local water conservation program. Demand Management Regional Conservation Program Retail Agency Administered Program Regional Community Engagement Program administered by Valley District conservation-related efforts provided by non- retail agency partners local programs administered by water retailers Investing in our retail partners, end-users/taxpayers, and other partners to increase the efficiency of water consumption and ensure regional water reliability. 2020 IRUWMP EXECUTIVE SUMMARY 20 Diverse supplies and continued investments provide reliable water for the Region’s future. The Region’s Supplies Continue to be Reliable, Even in a 30-year Drought Although local and imported surface water supplies are highly dependent on local and statewide hydrology, the Region benefits from more than 12 million acre-feet of groundwater storage that can be used to store water when supplies are plentiful and then be pumped during extended droughts. By maximizing deliveries of State Water Project water in wet years when those supplies are available, and supplementing that with other local supplies like stormwater capture and recycled water, the Region can accrue sufficient storage to enable a high level of water supply reliability, even during an 30-year drought. Although the UWMP Guidebook does not require agencies to demonstrate the ability to withstand a 30-year drought, the Region decided, on its own, to evaluate a 30-year drought because it has experienced a drought of this length in the past and is currently in the midst of a drought that has lasted longer than 20 years and is still continuing. 0 100,000 200,000 300,000 400,000 500,000 600,000 2025 2030 2035 2040 2045 Stormwater Capture (Precip)SWP from Storage (Sites Reservoir) Groundwater from Storage (Local and SWP)Groundwater (Precip) Surface Water (Precip)SWP Table A Direct Deliveries Recycled Water Total Demands Total Supply Target with 15% Reliability Factor 0 100,000 200,000 300,000 400,000 500,000 600,000 2025 2030 2035 2040 2045 Stormwater Capture (Precip)SWP Table A Into Storage Groundwater (Precip)Surface Water (Precip) SWP Table A Direct Deliveries Recycled Water Total Supply Target with 15% Reliability Factor Total Demands Region Wide Supply and Demand Comparison for a Single Dry Year (AFY) Region Wide Supply and Demand Comparison for a 30-Year Drought (AFY) 2020 IRUWMP EXECUTIVE SUMMARY 21 Water Shortage Contingency Plans (WSCPs) describe how the Region’s water agencies are preparing for and may respond to potential water shortage. The Region’s water resources management goals reflect a balanced view social, environmental and economic values. Planning for Short-Term Water Shortages – A Regional and Local Approach Defining Goals and Objectives for Integrated Water Resources Management A water shortage occurs when water supply available is insufficient to meet the normally expected customer water use at a given point in time. A shortage may occur due to several reasons, such as water supply quality changes, climate change, drought, regional power outage, and catastrophic events (e.g., earthquake). Additionally, the State may declare a statewide drought emergency and mandate that water suppliers reduce demands, as occurred in 2014. The WSCPs serve as the operating manuals that Valley District and the retail water agencies The BTAC identified several water resources-related needs and issues for the Region, including: • Increased diversification of water supplies • Improved groundwater management • Protection of water quality • Flood management with recharge benefits • Habitat and open space preservation • Disaster prevention • Sustainability • Climate change resilience will use to prevent catastrophic service disruptions through proactive, rather than reactive, mitigation of water shortages. Each WSCP provides a process for an annual water supply and demand assessment and structured steps designed to respond to actual conditions. Although the water agencies in the Region do not foresee implementing water shortage levels under normal conditions, this level of detailed planning and preparation provide accountability and predictability and help the Region’s water agencies maintain reliable supplies and reduce the impacts of any supply shortages and/or interruptions. Based on these needs and issues, progress since the 2015 IRWM Plan, and input from the public and stakeholders, the BTAC updated goals and objectives for the Region through a series of collaborative stakeholder workshops. As a result of stakeholder discussions, a new Goal #5 was added – Address Climate Change Through Adaptation and Mitigation. 2020 IRUWMP EXECUTIVE SUMMARY 22 IRWM Region Goals and Objectives for the Next 5 Years GOAL #1 IMPROVE WATER SUPPLY RELIABILITY IRWM Region Goals and Objectives for the Next 5 Years 1a: Comply with conservation legislation requirements (AB1668 and SB606) 1b: Increase utilization of local supplies by 20,000 AFY 1c: Implement the Santa Ana River Conservation and Conjunctive Use Program (SARCCUP) to increase storage in the SBB by 64,000 AF 1d: Improve system resiliency and the ability to respond to emergency supply interruptions by increasing back-up facilities, increasing interties, adding redundant power sources and treatment facilities 1e: Continue to ensure equitable access to clean drinking water for all communities 1f: Complete groundwater management plans for the San Bernardino, Rialto-Colton and Yucaipa Basins 2a: Complete necessary agreements to use fl ood control retention/detention basins for recharge in the San Bernardino, Rialto-Colton and Yucaipa Basins when not needed for fl ood control 2b: Implement 20 acres of integrated flood projects that also provide multiple benefi ts, where possible 2c: Continue to ensure equivalent implementation of fl ood projects in DAC areas and implement at least 1 fl ood control project in a DAC area 2d: Identify 4 urban stormwater capture projects to increase recharge and improve surface water quality 3a: Ensure no violations of drinking water quality standards 3b: Proactively address new constituents of concern as MCLs are developed 3c: Manage total dissolved solids and nitrogen in groundwater 4a: Preserve or improve habitat by conserving or restoring 150 acres of riparian, wetland and permanent water areas by implementing projects in the Wash HCP and River HCP. 4b: Identify “multi-use” opportunities to increase recreation and public access and identify 4 multi-use projects 5a: Implement local supply and fl ood control projects to help offset the impacts of climate change 5b: Implement 4 projects to reduce or offset energy consumption or reduce GHG emissions associated with water and wastewater systems 5c: Complete the SBVMWD Climate Adaptation and Resilience Plan (CARP) GOAL #2 BALANCE FLOOD MANAGEMENT AND INCREASE STORMWATER RECHARGE GOAL #3 IMPROVE WATER QUALITY GOAL #5 ADDRESS CLIMATE CHANGE THROUGH ADAPTATION AND MITIGATION GOAL #4 IMPROVE HABITAT AND OPEN SPACE 2020 IRUWMP EXECUTIVE SUMMARY 23 The regional water agencies have identified an ambitious portfolio of projects to provide multiple regional benefits. Strategies, Projects and Plan Implementation – Delivering Long-term Water Security Keeping the Region’s unique issues and challenges in mind, the BTAC compiled a listing water management strategies and water resources-related projects to help them reach their goals and objectives. The strategies, listed below, intentionally align with the resource management strategies (RMS) listed in the California Water Plan and reflect the unique aspects of the Region’s water resources. 1. Continue Basin Management in Local Groundwater Basins 2. Incorporate cultural intelligence into water supply and demand management 3. Continue Headwaters Forest Management and Hazardous Fuels Reduction 4. Coordinate Land Use Planning and Management with Water Resources Management 5. Develop Desalination if needed 6. Develop Watershed Management Projects and Programs 7. Improve Drinking Water Treatment and Distribution 8. Identify Corridors for Species 9. Identify and Implement Projects that Increase Recharge 10. Identify and Implement Projects that Increase Surface Water and Groundwater Storage Inside and Outside the Region 11. Identify and Implement Water Transfer Opportunities where necessary 12. Implement Agricultural Lands Stewardship 13. Implement Agricultural Water Use Efficiency 14. Implement Pollution Prevention Measures 15. Implement System Reoperation 16. Implement Urban Water Use Efficiency 17. Improve Imported Water Supply Conveyance – Delta 18. Improve Supply Conveyance – Across the Regional/ Local 19. Incorporate Environmental Opportunities and Constraints into the Design Process for Facilities Strategies: 20. Incorporate Opportunities to Improve Habitat and Increase Recreation and Public Access During the Facilities Design Process 21. Increase Outreach and Engagement 22. Increase Recycled Water Use 23. Increase Stormwater Capture 24. Maintain and Improve Water-Dependent Recreation 25. Manage High Groundwater and Liquefaction Potential in the SBB 26. Manage Flood Risk 27. Manage Salt and Salinity 28. Manage Sediment 29. Manage Urban Runoff 30. Match Water Quality to Use 31. Monitor Consumer Confidence Reports 32. Operate Existing Facilities to Increase Recharge 33. Optimize Wet Year Storage and Dry Year Pumping (Conjunctive Management & Groundwater) 34. Participate in the SAWPA Basin Management Task Force 35. Protect Recharge Areas 36. Provide Economic Incentives 37. Remediate Groundwater Contamination Plumes 38. Restore Ecosystems 39. Support the Bay-Delta Conservation Plan /Delta Conveyance Project 2020 IRUWMP EXECUTIVE SUMMARY 24 Looking to the Future - Data Management, Plan Performance and Adaptive Management The Region has a history of working together to support the development and implementation of projects, and has continuously worked to develop regional, integrated projects. The Plan includes a listing of over 120 projects submitted by agencies throughout the Region that will help achieve the goals and objectives of this plan. The Project list is a living document, and projects can be submitted to the BTAC for review, ranking and prioritization, per the approved criteria, at any time. The BTAC will be the primary entity responsible for implementation of the IRUWMP, and project sponsors will be responsible for implementation of projects and tracking of project benefits. Continued regional coordination and outreach to stakeholders will be key to implementing the Plan. The BTAC will continue to look for opportunities to coordinate with land use planning efforts and incorporate land use planning issues and strategies into water management decisions. The IRUWMP represents the current state of water resources planning in the Region and continues to recognize that water management needs, issues and strategies will continue to evolve in response to changing conditions. A continued adaptive management approach will allow the IRUWMP to stay current considering changing conditions and will rely on regular plan and project performance monitoring and review. The BTAC has already made significant progress implementing the Plan. The BTAC has already made significant progress implementing the various management strategies and accompanying projects and continue to monitor progress toward their goals and objectives. The Region plans to continue within its current governance structure and, wherever possible, improve by enhancing coordination, governance, outreach, funding and financing. The IRUWMP represents the current state of water resources planning in the Region, based upon the latest available information, and recognizes that water management strategies will continue to evolve in response to changing conditions. In recognition of the fluid nature of water management in the Region, the IRUWMP continues to incorporate an adaptive management approach that allows the Plan to stay current in light of changing conditions, such as local and regional water needs and changing regulatory requirements. The adaptive management framework is based on an iterative process of: • Collecting information and data regarding the conditions within the Region • Evaluating the new data to determine plan/project performance • Formulating a plan in response to these changing conditions Plan Implementation Continued Governance Project Implementation Plan Updates Continued Outreach & Coordination Support of Statewide Priorities Funding & Financing 2020 IRUWMP EXECUTIVE SUMMARY 25 • Continued emphasis on improved flood protection. • Plan to address climate change vulnerabilities including reduced GHG emissions and energy usage. • Continued distribution and water quality to disadvantaged communities. • Continued environmental stewardship. • Enhancement of water-dependent environmental assets. • Continued water-related education, recreation, and public access opportunities in the Region. • Continued understanding of the Region’s water resources, including focused regional monitoring to ensure groundwater is used in a sustainable manner. • Continued coordination of water management activities of the Region through sharing of ideas and mutually beneficial management of project opportunities. • Continued coordinated development of water management strategies and associated projects. • Continued emphasis on improved preparation for a disaster. This process will allow the Region to proactively manage its available resources, including making investments in the planning and implementation of new projects and programs. This includes preparation of periodic updates of the IRUWMP to respond to changing conditions (including climate change and the re-evaluation of any impacts and benefits) through a continued working relationship with the BTAC, and to inform project participants and stakeholders about changes to the IRUWMP. With full implementation of the Plan, the Region can expect to realize significant benefits, including: • Continued water supply reliability during drought periods through a diverse water supply portfolio consisting of both local and imported supplies. • Continued management of the Region’s surface water and groundwater resources, including new opportunities for conjunctive management of groundwater and surface water resources and recharge of groundwater basins. • Continued emphasis on water quality through effective management of groundwater resources, expediting cleanup process of contaminant plumes in the Region, and improving stormwater management. 2020 IRUWMP EXECUTIVE SUMMARY 1 UPPER SANTA ANA RIVER WATERSHED 2020 INTEGRATED REGIONAL URBAN WATER MANAGEMENT PLAN Due to the size of the document a link is provided for viewing Please click here to view this document online UPPER SANTA ANA RIVER WATERSHED 2020 IRUWMP – Public Review Draft Regional Context JUNE 2021 Prepared by Water Systems Consulting, Inc. and Woodard & Curran Upper Santa Ana River Watershed i 2020 IRUWMP – Public Review Draft TABLE OF CONTENTS 1. Introduction ................................................................................................................................................1-1 1.1 Background and Purpose ................................................................................................................1-3 1.1.1 IRWM Plan ................................................................................................................................1-3 1.1.2 Regional UWMP ......................................................................................................................1-4 1.1.3 2020 Integrated Regional Urban Water Management Plan .........................................1-5 1.2 Plan Organization ............................................................................................................................1-7 1.3 Regional Governance and Stakeholder Involvement .................................................................1-8 1.3.1 Regional Water Management Group .................................................................................1-8 1.3.2 Governance Structure .............................................................................................................1-9 1.3.3 Stakeholder Identification and Involvement ........................................................................1-9 1.3.4 Disadvantaged Community and Tribal Outreach ........................................................... 1-10 1.4 Plan Preparation Process .............................................................................................................. 1-11 1.4.1 Public Participation ............................................................................................................... 1-11 1.4.2 Stakeholder Workshops ...................................................................................................... 1-11 1.4.3 Planning, Reports and Technical Analyses ........................................................................ 1-13 1.5 Plan Adoption ................................................................................................................................. 1-14 1.6 Relation to Other Efforts ............................................................................................................... 1-15 1.6.1 Coordination with Neighboring IRWM Regions and IRWM Planning ......................... 1-15 1.6.2 IRUWMP Relation to Local Water Planning and Land Use Planning .......................... 1-17 2. Region Description ...................................................................................................................................2-1 2.1 Location ...............................................................................................................................................2-2 2.2 Water Agencies in the Region ........................................................................................................2-2 2.2.1 Water Supply Managers, Wholesalers and Retailers .....................................................2-5 2.2.2 Flood Control Agencies ........................................................................................................ 2-15 2.2.3 Other Water Related Entities ............................................................................................. 2-16 2.3 Population and Demographics .................................................................................................... 2-17 2.3.1 Historic Population and Housing Growth in the Plan Area ............................................ 2-17 2.3.2 Future Population Projections in the Plan Area ................................................................ 2-17 2.3.3 Economic Condition and Social and Cultural Composition of the Region ................... 2-19 2.4 Land Uses ........................................................................................................................................ 2-21 2.5 Ecological and Environmental Resources .................................................................................... 2-24 Table of Contents Upper Santa Ana River Watershed ii 2020 IRUWMP – Public Review Draft 2.5.1 SAR Corridor .......................................................................................................................... 2-24 2.5.2 San Bernardino National Forest ......................................................................................... 2-26 2.5.3 U.S. Bureau of Land Management Area of Critical Environmental Concern ............. 2-27 2.5.4 U.S. Army Corps of Engineers Woolly-Star Preserve Area .......................................... 2-28 2.5.5 Western Riverside County Multi-Species Habitat Conservation Plan ......................... 2-28 2.5.6 Upper Santa Ana River Habitat Conservation Plan ....................................................... 2-29 2.5.7 Wash Plan Habitat Conservation Plan ............................................................................. 2-29 2.5.8 Unarmored Threespine Stickleback Shay Pond Fish Refugium ..................................... 2-30 2.6 Regional Climate ............................................................................................................................ 2-31 2.6.1 Current Regional Climate .................................................................................................... 2-31 2.6.2 Potential Effects of Climate Change ................................................................................. 2-33 3. Regional Water Sources and Management .......................................................................................3-1 3.1 Surface Hydrology ...........................................................................................................................3-2 3.1.1 SAR Reaches .............................................................................................................................3-2 3.1.2 Natural Runoff ..........................................................................................................................3-3 3.2 Imported Water ................................................................................................................................3-7 3.2.1 SWP Overview .........................................................................................................................3-7 3.2.2 Imported Water Supply Reliability ................................................................................... 3-11 3.2.3 Valley District SWP Supply Reliability (Review)............................................................. 3-13 3.3 Groundwater .................................................................................................................................. 3-18 3.3.1 San Bernardino Basin ........................................................................................................... 3-20 3.3.2 Rialto-Colton Sub basin ....................................................................................................... 3-21 3.3.3 Riverside-Arlington Sub-basin ............................................................................................ 3-25 3.3.4 Yucaipa Sub basin ................................................................................................................ 3-26 3.3.5 San Timoteo Sub basin ......................................................................................................... 3-27 3.3.6 Chino Sub basin ..................................................................................................................... 3-28 3.3.7 Bear Valley Basin ................................................................................................................. 3-29 3.3.8 Recharge Area Programs .................................................................................................... 3-30 3.4 Recycled Water ............................................................................................................................. 3-33 3.5 Transfers, Exchanges, and Groundwater Banking Programs ................................................ 3-43 3.5.1 Transfers and Exchanges ..................................................................................................... 3-43 3.5.2 Groundwater Banking Programs ....................................................................................... 3-43 3.6 Planned Water Supply Projects and Programs ....................................................................... 3-44 3.6.1 Recycled Water .................................................................................................................... 3-44 3.6.2 Conjunctive Use Projects ...................................................................................................... 3-44 3.6.3 Groundwater Recharge ....................................................................................................... 3-45 Table of Contents Upper Santa Ana River Watershed iii 2020 IRUWMP – Public Review Draft 3.7 Development of Desalination ....................................................................................................... 3-50 3.7.1 Opportunities for Brackish Water and/or Groundwater Desalination ...................... 3-50 3.7.2 Opportunities for Seawater Desalination ........................................................................ 3-50 3.8 Local Water Management ........................................................................................................... 3-50 3.8.1 Western Judgement ............................................................................................................. 3-50 3.8.2 Orange County Judgement ................................................................................................. 3-52 3.8.3 1961 Rialto Basin Decree ................................................................................................... 3-52 3.8.4 Seven Oaks Accord .............................................................................................................. 3-53 3.8.5 SBB Groundwater Sustainability Council .......................................................................... 3-53 3.8.6 Yucaipa Sustainable Groundwater Management Agency ........................................... 3-53 3.8.7 Settlement Agreement with Conservation District ........................................................... 3-54 3.8.8 MOUs with Flood Control .................................................................................................... 3-54 3.8.9 Exchange Plan ....................................................................................................................... 3-54 3.8.10 1996 Agreement with Big Bear Municipal Water District ......................................... 3-55 3.8.11 Annual Regional Water Management Plan .................................................................. 3-56 3.8.12 Groundwater Recharge Programs .................................................................................. 3-56 3.9 Water Quality ................................................................................................................................ 3-57 3.9.1 Imported Water Quality ..................................................................................................... 3-57 3.9.2 Groundwater Quality .......................................................................................................... 3-58 3.9.3 Known Groundwater Contaminant Plumes ....................................................................... 3-60 3.9.4 Surface Water Quality ........................................................................................................ 3-64 3.9.5 Salt and Nutrient Management Plan ................................................................................. 3-67 3.9.6 Water Quality Impacts on Supply Reliability ................................................................. 3-68 3.10 Major Regional Water Infrastructure ...................................................................................... 3-68 3.10.1 Regional Water Supply Infrastructure ........................................................................... 3-68 3.10.2 State Water Project Facilities .......................................................................................... 3-69 3.10.3 State Water Contractors Facilities .................................................................................. 3-70 3.10.4 Regional Flood Control Infrastructure ............................................................................. 3-70 4. Regional Water Use ................................................................................................................................4-1 4.1 Total Water Demands .....................................................................................................................4-2 4.2 Demands for Local Groundwater and Surface Water Supplies .............................................4-4 4.3 Demands for Imported Water..................................................................................................... 4-13 4.3.1 Direct Deliveries .................................................................................................................... 4-13 4.3.2 In-Lieu Deliveries ................................................................................................................... 4-13 4.3.3 Storage ................................................................................................................................... 4-13 4.3.4 Total Imported Water Demands ........................................................................................ 4-13 Table of Contents Upper Santa Ana River Watershed iv 2020 IRUWMP – Public Review Draft 4.4 Demands for Recycled Water ..................................................................................................... 4-15 4.5 Water Losses .................................................................................................................................. 4-16 4.6 Water Use Efficiency .................................................................................................................... 4-17 4.6.1 Reducing Per Capita Water Use (SB X7-7)..................................................................... 4-17 4.6.2 New Water Conservation Legislation ............................................................................... 4-18 4.6.3 Regional Demand Management Program........................................................................ 4-18 5. Comparison of Regional Supplies and Demands ...............................................................................5-1 5.1 Reliability Factor ...............................................................................................................................5-2 5.2 Water Supply Reliability ................................................................................................................5-2 5.3 Summary of Regional Supplies and Demands ............................................................................5-8 5.3.1 Normal Year .............................................................................................................................5-8 5.3.2 Single Wet Year ................................................................................................................... 5-11 5.3.3 Single Dry Year ..................................................................................................................... 5-14 5.3.4 5-Year Drought ..................................................................................................................... 5-17 5.3.5 30-Year Drought ................................................................................................................... 5-20 6. Water Management Goals, Objectives, and Strategies .................................................................6-1 6.1 2015 Report Cards ..........................................................................................................................6-2 6.2 Regional Needs Identification ........................................................................................................6-7 6.2.1 Diversify Supply Portfolio ......................................................................................................6-7 6.2.2 Improved Groundwater Management .................................................................................6-7 6.2.3 Protection of Water Quality ..................................................................................................6-9 6.2.4 Flood Management with Recharge Benefits .................................................................... 6-10 6.2.5 Habitat and Open Space Preservation ............................................................................ 6-11 6.2.6 Disaster Preparedness ......................................................................................................... 6-11 6.2.7 Sustainability .......................................................................................................................... 6-12 6.2.8 Climate Change Resilience .................................................................................................. 6-12 6.3 Water Management Goals and Objectives ............................................................................. 6-15 6.3.1 Goals and Objectives Development ................................................................................. 6-15 6.3.2 Goal #1: Improve Water Supply Reliability .................................................................. 6-18 6.3.3 Goal #2: Balance Flood Management and Increase Stormwater Recharge ............ 6-21 6.3.4 Goal #3: Improve Water Quality ..................................................................................... 6-22 6.3.5 Goal #4: Improve Habitat and Open Space ................................................................. 6-23 6.3.6 Goal #5: Address Climate Change through Adaptation and Mitigation .................. 6-25 6.3.7 Prioritization of Objectives ................................................................................................. 6-26 6.4 Water Resource Management Strategies ................................................................................. 6-26 6.4.1 Consideration of Strategies ................................................................................................ 6-26 Table of Contents Upper Santa Ana River Watershed v 2020 IRUWMP – Public Review Draft 6.4.2 Description of Water Management Strategies ..................................................................6-2 6.4.3 Integration of Water Management Strategies ..................................................................6-2 6.5 Consistency with Statewide Objectives .........................................................................................6-5 7. Projects .......................................................................................................................................................7-1 7.1 Existing Project List Review ..............................................................................................................7-2 7.2 New Project Submittal ......................................................................................................................7-2 7.3 Project Screening and Scoring Process .........................................................................................7-3 7.4 Coordination with SAWPA OWOW Project Submittal Process (New)...................................7-8 8. Implementation, Performance and Adaptive Management .............................................................8-1 8.1 Continued Governance, Outreach and Coordination ................................................................8-2 8.2 Project Implementation .....................................................................................................................8-4 8.2.1 Funding and Financing ............................................................................................................8-4 8.2.2 Funding and Financing Options .............................................................................................8-5 8.3 Obstacles to Implementation ..........................................................................................................8-8 8.4 Impacts and Benefits of the Plan ....................................................................................................8-8 8.4.1 IRUWMP Benefits .....................................................................................................................8-8 8.4.2 IRUWMP Impacts .....................................................................................................................8-9 8.4.3 Environmental Documentation and County Ordinance Compliance ................................8-9 8.5 Adaptive Management ................................................................................................................. 8-10 8.5.1 Plan Performance .................................................................................................................. 8-10 8.5.2 Data Collection and Monitoring ......................................................................................... 8-13 8.5.3 Periodic Review and Update Process ............................................................................... 8-16 9. References .................................................................................................................................................9-1 Table of Contents Upper Santa Ana River Watershed vi 2020 IRUWMP – Public Review Draft LIST OF FIGURES Figure 2-1. Upper Santa Ana River Watershed Boundary ...................................................................2-3 Figure 2-2. Water Management Agencies in the Upper SAR Watershed .......................................2-4 Figure 2-3. Population Projection Trends for the Valley District Service Area ............................... 2-18 Figure 2-4: Long-Term Industry Employment Projections for Riverside and San Bernardino Counties…………. ..................................................................................................................................... 2-19 Figure 2-5. Disadvantaged and Severely Disadvantaged Communities in the Region............... 2-22 Figure 2-6. Land Uses within the Region ................................................................................................ 2-23 Figure 2-7. San Bernardino Basin Precipitation Index ........................................................................ 2-32 Figure 3-1. Creeks and Rivers in the Region ............................................................................................3-6 Figure 3-2. Estimated SWP Water Supply Availability from the DWR 2019 DCR Existing Conditions Scenario .................................................................................................................................... 3-14 Figure 3-3. Estimated SWP Supply Availability for Wet Year, Multiple Dry Years and a 30-Year Drought…………. ...................................................................................................................................... 3-16 Figure 3-4. Groundwater Basins of the Region .................................................................................... 3-19 Figure 3-6. Yucaipa Basin Groundwater Management Zones .......................................................... 3-26 Figure 3-7. Groundwater Contaminant Plumes in the Region ............................................................ 3-61 Figure 3-8: Major Water Supply Infrastructure ................................................................................... 3-72 Figure 4-1. Comparison of 2015 and 2020 Demand Projections for Nine 2015 RUWMP Agencies, AFY…. ...........................................................................................................................................4-2 Figure 4-2. Total Projected Average Year Demand for the Region, AFY ..........................................4-4 Figure 4-3. 20x2020 Compliance .......................................................................................................... 4-17 Figure 5-1.San Bernardino Basin Storage as of 2020 (AF) ..................................................................5-6 Figure 5-2. Rialto-Colton Basin Storage as of 2020 (AF) .....................................................................5-6 Figure 5-3. Yucaipa Basin Storage as of 2020 (AF) ..............................................................................5-7 Figure 5-4. Regional Water Budget Summary for a Normal Year (AFY) ....................................... 5-10 Figure 5-5. Regional Water Budget Summary for a Wet Year (AFY) ............................................ 5-13 Figure 5-6. Regional Water Budget Summary for a Single Dry Year (AFY) ................................. 5-16 Figure 5-7. Regional Water Budget Summary for a 5-Year Drought (AFY) .................................. 5-19 Figure 5-8. Region Wide Supply and Demand Comparison for a 30-Year Drought ................... 5-22 Figure 6-1. Hierarchy of Goals, Objectives, and Strategies ............................................................. 6-15 Figure 6-2: Integrated Planning .................................................................................................................6-2 Figure 6-3. Integration of Flood and Stormwater Managements Strategies.....................................6-4 Figure 7-1: Project Submittal and Review Process .................................................................................7-4 Figure 7-2: Project Screening Process .......................................................................................................7-5 Figure 8-1. Implementation Components...................................................................................................8-1 Figure 8-2: Coordination Between Land Use Planning and Water Management ............................8-3 Table of Contents Upper Santa Ana River Watershed vii 2020 IRUWMP – Public Review Draft Figure 8-3: IRWM Funding and Financing Activities ...............................................................................8-5 Table of Contents Upper Santa Ana River Watershed viii 2020 IRUWMP – Public Review Draft LIST OF T ABLES Table 1-1. Stakeholder Participation by Plan Development ................................................................1-6 Table 1-2. Plan Development Meetings and Regional Workshops .................................................. 1-12 Table 1-3: Planning, Reports and Technical Analyses Used in the IRUWMP .................................. 1-13 Table 2-1: Riverside and San Bernardino County Population, 2000 to 2020 ............................... 2-17 Table 2-2. Projected Population for the Region (2025 to 2045) ..................................................... 2-18 Table 2-3: Average Number of Days per Year Exceeding 95°F ..................................................... 2-33 Table 3-1 : Upper SAR Median, Maximum, and Minimum Annual Flow (in AF) ................................3-4 Table 3-2 : Tributary Flow Contribution to the SAR (100-Year Flood Event Discharge in cfs) .......3-5 Table 3-3. Historical State Water Project Deliveries to Valley District .......................................... 3-13 Table 3-4. SWP Table A Water Supplies Available (Long-term Average – 1922-2003) ....... 3-14 Table 3-5 Estimated SWP Table A Supply Reliability ...................................................................... 3-15 Table 3-6: Estimated Sites Reservoir Deliveries to Valley District .................................................... 3-18 Table 3-7: 1961 Decree Adjudicated Rights to the Rialto Basin ...................................................... 3-23 Table 3-8: Historic Reductions to Pumping Rights in the Rialto Decree Area .................................. 3-23 Table 3-9: 2018 Settlement Agreement Updated Adjudicated Rights to the Rialto Basin .......... 3-24 Table 3-10 Estimated Safe Yield from Rialto-Colton Basin .............................................................. 3-25 Table 3-11: Regional Recharge Basins .................................................................................................. 3-32 Table 3-13: Wastewater Treatment Plants in the Region .................................................................. 3-34 Table 3-14: Upper Santa Ana River Water Agencies Recycling Water Programs ...................... 3-35 Table 3-15: Planned Groundwater Recharge Projects ....................................................................... 3-46 Table 3-16. Adjusted SBB Rights Due to New Conservation Allocation ......................................... 3-52 Table 3-18. TDS Water Quality Objectives, Ambient Water Quality, and Assimilative Capacity………. ........................................................................................................................................ 3-60 Table 3-19: 303(d) Listed Water Bodies in the Upper SAR .............................................................. 3-65 Table 3-20: SAR Basin Surface Water Quality Objectives (WQO)a .............................................. 3-66 Table 3-21: Average Historic Surface Water Quality for Locations on the SAR (1990-2001) . 3-67 Table 4-1. Projected Average Year Regional Water Demand by Agency 2025 to 2045, AFY 4-3 Table 4-2. Projected Normal Year SBB Groundwater Pumping and Surface Water Diversions (AFY)……………… .....................................................................................................................................4-6 Table 4-3. Projected Normal Year Rialto-Colton Basin Pumping (AFY) ..............................................4-8 Table 4-4. Projected Normal Year Riverside North Basin Pumping (AFY) .........................................4-9 Table 4-5. Projected Yucaipa Basin Pumping (AFY) ............................................................................ 4-11 Table 4-6. Projected Normal Year Use of Other Groundwater and Surface Water Supplies (AFY) …………………………………………………………………………………………………4-12 Table 4-7. Estimated Normal Year Demands for Imported Water (AFY) ....................................... 4-14 Table 4-8. Projected Uses of Recycled Water (AFY) .......................................................................... 4-15 Table of Contents Upper Santa Ana River Watershed ix 2020 IRUWMP – Public Review Draft Table 5-1. Valley District Anticipated SWP Supplies ............................................................................5-3 Table 5-2. Regional Water Budget Summary for a Normal Year (AFY) ...........................................5-8 Table 5-3. Regional Water Budget Summary for a Wet Year (AFY) ............................................. 5-11 Table 5-4. Regional Water Budget Summary for a Single Dry Year (AFY) .................................. 5-14 Table 5-5. Regional Water Budget Summary for a 5-Year Drought (AFY) ................................... 5-17 Table 5-5. Regional Water Budget Summary for a 30-Year Drought (AFY)................................. 5-20 Table 6-1: Water Resource Management Strategies ............................................................................6-2 Table 6-3: Comparison between Plan Objectives and Statewide Priorities ......................................6-3 Table 7-1: Project Scoring Criteria ............................................................................................................7-6 Table 8-1: Financing Plan ............................................................................................................................8-7 Table 8-2: Objectives and Performance Measures ............................................................................. 8-12 EAST VALLEY WATER DISTRICT 2020 IRUWMP – Public Review Draft Part 2, Chapter 6 EVWD 2020 UWMP JUNE 4 , 2021 Prepared by Water Systems Consulting, Inc. East Valley Water District i 2020 IRUWMP – Public Review Draft TABLE OF CONTENTS List of Figures .................................................................................................................................................... iii List of Tables ..................................................................................................................................................... iv 6.1 System Description ............................................................................................................................ 6-1 6.1.1 Population ................................................................................................................................. 6-3 6.1.2 Land Use .................................................................................................................................... 6-4 6.2 Water Use ......................................................................................................................................... 6-4 6.2.1 Water Use by Sector .............................................................................................................. 6-4 6.2.2 Projected Water Use .............................................................................................................. 6-7 6.2.3 Water Use for Lower Income Households ........................................................................ 6-10 6.2.4 Climate Change Considerations ......................................................................................... 6-10 6.3 SBX7-7 Baseline and Targets ...................................................................................................... 6-11 6.3.1 Baseline and Target ............................................................................................................. 6-11 6.3.2 2020 Compliance Daily Per-Capita Water Use (GPCD) ............................................. 6-11 6.4 Water Supply ................................................................................................................................ 6-11 6.4.1 Purchased or Imported Water ........................................................................................... 6-12 6.4.2 Groundwater ......................................................................................................................... 6-12 6.4.3 Surface Water ...................................................................................................................... 6-12 6.4.4 Stormwater............................................................................................................................. 6-13 6.4.5 Wastewater and Recycled Water .................................................................................... 6-13 6.4.6 Water Exchanges and Transfers ....................................................................................... 6-15 6.4.7 Future Water Projects .......................................................................................................... 6-15 6.4.8 Summary of Existing and Planned Sources of Water .................................................... 6-15 6.4.9 Energy Intensity ..................................................................................................................... 6-19 6.5 Water Service Reliability Assessment ........................................................................................ 6-20 6.5.1 Constraints on Water Sources ............................................................................................ 6-20 6.5.2 Year Type Characterization ............................................................................................... 6-21 6.5.3 Water Service Reliability .................................................................................................... 6-21 6.6 Drought Risk Assessment ............................................................................................................... 6-23 6.7 Water Shortage Contingency Plan ............................................................................................ 6-24 6.8 Demand Management Measures ................................................................................................ 6-25 6.8.1 Existing Demand Management Measures ........................................................................ 6-25 6.9 Adoption, Submittal and Implementation .................................................................................. 6-28 6.9.1 Notice of Public Hearing ..................................................................................................... 6-28 Table of Contents East Valley Water District ii 2020 IRUWMP – Public Review Draft 6.9.2 Public Hearing and Adoption ............................................................................................. 6-28 6.9.3 Plan Submittal ........................................................................................................................ 6-28 6.9.4 Public Availability ................................................................................................................. 6-28 6.9.5 Amending an Adopted UWMP or Water Shortage Contingency Plan ..................... 6-29 Table of Contents East Valley Water District iii 2020 IRUWMP – Public Review Draft LIST OF FIGURES Figure 6-1: EVWD Service Area Map ...................................................................................................... 6-2 Figure 6-2: EVWD 2016-2020 Water Consumption by Customer Class (AF) .................................. 6-5 Figure 6-3: EVWD Projected Future Water Consumption by Customer Class (AF) .......................... 6-9 Figure 6-4: EVWD Projected Supply and Demand Comparison (AF) .............................................. 6-18 Table of Contents East Valley Water District iv 2020 IRUWMP – Public Review Draft LIST OF T ABLES Table 6-1: DWR 3-1R Current and Projected Population ..................................................................... 6-4 Table 6-2: EVWD 2016-2020 Connections by Customer Class .......................................................... 6-4 Table 6-3: 2016-2020 Actual Water Use (AF) ...................................................................................... 6-5 Table 6-4: DWR 4-4R 12 Month Water Loss Audit Reporting (AF) .................................................... 6-6 Table 6-5: DWR 4-2R Projected Demands for Water (AF) .................................................................. 6-8 Table 6-6: DWR 4-3R Total Gross Water Use (AF) ............................................................................... 6-8 Table 6-7: SBX 7-7 2020 Compliance .................................................................................................. 6-11 Table 6-8. DWR 6-1R Groundwater Volume Produced Last 5 Years (AF) ..................................... 6-12 Table 6-9. DWR 6-2R Wastewater Collected within Service Area in 2020 (AF) ......................... 6-14 Table 6-10. DWR 6-8R Actual Water Supplies in 2020 (AF) .......................................................... 6-17 Table 6-11. DWR 6-9R Projected Water Supplies (AF) .................................................................... 6-17 Table 6-12. DWR 7-2R Normal Year Supply and Demand Comparison (AF)............................... 6-18 Table 6-13. DWR 7-1R Basis of Water Year Data ............................................................................ 6-22 Table 6-14. DWR 7-3R Single Dry Year Supply and Demand Comparison (AF) ......................... 6-22 Table 6-15. DWR 7-4R Multiple Dry Years Supply and Demand Comparison (AF) .................... 6-23 Table 6-16: Five-Year Drought Risk Assessment (AF) .......................................................................... 6-24 Table 6-17. Residential Rebate Program Summary ............................................................................ 6-27 6-1 RETAIL URBAN WATER MANAGEMENT PLAN East Valley Water District This chapter describes information specific to the East Valley Water District, its supplies, demands and water use efficiency programs. The information and analysis in this chapter is supplemental to the regional information presented in Part 1 of the 2020 IRUWMP and is provided to meet the East Valley Water District’s reporting requirements for 2020 under the UWMP Act. 6.1 System Description East Valley Water District (EVWD or District) is a California Special District, established in 1954, that provides water and wastewater services. EVWD encompasses 30.1 square miles along the foothills of the San Bernardino Mountains and serves the City of Highland, portions of the City and County of San Bernardino, along with the San Manuel Band of Mission Indians. As a district tasked with managing a critical resource, EVWD is committed to innovative leadership and world class public service. The District’s service area is shown in Figure 6-1. EVWD is a retail public water supplier that meets the definition of an urban water supplier with over 21,600 municipal water service connections in 2020. IN THIS SECTION • System Description • Water Use • SBX7-7 Compliance • Water Supply • Water Service Reliability • Drought Risk Assessment • Water Shortage Contingency Plan Summary • Demand Management Measures • Adoption, Submittal, and Implementation EVWD Part 2 Chapter 6 East Valley Water District 6-2 2020 IRUWMP – Public Review Draft Figure 6-1: EVWD Service Area Map EVWD Part 2 Chapter 6 East Valley Water District 6-3 2020 IRUWMP – Public Review Draft 6.1.1 Population For the purposes of consistent reporting of population estimates, the California Department of Water Resources (DWR) has developed a GIS-based tool (DWR Tool) to estimate the population within a water agency’s service area using census data and number of water service connections. The DWR Tool was used to intersect the service area boundary with census data to provide population estimates for 1990, 2000, and 2010. The DWR Tool uses the number of service connections in those prior census years, where available, to calculate a persons-per- connection factor, which is then projected forward to estimate population in a given year using the number of connections in that year. The service area population for 2020 was estimated in the DWR Tool using the number of connections in 2010 and 2020. Based on a thorough analysis of Census blocks within the service area, EVWD reported an estimated population of 103,000 in their 2019 Consumer Confidence Report. However, for purposes of this report, the DWR Tool output of 99,347 was assumed to be the official estimate of population in 2020 and serves as the basis for SBx7-7 compliance calculations and its future population projections years. To estimate population for future years, projections from the Southern California Association of Governments (SCAG) were used. SCAG has developed a forecast called the 2020 Connect SoCal Regional Transportation Plan and has estimated the population, households, and employment in 2020, 2035, and in 2045 inside each of the approximately 11,300 traffic analysis zones (TAZs) that cover the SCAG region. The service area boundary was intersected with a GIS shapefile of the SCAG TAZs to provide an estimate of population within the service area for years 2020, 2035, and 2045. These estimates were used to calculate compound annual population growth rates for years 2020-2035 and 2035-2045. The population growth rates were applied to the 2020 population to estimate future population. Estimated 2020 and future year population is shown in Table 6-1. The 2025 population was adjusted upwards to account for known developments planned for construction by 2025, and all subsequent population projections were based on the 2025 population projection. Per SCAG requirements, it must be noted that this population modeling analysis was performed by Water Systems Consulting, Inc. based upon modeling information originally developed by SCAG. SCAG is not responsible for how the model is applied or for any changes to the model scripts, model parameters, or model input data. The resulting modeling data does not necessarily reflect the official views or policies of SCAG. SCAG shall not be held responsible for the modeling results and the content of the documentation. SCAG prepares demographic forecasts based on land use data for their region through extensive processes that emphasizes input from local planners and is done in coordination with local or regional land use authorities, incorporating essential information to reflect anticipated future populations and land uses. SCAG’s projections undergo extensive local review, incorporate zoning information from city and county general plans, and are supported by Environmental Impact Reports. EVWD Part 2 Chapter 6 East Valley Water District 6-4 2020 IRUWMP – Public Review Draft Table 6-1: DWR 3-1R Current and Projected Population POPULATION SERVED 2020 2025 2030 2035 2040 2045 TOTAL 99,347 104,500 108,224 112,080 115,792 119,626 6.1.2 Land Use Per the 2019 EVWD Water System Master Plan, 30% of land within the service area is Single Family Residential, 4% is Multi-Family Residential, 3% is Commercial, 1% is Industrial, 5% is Public, 1% is Parks, 9% is Open Land, 3% is Agricultural, and 44% is Vacant. 6.2 Water Use This section describes the current and projected water uses within EVWD’s service area. EVWD serves only potable water for domestic use. 6.2.1 Water Use by Sector EVWD categorizes its water customers into six categories for the purposes of recording water use and billing: Residential, Multi-Family, Commercial, Irrigation Commercial, Fire Service, and Bulk Water. The number of active connections in each category from 2016 to 2020 are shown in Table 6-2. There are no permanent service connections designated as Bulk Water; this is water used for construction purposes from temporary meters. Table 6-2: EVWD 2016-2020 Connections by Customer Class CUSTOMER CLASS 2016 2017 2018 2019 2020 Residential 19,500 19,526 19,526 19,883 19,898 Multi-Family 463 463 463 474 475 Commercial1 949 988 988 681 694 Irrigation Commercial 275 275 275 322 330 Fire Service2 1,330 1,339 361 252 258 TOTAL 22,517 22,591 21,613 21,612 21,655 1Decrease in commercial connections between 2018 and 2019 was due to a change in billing classification, reclassifying these customers as Residential. 2Between 2017 and 2018, a change in District policy was made to not bill residential customers that had a separate fire service meter. The actual number of connections did not change. 6.2.1.1 Past Water Use EVWD’s actual water use by customer class from 2016-2020 is shown in Table 6-3. EVWD’s water consumption by customer class in the last five years is shown in Figure 6-2. Approximately 60% of EVWD’s total deliveries were to single family residential connections, followed by 19% to multi-family connections, 11% to commercial connections, 10% to commercial irrigation connections, and the remainder to fire service and bulk water sales. EVWD Part 2 Chapter 6 East Valley Water District 6-5 2020 IRUWMP – Public Review Draft Table 6-3: 2016-2020 Actual Water Use (AF) CUSTOMER CLASS 2016 2017 2018 2019 2020 Residential 9,142 9,602 9,944 9,470 10,589 Multi-Family 3,070 3,301 3,452 3,340 3,377 Commercial 1,815 1,900 2,094 1,968 1,873 Irrigation Commercial 1,717 1,812 1,914 1,602 1,725 Fire Service 10 5 3 3 3 Bulk Water 78 85 92 83 143 Water Losses 1,332 1,954 1,197 511 664 TOTAL 17,164 18,660 18,695 16,977 18,374 Figure 6-2: EVWD 2016-2020 Water Consumption by Customer Class (AF) 6.2.1.2 Distribution System Water Losses Distribution system water losses are the physical potable water losses from the water system, calculated as the difference between water produced and the amount of water billed to customers plus other authorized uses of water. Sources of water loss include: • Leaks from water lines - Leakage from water pipes is a common occurrence in water systems. A significant number of leaks remain undetected over long periods of time as they are very small; however, these small leaks contribute to the overall water loss. Aging pipes typically have more leaks. • Unauthorized uses or theft of water – includes water used from fire hydrants without a meter or from an unauthorized, unmetered connection to EVWD’s water system. - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 2016 2017 2018 2019 2020 Historical Demands (AF) Water Losses Bulk Water Fire Service Irrigation Commercial Commercial Multi-Family Residential EVWD Part 2 Chapter 6 East Valley Water District 6-6 2020 IRUWMP – Public Review Draft • Customer Meter Inaccuracies - Customer meters can under-represent actual consumption in the water system. EVWD monitors its water loss and prepares an annual AWWA Water Audit, attached in Part 4 Appendix F-8, to estimate the volume of water loss. The results of the water audits from 2016 to 2019 are shown in Table 6-4. The 2020 water loss is estimated based on the difference between production and consumption for 2020. EVWD will complete a 2020 AWWA Water Audit by October 1, 2021 in accordance with reporting requirements to the State. Table 6-4: DWR 4-4R 12 Month Water Loss Audit Reporting (AF) REPORT PERIOD START DATE VOLUME OF WATER LOSS MM YYYY 1 2016 1,518 1 2017 1,854 1 2018 1,082 1 2019 503 1 2020 664 (Estimated) In the past 5 years, EVWD’s water loss decreased from 12% to 3% of water sales. Over this time period, EVWD completed a meter replacement program in their service area. In addition, EVWD has an aggressive leak repair program and a water main replacement program. Improved metering accuracy and reduced leaks have helped reduce water loss from EVWD’s distribution system. EVWD replaces water mains to minimize water losses EVWD Part 2 Chapter 6 East Valley Water District 6-7 2020 IRUWMP – Public Review Draft The new meters are equipped with Advanced Metering Infrastructure (AMI) technology, which allows for a consistent stream of water-use history directly to the District’s network. It can alert both the District and customers to excess water use caused from pipe breaks, toilet leaks, and broken valves. The meters internally audit a read every 15 minutes and each hour the read is sent to strategically placed collectors within the service area, with a 98% read rate every 3 days. With the detailed usage data available in an AMI system, customer service representatives have near real-time access to consumers’ consumption information. EVWD customers also have access to a customer portal where they can view their own water use information. EVWD is developing additional customer education and outreach materials to help promote the use of this information to reduce water losses and increase water use efficiency. Given the age of pipelines located within the District’s service area, investing in replacement of this infrastructure in essential to reducing water losses. Prioritization of leak response is based on estimated water losses, including the number of staff and equipment assigned to the response. The District has an aggressive leak response program, which includes tracking water loss and leak locations. This information is then incorporated into the assessment and prioritization of pipeline replacement projects. For the purposes of future demand projections in this Plan, EVWD assumed future water losses will be approximately 6% of total customer water use. EVWD is committed to managing system water losses to reduce water waste and will strive to meet the future water loss performance standard that is being developed by the State Water Board. 6.2.2 Projected Water Use A demand forecast tool was developed to estimate future demands based on individual customer categories and connections, with the ability to forecast how future changes in indoor and outdoor water use may impact overall water use within each different customer type for current and future customers. The tool has three steps to project demand: 1. Establish a demand factor per connection for each customer class based on historical consumption data. 2. Project the number of new connections anticipated for each customer class in each 5- year period after 2020. 3. Modify demand factors as appropriate to account for expected changes in future water use. The demand factors for each customer class were based on connection and demand data from calendar year 2020, which was reviewed against demand factors from other years and determined to be a reasonable representation of average demands. The number of future new connections for each customer category was estimated for each 5-year period through 2045 based on the projected SCAG population growth rate for years 2020-2035 and 2035-2045. EVWD Part 2 Chapter 6 East Valley Water District 6-8 2020 IRUWMP – Public Review Draft In the period from 2020 to 2025, the SCAG population growth rate projected that 709 new single family residential connections would be constructed. However, based on their development activity records, EVWD anticipates that 1,170 new single family residential connections could be constructed by 2025. To account for known developments, it was assumed that 1,170 new single family residential connections would be constructed by 2025 and 709 new single family residential connections would be constructed in each 5-year period thereafter. Connection growth for all other customer types was set equal to the SCAG population growth rate for the period 2020 through 2045. To estimate future water use for each customer category, the demand factor is multiplied by the number of estimated new connections and added to the 2020 use of existing customers in that category. This process is applied to each customer type, then all of the category results are added to estimate the total future water use. Projected future demands by customer class as well as estimated losses are presented in Table 6-5 and Figure 6-3. Table 6-5: DWR 4-2R Projected Demands for Water (AF) CUSTOMER CLASS PROJECTED WATER USE 2025 2030 2035 2040 2045 Residential 11,211 11,589 11,966 12,316 12,667 Multi-Family 3,497 3,618 3,738 3,850 3,962 Commercial 1,939 2,006 2,073 2,135 2,197 Irrigation Commercial 1,787 1,848 1,910 1,967 2,024 Fire Service 3 3 3 4 4 Bulk Water 148 153 158 163 168 Water Losses 1,115 1,153 1,191 1,226 1,261 TOTAL 19,702 20,371 21,040 21,661 22,283 Table 6-6: DWR 4-3R Total Gross Water Use (AF) 2020 2025 2030 2035 2040 2045 Potable and Raw Water From Table 4-1R and 4-2R 18,374 19,702 20,371 21,040 21,661 22,283 Recycled Water Demand From Table 6-4R - - - - - - TOTAL WATER USE: 18,374 19,702 20,371 21,040 21,661 22,283 EVWD Part 2 Chapter 6 East Valley Water District 6-9 2020 IRUWMP – Public Review Draft Figure 6-3: EVWD Projected Future Water Consumption by Customer Class (AF) 6.2.2.1 Estimating Future Water Savings The demand tool used to project future water use has the capability to modify demand factors for both new and existing connections to quantify reductions in current and future customer demand that may occur as a result of active conservation programs implemented by EVWD or passive savings from more water efficient fixtures and landscapes that are required by current and future building codes and standards. EVWD may use this tool in the future to consider the impacts of changing customer water use on overall demand; however, EVWD has elected not to incorporate demand reductions from future conservation programs and passive savings from codes and standards into the demand projections at this time. In 2018, the legislature enacted SB 606 and AB 1668, which provide for implementation of a water budget-based approach to establishing new urban water use objectives for water suppliers. The series of water use efficiency standards that will inform calculation of EVWD’s new water use objective are still under development and will take effect in 2023. Once the new standards have been established, EVWD will reevaluate customer demands and identify approaches to comply with the new standard, which will be incorporated into the next UWMP prepared in 2025. EVWD is committed to promoting water use efficiency and will continue to implement a comprehensive set of programs intended to reduce customer demands and support sustainable use of regional water supplies. - 5,000 10,000 15,000 20,000 25,000 2025 2030 2035 2040 2045 Projected Normal Year Demands (AF) Water Losses Bulk Water Fire Service Irrigation Commercial Commercial Multi-Family Residential EVWD Part 2 Chapter 6 East Valley Water District 6-10 2020 IRUWMP – Public Review Draft 6.2.3 Water Use for Lower Income Households Senate Bill 1087 requires that water use projections of an UWMP include the projected water use for single-family and multi-family residential housing for lower income households as identified in the housing element of any city, county, or city and county in the service area of the supplier. EVWD serves portions of three jurisdictions, the City of Highland, the City of San Bernardino, and unincorporated County of San Bernardino. Based on SCAG’s 6th cycle final regional housing needs allocation, it is estimated an average of 40 percent of households in the service area are lower income. However, this methodology does not consider that portions of each jurisdiction that are within the EVWD service area may be lower income than the average within that jurisdiction, which may lead to under-projecting the percentage of lower income households. Although the District's analysis has consistently shown that approximately 50% of households are considered to be low income, the SCAG data was used for consistency in this document. These demands are included in the projections presented throughout this report. 6.2.4 Climate Change Considerations A topic of growing concern for water planners and managers is climate change and the potential impacts it could have on California’s future water supplies. Recent climate change modeling for the SAR watershed suggests that a changing climate will have multiple effects on the Region. Adaptation and mitigation measures will be necessary to account for these effects. Part 1 Chapter 2 includes an assessment of the potential impacts of climate change. EVWD has identified the need to consider the impacts of Climate Change in the 2020 update of the Emergency Response Plan and Hazard Mitigation Plan. These plans identify potential impacts and mitigation projects that can be implemented to reduce the impacts of this hazard. EVWD Part 2 Chapter 6 East Valley Water District 6-11 2020 IRUWMP – Public Review Draft 6.3 SBX7-7 Baseline and Targets With the adoption of SBX7-7, also known as the Water Conservation Act of 2009, the State of California was required to reduce urban per capita water use by 20% by 2020. This section summarizes the past targets EVWD developed and demonstrates that compliance by 2020 was achieved. Water use targets were developed in terms of gallons per capita per day, or GPCD, which is calculated by dividing the total water from all customer categories by the population. DWR has prepared standardized tables to record and document the calculations required for this section. The standardized tables for EVWD’s calculations are included in Part 4 Appendix F-7. 6.3.1 Baseline and Target EVWD’s baseline and 2020 target was calculated in the 2015 RUWMP and has not changed for this plan. More details on the development of the baselines and target can be found in the 2015 RUWMP and Part 4 Appendix F-7. EVWD's calculated water use target for 2020 is 172 GPCD. 6.3.2 2020 Compliance Daily Per-Capita Water Use (GPCD) Through the implementation of its active water conservation program, EVWD has met its Confirmed Water use Target for 2020 of 172 GPCD, as shown in Table 6-7. To maintain this level of water use, EVWD intends to continue its current level of outreach and programs for the foreseeable future. Table 6-7: SBX 7-7 2020 Compliance 2020 WATER USE TARGET GPCD ACTUAL 2020 GPCD SUPPLIER ACHIEVED TARGETED REDUCTION IN 2020? 172 165 Yes 6.4 Water Supply EVWD’s water supply consists primarily of groundwater from wells in the western portion of the service area. These wells, in the San Bernardino Basin (SBB), supply approximately 80% of the total water supply. In addition to groundwater, EVWD provides treated surface water from the Santa Ana River and the SWP by way of Plant 134, an 8-million gallon per day (MGD) water treatment plant. Plant 134 was originally constructed in 1996 and upgraded from 4 MGD to 8 MGD in 2013. More information about local surface water and groundwater basins is included in Part 1 Chapter 3 of the 2020 IRUWMP. EVWD Part 2 Chapter 6 East Valley Water District 6-12 2020 IRUWMP – Public Review Draft 6.4.1 Purchased or Imported Water Imported water available to EVWD is SWP purchased from Valley District. EVWD does not have a specific allocation of SWP water from Valley District but expects to receive the projected volumes of SWP water under most conditions. A description of this supply and its reliability is provided in Part 1 Chapter 3 and Chapter 5. This supply is not guaranteed so EVWD maintains 100% reliability from other sources. EVWD currently supplements its local supply with SWP deliveries from Valley District for use at Plant 134. In the past, SWP has made up a small amount of EVWD’s water supply. However, in 2018, a hydroelectric generation facility was installed on the SWP turnout that serves Plant 134. EVWD benefits from the energy generation and has shifted to prioritize the use of SWP water at Plant 134 to realize the energy cost savings. 6.4.2 Groundwater EVWD produces groundwater from the San Bernardino Basin (SBB), described in detail in Part 1 Chapter 3. There are 22 wells within EVWD’s water system, of which 15 wells are currently active and 7 are inactive. Table 6-8 summarizes the actual volume of groundwater pumped from 2016-2020. Per the Western-San Bernardino Judgement, EVWD is not limited in the amount of groundwater they can produce from SBB. Relevant portions of the adjudications and judgments that govern groundwater use are provided in Part 3 Appendix B. In 2018, EVWD and other local agencies voluntarily formed the SBB Groundwater Council to coordinate and implement groundwater management activities in the Bunker Hill Sub-basin (part of SBB) and achieve groundwater sustainability throughout the basin. Table 6-8. DWR 6-1R Groundwater Volume Produced Last 5 Years (AF) GROUNDWATER TYPE LOCATION OR BASIN NAME 2016 2017 2018 2019 2020 Alluvial Basin San Bernardino Basin (Bunker Hill) 12,792 15,217 14,525 12,940 15,169 - TOTAL 12,792 15,217 14,525 12,940 15,169 6.4.3 Surface Water As a shareholder of the North Fork Mutual Water Company (NFMWC), EVWD obtains water from the Santa Ana River. Created in 1885, the NFMWC and Bear Valley Land and Water Company (now Bear Valley Mutual Water Company) reached an agreement regarding water deliveries. Water deliveries vary throughout the year based on that agreement with deliveries in December through May equal to 1/4 flow of Santa Ana River, and in June through November equal to a fixed flowrate of water for the month that varies between 5.1 MGD and 7.7 MGD. EVWD has current water rights of 5 MGD (5,600 AFY) of Santa Ana River water with the ability to expand to about 6.5 MGD (7,300 AFY) through the conversion of remaining agricultural EVWD Part 2 Chapter 6 East Valley Water District 6-13 2020 IRUWMP – Public Review Draft properties and water shares of stock. EVWD is currently the majority shareholder in the company and continues to pursue the purchase of additional shares. As agricultural land converts to urban uses, EVWD gains not only the new urban demand but the associated historic water stock shares. Surface water is treated in conjunction with any SWP water at EVWD’s Plant 134. Surface water rights allocated to EVWD but not treated at Plant 134 are used to recharge the SBB. EVWD is also currently evaluating the concept of constructing a second surface water treatment plant on the east side of their service area. 6.4.4 Stormwater EVWD is participating in regional project planning efforts to capture additional stormwater for purposes of groundwater recharge to increase sustainability of the SBB. These regional projects are discussed in Part 1 Chapter 3. 6.4.5 Wastewater and Recycled Water EVWD provides wastewater collection service to its customers. Wastewater treatment is currently provided by a regional treatment plant, located downstream and outside of EVWD’s sphere of influence. A Joint Powers Agreement (JPA) was formed in 1957 between EVWD and the neighboring San Bernardino Municipal Water Department (SBMWD) whereby SBMWD treats all wastewater generated within the EVWD service area. In 1995, SBMWD began operation of RIX to provide additional treatment of secondary effluent from the existing plants of SBMWD and the City of Colton. The RIX plant is located approximately 6 miles southwesterly and downstream of EVWD’s southwesterly boundary. EVWD is currently constructing a new water recycling facility called the Sterling Natural Resource Center (SNRC). SNRC, which is expected to be completed in 2022, will allow the District to treat wastewater to a point that it can be recharged into the Bunker Hill groundwater basin to supplement the groundwater supply. Initially, the facility will treat up to 8 MGD and will be expandable to treat ultimate buildout of approximately 10 MGD. EVWD has partnered with Valley District to maximize the regional benefit of the recycled water produced at SNRC to recharge the SBB groundwater. Given the consistent need for groundwater replenishment compared to the potential uses for recycled water, there are currently no plans to use recycled water for any other purposes in the foreseeable future. For the purposes of this plan, projected recycled water supplies were estimated using the per capita wastewater flow projection methodology used in EVWD’s 2019 Sewer Master Plan, adjusted to align with the population projection in this UWMP, which are inclusive of long-term growth plus expected near term developments. It is estimated that approximately 6 MGD of the wastewater collected at the SBMWD treatment plant was generated within EVWD’s water service area in 2020. Information about wastewater collected and treated is presented in Table 6-9. EVWD Part 2 Chapter 6 East Valley Water District 6-14 2020 IRUWMP – Public Review Draft Table 6-9. DWR 6-2R Wastewater Collected within Service Area in 2020 (AF) WASTEWATER COLLECTION RECIPIENT OF COLLECTED WASTEWATER NAME OF WASTEWATER COLLECTION AGENCY WASTEWATER VOLUME METERED OR ESTIMATED WASTEWATER VOLUME COLLECTED FROM UWMP SERVICE AREA IN 2020 NAME OF WASTEWATER AGENCY RECEIVING COLLECTED WASTEWATER WASTEWATER TREATMENT PLANT NAME WASTEWATER TREATMENT PLANT LOCATED WITHIN UWMP AREA WWTP OPERATION CONTRACTED TO A THIRD PARTY East Valley Water District Metered 6,815 City of San Bernardino San Bernardino Water Reclamation Plant No No TOTAL 6,815 EVWD Part 2 Chapter 6 East Valley Water District 6-15 2020 IRUWMP – Public Review Draft 6.4.6 Water Exchanges and Transfers EVWD does not currently anticipate regular or long-term transfers or exchanges, during the period covered by this Plan. Any transfer or exchanges would be as-needed related to an emergency. 6.4.6.1 Emergency Interties EVWD has emergency water supply connections to two adjacent water purveyors (SBMWD and the City of Riverside). These interties are intended to be used only as a short-term solution and are not accounted for as additional water supply. 6.4.7 Future Water Projects EVWD is currently enhancing its ability to utilize its existing water supply sources through several projects that are in various phases of implementation, from planning to preliminary design to construction. Additionally, EVWD is evaluating further projects necessary to meet water demand at build-out conditions. These projects will be implemented as required by development in the service area. Future water projects at various stages of evaluation to maximize existing sources and to meet the demand at build-out include: • Additional groundwater wells • New 6 MGD surface water treatment plant in the eastern service area • Regional conjunctive use projects with Valley District These projects do not increase water supplies available to EVWD, but rather allow EVWD to increase utilization and optimization of existing supplies and to make deliveries to the different portions of the service area. Furthermore, as discussed in Section 6.4.3, EVWD is actively seeking to purchase additional outstanding shares of the NFMWC. 6.4.8 Summary of Existing and Planned Sources of Water EVWD’s water supply is comprised of local groundwater, local surface water and SWP water. EVWD is also developing a new recycled water supply that will be used to replenish the groundwater basin. These same supplies will be used in the future but may shift toward more surface water if EVWD constructs another surface water treatment plant. As discussed in Part 1 Chapter 5, EVWD is applying a Reliability Factor of 15% to their supply reliability analysis to account for uncertainties in supply and demand projections. The 15% value is recommended in a study by the RAND Corporation that evaluated uncertainty factors in the regional supplies and demands, including population growth, per capita water use, climate change impacts on supplies and demands, SWP project supplies and local surface water supplies. See Part 1 Chapter 5 for more details on how the Reliability Factor was established. EVWD Part 2 Chapter 6 East Valley Water District 6-16 2020 IRUWMP – Public Review Draft For the purposes of supply projections in this 2020 IRUWMP, EVWD is using the 15% Reliability Factor to establish a supply target of 15% more than total projected demand. While utilizing as much local surface water and SWP supplies as feasible, EVWD will source all other supplies from the San Bernardino Basin. As discussed in Part 1 Chapter 3, the San Bernardino Basin is a shared resource, and the Western-San Bernardino Judgement does not limit pumping by agencies within the Valley District service area. Each agency can pump as much water as they need and if total pumping by all agencies exceeds the safe yield, Valley District is responsible for replenishing the SBB. As shown in Part 1 Chapter 5, the total planned use of San Bernardino Basin groundwater by all agencies in Valley District’s service area, including the Reliability Factor, is below the safe yield of the SBB through 2045 so supplemental recharge is not anticipated to be required and is not included in EVWD’s supply projection. However, the SBB Groundwater Council, which EVWD is a member of, may elect to recharge the SBB with supplemental water to provide additional supply reliability. Table 6-10 summarizes the water resources used by EVWD in 2020, and the projected future supplies are summarized in Table 6-11. EVWD Part 2 Chapter 6 East Valley Water District 6-17 2020 IRUWMP – Public Review Draft Table 6-10. DWR 6-8R Actual Water Supplies in 2020 (AF) 2020 WATER SUPPLY ADDITIONAL DETAIL ON WATER SUPPLY ACTUAL VOLUME WATER QUALITY TOTAL RIGHT OR SAFE YIELD Groundwater (not desalinated) San Bernardino Basin (Bunker Hill) 15,169 Drinking Water Surface water (not desalinated) Santa Ana River (part of SBB) 997 Drinking Water ~5,600 Purchased or Imported Water SWP - Direct Deliveries 2,208 Drinking Water TOTAL 18,374 Table 6-11. DWR 6-9R Projected Water Supplies (AF) PROJECTED WATER SUPPLY 2025 2030 2035 2040 2045 WATER SUPPLY ADDITIONAL DETAIL ON WATER SUPPLY REASONABLY AVAILABLE VOLUME REASONABLY AVAILABLE VOLUME REASONABLY AVAILABLE VOLUME REASONABLY AVAILABLE VOLUME REASONABLY AVAILABLE VOLUME Groundwater (not desalinated) San Bernardino Basin (Bunker Hill) 10,257 10,736 11,205 11,620 12,035 Surface water (not desalinated) Santa Ana River (part of SBB) 1,700 1,700 1,700 1,700 1,700 Purchased or Imported Water SWP - Direct Deliveries 2,500 2,500 2,500 2,500 2,500 Recycled Water San Bernardino Basin - Recycled Water Recharge 8,200 8,490 8,790 9,090 9,390 TOTAL 22,657 23,426 24,195 24,910 25,625 Recycled water recharge supplies shown indicate water that will be extracted from SBB and replaced in-kind with recycled water recharge. Surface and imported water supplies indicate planned diversions and deliveries. Supplies from San Bernardino Basin are increased to meet the Total Supply Targ et with 15% Reliability Factor. EVWD Part 2 Chapter 6 East Valley Water District 6-18 2020 IRUWMP – Public Review Draft Figure 6-4: EVWD Projected Supply and Demand Comparison (AF) Table 6-12. DWR 7-2R Normal Year Supply and Demand Comparison (AF) 2025 2030 2035 2040 2045 Supply Totals From Table 6-9R 22,657 23,426 24,195 24,910 25,625 Demand Totals From Table 4-3R 19,702 20,371 21,040 21,661 22,283 DIFFERENCE 2,955 3,056 3,156 3,249 3,342 - 5,000 10,000 15,000 20,000 25,000 30,000 2025 2030 2035 2040 2045 SBB Groundwater - Precipitation SWP - Direct Deliveries SBB Surface Water - Direct SBB Groundwater - Recycled Water Recharge Normal Year Supply Target with Reliability Factor Normal Year Demands EVWD Part 2 Chapter 6 East Valley Water District 6-19 2020 IRUWMP – Public Review Draft 6.4.9 Energy Intensity Reporting water energy intensity has many benefits for water utilities and their customers including: • Identifying energy saving opportunities as energy consumption is often a large portion of the cost of delivering water. • Calculating energy savings and greenhouse gas (GHGs) emissions reductions associated with water conservation programs. • Potential opportunities for receiving energy efficiency funding for water conservation programs. • Informing climate change mitigation strategies. • Benchmarking of energy use at each water acquisition and delivery step and the ability to compare energy use among similar agencies. In 2012 EVWD completed an Energy Optimization Study which identified the 15 largest energy using facilities in the EVWD water system and determined that the total average monthly energy use was 1,373,705 kilowatt-hours (kWh). EVWD also has a 10-year performance contract with Honeywell International Inc. to assess the performance of energy cost reduction measures (ECMs) at EVWD’s facilities. It was estimated that EVWD would save 1,055,940 kWh/yr due to these ECMs. In 2016, EVWD consumed a total of 15,059,699 kWh of energy for water facilities, for an energy intensity of 870 kWh per AF of water delivered. SNRC under construction EVWD Part 2 Chapter 6 East Valley Water District 6-20 2020 IRUWMP – Public Review Draft 6.5 Water Service Reliability Assessment This section considers EVWD’s water supply reliability during normal years, single dry years, and up to 5 consecutive dry water years. The supply reliability assessment discusses factors that could potentially limit the expected quantity of water available from EVWD’s current source of supply through 2045. 6.5.1 Constraints on Water Sources During times of State-wide drought conditions, the availability of SWP may be reduced. These conditions are normally known in advance, providing EVWD with the opportunity to plan for the reduced supply. During a drought period, it is Valley District’s priority to make direct deliveries to the water treatment plants operated by Redlands, WVWD, YVWD, and EVWD. Because EVWD’s water treatment plant can use local surface water and imported water, during a single- dry year EVWD may elect to take a small amount of imported water, making more imported water available to other agencies. In this case, EVWD would utilize additional groundwater through groundwater well production from the SBB. In a multiple dry year Valley District expects to fulfill normal direct deliveries to water treatment plants, including EVWD’s treatment plant. Some of EVWD’s wells are impacted by nitrate, perchlorate, fluoride, uranium, and/or VOCs. EVWD has suspended operation at Well 12A. EVWD has plans in place that will allow these wells to come back on-line. EVWD continues to monitor for groundwater contamination and the movement of groundwater contaminant plumes. In response to water quality concerns EVWD has altered operations at other wells to compensate for the reduced capacity and the following actions have been put into place to protect EVWD supply: • A wellhead treatment facility has been implemented to treat VOCs from Well 28A using granulated activated carbon. • EVWD blends water from Well 39 to address high fluoride levels. • EVWD continues to monitor for nitrates in Wells 25A and 28A. These past and ongoing groundwater treatment projects have demonstrated that treatment is an economically viable alternative for handling volatile organic compounds, perchlorate, nitrates, and uranium. To manage the long-term potential for continued groundwater contamination, EVWD has an on-going land acquisition program. EVWD has vacant land available for future facilities. Sites are selected for the development of new wells based on knowledge of the plumes’ movement, land availability and engineering feasibility. Based on current conditions water quality is not anticipated to affect EVWD supply reliability. However, water quality issues are constantly evolving. EVWD will take action to protect and treat supplies when needed, but it is recognized that water treatment can have significant costs. As described in Part 1 Chapter 3, the SBB is adjudicated on a safe yield basis. EVWD therefore can develop additional wells and over-extract groundwater under specified conditions contained in the stipulated judgment and participates in the SBB GC to contribute to maintaining basin sustainability. The wells in general have provided a stable source of water supply. Past EVWD Part 2 Chapter 6 East Valley Water District 6-21 2020 IRUWMP – Public Review Draft records show that EVWD has not removed any well from its supply source during drought conditions, although, some wells had to be lowered to continue extraction of groundwater. In recent droughts, EVWD has maintained full capability to use all wells within its system. As described in Part 1 Chapter 3, extensive modeling has been used to examine groundwater recharge, groundwater pumping, basin storage, groundwater flow, and groundwater plume location and plume migration. 6.5.2 Year Type Characterization In general, groundwater and recycled water are less vulnerable to seasonal and climatic changes than surface water (i.e. local and imported) supplies. The Western-San Bernardino Watermaster, in collaboration with the BTAC, monitors groundwater levels and implement supplemental recharge to maintain long term sustainability of local groundwater sources. Further discussion of regional water resource management is included in Part 1, Chapter 3. Per UWMP requirements, EVWD has evaluated reliability for an average year, single dry year, and a 5 consecutive dry year period. The UWMP Act defines these years as: • Normal Year: this condition represents the water supplies a supplier considers available during normal conditions. This could be a single year or averaged range of years that most closely represents the average water supply available. • Single Dry Year: the single dry year is recommended to be the year that represents the lowest water supply available. • Five-Consecutive Year Drought: the driest five-year historical sequence for the Supplier, which may be the lowest average water supply available for five years in a row. 6.5.3 Water Service Reliability The results of the reliability assessment are summarized in the tables below. Under single dry and consecutive dry year conditions, the assessment assumes that demands will increase by as much as 10% due to increased outdoor water use. Although water use may decrease in the later years of a multiple year drought due to implementation of conservation measures and drought messaging, the assessment is based on a 10% increase throughout the 5-year drought to be conservative. As described in Part 1 Chapter 3 and Chapter 5, the effects of a local drought are not immediately recognized since the region uses the local groundwater basins to simulate a large reservoir for long term storage. While SWP water and local surface water supplies may be reduced in dry years, EVWD is able to pump additional groundwater from Bunker Hill to meet total demands in dry years and participates in the SBB GC to replenish the basins with imported and local water through regional recharge programs. Since EVWD’s total supplies are not reduced in dry years, 2020 is considered the base year for all year types. Based on the analysis, EVWD does not anticipate any shortage due to single or consecutive dry years. Even though localized drought conditions should not affect supply, EVWD participates in several EVWD Part 2 Chapter 6 East Valley Water District 6-22 2020 IRUWMP – Public Review Draft ongoing water conservation measures and regional recharge projects to optimize and enhance the use and reliability of regional water resources. EVWD also has a water shortage contingency plan to put into action as appropriate to reduce the demand during critical drought years or other supply emergencies. A summary of the basis of water year data is presented in Table 6-13. The percent of average supply increases in drought years because EVWD’s groundwater production will increase to meet an assumed increase in demands. Table 6-13. DWR 7-1R Basis of Water Year Data YEAR TYPE BASE YEAR AVAILABLE SUPPLY IF YEAR TYPE REPEATS AS PERCENT OF AVERAGE SUPPLY Average Year 2020 100% Single-Dry Year 2020 110% Consecutive Dry Years 1st Year 2020 110% Consecutive Dry Years 2nd Year 2020 110% Consecutive Dry Years 3rd Year 2020 110% Consecutive Dry Years 4th Year 2020 110% Consecutive Dry Years 5th Year 2020 110% The projected supply and demand during a normal year are shown in Table 6-12. The projected supply and demand during a single dry year are shown in Table 6-14. EVWD’s demands in single dry years are assumed to increase by 10% above normal year demands. The local groundwater basin EVWD produces water from has storage for use in dry years, so EVWD can produce the volume of water needed to meet 100% of demands in single dry years. EVWD supplies are 100% reliable during single dry years. Table 6-14. DWR 7-3R Single Dry Year Supply and Demand Comparison (AF) 2025 2030 2035 2040 2045 Supply Totals 24,923 25,769 26,615 27,401 28,188 Demand Totals 21,672 22,408 23,143 23,827 24,511 DIFFERENCE 3,251 3,361 3,472 3,574 3,677 The projected supply and demand during five consecutive dry years are shown in Table 6-15. EVWD’s demands in multiple dry years are assumed to increase by 10% above normal year demands. The local groundwater basin EVWD produces water from has storage for use in dry years, so EVWD can produce the volume of water needed to meet 100% of demands in multiple dry years. EVWD’s supplies are 100% reliable during multiple dry years. EVWD Part 2 Chapter 6 East Valley Water District 6-23 2020 IRUWMP – Public Review Draft Table 6-15. DWR 7-4R Multiple Dry Years Supply and Demand Comparison (AF) 2025 2030 2035 2040 2045 FIRST Supply Totals 24,923 25,769 26,615 27,401 28,188 YEAR Demand Totals 21,672 22,408 23,143 23,827 24,511 DIFFERENCE 3,251 3,361 3,472 3,574 3,677 SECOND Supply Totals 24,923 25,769 26,615 27,401 28,188 YEAR Demand Totals 21,672 22,408 23,143 23,827 24,511 DIFFERENCE 3,251 3,361 3,472 3,574 3,677 THIRD Supply Totals 24,923 25,769 26,615 27,401 28,188 YEAR Demand Totals 21,672 22,408 23,143 23,827 24,511 DIFFERENCE 3,251 3,361 3,472 3,574 3,677 FOURTH Supply Totals 24,923 25,769 26,615 27,401 28,188 YEAR Demand Totals 21,672 22,408 23,143 23,827 24,511 DIFFERENCE 3,251 3,361 3,472 3,574 3,677 FIFTH Supply Totals 24,923 25,769 26,615 27,401 28,188 YEAR Demand Totals 21,672 22,408 23,143 23,827 24,511 DIFFERENCE 3,251 3,361 3,472 3,574 3,677 6.6 Drought Risk Assessment The Drought Risk Assessment (DRA) is a new analysis required for the 2020 UWMP, with a focus on the five-year consecutive drought scenario beginning in 2021. Because EVWD relies on a groundwater basin with significant storage, total available supplies do not vary on a monthly or seasonal basis, so this analysis is conducted on an annual basis. Projected demands and supplies from 2021-2025 are shown in Table 6-16. Demands for 2021 – 2025 were assumed to increase at a uniform rate between the 2020 actual use and 2025 projected use and were then increased by 10% to reflect higher anticipated demands during dry years. The DRA uses the same water supply reliability assumptions used in the Water Service Reliability Assessment described in Section 6.5 and the 15% Reliability Factor is also applied to supplies in this DRA, therefore, this analysis shows a 15% supply surplus for EVWD. EVWD can produce additional groundwater to meet any increases in demand in dry years. As shown in Part 1 Chapter 5, the region as a whole has sufficient supplies to meet demands plus the 15% Reliability Factor, even in a 5-year drought. As shown in Part 1 Chapter 5 Figure 5-1, the SBB had over 4.8 million acre-feet in storage as of 2020 due to regional efforts to store water in wet years for use during dry years. Although projections in this Plan show that the regional water supplies are sufficient to meet the demands of EVWD and the Region as a whole, even during a 5-year drought (see Part 1 EVWD Part 2 Chapter 6 East Valley Water District 6-24 2020 IRUWMP – Public Review Draft Chapter 5), EVWD remains committed to water conservation and to being a good steward of regional water resources to preserve supplies for the future due to the possibility of experiencing more severe droughts than anticipated in this Plan. Table 6-16: Five-Year Drought Risk Assessment (AF) 2021 Gross Water Use 20,503 Total Supplies 23,579 SURPLUS 3,076 2022 Gross Water Use 20,796 Total Supplies 23,915 SURPLUS 3,119 2023 Gross Water Use 21,088 Total Supplies 24,251 SURPLUS 3,163 2024 Gross Water Use 21,380 Total Supplies 24,587 SURPLUS 3,207 2025 Gross Water Use 21,672 Total Supplies 24,923 SURPLUS 3,251 6.7 Water Shortage Contingency Plan The Water Shortage Contingency Plan (WSCP), which is a strategic plan that EVWD uses to prepare for and respond to foreseeable and unforeseeable water shortages. A water shortage occurs when water supply available is insufficient to meet the normally expected customer water use at a given point in time. A shortage may occur due to a number of reasons, such as water supply quality changes, climate change, drought, regional power outage, and catastrophic events (e.g., earthquake). Additionally, the State may declare a statewide drought emergency and mandate that water suppliers reduce demands, as occurred in 2014. The WSCP serves as the operating manual that EVWD will use to prevent catastrophic service disruptions through proactive, rather than reactive, mitigation of water shortages. The WSCP provides a process for an annual water supply and demand assessment and structured steps designed to respond to actual conditions. The level of detailed planning and preparation provide accountability and predictability and will help EVWD maintain reliable supplies and reduce the impacts of any supply shortages and/or interruptions. EVWD Part 2 Chapter 6 East Valley Water District 6-25 2020 IRUWMP – Public Review Draft The WSCP was prepared in conjunction with the 2020 IRUWMP and is a standalone document that can be modified as needed. EVWD’s WSCP is attached as Part 4 Appendix F-9. 6.8 Demand Management Measures The Demand Management Measures (DMMs) section provides a comprehensive description of the water conservation programs that EVWD has implemented for the past five years, is currently implementing, and plans to implement in order to reduce demand. EVWD's current per-capita consumption is less than its 2020 compliance target. EVWD expects to continue to implement conservation programs to encourage conservation and maintain per-capita consumption below the compliance target. 6.8.1 Existing Demand Management Measures Consistent with the requirements of the California Water Code, this section describes the required demand measurement measures (DMM) that have been implemented in the past five years and will continue to be implemented into the future. Through the implementation of its active water conservation programs, EVWD has met its Confirmed Water use Target for 2020. To maintain efficient water use, EVWD intends to continue its current demand management measures for the foreseeable future to consider future water use requirements that may be implemented. 6.8.1.1 Water Waste Prevention Ordinances As detailed in Section 15 of Ordinance 401 EVWD restricts water waste through its Water Conservation Ordinance. Section 15 of Ordinance 401, adopted on May 12, 2021, prohibits excessive irrigation runoff from a meter service area, irrigation after measurable rainfall, hosing of hard surfaces, and using potable water to irrigate turf and high water use plant materials in medians and bordering parkways during times of threatened supply conditions and water emergency supply conditions (Ordinance 401 is included in Part 4 Appendix F-9). 6.8.1.2 Metering All of EVWD’s customer connections are metered. EVWD has a meter maintenance and replacement plan and recently completed implementation of AMI technology for all meters, which enables two-way communication between EVWD’s customer billing system and the customer meters for over 20,000 connections. This allows for near real-time notifications of potential inefficient water use concerns. With the detailed usage data available in an AMI system, customer service representatives have immediate access to consumers’ consumption information. EVWD customers also have access to a customer portal where they can view their own water use information in near real-time. 6.8.1.3 Conservation Pricing Conservation pricing is designed to discourage wasteful water habits and encourage conservation. EVWD charges its Residential customers using a budget-based structure which EVWD Part 2 Chapter 6 East Valley Water District 6-26 2020 IRUWMP – Public Review Draft consists of three separate pricing tiers for potable water. The first tier is a customized estimate of indoor water use for each household based on average household sizes identified by the 2010 U.S. Census. The second tier is an estimate of efficient outdoor irrigation. Tiers one and two are considered in-budget water use and tier three represents inefficient water usage. EVWD allows for specific variances which may require higher allocations of water for circumstances such as medical need, in-home childcare, and livestock. EVWD charges its Commercial customers differently in that their water budget is based on the customer's historic use for the same billing periods of the prior two years. EVWD calculates an average year demand for a billing period based on the same billing period of the past two years. Commercial customers’ water budget may be adjusted by EVWD. Usage in excess of the water budget is billed at inefficient use Tier 3 pricing. Landscaping measurements were developed using lidar technology personalized for each parcel. Given that the District is located in the foothills of the San Bernardino Mountains, EVWD ensured accuracy of irrigated slopes. Additionally, irrigation accounts are not allocated water use within Tier 1. Metering with commodity rates, in particular budget-based rates, is an effective conservation measure that directly associates cost with the amount of water used. 6.8.1.4 Public Education and Outreach EVWD consistently works to educate the public and increase awareness of the District’s projects and programs in the local and regional community. Effective communication is provided through a number of methods including: bill inserts; informative flyers; direct mail pieces; newspaper advertisements; bus shelter advertisements; news releases; social media outreach; and website content. District staff participate in career day and school events, offer tours of District facilities and support community events with information booths. Yard signs, fact sheets, rebate programs, monthly conservation tips, vehicle magnets, banners, educational workshops, and regular staff communication are also part of the District’s comprehensive outreach program. EVWD continues to prioritize community education over strict enforcement. Through the development of positive relationships with community-based organizations and residents alike, the District can serve as a trusted resource in wet and dry years. Outreach efforts are used to establish a connection with customers, increase District visibility, promote a transparent operation, and foster an environment of enhanced public service. EVWD also provides school visits and presentations when requested by the school. 6.8.1.5 Programs to Assess and Manage Distribution System Real Losses EVWD has an active water loss control program and is in the process of conducting a water audit for FY2020-2021. EVWD uses Cityworks work order program to track leaks, flushing, and other non-revenue water sources. Through Cityworks and staying proactive in reviewing water mains throughout the service area, EVWD identifies problem areas in the distribution system EVWD Part 2 Chapter 6 East Valley Water District 6-27 2020 IRUWMP – Public Review Draft that need to be repaired or upgraded. EVWD uses preventative maintenance to ensure safe delivery of water to all of its customers. 6.8.1.6 Water Conservation Program Coordination and Staffing Support EVWD has a full-time conservation coordinator, conservation/public affairs manager, and a member of the executive team, in addition to shared time for outreach staff, and empowers all District staff to take an active role in the drought response. The program’s budget is funded through budget-based rates. During times of drought where additional resources are needed to minimize inefficient water use, all District staff are actively engaged in notifying customers of observed violations of the Conservation Ordinance. Though not required in wet years, the District has historically utilized part-time personnel to address the increased enforcement requirements during times of drought. 6.8.1.7 Other Demand Management Measures To encourage the efficient use of water in the residential sector, EVWD currently offers rebates as shown in Table 6-17. Table 6-17. Residential Rebate Program Summary TITLE DESCRIPTION High-Efficiency Washing Machine Up to $150, for the purchase of a clothes washer with a water factor of 5 or less and is recognized as an EnergyStar appliance. High-Efficiency Showerhead Up to $30, per showerhead that uses 2 gallons or less per minute and is recognized by the WaterSense program. High-Efficiency Toilets Up to $100, per toilet installed that uses 1.28 gallons or less per flush and is recognized by the WaterSense program. Direct Installation Program- Weather Based Irrigation Controllers Weather based irrigation controllers (WBIC) use the weather to set your irrigation schedule instead of a traditional sprinkler controller. To help customers be water efficient outdoors, the District will replace your old irrigation controller with a new WBIC through a new direct installation program at no cost to the customer. Weather-Based Irrigation Controller Up to $150, per weather-based irrigation controller installed that automatically adjust irrigation schedules for sprinkler systems in response to changing weather or environmental conditions High-Efficiency Sprinkler Nozzles Up to $4, per High-Efficiency Sprinkler nozzle installed that uses less water per minute than conventional nozzles. Water Efficient Landscaping Up to $200, for water efficient landscaping that uses native plants, efficient irrigation systems and other landscaping elements that thrive using less water than traditional grass lawns. EVWD currently offers multiple residential rebate programs to help customers achieve water use efficiency. For more information about this DMM, visit: https://www.eastvalley.org/275/Rebate. EVWD Part 2 Chapter 6 East Valley Water District 6-28 2020 IRUWMP – Public Review Draft 6.9 Adoption, Submittal and Implementation This section describes EVWD’s process for adopting, submitting, and implementing the 2020 IRUWMP and EVWD’s WSCP. 6.9.1 Notice of Public Hearing A joint notice was provided on behalf of all agencies whose 2020 UWMPs are part of the 2020 IRWUMP to all cities and counties and other stakeholders within the region that that 2020 IRUWMP is being prepared. This notice was sent at least 60 days prior to EVWD’s public hearing. The recipients are identified in Part 1 Chapter 1 and include all cities and counties within EVWD’s service area. A second notice was provided to these cities and counties with the date and time of the public hearing and the location where the draft report was available for review. EVWD provided notice to the public through its website and published announcements of the public hearing in a newspaper on two occasions before the hearing. Copies of the proof of publication are included in Part 4 Appendix F-2. 6.9.2 Public Hearing and Adoption EVWD held a public hearing on June 23, 2021, to hear public comment and consider adopting this 2020 IRUWMP and EVWD’s WSCP. As part of the public hearing, the EVWD provided information on their baseline values, water use targets, and implementation plan required in the Water Conservation Act of 2009. The public hearing on the 2020 IRUWMP took place before the adoption of the Plan, which allowed EVWD the opportunity to modify the 2020 IRUWMP in response to any public input before adoption. After the hearing, the Plan was adopted as prepared or as modified after the hearing. EVWD’s adoption resolution for the 2020 IRUWMP and EVWD’s WSCP is included in Part 4 Appendix F-3. 6.9.3 Plan Submittal EVWD will submit the 2020 IRUWMP and EVWD’s WSCP to DWR, the State Library, and cities and counties within 30 days after adoption. 2020 IRUWMP submittal to DWR will be done electronically through WUEdata, an online submittal tool. 6.9.4 Public Availability No later than 30 days after filing a copy of its Plan with DWR, EVWD will make the plan available for public review during normal business hours by placing a copy of the 2020 IRUWMP and EVWD’s WSCP at the front desk of the District’s office, and by posting the plans on the District’s website for public viewing. EVWD Part 2 Chapter 6 East Valley Water District 6-29 2020 IRUWMP – Public Review Draft 6.9.5 Amending an Adopted UWMP or Water Shortage Contingency Plan If the adopted 2020 IRUWMP or EVWD’s WSCP is amended, each of the steps for notification, public hearing, adoption, and submittal will also be followed for the amended plan. 2020 IRUWMP Part 3 Regional Supporting Information Due to the size of the document, a link is provided for viewing online Please click here to view this document online F 2020 IRUWMP Part 4 East Valley Water District Appendix F Due to the size of this document a link is available to view online Please click here to view this document online B OAR D AG E N D A S TAF F R E P O RT Agenda Item #4. Meeting Date: June 23, 2021 P ublic Hearing 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 2021.12 - Ad o p ting the Water S ho rtage C o ntingency P lan, P ublic Hearing R E COMME N D AT IO N: S taff recommends that the Board o f Direc to rs ad opt R esolution 2021.12 – Adopting the Water S ho rtage C o ntingency P lan. B AC KG R O UN D / AN ALYS IS : T he C alifo rnia Urb an Water Management P lanning Ac t mandates that every urban s up p lier of water p ro vid ing water for municipal purposes to mo re than 3,000 c us tomers or sup plying mo re than 3,000 ac re feet o f water annually, p rep are and ad o p t, in acc o rdance with pres cribed req uirements , a Water S hortage C o ntingenc y P lan (W S C P ). Eas t Valley Water Dis trict (E VW D) meets the d efinition o f an urban water s upplier fo r p urpos es o f the UW MP Ac t. T he W S C P is intend ed to be a guide to help EVW D and its cus tomers identify potential s ho rtages and ho w to respond to them if they o cc ur. T he main features of the W S C P are as follo ws : Us ed to prep are fo r and res p ond to water s hortages that may oc cur due to water q uality c hanges , c limate c hange, drought, regional p o wer outage, or c atastro phic events s uc h as earthq uakes; P ro vides a pro ces s fo r E VW D s taff to c o mplete an Annual As sessment beginning in 2022 that will b e us ed to d etermine if there may be a water s hortage in the c oming year (not antic ip ated); Des cribes d ifferent degrees of sho rtages and vario us ac tions that may be imp lemented to mitigate the effects of a p o tential s upply s hortage; Incorporates and aligns with the Water C o nservatio n s ection of EVW D’s O rd inanc e 401 adopted on May 12, 2021. T he UW MP Ac t spec ifies the req uirements and proc edures fo r ad o p ting suc h Water S hortage C o ntingency P lans . P ursuant to rec ent amend ments to the UW MP Ac t, urb an water s upp liers are required to adopt and elec tronic ally s ubmit their W S C P s to the C alifo rnia Department of Water R esourc es b y July 1, 2021. EVW D has prep ared a W S C P in ac cord anc e with the UW MP Act and S B X7-7, and in acc o rdance with ap p lic ab le legal req uirements , has undertaken c ertain coord inatio n, no tic e, pub lic invo lvement, pub lic c omment, and o ther p roc ed ures in relation to its W S C P. In acc ordanc e with the UW MP Ac t, the Eas t Valley Water Dis tric t has prepared its W S C P with its o wn s taff, R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: Jeff No elte Direc tor of Engineering and O p erations In acc ordanc e with the UW MP Ac t, the Eas t Valley Water Dis tric t has prepared its W S C P with its o wn s taff, with the as s istanc e of c o nsulting profes s io nals , and in cooperation with other go vernmental agenc ies, and has utilized and relied up o n ind ustry s tand ards and the exp ertis e o f ind us try profes s io nals in p rep aring its W S C P, and has als o utilized the C alifo rnia Department o f Water R es ourc es G uid eb o o k for Urb an Water S upp liers to P repare 2020 Urban Water Management P lans, in prep aring its W S C P. In ac cordanc e with applic ab le law, a Notic e of a P ub lic Hearing regarding E VW D’s W S C P was pub lished within the juris dictio n of E VW D on June 9, 2021 and June 16, 2021. 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 c ) S trengthen R egio nal, S tate and Natio nal P artners hips 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 R E VIE W B Y O T HE R S : T his agend a item has been reviewed b y the exec utive management team. 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 Resolution 202 1.12 Resolution Lette r Draft Water Sho rtage Contingency P lan EVW D Backup Material East Valley Water District Resolution 2021.12 Page 1 of 4 RESOLUTION NO. 2021.12 RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ADOPTING THE WATER SHORTAGE CONTINGENCY PLAN WHEREAS, The California Urban Water Management Planning Act, Water Code Section 10610 et seq. (the UWMP Act), mandates that every urban supplier of water providing water for municipal purposes to more than 3,000 customers or supplying more than 3,000 acre feet of water annually, prepare and adopt, in accordance with prescribed requirements, a water shortage contingency plan (WSCP); and WHEREAS, East Valley Water District meets the definition of an urban water supplier for purposes of the UWMP Act; and WHEREAS, the UWMP Act specifies the requirements and procedures for adopting such Water Shortage Contingency Plans; and WHEREAS, pursuant to recent amendments to the UWMP Act, urban water suppliers are required to adopt and electronically submit their WSCPs to the California Department of Water Resources by July 1, 2021; and WHEREAS, The East Valley Water District has prepared a WSCP in accordance with the UWMP Act and SB X7-7, and in accordance with applicable legal requirements, has undertaken certain coordination, notice, public involvement, public comment, and other procedures in relation to its WSCP; and WHERAS, the WSCP references and incorporates the provisions of the East Valley Water District’s Water Conservation Ordinance No. 401 adopted on May 12, 2021; and WHEREAS, in accordance with the UWMP Act, the East Valley Water District has prepared its WSCP with its own staff, with the assistance of consulting professionals, and in cooperation with other governmental agencies, and has utilized and relied upon industry standards and the expertise of industry professionals in preparing its WSCP, and has also utilized East Valley Water District Resolution 2021.12 Page 2 of 4 the California Department of Water Resources Guidebook for Urban Water Suppliers to Prepare 2020 Urban Water Management Plans, in preparing its WSCP; and WHEREAS, in accordance with applicable law, including Water Code sections 10608.26 and 10642, and Government Code section 6066, a Notice of a Public Hearing regarding the East Valley Water District’s WSCP was published within the jurisdiction of the East Valley Water District on June 9, 2021 and June 16, 2021; and WHEREAS, in accordance with applicable law, including but not limited to Water Code sections 10608.26 and 10642, a public hearing was held on June 23, 2021 at 5:30 pm, or soon thereafter, virtually via Microsoft Teams, in order to provide members of the public and other interested entities with the opportunity to be heard in connection with proposed adoption of the WSCP and issues related thereto; and WHEREAS, pursuant to said public hearing on the WSCP, the East Valley Water District, among other things, encouraged the active involvement of diverse social, cultural, and economic members of the community within East Valley Water District’s service area with regard to the preparation of the WSCP, encouraged community input regarding East Valley Water District’s WSCP; and WHEREAS, the Board of Directors has reviewed and considered the purposes and requirements of the UWMP Act, the contents of the WSCP, and the documentation contained in the administrative record in support of the WSCP, and has determined that the factual analyses and conclusions set forth in the WSCP are legally sufficient; and WHEREAS, the Board of Directors desires to adopt the WSCP in order to comply with the UWMP Act. NOW THEREFORE BE IT RESOLVED, the Board of Directors of the East Valley Water District hereby resolve as follows: 1. The Water Shortage Contingency Plan is hereby adopted as amended by changes incorporated by the Board of Directors as a result of input received (if any) at the public hearing and ordered filed with the Secretary of the Board of Directors; East Valley Water District Resolution 2021.12 Page 3 of 4 2. The General Manager is hereby authorized and directed to include a copy of this Resolution in East Valley Water District’s WSCP; 3. The General Manager is hereby authorized and directed, in accordance with Water Code sections 10621(d) and 10644(a)(1)-(2), to electronically submit a copy of the WSCP to the California Department of Water Resources no later than July 1, 2021; 4. The General Manager/CEO is hereby authorized and directed, in accordance with Water Code section 10644(a), to submit a copy of the WSCP to the California State Library, and any city of county within which the East Valley Water District provides water supplies no later than thirty (30) days after this adoption date; 5. The General Manager/CEO is hereby authorized and directed, in accordance with Water Code section 10645, to make the WSCP available for public review at the East Valley Water District’s offices during normal business hours and on the East Valley Water District’s website no later than thirty (30) days after filing a copy of the WSCP with the California Department of Water Resources; 6. The General Manager/CEO is hereby authorized and directed, in accordance with Water Code Section 10635(b), to provide that portion of the WSCP prepared pursuant to Water Code Section 10635(a) to any city or county within which the East Valley Water District provides water supplies no later than sixty (60) days after submitting a copy of the WSCP with the California Department of Water Resources; 7. The General Manager/CEO is hereby authorized and directed to implement the WSCP in accordance with the UWMP Act and to provide recommendations to the Board of Directors regarding the necessary budgets, procedures, rules, regulations or further actions to carry out the effective and equitable implementation of the WSCP. ADOPTED, this 23rd day of June 2021. ROLL CALL: Ayes: Noes: Absent: Abstain: East Valley Water District Resolution 2021.12 Page 4 of 4 David E. Smith, Board President ATTEST: John Mura, Secretary, Board of Directors June 23, 2021 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2021.12 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held June 23, 2021. John Mura, Secretary, Board of Directors East Valley Water District Water Shortage Contingency Plan - Public Review Draft JUNE 2021 East Valley Water District East Valley Water District ii Water Shortage Contingency Plan EAST VALLEY WATER DISTRICT Water Shortage Contingency Plan Public Review Draft East Valley Water District JUNE 2021 Prepared by Water Systems Consulting, Inc. East Valley Water District i Public Review Draft TABLE OF CONTENTS List of Figures ..................................................................................................................................................... ii List of Tables ..................................................................................................................................................... iii Acronyms & Abbreviations ............................................................................................................................. iv East Valley Water District ............................................................................................................................... 1 1.0 Water Service Reliability Analysis ................................................................................................. 3 2.0 Annual Water Supply and Demand Assessment .......................................................................... 3 3.0 Water Shortage Stages ................................................................................................................... 6 4.0 Shortage Response Actions ................................................................................................................. 8 4.1 Supply Augmentation ................................................................................................................ 9 4.2 Demand Reduction ..................................................................................................................... 9 4.3 Operational Changes and Additional Mandatory Restrictions ..................................... 14 4.4 Emergency Response Plan ..................................................................................................... 14 4.5 Seismic Risk Assessment and Mitigation Plan ..................................................................... 15 4.6 Shortage Response Action Effectiveness ............................................................................ 15 5.0 Communication Protocols................................................................................................................ 15 6.0 Compliance and Enforcement ....................................................................................................... 16 7.0 Legal Authorities .............................................................................................................................. 17 7.1 Water Shortage Emergency Declaration .......................................................................... 17 7.2 Local/Regional Emergency Declaration ............................................................................. 17 8.0 Financial Consequences of WSCP................................................................................................ 17 9.0 Monitoring and Reporting ............................................................................................................. 18 10.0 WSCP Refinement Procedures ...................................................................................................... 18 11.0 Plan Adoption, Submittal and Availability ................................................................................. 18 References ....................................................................................................................................................... 19 Attachment 1: EVWD’S Ordinance – Water Conservation Attachment 2: EVWD’s Local Hazard Mitigation Plan Attachment 3: Adoption Resolution East Valley Water District Table of Contents East Valley Water District ii Public Review Draft LIST OF FIGURES Figure 1. Regional and Retail Agency Annual Assessment Process and Timeline .................................. 6 Figure 2. Crosswalk to DWR Six Standard Stages .................................................................................... 8 East Valley Water District Table of Contents East Valley Water District iii Public Review Draft LIST OF T ABLES Table 1. Annual Assessment Procedure ......................................................................................................... 4 Table 2: DWR 8-1 Water Shortage Contingency Plan Stages ............................................................... 8 Table 3: DWR 8-3R Supply Augmentation & Other Actions .................................................................... 9 Table 4: DWR 8-2 Demand Reduction Actions ............................................................................................ 9 East Valley Water District Table of Contents East Valley Water District iv Public Review Draft ACRONYMS & ABBREVIATIONS AWIA American Water Infrastructure Association BTAC Basin Technical Advisory Committee CWC California Water Code CII Commercial, Industrial, and Institutional DWR California Department of Water Resources DRA Drought Risk Assessment ERP Emergency Response Plan EVWD East Valley Water District GW Groundwater IRUWMP Integrated Regional Urban Water Management Plan LHMP Local Hazard Mitigation Plan RRA Risk and Resilience Assessment SWP State Water Project UWWP Urban Water Management Plan WSCP Water Shortage Contingency Plan 1 WATER SHORTAGE CONTINGENCY PLAN East Valley Water District This Water Shortage Contingency Plan is a strategic plan that the East Valley Water District uses to prepare for and respond to water shortages. The Water Shortage Contingency Plan (WSCP) is a strategic plan that East Valley Water District (EVWD) uses to prepare for and respond to foreseeable and unforeseeable water shortages. A water shortage occurs when water supply available is insufficient to meet the normally expected customer water use at a given point in time. A shortage may occur due to a number of reasons, such as water supply quality changes, climate change, drought, regional power outage, and catastrophic events (e.g., earthquake). Additionally, the State may declare a statewide drought emergency and mandate that water suppliers reduce demands, as occurred in 2014. The WSCP serves as the operating manual that EVWD will use to prevent catastrophic service disruptions through proactive, rather than reactive, mitigation of water shortages. This WSCP provides a process for an annual water supply and demand assessment and structured steps designed to respond to actual conditions. This level of detailed planning and preparation provide accountability and predictability and will help EVWD maintain reliable supplies and reduce the impacts of any supply shortages and/or interruptions. This WSCP was prepared in conjunction with EVWD’s 2020 UWMP, which is included in the 2020 Upper Santa Ana River Watershed Integrated Urban Water Management Plan (2020 IRUWMP) and is a standalone document that can be modified as needed. This document is compliant with the California Water Code (CWC) Section 10632 and incorporated guidance from the State of California Department of Water Resources (DWR) UWMP Guidebook. IN THIS SECTION • Water Service Reliability • Annual Water Supply and Demand Assessment • Supply Shortage Stages and Response Actions East Valley Water District Draft Water Shortage Contingency Plan East Valley Water District 2 Public Review Draft The WSCP describes the following: 1. Water Service Reliability Analysis: Summarizes EVWD’s water supply analysis and reliability and identifies any key issues that may trigger a shortage condition. 2. Annual Water Supply and Demand Assessment Procedures: Describes the key data inputs, evaluation criteria, and methodology for assessing the system’s reliability for the coming year and the steps to formally declare any water shortage stages and response actions. 3. Water Shortage Stages: Establishes three water shortage stages to clearly identify and prepare for shortages that are in compliance with regulatory requirements. 4. Shortage Response Actions: Describes the response actions that may be implemented or considered for each stage to reduce gaps between supply and demand. 5. Communication Protocols: Describes communication protocols under each stage to ensure customers, the public, and government agencies are informed of shortage conditions and requirements. 6. Compliance and Enforcement: Defines compliance and enforcement actions available to administer demand reductions. 7. Legal Authority: Lists the legal documents that grant EVWD the authority to declare a water shortage and implement and enforce response actions. 8. Financial Consequences of WSCP Implementation: Describes the anticipated financial impact of implementing water shortage stages and identifies mitigation strategies to offset financial burdens. 9. Monitoring and Reporting: Summarizes the monitoring and reporting techniques to evaluate the effectiveness of shortage response actions and overall WSCP implementation. Results are used to determine if shortage response actions should be adjusted. 10. WSCP Refinement Procedures: Describes the factors that may trigger updates to the WSCP and outlines how to complete an update. 11. Plan Adoption, Submittal, and Availability: Describes the process for the WSCP adoption, submittal, and availability after each revision. East Valley Water District Draft Water Shortage Contingency Plan East Valley Water District 3 Public Review Draft 1.0 Water Service Reliability Analysis As part of the 2020 IRUWMP, EVWD completed a water supply reliability analysis for normal, single-dry, and five-year consecutive dry year periods from 2025-2045. A Drought Risk Assessment (DRA) was also performed to analyze supply reliability under five consecutive years of drought from 2021-2025. As described in Chapter 3 of the 2020 IRUWMP, the effects of a local drought are not immediately recognized since the region uses the local groundwater basins to simulate a large reservoir for long term storage. EVWD is able to pump additional groundwater to meet increased demands in dry years and participates in efforts to replenish the basins with imported and local water through regional recharge programs. Additionally, EVWD implements several ongoing water conservation measures. Regional recharge programs and conservation help to optimize and enhance the use of regional water resources. Based on the 2020 IRUWMP analysis, EVWD’s water supply is reliable and not expected to see impactful change under drought conditions. Even though localized drought conditions should not affect supply, other shortages may occur due to a number of reasons, such as water supply quality changes, regional power outage, State mandates for water use efficiency standards, and catastrophic events (e.g., earthquake). Therefore, EVWD will use this WSCP as appropriate to address shortages and other supply emergencies. 2.0 Annual Water Supply and Demand Assessment As an urban water supplier, EVWD must prepare and submit an Annual Water Supply and Demand Assessment (Annual Assessment). Starting in 2022, the Annual Assessment will be due by July 1 of every year, as indicated by CWC Section 10632.1. The Annual Assessment is an evaluation of the near- term outlook for supplies and demands to determine whether the potential for a supply short age exists and whether there is a need to trigger a WSCP shortage stage and response actions in the current calendar year to maintain supply reliability. This process will take place at the same time each year based on known circumstances and information available to EVWD at the time of analysis and can be update or revised at any time if circumstances change. EVWD will establish and convene an internal WSCP Team to conduct the Annual Assessment each year. The WSCP may include the following staff: ➢ Senior Engineer ➢ Operations Manager ➢ Production Supervisor ➢ Conservation Coordinator ➢ Business Services Manager ➢ Public Affairs/Conservation Manager East Valley Water District Draft Water Shortage Contingency Plan East Valley Water District 4 Public Review Draft The Annual Assessment procedure, including key data inputs and evaluation criteria, is summarized in Table 1. The Annual Assessment procedure and timeline, along with how it integrates with the annual assessment that will be conducted on a regional basis in parallel, is shown graphically in Figure 1. Table 1. Annual Assessment Procedure TIMING ASSESSMENT ACTIVITIES PROCEDURE, KEY DATA INPUTS, EVALUATION CRITERIA AND OTHER CONSIDERATIONS STAFF RESPONSIBLE JAN - FEB Estimate unconstrained demands for coming year Demands will be estimated based on water sales forecasts from annual budget or prior year demands plus any anticipated changes Operations Manager Chief Financial Officer JAN - FEB Estimate available supplies for the year, considering the following year will be dry Each December, EVWD submits an order to Valley District for the volume of SWP water that is planned for use the following year. If the requested volume is not available due to reduced SWP supplies, EVWD will meet with Valley District and other SWP users to discuss reducing SWP orders and may update the Annual Assessment to reflect a shift from SWP to groundwater production, if needed. Estimates of available surface water supplies from the Santa Ana River will be based on contract month allotment and 25% of the river flows in non-contract months. The remainder of supply needs not met from SWP and surface water will be pumped from the SBBA. The SBBA is sustainably managed to provide long term supply reliability and is not anticipated to be impacted in dry years. In the unlikely event that local supplies are reduced, EVWD will coordinate with the BTAC to identify available supplies for the coming year. Operations Manager Senior Engineer JAN - FEB Consider potential constraints that may impact supply delivery Identify any known regional or EVWD infrastructure issues that may pertain to near- term water supply reliability, including repairs, construction, and environmental mitigation measures that may temporarily constrain Operations Manager East Valley Water District Draft Water Shortage Contingency Plan East Valley Water District 5 Public Review Draft TIMING ASSESSMENT ACTIVITIES PROCEDURE, KEY DATA INPUTS, EVALUATION CRITERIA AND OTHER CONSIDERATIONS STAFF RESPONSIBLE capabilities, as well as any new projects that may add to system capacity. Identify any facilities out of service due to water quality problems, equipment failure, etc. that may impact normal water deliveries. Identify any potential or emerging impacts to groundwater quality, such as emerging regulatory constraints that may limit use of available supplies for potable needs. FEB Convene WSCP Team to conduct Annual Assessment Compare supplies and demands and discuss any constraints that may impact supply delivery. If the potential for a shortage exists, determine which shortage response stage and actions are recommended to reduce/eliminate the shortage. Additionally, if the State declares a drought state of emergency and requires demand reductions, the WSCP Team will determine which water shortage stage and response actions are needed to comply with the State mandate. WSCP Team JUNE Board of Directors If the potential for a shortage exists or the State has mandated demand reductions, the results of the Annual Assessment will be presented to the EVWD Board of Directors, including the recommended shortage stage and response actions. The Board of Directors may order the implementation of a shortage stage and will adopt a resolution declaring the applicable water shortage stage. General Manager Board of Directors Conservation Coordinator Public Affairs / Conservation Manager ON- GOING Implement WSCP actions, if needed Relevant members of EVWD staff will implement shortage response actions associated with the declared water shortage stage Conservation Coordinator Public Affairs / Conservation Manager East Valley Water District Draft Water Shortage Contingency Plan East Valley Water District 6 Public Review Draft TIMING ASSESSMENT ACTIVITIES PROCEDURE, KEY DATA INPUTS, EVALUATION CRITERIA AND OTHER CONSIDERATIONS STAFF RESPONSIBLE BY JULY 1 Submit Retail Annual Assessment Send Final Retail Annual Assessment to DWR WSCP Team Figure 1. Regional and Retail Agency Annual Assessment Process and Timeline 3.0 Water Shortage Stages With the exception of a catastrophic failure of infrastructure, EVWD does not foresee imposing a water shortage stage except under the State’s direction, as occurred in 2014. If a potential water supply shortage is identified in the Annual Assessment, this section provides information on the water shortage stages and response actions that EVWD may implement. EVWD uses three (3) shortage stages to identify and respond to water shortage emergencies. At a minimum, EVWD encourages baseline conservation efforts year-round, regardless of a shortage emergency. East Valley Water District Draft Water Shortage Contingency Plan East Valley Water District 7 Public Review Draft Stage I – Normal Conditions: Voluntary Conservation Measures Normal conditions shall be in effect when the District is able to meet all the water demands of its customers in the immediate future. During normal conditions, all water users should continue to use water wisely, to prevent the waste or unreasonable use of water, and to reduce water consumption to that necessary for ordinary domestic and commercial purposes. Stage II – Threatened Water Supply Condition: In the event of a threatened water supply shortage which could affect the District's ability to provide water for ordinary domestic and commercial uses, the Board of Directors shall hold a public hearing at which consumers of the water supply shall have the opportunity to protest and to present their respective needs to the District. The Board may then, by resolution, declare a water shortage condition to prevail, and the conservation measures in Table 4 shall be in effect. Stage III: Water Emergency In the event of a water shortage emergency in which EVWD may be prevented from meeting the water demands of its customers, the Board of Directors shall, if possible, given the time and circumstances, immediately hold a public hearing at which customers of EVWD shall have the opportunity to protest and to present their respective needs to the Board. No public hearing shall be required in the event of a breakage or failure of a pump, pipeline, or conduit causing an immediate emergency. The General Manager/CEO is empowered to declare a water shortage emergency, subject to the ratification of the Board of Directors within 72 hours of such declaration, and the rules in Table 4 shall be in effect. The Ordinance provides for exceptions under certain circumstances, establishes enforcement provisions, defines the methods for declaring and terminating water conservation stages, and provides for the form of notices and decisions of the Board of Directors. The specific water supply conditions for triggering EVWD’s mandated conservation measures and the expected reduction in water use are summarized in Table 2. The CWC outlines six standard water shortage stages that correspond to a shortage compared to normal year availability. The six standard water shortage stages correspond to progressively increasing estimated shortage conditions (up to 10-, 20-, 30-, 40-, 50-percent, and greater than 50-percent shortage compared to the normal reliability condition) and align with the response actions that a water supplier would implement to meet the severity of the impending shortages. The CWC allows suppliers with an existing WSCP that uses different water shortage stages to comply with the six standard stages by developing and including a cross-reference relating its existing shortage categories to the six standard water shortage stages. EVWD is maintaining the current three shortage stages for this WSCP. A crosswalk defines how EVWD’s current water shortage stages will align with the DWR’s standardized 6 stages of shortage. A visual representation of this alignment is shown in Figure 2 East Valley Water District Draft Water Shortage Contingency Plan East Valley Water District 8 Public Review Draft Figure 2. Crosswalk to DWR Six Standard Stages Table 2: DWR 8-1 Water Shortage Contingency Plan Stages SHORTAGE STAGE PERCENT SHORTAGE RANGE1 (NUMERICAL VALUE AS A PERCENT) WATER SHORTAGE CONDITION 1 Up to 10% Normal Condition (EVWD Stage 1) 2 Up to 20% Threatened Water Supply Condition (EVWD Stage 2) 3 Up to 30% Threatened Water Supply Condition (EVWD Stage 2) 4 Up to 40% Water Shortage Emergency: Mandatory Conservation Measures (EVWD Stage 3) 5 Up to 50% Water Shortage Emergency: Mandatory Conservation Measures (EVWD Stage 3) 6 >50% Water Shortage Emergency: Mandatory Conservation Measures (EVWD Stage 3) 1 One stage in the Water Shortage Contingency Plan must address a water shortage of 50%. 4.0 Shortage Response Actions This section was completed pursuant to CWC Section 10632(a)(4) and 10632.5(a) and describes the response actions that must be implemented or considered for each stage to minimize social and economic impacts to the community. In accordance with Water Code 10632(b) EVWD analyzes and defines water features that are artificially supplied with water, including ponds, lakes, waterfalls, and fountains, separately from swimming pools and spas. East Valley Water District Draft Water Shortage Contingency Plan East Valley Water District 9 Public Review Draft 4.1 Supply Augmentation Table 3 identifies the supply augmentation actions EVWD can take in the event of a water shortage condition. EVWD currently maintains interconnections with SBMWD and the City of Riverside. During water shortage emergencies, EVWD may be able to obtain supplemental water supply through these connections, if available. Table 3: DWR 8-3R Supply Augmentation & Other Actions SHORTAGE STAGE SUPPLY AUGMENTATION METHODS AND OTHER ACTIONS BY WATER SUPPLIER HOW MUCH IS THIS GOING TO REDUCE THE SHORTAGE GAP? ADDITIONAL EXPLANATION OR REFERENCE 3 Other purchases 0-100% EVWD has emergency water supply connections to two adjacent water agencies (SBMWD and the City of Riverside), volume depends on supply availability from neighboring agency 4.2 Demand Reduction In addition to prohibitions on end uses, EVWD offers various rebates and programs to encourage conservation (i.e. ultra-low flush toilet replacements, high efficiency washing machines, etc.). EVWD uses budget based rate billing structure, which promotes water efficiency and allocates personal budget for each customer. The reduction goal is to balance supply and demand. Table 4 summarizes these efforts and end use prohibitions. Table 4: DWR 8-2 Demand Reduction Actions SHORTAGE STAGE DEMAND REDUCTION ACTIONS HOW MUCH IS THIS GOING TO REDUCE THE SHORTAGE GAP? ADDITIONAL EXPLANATION OR REFERENCE PENALTY, CHARGE, OR OTHER ENFORCEMENT All Improve Customer Billing 0-1% EVWD has established budget-based rates for all customers to encourage efficient use of water. Yes All Increase Frequency of Meter Reading 0-1% EVWD has upgraded its meters to Advanced Metering Infrastructure (AMI) meters to provide more timely information on water use. Yes East Valley Water District Draft Water Shortage Contingency Plan East Valley Water District 10 Public Review Draft SHORTAGE STAGE DEMAND REDUCTION ACTIONS HOW MUCH IS THIS GOING TO REDUCE THE SHORTAGE GAP? ADDITIONAL EXPLANATION OR REFERENCE PENALTY, CHARGE, OR OTHER ENFORCEMENT All Offer Water Use Surveys 0-1% EVWD provides home water use evaluations at no charge to its customers. EVWD will provide historical water use data to commercial and industrial facilities for use in developing a water conservation plan for their facilities Yes All Provide Rebates on Plumbing Fixtures and Devices 0-1% EVWD has programs to provide rebates to customers for purchase of High Efficiency Toilets, High Efficiency Showerheads, and High Efficiency Washing Machines. Yes All Provide Rebates for Landscape Irrigation Efficiency 0-1% EVWD has programs to provide rebates to customers for purchase of Weather-Based Irrigation Controllers, High Efficiency Sprinkler Nozzles and Landscape Efficient Enhancements. Yes 2 Expand Public Information Campaign 0-20% Commercial and industrial facilities shall, upon request of the General Manager, provide EVWD with a plan to conserve water at their facilities. EVWD will provide these facilities with information regarding the average monthly water use by the facility for the last two-year period. The facility will be expected to provide EVWD with a plan to conserve or reduce the amount of water used by that percentage deemed by the Board of Director to be necessary under the circumstances. After review and approval by the General Manager, the water conservation plan shall be considered subject to inspection and enforcement by EVWD. Yes 2 CII - Restaurants may only serve water upon request 0-1% Restaurants are not to provide drinking water to patrons except by request. Yes 2 CII - Lodging establishment must offer opt out of linen service 0-1% Hotels and motels must offer their guests the option to not have their linens and towels laundered daily and must prominently display this option in each room. Yes East Valley Water District Draft Water Shortage Contingency Plan East Valley Water District 11 Public Review Draft SHORTAGE STAGE DEMAND REDUCTION ACTIONS HOW MUCH IS THIS GOING TO REDUCE THE SHORTAGE GAP? ADDITIONAL EXPLANATION OR REFERENCE PENALTY, CHARGE, OR OTHER ENFORCEMENT 2 Landscape - Limit landscape irrigation to specific days 0-5% Upon notice and public hearing, EVWD may determine that the irrigation of exterior vegetation shall be conducted only during specified hours and/or days, and may impose other restrictions on the use of water for such irrigation. The irrigation of exterior vegetation at other than these times shall be considered to be a waste of water. Yes 2 Landscape - Limit landscape irrigation to specific times 0-5% Exterior landscape plans for all new commercial and industrial development shall provide for timed irrigation and shall consider the use of drought resistance varieties of flora. Such plans shall be presented to and approved by EVWD prior to issuance of a water service letter Yes 2 Landscape - Limit landscape irrigation to specific times 0-5% Public and private parks, golf courses, swimming pools and school grounds which use water provided by the District shall use water for irrigation and pool filling between the hours of 6:00 p.m. and 6:00 a.m. Yes 2 Landscape - Other landscape restriction or prohibition 0-5% Persons receiving water from EVWD who are engaged in commercial agricultural practices, whether for the purpose of crop production or growing of ornamental plants shall provide, maintain and use irrigation equipment and practices which are the most efficient possible. Upon the request of the General Manager, these persons may be required to prepare a plan describing their irrigation practices and equipment, including but not limited to, an estimate of the efficiency of the use of water on their properties. Yes 2 Landscape - Restrict or prohibit runoff from landscape irrigation 0-5% Any water used on premises that is allowed to escape the premises and run off into gutters or storm drains shall be considered a waste of water. Yes East Valley Water District Draft Water Shortage Contingency Plan East Valley Water District 12 Public Review Draft SHORTAGE STAGE DEMAND REDUCTION ACTIONS HOW MUCH IS THIS GOING TO REDUCE THE SHORTAGE GAP? ADDITIONAL EXPLANATION OR REFERENCE PENALTY, CHARGE, OR OTHER ENFORCEMENT 2 Other - Prohibit use of potable water for washing hard surfaces 0-1% No water provided by EVWD shall be used for the purposes of wash-down of impervious areas, without specific written authorization of the General Manager/CEO. Yes 2 Landscape - Other landscape restriction or prohibition 0-5% Medians and bordering parkways located within the right-of-way are prohibited from using potable water to irrigate turf or other high water use plant material as identified by the Water Use Classifications of Landscaping Species (WUCOLS) Guide. Bordering parkways are considered the strips of non- functional ornamental turf adjacent to the street. The continued irrigation and preservation of trees is encouraged. Yes 2 Other - Require automatic shut-off hoses 0-1% The washing of cars, trucks or other vehicles is not permitted, except with a hose equipped with an automatic shut-off device, or a commercial facility so designated on EVWD’s billing records. Yes 2 Pools and Spas - Require covers for pools and spas 0-1% All residential, public and recreational swimming pools, of all size, shall use evaporation resistant covers and shall recirculate water. Any swimming pool which does not have a cover installed during periods of non-use shall be considered a waste of water. Yes 2 Other water feature or swimming pool restriction 0-1% Operating a water fountain or other decorative water feature that does not use re-circulated water is prohibited. Yes East Valley Water District Draft Water Shortage Contingency Plan East Valley Water District 13 Public Review Draft SHORTAGE STAGE DEMAND REDUCTION ACTIONS HOW MUCH IS THIS GOING TO REDUCE THE SHORTAGE GAP? ADDITIONAL EXPLANATION OR REFERENCE PENALTY, CHARGE, OR OTHER ENFORCEMENT 2 CII - Other CII restriction or prohibition 0-1% Persons receiving water from the District who are engaged in commercial agricultural practices, whether for the purpose of crop production or growing of ornamental plants shall provide, maintain and use irrigation equipment and practices which are the most efficient possible. Upon the request of the General Manager, these persons may be required to prepare a plan describing their irrigation practices and equipment, including but not limited to, an estimate of the efficiency of the use of water on their properties. Commercial and industrial facilities shall, upon request of the General Manager, provide the District with a plan to conserve water at their facilities. The District will provide these facilities with information regarding the average monthly water use by the facility for the last two- year period, or the State of California approved conservation base year. The facility will be expected to provide the District with a plan to conserve or reduce the amount of water used by that percentage deemed by the Board of Directors to be necessary under the circumstances. After review and approval by the General Manager, the water conservation plan shall be considered subject to inspection and enforcement by the District. Yes 3 Landscape - Other landscape restriction or prohibition 1-5% Commercial nurseries shall discontinue all watering and irrigation. Watering of livestock is permitted as necessary. Yes 3 Landscape - Prohibit all landscape irrigation 1-5% Watering of parks, school grounds, golf courses, lawns, and landscape irrigation is prohibited. Yes East Valley Water District Draft Water Shortage Contingency Plan East Valley Water District 14 Public Review Draft SHORTAGE STAGE DEMAND REDUCTION ACTIONS HOW MUCH IS THIS GOING TO REDUCE THE SHORTAGE GAP? ADDITIONAL EXPLANATION OR REFERENCE PENALTY, CHARGE, OR OTHER ENFORCEMENT 3 Other - Prohibit use of potable water for construction and dust control 0-1% No new construction meter permits shall be issued by EVWD. All existing construction meters shall be removed and/or locked. Yes 3 Other - Prohibit use of potable water for washing hard surfaces 0-1% Washing down of driveways, parking lots or other impervious surfaces is prohibited. Yes 3 Other - Prohibit vehicle washing except at facilities using recycled or recirculating water 0-1% Washing of vehicles, except when done by commercial car wash establishments using only recycled or reclaimed water is prohibited. Yes 3 Other water feature or swimming pool restriction 0-1% Filling or adding water to swimming pools, wading pools, spas, ornamental ponds, fountains and artificial lakes are prohibited. Yes 4.3 Operational Changes and Additional Mandatory Restrictions During shortage conditions, operations may be affected by supply augmentation or demand reduction responses. EVWD will consider their operational procedures when it completes its Annual Assessment. Any additional mandatory restrictions implemented in response to the declaration of a shortage response stage, beyond the actions listed in Table 3 and Table 4 are listed in EVWD’s Ordinance No. 401 Section 15 – Water Conservation provided in Attachment 1. 4.4 Emergency Response Plan In 2020, EVWD completed a Risk and Resilience Assessment (RRA) and Emergency Response Plan (ERP) in accordance with America’s Water Infrastructure Act (AWIA) of 2018. The purpose of the RRA and ERP is to meet the AWIA compliance requirements and plan for long-term resilience of EVWD’s infrastructure. The RRA assessed EVWD’s water system to identify critical assets and processes that may be vulnerable to human and natural hazards, and to identify measures that can be taken to reduce risk and enhance resilience from service disruption for the benefit of customers. The RRA identifies and East Valley Water District Draft Water Shortage Contingency Plan East Valley Water District 15 Public Review Draft characterizes both infrastructure-specific and system-wide vulnerabilities and threats and quantifies the consequences of disruption. The RRA also identifies various options (and constraints) in addressing and mitigating risk. The RRA, in conjunction with the Emergency Response Plan (ERP), charts a course for water system resilience. The RRA also provided various recommendations to increase reliability of EVWD’s system. Since critical pieces of infrastructure and specific vulnerabilities are detailed in the RRA and ERP, the contents of the document are confidential and for use by EVWD’s staff only. However, EVWD can confirm that these plans meet the requirements set forth by AWIA and evaluate seismic risks and mitigation actions to EVWD’s infrastructure. In the event of a water shortage emergency resulting from equipment failure, power outage, or other catastrophe, EVWD is prepared to purchase emergency water supplies from nearby agencies while repairs or other remedial actions are underway. EVWD may also implement its three-stage plan for conservation, as described above, with either voluntary or mandatory reductions depending on the severity of the shortage. For severe disasters (Stage 3), mandatory water use reductions are specified. 4.5 Seismic Risk Assessment and Mitigation Plan Disasters, such as earthquakes, can and will occur without notice. In addition to the AWIA RRA and ERP, EVWD has a 2020 Local Hazard Mitigation Plan (LHMP) that includes an assessment of seismic risk and mitigation for water facilities. The 2020 LHMP is included as Attachment 2. The LHMP identified a set of hazard mitigation actions that are intended to reduce the impact of hazards, including: ➢ Design new District facilities to withstand an 8.0 earthquake. This area of Southern California is a high earthquake risk and exists on the fault zone. ➢ Pursue funding for retrofit programs to bring non-compliant structures up to code. These codes help water agencies design and construct reservoirs, pump stations, groundwater wells, and pipelines that resist the forces of nature and ensure safety. 4.6 Shortage Response Action Effectiveness EVWD has estimated the effectiveness of shortage response actions in Table 3 and Table 4 when data pertaining to such actions is available. It is expected that response actions effectiveness is also a result of successful communication and outreach efforts. 5.0 Communication Protocols The East Valley Water District prioritizes effective communication, especially in times of a water shortage emergency. EVWD routinely communicates to customers about details on when a stage is announced. Communication actions may include bill inserts, handouts, informative flyers, and direct mail pieces to customers, newspaper advertisements, news releases, social media outreach, and website content. EVWD continues to provide reminders about shortage stages and encourages conservation at all times. East Valley Water District Draft Water Shortage Contingency Plan East Valley Water District 16 Public Review Draft 6.0 Compliance and Enforcement EVWD always discourages excessive water consumption. EVWD is not likely to implement penalties or charges for excessive use during short-term water shortages because they are limited in duration and, at the time of declaration, are not expected to last more than a few weeks. EVWD could establish restrictions or discontinue service in the case of repeat offenders under the Water Code of the State of California. The District focuses much of the drought response on educating customers, informing them of ways to save, and serving as an informational resource. Unfortunately, there are times when additional measures must be utilized to protect the water supply. The District has measures in place to address v iolations of the Ordinance, which may result in the imposition of surcharges and restriction and/or termination of water service as set forth below: 1. First Violation -- Issuance of written notice of violation of water user. The notice shall be given pursuant to the requirements of Section 15.10 of Ordinance 401. 2. Second Violation -- For a second violation of Ordinance 401 within a 12-month period, or failure to comply with the notice of violation within 30 days after notice of imposition, a surcharge of $100.00 is hereby imposed for the meter through which the wasted water was supplied. 3. Third Violation -- For a third violation of this ordinance within a 12-month period, or for continued failure to comply within 30 days after notice of an imposition of second violation sanctions, a one- month penalty surcharge in the amount of $300.00 is hereby imposed for the meter through which the wasted water was supplied. Appeals for violation penalties may be granted by the Community Advisory Commission Board. 4. Subsequent Violations -- For any subsequent violation of this Ordinance, while in Stage No. 3, within the twenty-four (24) calendar months after a first violation as provided in Section 15.09.01 hereof, the penalty surcharge provided in Section 15.09.05 hereof shall be imposed and the District may discontinue water service to that customer at the premises or to the meter where the violation occurred. The charge for reconnection and restoration of normal service shall be as provided in the Rules and Regulations of the District. Such restoration of service shall not be made until the General Manager/CEO of the District as determined that the water user has provided reasonable assurances that future violations of this Ordinance by such user will not occur. The General Manager/CEO may grant permits for uses of water otherwise prohibited under the shortage response actions if he determines that restrictions herein would either: ➢ Cause an unnecessary and undue hardship to the water user or the public ➢ Cause an emergency condition affecting the health, sanitation fire protection or safety of the water use or of the public Such exceptions may be granted only upon written application. Upon granting such exception permit, the General Manager/CEO may impose any conditions determined to be just and proper. East Valley Water District Draft Water Shortage Contingency Plan East Valley Water District 17 Public Review Draft 7.0 Legal Authorities A WSCP was originally prepared by EVWD in 1992, in response to Assembly Bill 11X (AB 11X) signed into law on October 14, 1991. The bill requires urban water suppliers providing municipal water directly or indirectly to more than 3,000 customers or supplying more than 3,000 acre feet of water annually, to draft a WSCP in case of a drought for the sixth consecutive year. Plan elements mandated by AB 11X are addressed therein. The Plan was subsequently incorporated into the EVWD Ordinance No. 401 Section 15 – Water Conservation (this is included in Attachment 1). This section of the Ordinance addresses water conservation measures the District has adopted for (1) normal conditions, (2) threatened water supply conditions, and (3) emergency water shortage conditions. 7.1 Water Shortage Emergency Declaration In accordance with Water Code Section Division 1, Section 350 – EVWD shall declare a water shortage emergency condition to prevail within the area served by such distributor whenever it finds and determines that the ordinary demands and requirements of water consumers cannot be satisfied without depleting the water supply of the distributor to the extent that there would be insufficient water for human consumption, sanitation, and fire protection. 7.2 Local/Regional Emergency Declaration If a water shortage is approaching, EVWD shall coordinate with the cities, county, and tribe in its service area for the possible proclamation of a local emergency. 8.0 Financial Consequences of WSCP EVWD makes contributions to a rate stabilization fund contribution in accordance with a District Designated Fund Policy established in July 2010. Funds discussed in the policy include the Rate Stabilization Fund and the Capital Replacement Fund. In the event of a water shortage, a two-point program will be utilized to meet the fiscal shortfall of reduced water revenues: 1. Reduce operation and maintenance expenses. 2. Defer selected capital improvement projects until water shortage situation improves. 3. Rate Stabilization Funds, once accumulated, will serve as a third means of meeting fiscal shortfalls. To ensure EVWD’s customers comply with Ordinance No. 401 Section 15 – Water Conservation and CWC Chapter 3.3 (Excessive Residential Water Use During Drought), additional costs may be incurred to monitor and enforce response actions. The incurred cost may vary depending on the shortage stage and duration of the water shortage emergency. East Valley Water District Draft Water Shortage Contingency Plan East Valley Water District 18 Public Review Draft 9.0 Monitoring and Reporting The water savings from implementation of the WSCP will be determined based on monthly production reports which are reviewed and compared to production reports and pumping statistics from prior months and the same period of the prior year. Under shortage conditions, these production reports could be prepared as often as daily. At first, the cumulative consumption for the various sectors (e.g., residential, commercial, etc.) will be evaluated for reaching the target level. Then if needed, individual accounts will be monitored. Weather and other possible influences may be accounted for in the evaluation. 10.0 WSCP Refinement Procedures The WSCP is best prepared and implemented as an adaptive management plan. EVWD will use results obtained from their monitoring and reporting program to evaluate any needs for revisions. Potential changes to the WSCP that would warrant an update include, but are not limited to, any changes to trigger conditions, changes to the shortage stage structure, and/or changes to customer reduction actions. Any prospective changes to the WSCP would need to be presented to the Community Advisory Commission and the Legislative and Public Outreach Committee for feedback. Changes to the WSCP would then be presented to EVWD’s Board for discretionary approval. Once discretionary approval has been granted, EVWD will hold a public hearing, obtain any comments and adopt the updated WSCP. Notices for refinement and the public hearing date will be published in the local newspaper in advance of any public meetings. 11.0 Plan Adoption, Submittal and Availability EVWD adopted this WSCP with the 2020 IRUWMP. The 2020 IRUWMP and WSCP were made available for public review in June 2021 and a public hearing was held on June 23, 2021 to receive public input on the draft 2020 IRUWMP and the WSCP. The EVWD Board of Directors adopted the 2020 IRUWMP and the WSCP at a public meeting on June 23, 2021. The resolution of adoption is included as an attachment. This WSCP was submitted to DWR through the WUEData portal before the deadline of July 1, 2021. This WSCP will be available to the public on EVWD’s web site. If EVWD identifies the need to amend this WSCP, it will follow the same procedures for notification to cities, counties and the public as used for the 2020 IRUWMP and for initial adoption of the WSCP. East Valley Water District Draft Water Shortage Contingency Plan East Valley Water District 19 Public Review Draft References California Department of Water Resources. (2021). Urban Water Management Plan Guidebook 2020. Sacramento: California Department of Water Resources. Texas Living Waters Project. (2018). Water Conservation by the Yard: A Statewide Analysis of Outdoor Water Savings Potential. Austin: Texas Living Waters Project, Sierra Club, National Wildlife Federation. Retrieved from Texas Living Waters Project. United States Environmental Protection Agency, Office of Water. (2002). Cases in Water Conservation: How Efficiency Programs Help Water Utilities Save Water and Avoid Costs. United States Environmental Protection Agency. East Valley Water District Draft Water Shortage Contingency Plan Attachment 1: EVWD’S Ordinance – Water Conservation East Valley Water District Draft Water Shortage Contingency Plan Attachment 2: EVWD’s Local Hazard Mitigation Plan Hazard Mitigation Plan Community of East Valley Water District, CA Adoption Date TBD Primary Point of Contact Kelly Malloy Director of Strategic Services East Valley Water District 31111 Greenspot Road Highland, CA 92346 Office: (909) 885-4900 kmalloy@eastvalley.org 2 TABLE OF CONTENTS 1 INTRODUCTION ...................................................................................................... 3 1.1 Purpose of the Plan ................................................................................................ 3 1.2 Plan Authority……………………………………………………………………………..4 1.3 Plan Updates and Organization ............................................................................. 5 2 PLANNING PROCESS ............................................................................................. 7 2.1 Organize Resources ............................................................................................ 10 2.2 Assess Risks…………………………………………………………………………….12 2.3 Develop the Mitigation Strategy ........................................................................... 13 2.4 Draft the Hazard Mitigation Plan .......................................................................... 13 2.5 Partner Engagement ............................................................................................ 14 2.6 Plan Adoption……………………………………………………………………………17 3 DISTRICT PROFILE ............................................................................................... 18 3.1 History……………………………………………………………………………………18 3.2 Current Jurisdiction .............................................................................................. 18 3.3 Geography and Natural Resources ...................................................................... 19 3.4 Socioeconomics ................................................................................................... 20 4 RISK ASSESSMENT .............................................................................................. 34 4.1 Asset Characterization ......................................................................................... 35 4.2 Hazard Identification ............................................................................................ 40 4.3 Hazard Profile……………………………………………………………………………43 4.4 Risk Summary………………………………………………………………………….100 5 CAPABILITY ASSESSMENT............................................................................... 106 5.1 Existing Plans and Programs ............................................................................. 106 5.2 Implementation Capacity .................................................................................... 110 6 MITIGATION STRATEGY .................................................................................... 113 6.1 Mitigation 5-Year Progress Report ..................................................................... 113 6.2 Mitigation Goals and Objectives ......................................................................... 116 6.3 Mitigation Actions ............................................................................................... 120 7 PLAN MAINTENANCE ......................................................................................... 126 7.1 Plan Integration………………………………………………………………………..126 7.2 Monitoring, Evaluating, and Updating ................................................................ 127 7.3 Continued Public Involvement ............................................................................ 128 3 1 INTRODUCTION East Valley Water District (EVWD or the District) is a California Special District which focuses on providing water and wastewater services within a portion of San Bernardino County. Operating under the core values of Leadership, Partnership, and Stewardship, East Valley Water District strives to enhance and preserve the quality of life for our community through innovative leadership and world class public service. This Hazard Mitigation Plan serves to enhance the District’s services by understanding natural and man-made hazards and developing a strategy to reduce or eliminate damage to infrastructure, interruption in critical lifeline services, and subsequent impacts to the District’s service population. 1.1 PURPOSE OF THE PLAN Located in San Bernardino County, California, East Valley Water District provides essential water services to businesses and approximately 103,000 residents within the City of Highland and portions of both the City and County of San Bernardino. The District is in the process of expanding its operations to include wastewater treatment and water reclamation services in 2021. The District understands these services are critical to their customers and recognizes the importance of, and our responsibility to, reduce vulnerability of critical assets and operations to natural and man-made hazards. How this plan will help: Utilities are uniquely challenged by both natural and man-made hazards, where a single point of vulnerability or damage can have broad impacts throughout a service population. These hazards have the potential to pose a significant threat to human health and safety, property, critical infrastructure, and homeland security. For water utilities, damages to critical infrastructure can disrupt essential services which are vital to the wellbeing of the community. Natural hazard impacts are inevitable, but consequences can be reduced or avoided through hazard mitigation. Hazard mitigation is any sustained action taken to reduce or eliminate the loss of life, property, and infrastructure from natural and man-made hazards, and is one of the fundamentals of emergency management, along with preparedness, response, and recovery. These actions break the cycle of disaster, damage, restoration, and repeated damage by reducing vulnerability. Hazard mitigation also lessens the financial impact of disasters. For water utilities, mitigation reduces damage to Damage Restore 4 infrastructure and improves continuity of service that supports economic activity and provides residents with basic water needs for essential needs, sanitation and cooking. The National Institute of Building Sciences estimates that on average, every $1 spent on mitigation saves $6 in future disaster losses. Because of the broad impact of utilities and the services they provide, mitigation for water and wastewater facilities can present a 31:1 return on investment.1 Hazard mitigation plans allow organizations to proactively strategize mitigation actions that protect public safety, prevent damage to critical infrastructure, and optimize an effective emergency management regime. This Hazard Mitigation Plan (HMP) documents East Valley Water District’s relevant hazards, vulnerabilities, and risks and provides a framework for the District to prioritize and focus efforts to implement mitigation actions that minimize damage and service disruption. 1.2 PLAN AUTHORITY Hazard Mitigation Plans are reviewed and approved by the Federal Emergency Management Agency (FEMA) in accordance with the Robert T. Stafford Disaster Relief and Emergency Assistance Act, as modified by the Federal Disaster Mitigation Act of 2000 (DMA 2000). This legislation provides the legal basis for FEMA mitigation planning requirements for state, local, and tribal governments as a condition of hazard mitigation grant assistance through programs like the Hazard Mitigation Grant Program (HMGP) or Building Resilient Infrastructure and Communities (BRIC) program. Public utilities must have an approved HMP to qualify for grant assistance through these programs. All District services are currently financed solely through its rate structure, thus access to grant assistance is critical to implement mitigation projects in addition to status quo maintenance requirements. DMA 2000 requires that states review local HMPs as part of the state hazard mitigation planning process. The intent is to gather local hazard data and mitigation information for use in state planning initiatives; to coordinate state and local hazard mitigation planning efforts; and to ensure that local jurisdictions are developing strategies to reduce vulnerabilities. Truly, the hazard mitigation planning process coordinates local, state, and federal funding opportunities to implement strong projects that improve community resilience. The California Office of Emergency Services (Cal OES) Hazard Mitigation Planning division is responsible for reviewing local HMPs in a fair and consistent manner and ensuring that local plans meet Stafford Act and 44 CFR Section 201.6 requirements prior to FEMA’s review. All HMPs must be updated, adopted and approved every five (5) years to identify progress, incorporate new information, and validate any adjustments to the mitigation strategy moving forward. This Plan expands upon the District’s previous HMP, which was adopted in 2015. The update specifically aligns hazard data, service population growth projections, and mitigation strategies with the District’s existing 1 Source: National Institute of Building Sciences. October 2018. Natural Hazard Mitigation Saves: Utilities and Transportation Infrastructure. Web page: https://cdn.ymaws.com/www.nibs.org/resource/resmgr/docs/MSv2_Utilities_and_Transport.pdf. 5 planning efforts including the EVWD Water Master Plan, San Bernardino Valley Regional Urban Water Management Plan, America’s Water Infrastructure Act (AWIA) Assessment, and Emergency Response Plan (ERP) with changes in organizational operations. 1.3 PLAN UPDATES AND ORGANIZATION East Valley has taken the unique initiative to couple the 2020 Plan Update with a J100 Risk and Resilience Assessment (RRA) and Emergency Response Plan (ERP) update as required by America’s Water Infrastructure Act (AWIA) of 2018. Coordinating these planning initiatives allows the District to integrate the most recent hazard, vulnerability, and risk information and streamline mitigation and response actions into an effective emergency management program. The 2020 Plan Update includes the following sections:  Chapter 1 – Introduction: This section frames the background and purpose of the plan and hazard mitigation in terms of water utilities. This subsection, summarizing changes and additions to the 2015 Plan, is a new addition to the 2020 Plan Update.  Chapter 2 – Planning Process: The planning process outlines the approach to update the HMP. The District used a workshop approach to organize resources, assess risks, update the mitigation strategy, and conduct engagement and outreach. Five workshops were held to update the plan in a transparent and comprehensive manner with the Planning Team, District Board of Directors, stakeholders, and the public.  Chapter 3 – District Profile: Characterizes the District’s service area to provide context for the 2020 Plan update. This includes updated population estimates and key statistics such as population density and age, critical customers, existing land use, economic information to include top ten employment industries, and population projections based on development trends and plans for expansion.  Chapter 4 – Risk Assessment: This chapter sets the stage for the District’s mitigation strategies by describing the District’s facilities and evaluating natural and man-made hazards relevant to EVWD services, describing the type, location, extent, history, probability of occurrence, District vulnerability, and consequence of each. Chapter 4 is adapted from the District’s RRA prepared in response to AWIA. The 2020 Plan update includes one new natural hazard in the risk assessment, plus malevolent threats, dependency and proximity hazards.  Chapter 5 – Capability Assessment: Identifies the District’s existing authority, policies, plans, programs, and resources in relation to hazard mitigation and documents EVWD’s ability to expand on and improve these programs. This section is coordinated with the ERP and Threat and Hazard Identification and Risk Assessment (THIRA) update conducted in response to AWIA, in alignment with the RRA and 2020 Plan Update.  Chapter 6 – Mitigation Strategies: The updated mitigation strategy for East Valley establishes mitigation goals and objectives to guide and focus District resources for implementation. The 2020 Plan Update expands upon existing goals and 6 objectives to cover new hazards evaluated in the RRA and reports progress in implementing local mitigation efforts since 2015.  Chapter 7 – Plan Maintenance: Provides the District’s strategy to annually assess mitigation strategy implementation and updates in project priority, including continued public involvement after the adoption of the 2020 Plan Update.  Appendices – The 2020 Plan Update appendices include the following: o A. District Adoption Resolution (Pending Plan Approval) o B. FEMA Review Tool o C. Stakeholder and Public Engagement Materials o D. Critical Facilities List o E. EPA Guidance on Malevolent Threats o F. J100 Risk Model o G. Physical Security Assessment o H. NIST Cybersecurity Assessment o I. Drinking Water Source Assessments o J. Proximity Hazard Analysis o K. Mitigation Project Initiatives 7 2 PLANNING PROCESS This section of the 2020 Plan Update documents the planning process used to review, revise, and update the District’s HMP. A comprehensive description of the process provides a permanent record of the approach and decisions made so it can be replicated or adapted in future Plan updates. The 2020 Plan Update was led by the District’s Planning Team, consisting of leaders with extensive knowledge of and a vested interest in the performance and protection of District assets and services. The Planning Team was strategically developed to include members from each District department to facilitate an integrated and engaging planning process. The Planning Team executed a workshop-based approach to update the plan, holding three internal meetings to organize resources, assess risks, and update the mitigation strategy. Two additional workshops were incorporated to involve District partners, obtain concurrence from District Board Members, and engage the public - an integral part of the 2020 Plan Update. Prior to submitting the plan update to Cal OES for review, the update process consisted of:  Internal workshop 1: HMP Kick-Off and Planning, October 10, 2019 to reconvene the planning team and organize resources.  Internal workshop 2: RRA Results, November 19, 2019 to incorporating new data including completed projects, new hazards, recent events, critical facilities, risk, and new initiatives and priorities.  Internal workshop 3: HMP Mitigation Strategy, November 20, 2019 to update the hazard mitigation goals and objectives. Projects were updated through Local Mitigation Plan Regulation Checklist Requirement §201.6(b): An open public involvement process is essential to the development of an effective plan. In order to develop a more comprehensive approach to reducing the effects of natural disasters, the planning process shall include: (1) An opportunity for the public to comment on the plan during the drafting stage and prior to plan approval; (2) An opportunity for neighboring communities, local and regional agencies involved in hazard mitigation activities, and agencies that have the authority to regulate development, as well as businesses, academia and other private and non-profit interests to be involved in the planning process; and (3) Review and incorporation, if appropriate, of existing plans, studies, reports, and technical information. Requirement §201.6(c)(1): [The plan shall document] the planning process used to develop the plan, including how it was prepared, who was involved in the process, and how the public was involved. 8 several workshops and conference calls integrated with the America’s Water Infrastructure Act (AWIA) update process.  Drafting the plan from October 2019 through January 2020.  Partner Engagement workshop 4: Community Advisory Commission Meeting, February 11, 2020 to facilitate stakeholder engagement.  Partner Engagement workshop 5: East Valley Water District Board Meeting, February 26, 2020 to engage the District Board Members and allow for public comment; and  Posting a summary of the Risk Assessment results on the District’s website for public comment and hosting an online survey for 30 days to accept additional feedback on the process. Several conference calls, smaller group meetings, and site visits were held between workshops and meetings to update the HMP. Appendix C contains sign-in sheets, agendas, presentation materials, and meeting notes for the Partner Engagement workshops. Appendix C also contains a log of questions and comments received from the workshops and online survey tool, and how each of those questions is addressed in the 2020 Plan Update. The remainder of this section describes the process to organize resources, assess risks, develop the mitigation strategy, and engage community stakeholders including the public. Local Mitigation Plan Regulation Checklist (Requirement §201.6(c)(1)) Figure 2-1 documents how the plan was prepared by including a schedule along with activities conducted leading up to the formal adoption of the 2020 Plan Update. Activities to develop the 2020 Plan Update are provided in Section 2.1.1. Planning Team. - 9 - Figure 2-1. 2020 Plan Update Activity Schedule Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Workshop 1: Project Kick-off and Planning (Oct. 20, 2019) Workshop 2: RRA Results & HMP Strategies Workshop (Nov. 19, 2019) Workshop 3: HMP Mitigation Strategy (Nov. 20, 2019) Draft 2020 Plan Update Workshop 4: Community Advisory Commission Meeting (Feb. 11, 2020) Workshop 5: EVWD Board Meeting (Feb. 26, 2020) Public Comment Period (30 Days) Finalize Draft HMP and REMA Plan Review Tool for Submission CalOES Submission and Revision Period CalOES Submits HMP to FEMA Region IX FEMA Region IX Coordination and Revision Plan Adoption 10 2.1 ORGANIZE RESOURCES The first step in the 2020 Plan Update was to reconvene the Planning Team and organize resources available, identify key partners to engage, and establish a schedule. This was completed through an internal kick-off workshop on October 10, 2019 at East Valley Water District. The kick-off workshop for the 2020 Plan Update was coupled with an ERP mid-planning meeting. The workshop discussed the value of hazard mitigation, identified the Plan Update approach, updated the Planning Team list, identified stakeholders and public engagement opportunities, and identified existing plans, studies and reports to incorporate into the 2020 Plan Update. The workshop results and accomplishments are provided below. 2.1.1 Planning Team The Planning Team is the backbone of the planning process and leads the 2020 Plan Update. The development of this plan comprises the input and incorporation of representatives from each District department so each function can claim ownership to the mitigation strategy. The Planning Team is representative of the following departments: Strategic Services, Operations, Human Resources, Engineering, Facilities, Maintenance, Water Quality, Finance, and IT. During the Planning Team meetings, the group participated in activities to review the existing plan, identify opportunities for improvement, discuss hazards being evaluated, and develop specific mitigation measures necessary at the District facilities. The following members comprise the 2020 Update Planning Team: Core Team Members  John Mura – General Manager/Chief Executive Officer, final review and approval.  Cecilia Contreras – Senior Administrative Assistant, Planning Team Chair.  Kelly Malloy – Director of Strategic Services, primary point of contact and project lead.  Patrick Milroy – Operations Manager, point of contact for EVWD operations. Workshop Attendees  Aaron Albrecht – IT/Network Administrator, led the cybersecurity assessment to determine cyber asset vulnerability.  Dale Barlow – Facilities Coordinator, led site visits to determine physical security and vulnerability.  Kerrie Bryan – Human Resources/ Risk& Safety Manager, provided input on employee impacts. 11  Michael Hurst – Water Quality Coordinator, provided input on contamination events and consequences.  Edward King – Senior Production Supervisor, provided input on surface and groundwater treatment operations.  Rocky Welborn – Senior Engineer, provided input on organizational roles and responsibilities.  Jon Peel – Senior Lead Field Service Worker, provided input on the maintenance program and vulnerability.  Brian Tompkins – Chief Financial Officer, provided input on business continuity. 2.1.2 Coordination with Other Jurisdictions, Agencies, and Organizations The Planning Team employed an exercise in the kick-off workshop that identified what partners need to be involved in the 2020 Plan Update, and how they should be engaged. Identifying jurisdictions, critical customers, local and regional agencies helped to foster the conversation regarding hazards and shared risks. Relevant jurisdictions are communities served by the District and/or engaged in mutual aid agreements Some of these jurisdictions may regulate development which ultimately influences service demand. Critical customers are customers or vulnerable populations serviced by the District. Key Local and Regional agencies are engaged in mutual aid agreements and/or are conveyance agencies. A non-comprehensive list of key stakeholders identified through this process include: Jurisdictions served by the District or engaged in mutual aid agreements  City of Highland  City of San Bernardino  San Bernardino County Critical Customers served by the District  San Manuel Band of Mission Indians  Patton State Hospital  Beaver Medical Group Local and Regional Agencies engaged in mutual aid agreements or are conveyance agencies Local Mitigation Plan Regulation Checklist (Requirement §201.6(c)(1)) The 2020 Plan Update is specific to East Valley Water District operations and assets and is not a multi-jurisdictional plan with other jurisdictions seeking approval. However, the District recognizes the importance of engaging partners and stakeholders to align mitigation strategies. Jurisdictions, agencies, and organizations identified for engagement are listed below. 12  San Bernardino County Office of Emergency Services  San Bernardino Valley Municipal Water District  Bear Valley Mutual Water Company  State Water Resources Control Board Activities engaging agency stakeholders and the public are further described in Section 2.5, Partner Engagement. 2.1.3 Review and Incorporate Existing Information The 2020 Plan Update is coordinated with updates to the District’s RRA, ERP, and THIRA. The Planning Team reviewed the RRA, ERP, and THIRA drafts in addition to the District’s 2013 Sewer Master Plan, 2014 Sewer System Management Plan, and 2019 Water System Master Plan to identify new hazards, historic events, critical facilities, new initiatives, and projects to incorporate in the 2020 Plan Update. Details on relevant information plans and integration of information to maintain consistency with each plan update are provided in Section 5.1.2. In addition to District-specific plan review and coordination, local and state plans were reviewed to align goals and objectives. These plans include the 2018 State of California Hazard Mitigation Plan, 2015 San Bernardino Valley Regional Urban Water Management Plan, 2018 California Water Plan Update, and the 2017 San Bernardino County Multi- Jurisdictional Hazard Mitigation Plan, and 2012 City of Highlands General Plan. 2.2 ASSESS RISKS The Planning Team engaged in a second internal workshop on November 19, 2019 to review the RRA results, which leverages the ANSI/AWWA J100-13 methodology (J-100 or standard) and builds on existing vulnerability assessments which used the RAM-WSM methodology framework to comply with the Bioterrorism Act of 2002. The RRA profiles natural and man-made hazards applicable to the District and assesses the problem based on the hazard’s consequence, District vulnerabilities, and probability of occurrence. The RRA hazard profiles were developed by reviewing the hazard profiles of the 2015 Plan in addition to FEMA-identified hazards to determine relevant hazards. Relevant hazards are those which have historically occurred or have potential to occur Local Mitigation Plan Regulation Checklist Requirement §201.6(b)(3)) The Planning Team reviewed and incorporated existing plans, studies, reports, and technical information to streamline the 2020 Plan Update with additional ongoing emergency management program initiatives. 13 within the service area. The RRA calculates risk from these assessments and ranks the hazards based on potential monetary consequence to the District and region. The 2020 Plan update includes one new natural hazard in the risk assessment: Land Subsidence. Man-made hazards are also included in the 2020 Plan update, including malevolent threats such as cyber security and physical security, and dependency hazards such as power loss and the State Water Project. 2.3 DEVELOP THE MITIGATION STRATEGY The mitigation strategy is the heart of the 2020 Plan Update, and is made of three components: Goals, Objectives, and Actions. The strategy serves as the blueprint for reducing potential losses identified in the RRA and summarizes these components in an action plan. An effective action plan identifies and prioritizes projects, identifies potential funding sources, and names supporting partners for implementation. Additionally, the Planning Team assessed the District’s governing regulations, ordinances and policies in order to accomplish mitigation actions established through the planning process. These regulations are incorporated in Chapter 6. Mitigation Strategy. The Planning Team convened on November 20, 2019 to review the 2015 mitigation strategy goals, objectives, and actions and updated them based on results from the RRA and alignment with other local and regional initiatives. During this activity, the Planning Team considered what long-term outcomes need to be achieved, how to define and organize mitigation actions to connect with goals, initiatives the District will take to reduce risk, and how to prioritize and implement the action. The Planning Team reviewed each goal from the 2015 Plan and accompanying objective, ultimately revising each of the 5 existing goals and including 7 new goals to address new natural and man-made hazards covered in the risk assessment. As part of a combined RRA and HMP effort, the Planning Team compiled a list of recommended mitigation initiatives that incorporates the 2015 project list. The mitigation initiatives include actions, project criticality, duration, impact, and estimated project costs. In-person meetings were held with the Planning Team to solicit their input and review sections of the HMP. Each meeting focused on specific sections from the 2020 Plan Update, including the Introduction, District Profile, Participation Information, Planning Process and Public Involvement, Risk Assessment, Mitigation Strategy, and Plan Maintenance. 2.4 DRAFT THE HAZARD MITIGATION PLAN Drafting the 2020 Plan Update utilized the review process outlined above to integrate the technical and the collaborative efforts of the District. The 2020 Plan Update is measured against a FEMA Region IX Local Mitigation Review Tool, linking the federal requirement within a section of the Plan where the information can be found. The completed Plan Review Tool is included in Appendix B. 14 2.5 PARTNER ENGAGEMENT Engaging outside agencies in the planning process fosters collaboration amongst organizations with similar interests and goals and can support in directing resources holistically to the greatest risk and vulnerabilities present to multiple parties. The District has built partnerships with jurisdictions and critical customers in the service area, local and regional water distribution agencies along with regional and state regulatory agencies. These key stakeholders and the public were involved in the 2020 Plan Update through review of the District’s hazard assessment and mitigation strategy. 2.5.1 Stakeholder Engagement The Planning Team Chair and Director of Strategic Services extended individual invitations via email to approximately 70 stakeholders identified through the Chapter 2.1.2 process to attend the February 11 Community Advisory Commission meeting. Many invited stakeholders were through the Emergency Response Network of the Inland Empire (ERNIE). ERNIE consists of 27 agencies and jurisdictions who voluntarily enter into mutual aid agreements to help agencies and jurisdictions respond to disasters and acquire resources to assist in recovery through California Water/Wastewater Agency Response Network (CalWARN). The City of Redlands, Riverside Public Utility, Patton State Hospital, and San Bernardino County Office of Emergency Services joined the Community Advisory Commission to review the preliminary findings of hazard profiles, a high-level summary of the risk assessment, and the goals and objectives of the mitigation strategy. Those stakeholders unable to attend were invited to share their concerns directly with the Planning Chair and/or comment on the draft plan via online survey. Table 2-1. provides the invited stakeholders, meeting attendees, and meeting representatives. Comment collected during the Community Advisory Commission meeting are logged in Appendix C and include responses of how they have been incorporated in the 2020 Plan Update. Table 2-1. Community Advisory Commission Meeting Engagement Agency or Jurisdiction Invited Attended CAC Meeting Meeting Representative Bighorn Desert View Water Agency No - City of Banning No - City of Big Bear Lake, DWP No - City of Corona, DWP No - City of Redlands Yes Paul Mariscal, Senior water Treatment Operator Kevin Watson, Utilities Operations Manager City of Riverside, Public Works & Public Utilities Yes Freddy Armijo, Project Manager 15 Agency or Jurisdiction Invited Attended CAC Meeting Meeting Representative City of San Bernardino Water Department No - Eastern Municipal Water District No - Hi-Desert Water District No - Home Gardens County Water District No - Joshua Basin Water District No - Jurupa Community Services District No - Elsinore Valley Municipal Water District No - Lake Hemet Municipal Water District No - Monte Vista Water District No - Patton State Hospital Yes Chris Michaelson, Maintenance Rancho California Water District No - Riverside Highland Water Company No - Rubidoux Community Services District No - San Antonio Water Company No - San Bernardino Valley Municipal Water District No - San Bernardino County Office of Emergency Services Yes Miles Wagner, Emergency Service Officer San Manuel Band of Mission Indians No - Santa Ana Watershed Project Authority No - Twentynine Palms Water District No - West Valley Water District No - Western Municipal Water District No - Yucaipa Valley Water District No - 16 2.5.2 Public Engagement Although the February 11, 2020 Community Advisory Commission meeting was open to the public, an additional effort was made to solicit public input during the District’s Board Meeting on February 26, 2020. District Board meetings are held every second and fourth Wednesday of the month and are open to the public, with agendas and meeting minutes posted to the District’s website. The District leveraged social media channels including Facebook, Instagram, and Nextdoor, and public notices including bill inserts to advertise for attendance. Information about the 2020 Plan Update was posted on the District’s website (www.eastvalley.org) and on Board Agendas to accept public comments. At the Board Meeting, the District presented the risk assessment findings, goals and objectives of the 2020 Plan Update, redacting sensitive information and security details as appropriate. After the information was presented, the District opened the floor to discuss whether the findings, goals, and objectives accurately captured the natural hazards and their consequences in the District’s service area, if the mitigation strategies adequately respond to the natural hazards, and identify further opportunities to create collaborative solutions. Additionally, the District provided an electronic survey to capture public questions and comments. This survey was discussed at the District Board meeting and posted on the District’s website for further comment collection. The District collected public input on the 2020 Plan Update for 30 days. Reviewers were invited to submit their comments via email or virtual survey. These comments were collected by the District and compiled in a database to ensure that each was appropriately addressed in the plan. This database of comments and how each were addressed is provided in Appendix C, along with details of the public involvement process including meeting dates, purpose, agendas, sign-in sheets, minutes, and more. Local Mitigation Plan Regulation Checklist (Requirement §201.6(b)(2)) Neighboring communities, local and regional agencies, and other organizations identified as key stakeholders were provided an opportunity to engage in the planning process through the Community Advisory Commission meeting held February 11, 2020. Stakeholders were invited to participate in the workshop through direct targeted outreach by the Planning Team Chair and the Director of Strategic Services, including emails and phone calls. Emails are included as planning process documentation in Appendix C. 17 2.6 PLAN ADOPTION Upon completion of CalOES and FEMA review of the 2020 Plan Update and receipt of the “Approved Pending Adoption” letter from FEMA, the East Valley Water District Governing Body will formally adopt the updated 2020 Hazard Mitigation Plan (HMP). The resolution formally adopting the 2020 Plan Update will be placed in Appendix A upon Board approval. The HMP and feedback from CalOES and FEMA will be reviewed for approval by the following District Promulgation Authorities:  David E. Smith: Chairman of the Board, District Board of Directors  Phillip R. Goodrich: Vice Chairman of the Board, District Board of Directors  Chris Carrillo: Governing Board Member, District Board of Directors  Ronald L. Coats: Governing Board Member, District Board of Directors  James Morales Jr.: Governing Board Member, District Board of Directors  John Mura: General Manager/CEO Local Mitigation Plan Regulation Checklist Adoption by the Local Governing Body – Requirement §201.6(c)(5): [The local hazard mitigation plan shall include] documentation that the plan has been formally adopted by the governing body of the jurisdiction requesting approval of the plan (e.g., City Council, County Commissioner, Tribal Council). Local Mitigation Plan Regulation Checklist (Requirement §201.6(b)(1)) The public was provided multiple opportunities to engage in the planning process through open meetings and a virtual survey. The District engaged in an outreach campaign to invite the community to the Community Advisory Commission meeting on February 11, 2020 and a District Board Meeting on February 26, 2020. The District encouraged additional feedback on the draft plan through a virtual survey soliciting for public comment regarding the hazards within the community. The District created a database of public comment provided during the Community Advisory Commission and Board meetings and feedback given online based on a summary of the Draft Plan. The feedback was addressed in this same database and incorporated into the plan where appropriate. Appendix C contains this database of comments and District responses. 18 3 DISTRICT PROFILE 3.1 HISTORY Originally named East San Bernardino County Water District, the District formed to provide domestic water services to unincorporated and agricultural-based communities in the foothills of the San Bernardino Mountains in 1954. Water service was originally provided to the City of Highland and unincorporated areas of the County of San Bernardino. Over the years, some of the unincorporated County land was annexed into the City of San Bernardino but water service remained the District’s responsibility. In 1957, the District assumed responsibility for the service area’s wastewater conveyance system. The District conveys wastewater to the City of San Bernardino for treatment at the San Bernardino Water Reclamation Plant (SBWRP) via the regional East Trunk Sewer Line. The SBWRP and a portion of the East Trunk Sewer are owned and operated by the City of San Bernardino. The name of the District was formally changed to East Valley Water District in 1982. In 2005, EVWD developed its first local HMP, which has subsequently been updated in 2010 and 2015. The District has received FEMA grant assistance to implement three key mitigation projects at critical facilities. 3.2 CURRENT JURISDICTION The extent of the current water distribution and wastewater conveyance service area covers approximately 3,228 acres (30 square miles) and 103,000 residents. The District’s historically agriculturally dominated service area has urbanized, including the City of Highland and portions of both the City and County of San Bernardino. All water and wastewater conveyance services and system maintenance are financed solely by rates in that customers pay only for the benefits and services they receive. EVWD customers currently include residential and non-residential organizations including the San Manuel Local Mitigation Plan Regulation Checklist (Requirement §201.6(d)(3): A local jurisdiction must review and revise its plan to reflect changes in development, progress in local mitigation efforts, and changes in priorities, and resubmit it for approval within 5 years in order to continue to be eligible for mitigation project grant funding. The 2020 Plan Update has been revised from the 2015 Plan to reflect changes in service population and development trends. The District Profile characterizes the service area to provide context for the risk assessment and mitigation strategy presented in this plan. 19 Band of Mission Indians, Patton State Hospital, and others. By 2021, EVWD will expand its service offerings within the existing service area to provide wastewater treatment services. Future updates to the Plan will account for changes in development and expanded services and will be reflected in other District plan updates. Figure 3-1. East Valley Water District Service Area 3.3 GEOGRAPHY AND NATURAL RESOURCES The District encompasses the northeast section of the San Bernardino Valley, approximately 65 miles due east of Los Angeles. The District's service area includes the easterly part of the City of San Bernardino, all the City of Highland and small unincorporated areas of the County of San Bernardino. The service area shares use of the local groundwater basin by the cities of Redlands, Loma Linda, Colton, Grand Terrace. The climate of the District’s service area is typical of Southern California’s Mediterranean climate with hot, dry summers and mild moist winters. On average, there are approximately 283 days of sunshine per year. Temperatures average at a high of 94 degrees in summer and a daily low of 42 degrees during winter.2 On occasion, Southern California experiences weather variability due to extremely hot weather, winter storm, or Santa Ana Wind conditions. 2 Source: East Valley Water District Adopted Budget Fiscal Year 2019-20: https://www.eastvalley.org/DocumentCenter/View/1918/2019-20-Adopted-Budget?bidId= 20 The San Bernardino Valley is surrounded by the San Bernardino Mountains to the north and east. Elevations within the valley average approximately 500 feet on the valley floor. Elevations in the mountain area range from 2,000 feet along the foothills to the 11,502- foot summit of Mount San Gorgonio, the highest peak in Southern California. The District’s service area extends into the foothills of the mountains, presenting a unique change in elevation of approximately of 11,000 feet. The District has access to multiple water sources including ground water, local surface water, and imported water. Eighty percent of total water supply provided by the District is from groundwater and 20 percent from surface water sources. EVWD has three primary sources of water supply: local groundwater from the Bunker Hill Basin pumped from EVWD-owned wells, local surface water from the Santa Ana River, and imported surface water from the State Water Project (SWP) available through the San Bernardino Valley Municipal Water District (Valley District). Bunker Hill Groundwater Basin stores approximately 5 million acre-feet of water, of which only 1.2 million acre-feet are accessible. It is located at the top of the Santa Ana River watershed and receives surface water runoff from the headwaters of the Santa Ana River and other tributaries. The basin recharge is approximately 16,000 acre-feet annually by rain, runoff from the surrounding mountains and imported water. Bunker Hill Basin is a vital resource to Southern California as it provides water to approximately 650,000 people in the cities of Highland, Redlands, Loma Linda, San Bernardino Colton, Rialto, Bloomington, Fontana, Grand Terrace, and Riverside, and portions of San Bernardino County. The major producers of the basin are the cities of Redlands, San Bernardino, Loma Linda, and Riverside; East Valley Water District; and West Valley Water District.3 There are two major earthquake faults in the San Bernardino Valley, the San Andreas Fault and the San Jacinto fault. The San Andreas Fault runs though the District’s boundaries, starting on the north eastside. This fault cuts the District in half, with potable water reservoirs on the north side of the fault and wells and pipeline structures on the south side of the fault. The San Jacinto Fault is within 5 miles of the District’s southern and western boundaries. 3.4 SOCIOECONOMICS Socioeconomic characteristics within the District’s service area denote demographic, social, and economic factors that can help inform the planning process, risk assessment, and mitigation strategy for EVWD. This section includes key statistics such as population, density, age, EVWD critical customers, existing land use within the service area, and 3 Source: San Bernardino Valley Water Conservation District: https://www.sbvwcd.org/our- district/publications/3161-fs-bunkerhill/file.html 21 economic data including employment industries, development trends, and population projections. 3.4.1 Current Population Using ESRI Geographic Information Systems (GIS), the District extracted demographic information by overlaying the service area boundary with population data available at the census tract and block level from American Community Survey (ACS) 5-Year Estimates Data Profile (2017).4 Information within census blocks partially located in the service area was adjusted based on the percentage of the census block group located within the service area. For example, Tract 07604 falls approximately 50-percent within the service area. Therefore, a weight of 0.5 is multiplied against the total population count within that tract to adjust the estimated population which falls within the service area. Thus, 972 of 1934 within this tract are counted within the service population estimate for the District. Using this procedure, the District estimates it serves approximately 103,000 residents. This indicates a 7-percent growth in population since 2010. According to the population statistics in Table 3-1., the City of Highland accounts for approximately half of the District’s service population, but is not growing at quite the same rate as the EVWD service population as a whole. The District’s service area population growth is consistent with San Bernardino County and the State of California. Table 3-1. Relevant Population Estimates for East Valley Water District 4 American Community Survey 5-Year Estimates Data Profile (2017): https://factfinder.census.gov/ Population size 2010 Population size 2017 Population percent change from 2010 Service Population EVWD 97,000 103,000 7% City of Highland 53,000 55,000 4% San Bernardino County 2,035,000 2,171,000 8% California 37,254,000 39,557,000 6% *Census data from U.S. Census Bureau, Population Estimates Program (PEP) 2019: https://www.census.gov/quickfacts/ 22 Figure 3-2. Population Density by Census Tracts, American Community Survey 2017 Population Estimates Figure 3-2-2 displays the distribution of service population density which may help to indicate the distribution of resources by population demand. The density map was created by using the boundary of the service area overlaid with census tracts to display population density. Lower density on the eastern perimeter of the service area is due to open space designations within the unincorporated areas. The denser population areas in the east are residential areas and areas identified for future development. While there are some areas within the City of Highland that appear to have a lesser population density, this may indicate larger household sizes. The higher density area which appears at the center of the map is due to the critical customer, Patton State Hospital. Census Data records Patton patients at the institution site as it is considered the patient’s place of residence.5 5Census Residence Rules: https://www.census.gov/population/www/censusdata/resid_rules.html 23 Evaluating the characteristics of EVWD’s service area population allows the District to identify potential populations that may be more vulnerable to lifeline service disruptions and inform the need for outreach programs and initiatives to improve preparedness. A population pyramid displays the distribution of age groups by sex. The EVWD population pyramid in Figure 3-3 is slightly pyramid-shaped but generally represents a stationary population with a somewhat equal proportion of the population in each age group. Together, Table 3-1. and Figure 3-3 demonstrate that the District’s service area population is stable with little decrease or increase. However, current land use trends are supportive to residential development which may cause a shift in future population trends. There are a few notable trends in the population pyramid that can support the District’s hazard mitigation plan goals and objectives. Populations that may be more vulnerable to potable water loss include the aged and the very young due to relatively lower mobility and potential reduced access to alternative sources of water. According to Figure 3-3, people aged 65 and older represent a small portion of the population: roughly 10 percent. Conversely, children under 10 represent approximately 32 percent of the population. In all, around 42 percent of the population could be more vulnerable to potable water loss. As the baby boomer population continues to age, the District can likely expect this percentage to grow. Figure 3-3. East Valley Water District Service Area Population Pyramid, 2017 population estimates -10.00%-8.00%-6.00%-4.00%-2.00%0.00%2.00%4.00%6.00%8.00%10.00% 0 to 5 6 to 9 10 to 14 15 to 19 20 to 24 25 to 29 30 to 34 35 to 39 40 to 44 45 to 49 50 to 54 55 to 59 60 to 64 65 to 69 70 to 74 75 to 79 80 to 84 85 and above Percent Population Age Coh or ts EVWD Percent Population by Age and Sex, 2017 Male %Female % 24 3.4.2 Critical Customers A critical customer is a consumer that is paramount to community public health and safety or demand a large volume of water. Knowing who the District’s critical customers are, where they are located, and how best to communicate with them supports the HMP to further protect these populations through the mitigation strategy and project prioritization. The District’s critical customers include:  San Manuel Band of Mission Indians. The San Manuel Band of Mission Indians is a federally recognized Tribal Government and is home to the indigenous people of the San Bernardino highlands and mountains. The Reservation is one of two independent government entities located within the service area. East Valley maintains a contract with the San Manuel Reservation to provide potable water service, which services 1386 residents who are accounted for in the service population along with fire department services within the reservation boundaries.  Patton State Hospital. Patton State Hospital is a forensic psychiatric hospital in San Bernardino County and is the second independent government entity located within the service area. Patton State Hospital has the licensed bed capacity of 1,527 for forensically and civilly committed patients. EVWD maintains a contract with Patton State Hospital to provide potable water service and accounts for 1,527 patients within the service population estimates.  Beaver Medical Group. The Beaver Medical Group has a family practice and an urgent care center that provides critical services within the region.  Other critical customers include: o Approximately 30 public schools; o Roughly 16 senior living centers; o 8 dialysis centers. 3.4.3 Existing Land Use Figure 3-4 displays the land use within the District’s service area. The map was created by using an overlay of the District’s boundary compared with data from Southern California Association of Governments (SCAG) General Land Use for San Bernardino 6 Source: San Manuel Reservation and Off-Reservation Trust Land, CA, 2013-2017 American Community Survey 5-Year Estimates: https://www.census.gov/tribal/?st=06&aianihh=3445 25 County (2016).7 By considering the SCAG data, only the land uses within the District’s boundary are displayed. The land use map indicates a significant portion of land use for residential purposes, for both single family and multi-family households. For non-residential land uses, open space and parks are prevalent while there is virtually no office use. The lack of office space within the District’s service area is indicative the presence of a bedroom community and is supported in the land use map by the contrast of office space as compared to the plethora of single family and multifamily residential land use. In a bedroom community, a significant portion of residents live within the service area but commute outside of the service area for employment. Additionally, there is higher density in the City of San Bernardino as compared to the City of Highland, as noted by a higher abundance of multi- family residential in the south and west portion of the service area compared to the single family residential within the City of Highland. Retail and commercial services seem to be scattered throughout the service area but tend to congregate around the main thoroughfares. The specific plan areas indicated by the purple parcels are planned residential developments which are yet to be completed. The future service population is expected to expand within these areas upon development completion. Light and heavy industrial areas are prevalent in the southwest portion of the service area due to the proximity of the San Bernardino Airport, located just outside of the service area. Other notable land uses are the critical customers of the San Manuel Band of Mission Indians and the Patton State Hospital. While their land use is not indicated as residential, there are populations which reside in these special circumstances. The San Manuel Band of Mission Indians Land Trust is characterized as open space, although containing a casino, while the Patton State Hospital is characterized as public facility land use. 7 Source: General Plan Land Use – San Bernardino County (2016): http://gisdata- scag.opendata.arcgis.com/datasets/212b086bdbe64b0491cd4ddf37cfc916_0?geometry=- 129.909%2C33.238%2C-101.971%2C36.394&selectedAttribute=COUNTY_ID 26 Figure 3-4. EVWD Service Area Land Use Map 27 3.4.4 Economic Base The economic base identifies the businesses that generate employment in a community and compares income and earnings to surrounding areas. The EVWD service boundary encompasses the City of Highland and unincorporated San Bernardino County. Therefore, the economic profiles detailed in this section contain information of the City of Highland and San Bernardino County to compare to the service area statistics of EVWD. 3.4.4.1 Employment IMPLAN is an economic data collection service which pulls data from private and public sectors in the United States to provide economic data at the zip code, city, county, and state level. Using IMPLAN data, the employment industries and opportunities for the District’s service population are provided. Within the zip codes of the service area, there are approximately 60,000 employment opportunities, which include all full-time, part-time, and temporary jobs. By using zip code data, jobs which fall just outside the service area are included in this count. Since the service area has a high number of residential land uses, as discussed in Section 3.4.3, it is common for service area residents to commute outside the service area for work. Table 3-2. includes the employment opportunities within the service area and neighboring area as compared to the city, county, and state level. Table 3-2. Employment Opportunities Jurisdiction Employment Opportunities Within Service Area and Neighboring Area 60,000 City of Highland 16,209 San Bernardino County 1,002,469 California 23,572,468 Employment opportunities for the workforce is essential to community welfare. Having an abundance of employment opportunities may affect the service population as populations may invest in permanent residences by employment opportunities. Using ACS 5-Year Estimates data8 overlaid with the service area boundary, the workforce within the District is estimated to be 44,000. While 60,000 employment opportunities are within proximity to the service area, additional factors such as education and skills may affect the rate of employment within the workforce. 8 Source: American Community Survey 5-Year Estimates Data Profile (2017): https://factfinder.census.gov/ 28 According to IMPLAN data, approximately 200 public and private employment industries are prevalent within the service area. Figure 3-5 represents the top ten industries that provide employment within the service area. The public sector makes up nearly 30 percent of jobs available in the service area, including both educational and non- educational services. Locally, the San Manuel Band of Mission Indians Casino is considered a major employer within the service area. The casino employs approximately 4,900 people and the San Manuel Band of Mission Indians hotel expansion is expected to expand the employment opportunities offered on the reservation by Spring 2021.9 While the casino employs a significant portion of the service area population, it is unknown how this is reflected in IMPLAN data due to the special circumstances of the casino being controlled by a government entity. Figure 3-5. Top 10 Employment Industries 9 Source: San Manuel Band of Mission Indians Casino and Hotel Expansion: https://www.sanmanuel.com/news/san-manuel-casino-breaks-ground-major-expansion 29 3.4.4.2 Income and Earnings There are approximately 29,000 households within the service area,10 of which the City of Highland accounts for approximately 16,000.11 The estimated household income and average per capita income of the City of Highland is above that of the service population, meaning the remaining service population may be economically disadvantaged and suffering from additional financial stressors. The District’s service population is largely economically disadvantaged. The estimated household income for the service population is approximately $47,000, falling approximately $20,000 under the State average and $10,000 less than the San Bernardino County average. Although the estimated annual household income falls significantly below the County and State average, the estimated per capita income is very close to that of the County and City of Highland. The service population average per capita income is approximately $21,000 while the County and City of Highland are approximately $23,000. The disparity of annual household income as compared to the average annual per capital income may indicate larger household sizes in the service area. Overall, the customers of the service area suffer from financial stressors which affect their economic stability. It is important to the District to provide rates within the means of the customers while also maintaining financial prosperity. Table 3-3. Estimated Households and Income Estimated households Estimated annual household income Average annual per capita income Service Population EVWD 29,000 $47,000 $21,000 City of Highland 16,000 $55,000 $23,000 City of San Bernardino 58,046 $41,027 $15,669 San Bernardino County 624,000 $57,000 $23,000 California 12,888,000 $67,000 $33,000 *Data from the U.S. Census Bureau, American Community Survey (ACS), 5-Year Estimates 2017 10 Source: American Community Survey 5-Year Estimates Data Profile (2017): https://factfinder.census.gov/ 11 Source: U.S. Census Bureau Quick Facts - San Bernardino County, City of Highland, and California: https://www.census.gov/quickfacts/fact/table/highlandcitycalifornia,sanbernardinocountycalifornia/ INC110218 30 3.4.5 Development Trends Since the 2015 Plan Update, there have not been significant changes in development within the EVWD service area. Therefore, changes in development within the service area since the 2015 Plan do not threaten to increase risk posed by hazards within the service area. However, future development trends are not anticipated to remain at status quo. The service area consists of scenic open space conducive to residential growth. As the residential population within the service area increases, the demand for utilities will also increase. As per the EVWD Water System Master Plan, there are 6 future developments planned within the service area. Highlights to these future developments include:  The Harmony development may be the largest of the master planned communities within the District, located in the eastern-most portion of the service area. Currently, the land use for the proposed development is being reevaluated. The development may include a large housing diversity from large estate lots to multi- family units. Additional planned services of the area may include 14 to 21 acres of commercial services, a new fire station equipped with a police substation, and a new art school. The new development consists of approximately 1,650 acres and may add approximately 11,800 to 12,400 new residents in the District upon build- out anticipated in 2035.12  Greenspot Village and Market place is a planned unit development project offering a variety of housing opportunities. The development density allows for a minimum of 250 housing units and a maximum of 800 house units. The development will be located along Greenspot Road and the 210 Freeway.  Medittera Sunland Communities is a residential planned community of 316 housing units. The permitted land use types of this area focus towards low to medium density residential units with additional inclusion of open space, agriculture, parks and recreation. The location of this neighborhood is across from the District’s headquarters.13 Table 3-4. Major Future Developments Development Development Capacity Harmony 11,986 Greenspot Village and Marketplace 2,640 Highland Hills* 2,145 12 Source: Harmony Development: http://www.cityofhighland.org/Harmony/Harmony%20Special%20Meeting%20Staff%20Report%2 006-30-2016.pdf 13 Source: Medittera Sunland Community: http://www.ci.highland.ca.us/Downloads/Files/Mediterra/Mediterra%20Specific%20Plan.pdf 31 Development Development Capacity Mediterra Sunland Community* 1,980 Arnott Ranch* 248 Centerstone 195 Total 19,194 *Impending construction The expected increase of population due to residential development is used to portray population projections out to 2050 in Section 3.4.6. A notable future development which is not included in the population projections but is within the District’s service area is the San Manuel Band of Mission Indians housing and hotel expansion. The hotel will include approximately 450 rooms, pool complex, and proposed restaurants. The San Manuel Band of Mission Indians expects the expansion to increase the employment opportunities in addition to expanding upon the tourism opportunities. The expected completion date for the expansion is expected to be in Spring 2021.14 While this development may not increase the population projections of permanent residents, it is expected to increase the utility service demand. 3.4.6 Population Projections Utility service demand is directly correlated to the increase or decrease in population. Population projections use current trends to provide an insight to the future demands that may occur within the District. The development trends are conducive to development expansion, potentially increasing the service population. To align with other District plan updates, the population assumptions as a result of future residential development are drawn from the EVWD Water System Master Plan Update (2019). Given the development trends in combination with American Community Survey (ACS) and Southern California Association of Governments (SCAG) population projections of San Bernardino County, five scenarios are outlined to predict the future population projections which will ultimately affect the demand of services. The American Community Survey creates 5-year population estimate profiles for communities using census block data. The most recent data published to retrieve data at the census block group level is from the 2013-2017 ACS 5-Year Estimates Data Profile.15 To create population projections, this data was used to create a baseline for all scenarios to document the changes in population within the service area as shown in Figure 3-6. However, since there is limited available historical data to document the changes in 14 Source: San Manuel Band of Mission Indians Hotel Expansion: https://www.sanmanuel.com/news/san- manuel-casino-breaks-ground-major-expansion 15 Source: American Community Survey 5-Year Estimates Data Profile (2017): https://factfinder.census.gov/ 32 service area population over time, the forecasted data projections are likely to increase in variability and error the further out they are projected. This does not lower the confidence of these scenarios but rather displays the variety of expectations for future service area populations.  Scenario 1: Future population is estimated using extrapolation and is based on ACS historical population growth from 2013 to 2017.  Scenario 2: SCAG curve for San Bernardino County.16 Using the expected rate of population growth for the County of San Bernardino, the rate of growth for the County was determined by generating an exponential trendline. The equation of the trendline was then applied using the service area base population estimates from ACS and projected to 2050.  Scenario 3: The average percent population growth within the service area from 2013 to 2017 was used and extended in a linear fashion to 2050.  Scenario 4: All major developments are constructed between 2033 and 2038. This assumes that all growth from known residential developments complete development within a five-year period and the occupancy rate is at 100 percent throughout development. The rate of growth until 2033 and after 2038 occurs at the same rate assumed in the average growth trends projections (Scenario 3).  Scenario 5: All major developments are constructed between 2025 and 2040. This assumes that all growth from known residential developments complete development within a fifteen-year period and the occupancy rate is at 100 percent. The rate of growth until 2025 and after 2040 occurs at the same rate assumed in the average growth trends projections (Scenario 3). 16 Source: 2016‐2040 RTP/SCS Final Growth Forecast by Jurisdiction: https://www.scag.ca.gov/Documents/2016_2040RTPSCS_FinalGrowthForecastbyJurisdiction.pdf 33 The population projections range from approximately 124,000 in Scenario 1 to approximately 150,000 in Scenarios 2, 4 and 5 by 2050. Scenario 1 acts as a baseline by projecting the future population through extrapolating from existing population growth trends. Without the consideration of development, Scenario 1 estimates the lowest population projection at approximately 124,000. Scenario 2 utilizes the SCAG curve for population projections within San Bernardino County. SCAG methodology does not include development trends of San Bernardino within their curve projections. By applying the SCAG curve, Scenario 2 estimates the future population to be approximately 150,000. Even though Scenario 2 does not include development trends, the population projection reaches 150,000 by 2050. Scenario 3 displays the second lowest estimate. By using the average growth trend of existing population data within the service area for 2013-2017, the population projection is approximately 129,000 by 2050. Unlike the other three scenarios, Scenario 4 and 5 incorporate development trends in combination with the average growth trend. Regardless of the completion time of the future development, both project the population to be approximately 150,000 by 2050. From the results of the population projections, the District will have to plan to meet the demands of a future service population ranging from 124,000 to 150,000. Figure 3-6. Future Population Projections 95000 105000 115000 125000 135000 145000 155000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 Approximate Population Population Projections Scenario 1: Existing population growth trends (2013-2017 & extrapolate) Scenario 2: SCAG curve for San Bernardio County Scenario 3: Average growth trend Scenario 4: Development begins 2033 (5 year completion) Scenario 5: Development begins 2025 (15 year completion) 34 4 RISK ASSESSMENT The Risk Assessment section consists of EVWD’s approach to assess risks and generate a mitigation plan to minimize impacts caused by potential hazard events. EVWD took a holistic approach to evaluate assets, hazards posing threat to the District service area, consequence (including impact on customers), vulnerability, annual likelihood, and identify mitigation measures for the 2020 Plan Update. The seven steps include: 1. Asset Characterization: Identify the most important facilities and which assets are critical to the District’s mission statement. 2. Threat Characterization: Determine relevant natural, malevolent, dependency, and proximity hazards that could cause service failure (not meeting mission criteria). Local Mitigation Plan Regulation Checklist Requirement §201.6(c)(2)(i): [The risk assessment shall include a ] description natural hazards that can affect the jurisdiction. The plan shall include information on previous occurrences of hazard events and on the probability of future hazard events. Requirement §201.6(c)(2)(ii): [The risk assessment shall include a ] description vulnerability to the hazards described in paragraph (c)(2)(i) of this section. This description shall include an overall summary of each hazard and its impact on the community. All plans approved after October 1, 2008 must also address National Flood Insurance Program (NFIP) insured structures that have been repetitively damaged by floods. The plan should describe vulnerability in terms of: Requirement §201.6(c)(2)(ii)(A): The plan should describe vulnerability in terms numbers of existing and future buildings, infrastructure, and critical facilities located hazard areas… Requirement §201.6(c)(2)(ii)(B): [The plan should describe vulnerability in terms the potential dollar losses to vulnerable structures identified in paragraph (c)(2) and a description of the methodology used to prepare the estimate. Requirement §201.6(c)(2)(ii)(C): [The plan should describe vulnerability in terms general description of land uses and development trends within the community options can be considered in future land use decisions. Requirement §201.6(c)(2)(iii): For multijurisdictional plans, the risk assessment jurisdiction’s risks where they vary from the risks facing the entire planning area. Error! Reference source not 35 3. Consequence Analysis: Analyze the financial impact of critical asset failure if threats occur. 4. Vulnerability Analysis: Analyze how vulnerable (0 – 100 percent) each critical asset is to each relevant threat. 5. Threat Likelihood Analysis: Analyze the likelihood (0 – 100 percent) of each threat. The terms “threat” and “hazard” are used interchangeably throughout the risk assessment. The probability of likelihood occurrence is categorized into ranges, presented as annual exceedance probability. Ranges are classified as low likelihood (10 – 30 percent), moderate likelihood (40 – 60 percent), to high likelihood (70 – 90) to occur within one year. 6. Risk Analysis: Use the risk equation to measure and prioritize risk for defined threat-asset pairs. 7. Risk and Resilience Management: Generate a list of planned mitigation measures to reduce risk. The elements of this risk assessment have been enhanced from the 2015 HMP to include asset characterization and new hazard profiles and vulnerability assessments covered in the AWIA RRA. 4.1 ASSET CHARACTERIZATION The first step in the risk assessment was to identify all District assets. The District conducted a thorough review of their existing and planned assets to prioritize the most critical facilities within its system (See Table 4-1). Once assets were characterized, the Planning Team used a three-tier system to distinguish criticality. Tier 1 critical facilities are single points of failure and are the most critical to operations and/or business continuity. The District identified existing surface water and groundwater plants, the future wastewater treatment plant, the existing distribution system, and administration buildings as Tier 1 critical facilities. A summary of critical assets includes: Plants: Most plants, including plants with groundwater wells and wellhead treatment systems and booster pumps, are redundant. However, the following facilities and assets could be single points of failure:  Hydropneumatics systems provide water to high elevation residences and are single points of failure. Without these systems, water may not be delivered to certain homes. Typically, these systems provide service to a relatively small number of customers. EVWD has four hydropneumatics systems.  Plant 134 is the only surface water treatment plan within the service area and treats surface water from both the Santa Ana River and State Water Project. Collectively, surface water is approximately 20 percent of total water supply. 36 Service interruption at Plant 134 would pose operational constraints and create greater reliance on groundwater. Within Plant 134 are several critical assets, i.e. membranes for water treatment and raw and potable water pipes.  The Sterling Natural Resource Center (SNRC) will be the only wastewater treatment facility to treat wastewater generated within EVWD’s service area. As the only wastewater treatment facility, the SNRC is a single point of failure within the system. Without this facility, wastewater may not be treated and/or cause operational issues to reroute to neighboring agencies. Also, the facility will produce recycled water to discharge to and replenish the Bunker Hill Groundwater Basin. Recycled water is a priority for EVWD and other water agencies relying on basin groundwater.  Storage tanks are referred to as reservoirs. The reservoirs are redundant but damage to one or more could impact EVWD’s resilience by decreasing storage capacity.  Onsite and mobile generators have become more critical in recent years during planned power outages by Southern California Edison. Power companies in California routinely shut off power during high winds to prevent causing wildfires. This means EVWD must rely on their storage capacity and generation capability to continue providing water service during times of increased wildfire potential. Water distribution system: Overall, the distribution system is redundant. However, earthquakes or other natural hazards pose a widespread threat and could uniformly damage the water and sewer lines. Under such extreme circumstances, the distribution system becomes a single point of failure, and may prevent EVWD from delivering water to customers until the pipelines are repaired. EVWD can however run the system manually and use main valves to isolate incidents, which demonstrates some operational resilience in case the SCADA system is compromised or an isolated natural disaster damages part of the system. Individual components of the distribution system are critical but are not single points of failure, i.e., hydrants are necessary for firefighting and mains and valves are required for water conveyance. Sewer mains: The main collection lines are critical. Specifically, the East Trunk Sewer and the Del Rosa Interceptor (when constructed) will be the most critical. These collection lines are single points of failure for wastewater treatment. Business continuity assets: At a high level, business continuity is defined by the following systems: IT, Finance, SCADA, communication, documents, and key staff. Critical assets for each system are:  IT & Documents: Within the data center, servers and network switches are potential single points of failure. The Cisco Catalyst 4506 Ethernet Switch, which controls converged networks, is not redundant and therefore considered a single 37 point of failure. In addition to hardware, information about the EVWD system and operations is stored in several locations; if damaged or unavailable, back-ups may not exist, and important historical data may be lost. o GIS, among EVWD’s most critical applications, has data that if lost, is costly and time intensive to recreate; EVWD staff estimate the total cost would be millions of dollars, if not more. Some paper maps may not be available, and backups may not exist. o Laserfiche is a critical document storage application. Information here is not sensitive but is necessary for business continuity. o As allowed by EVWD’s retention policy, Exchange Online, the email service, contains important historic information.  Finance: The Tyler system is critical for receiving payments, paying bills, and retrieving historical transactions. Payments made over EVWD’s website are redirected to Tyler. Without Tyler, a significant portion of bills may be unpaid. EVWD works with the Citizens Business Bank and has collateral on deposits. In the case of an emergency, setting up an account at another bank, making payroll, and making critical purchases would be difficult, but EVWD estimates this could be done in a reasonable timeframe. Citizens Business Bank would have to shut down in order to impact business continuity.  SCADA: Hardware and software associated with programmable logic controllers (PLCs) are critical only if multiple PLCs are damaged or compromised. Losing a single PLC would not impact business continuity. Also, the radio tower at Del Rosa is a critical network switch. Other critical assets include the Human-Machine Interface (HMI), SCADA servers at the Headquarters and Plant 134, and other radios that provide wireless communication between SCADA servers. Overall, EVWD predicts they could still meet the 11 MGD mission criterium but would need to re-assign existing staff to operate the SCADA system or manually operate equipment in the field. Alerts are in place, but alarms could theoretically be deactivated, resulting in overflowing tanks and water outages.  Communication: EVWD is most concerned with losing Frontier internet or phone services. The customer service function, Everbridge, radio repeater at Plant 99, and Police and Fire coordination are also critical to business continuity.  Staff: A limited number of staff members have technical knowledge of the IT system. Staff resource constraint could impact EVWD’s ability to address IT system vulnerabilities and may be single points of failure. See Appendix D Critical Facilities List for a full list of District critical facilities ranked by tier. 38 Table 4-1. East Valley Water District Facility Overview Facility Type Number Number Description Storage Reservoirs 18 Storage reservoirs hold water to be used in the distribution system. Water storage capacity ranges from 0.07 million gallons (MG) to 4 MG, with a total reservoir storage capacity of approximately 27.6 MG. Booster Pump Stations 31 Booster pump stations transfer water between pressure zones or pump groundwater into the distribution system. Stations house between one and eight booster pumps, with capacity ranging from 0.24 MGD to 4.2 MGD. Total capacity of all booster stations is approximately 101 MGD if each pump simultaneously runs at rated capacity. Groundwater Wells (active) 15 Wells pump groundwater from the Bunker Hill Basin. Capacity for 15 wells is 31.6 MGD. Groundwater Well (active, not in operation) 1 Well 107 is technically active with the State however it is out of service until minor rehab is completed. Groundwater Wells (inactive) 6 Wells 9a, 12, 27, 40a, 41, and 120 are inactive17. EVWD reported detection of radionuclides at Well 9 and has temporarily removed the well from production. Imported Surface Water Connection 1 Raw water pipe brings State Water Project water into Plant 134, the surface water treatment plant. Surface Water Connection 1 Raw water pipe brings Santa Ana River water into Plant 134, the surface water treatment plant. Water mains (miles) 301 The distribution system network conveys water from ground and surface water treatment plants to service area customers. Approximately 80 percent of the pipes were installed after 1970, with the remaining installed at unknown periods or as early as 1929. The most common pipeline material used for 47 percent of pipes is asbestos cement. And while pipeline diameters range from 2 to 36 inches, approximately 80 percent are between 6 and 12-inch diameter pipes. 17 Source: California Drinking Water Watch for EVWD: https://sdwis.waterboards.ca.gov/PDWW/JSP/WaterSystemDetail.jsp?tinwsys_is_number=3824& tinwsys_st_code=CA&wsnumber=CA3610064 39 Facility Type Number Number Description Sewer mains (miles) 220 Sewer mains transport sewage waste from residences and commercial buildings to the wastewater treatment plant. Pressure Reducing Stations 14 Due to EVWD’s topography, pressure reducing stations are required to maintain lower pressures in parts of the hydraulic system and prevent equipment damage. Surface Water Treatment Plant 1 Treats surface water from the Santa Ana River and/or the State Water Project. The rated capacity is 8 MGD. Groundwater Treatment Plants 4 EVWD treats all groundwater with sodium hypochlorite. The east-end wells (Plants 125,146,146a,147,142) are treated with both hypochlorite and orthophosphate (ortho). Ortho, when injected, forms a coating on the piping of the distribution system to help deter corrosion. Hydrants 3,025 Hydrants support water quality maintenance programs and fire suppression needs. Valves 8,225 Valves control and can isolate the flow of pressurized water throughout the distribution system. Customer Meters 22,907 EVWD uses a combination of manual meters and advanced metering infrastructure (AMI). AMI provides real-time customer information regarding leaks and usage. Wastewater Treatment Facility 1 Once online, the Sterling Natural Resource Center (SNRC) will treat wastewater generated within EVWD’s service area. The treatment facility will also produce disinfected tertiary recycled water (Title 22 water quality for unrestricted use). 40 4.2 HAZARD IDENTIFICATION The Threat / Hazard Identification section overviews the natural hazards and man-made threats present or potentially present in EVWD’s service area, identified through historic events and emerging hazards. The purpose is to determine relevant natural, malevolent, dependency, and proximity threats that could cause service failure to critical assets, resulting in not meeting mission criteria. A list of the natural hazards to consider was obtained from Federal Emergency Management Agency (FEMA) “Local Mitigation Planning Handbook (2013)”. The District’s planning team reviewed each hazard on the list and identified which hazards may affect the jurisdiction and which may be omitted from the HMP. The Planning Team also considered man-made hazards and proximity and dependency hazards typically evaluated in the J-100 framework and identified which are applicable to the District. Table 4-2. provides the rationale of these decisions. Table 4-2. Hazard Identification Category Hazard Included? Description Natural Hazard Climate Change Yes Climate change can impact air quality, human and ecological health, and alter natural hazard characteristics, often exacerbating impact, duration, and frequency. Climate change is included as a factor within other natural hazard analyses. Natural Hazard Dam Inundation No According to the County of San Bernardino Flood Control District, there are three dams in or near EVWD’s service area: Seven Oaks Dam in San Bernardino County, the Small Canyon Dam in Highland, and the Little Mountain Dam in San Bernardino. The dam inundation maps show that Plant 125 may be impacted, but this is not a mission critical facility. Overall, dam inundation is mostly in Local Mitigation Plan Regulation Checklist (Requirement §201.6(c)(2)(i)) The Hazard Identification section includes a general description of all natural and man-made hazards that can affect the District and discusses the rationale for further evaluation or omission of any hazards within the context of the 2020 Plan Update. (Requirement (CalOES Section 4.3.6.2)) The Hazard Identification includes climate adaptation and resiliency elements within the hazard identification and profiles to promote current and future public safety. 41 Category Hazard Included? Description unpopulated areas and does not pose a risk to operations. Natural Hazard Drought Yes Droughts in California are recurring. An extended drought can stress operations, impact economic development, and potentially prevent EVWD from meeting mission criteria. Natural Hazard Earthquake Yes The EVWD service area falls between the San Andreas and San Jacinto fault lines. The largest known California earthquake is the 7.9 magnitude earthquake in San Francisco in 1906 on the San Andreas fault line. An earthquake could damage critical assets and prevent EVWD from meeting mission criteria. The earthquake threat includes ground shaking, fault rupture, and liquification. Natural Hazard Expansive Soil No Expansive soils are not considered a threat as the surface soil is sandy and expected to have a very low expansion potential, according to EVWD’s August 2018 Geotechnical Investigation. Natural Hazard Excessive Heat No Excessive heat can harm critical electrical equipment. However, outdoor equipment has not been damaged historically and EVWD can continue to meet operations during excessive heat. Natural Hazard Extreme Wind No Extreme wind can cause wildfires and power outages, which are included within the analysis separately. Natural Hazard Flood & Flash Flood Yes Flood events are recurring in the service area and have historically impacted access to critical infrastructure. A consequence of flash floods are mud and landslides, which can impact facilities along the foothills. Natural Hazard Hurricane No Hurricanes do not occur in EVWD’s service area. Natural Hazard Land Subsidence Yes The service area is in a United States Geological Survey (USGS) designated area of historic subsidence due to groundwater withdrawal18. Natural Hazard Lightning No Lightning can cause wildfires and power outages, which are included within the analysis separately. 18 Source: California USGS Land Subsidence Map: https://ca.water.usgs.gov/land_subsidence/california- subsidence-areas.html 42 Category Hazard Included? Description Natural Hazard Mud and Landslides No Mud and landslides are an issue for EVWD and are included as a consequence of flash floods, not as a separate event. Natural Hazard Severe Winter Weather No The climate in Southern California is not conducive to blizzards, ice and hailstorms, freezing temperature, and other winter weather conditions. Natural Hazard Tornado No The Planning Team does not consider tornadoes to be a significant natural hazard in the service area. Natural Hazard Tsunami No The service area is located inland and is not impacted by tsunamis according to the State of California tsunami inundation maps19. Natural Hazard Wildfire Yes Several critical facilities are located along the foothills of the San Bernardino National Forest. According to Cal Fire Hazard Severity Zone Maps20, portions of the EVWD service area are in very high fire hazard severity zones. Malevolent Threat Physical Adversary Yes Physical attacks on EVWD’s system can come from criminal activity motivated by financial gain or a local extremist group aiming to send a message through water contamination or gun violence. Physical attacks can also come from within an organization. A recent workplace violence incident occurred at a water utility in Virginia Beach, VA. Malevolent Threat Cyberattack Yes Cyberattacks can come from outside criminals or nation-states, an inside staff member likely motivated by financial gain, or can occur by accident. Proximity Hazard Hazardous Material Facilities & Pipelines Yes Hazardous material facilities and pipelines within a 3- mile radius of EVWD’s facilities could contaminate the surface or groundwater. This includes the former Norton Air Force Base, an EPA designated superfund site. Proximity Hazard Mining Operations No All local mining is for sand and gravel, which does not pose a threat to the water system. Dependency Hazard Loss of Power Yes EVWD is reliant on Southern California Edison (SCE) power to pump water throughout their system, particularly to residential and commercial customers in higher elevations. Dependency Hazard Loss of Critical Spares Yes EVWD operations could be impacted by a loss of critical spares, including membranes for surface 19 Source: Tsunami Inundation Map: https://www.conservation.ca.gov/cgs/tsunami/maps/Orange 20 Source: Cal Fire Very High Hazard Severity Zone Map: https://osfm.fire.ca.gov/media/5946/highland.pdf 43 Category Hazard Included? Description water treatment, earthquake valves, generators, and other equipment. Dependency Hazard Loss of Fuel No Fuel is necessary to run generators and fleet and is addressed in the “Loss of Power” section. Dependency Hazard Loss of Chemicals No EVWD relies on common and readily available chemicals for their operations. Chemicals are not carried forward as a dependency hazard because they are available through multiple suppliers and no historic incidents have occurred, leaving the District unable to treat surface and groundwater supply. 4.3 HAZARD PROFILE 4.3.1 Natural Hazards According to the Department of Homeland Security, “Natural disasters include all types of severe weather, which have the potential to pose a significant threat to human health and safety, property, critical infrastructure, and homeland security.”21 For communities and water utilities, natural disasters can cause insecurity, service disruption, and economic loss. The following natural hazards are addressed within this section. Note that climate change is considered for threats below as applicable.  Drought  Earthquake  Wildfire  Flood and Flash Flood  Land Subsidence The expected impact of climate change is addressed within each natural hazard profile. 21 Source: Department of Homeland Security Definition of Natural Disasters: https://www.dhs.gov/natural- disasters Local Mitigation Plan Regulation Checklist Requirement §201.6(c)(2)(i) and Requirement §201.6(c)(2)(ii). The Hazard Profiles cover the type, location, extent, previous occurrences and probability of future occurrence of all natural, man-made, and proximity hazards identified through the Hazard Identification process to be relevant to the District. This section also discusses each hazard’s impact, or consequence, to the service area population and District operations, and evaluates the District’s vulnerability within the context of each hazard. 44 4.3.1.1 Drought 4.3.1.1.1 Description Definition The USGS defines drought as “a period of drier-than-normal conditions that results in water-related problems.” Drought can result from a lack of precipitation and in time reduce soil moisture, surface water supply, and groundwater levels. Water shortage for human, wildlife, and ecological use can impact food production and growth. Dry conditions can also enable other natural disasters; soil hardening can worsen flash flooding and dried vegetation can become tinder for wildfires. During the past drought, EVWD saw reductions in the amount of water available for delivery by the State Water Project. The longer a drought continues, the more EVWD may depend on groundwater, which shows an overall decline in water level since the 1980s. Water levels in the groundwater basin fluctuate depending on droughts, variation in seasonal precipitation, and whether pumping rates are faster or slower than the recharge rate. Recharge occurs from precipitation, snowmelt, and the San Bernardino Valley Water Conservation District’s groundwater recharge project. Through SNRC, EVWD will contribute approximately 6 MGD to basin recharge efforts. The recharge rate will be consistent because SRNC recycles indoor water and wastewater. During a drought, conservation efforts are focused on reducing non-essential outdoor water usage and improving indoor water efficiency. Climate change, population growth, and the increasing instability of water supplies in the delta threaten to exacerbate the crisis. The US Drought Monitor 22 classifies drought accordingly; see Table 4-3. EVWD is concerned about severe, extreme, and exceptional (D2-D4) droughts that impact the District’s ability to meet 11 MGD which is the minimum supply needed for health, safety, and fire suppression. For non-agricultural individuals, impacts may include implementing restrictions and additional regulations, and potentially enhanced enforcement. Table 4-3. US Drought Monitor Classes, Category Description Potential Impacts D0 Abnormally Dry  Short-term dryness slowing planting, growth of crops  Some lingering water deficits  Pastures or crops not fully recovered D1 Moderate Drought  Some damage to crops, pastures  Some water shortages developing  Voluntary water-use restrictions requested 22 Source: US Drought Monitor: https://www.drought.gov/drought/ 45 Category Description Potential Impacts D2 Severe Drought  Crop or pasture loss likely  Water shortages common  Water restrictions imposed D3 Extreme Drought  Major crop/pasture losses  Widespread water shortages or restrictions D4 Exceptional Drought  Exceptional and widespread crop/pasture losses  Shortages of water creating water emergencies Location Drought impacts EVWD’s entire service area by decreasing available local and imported surface water and creating greater reliance on groundwater. The primary assets impacted are therefore the surface and groundwater supply. In addition, groundwater pumps may be damaged or require investment to extend deeper into the Bunker Hill Basin. If equipment is unused, additional maintenance may be required during periods of downtime. During the last drought, Valley District23 issued a guide to California’s new rules for water conservation on their website. California experienced the following conditions in 2015; according to Valley District, “groundwater levels are low, and the Sierra Nevada snowpack, which usually melts slowly over the summer to provide 33 to 50 percent of the state’s drinking water, is currently at only 6 percent of its historical average.” This loss of snowmelt typically impacts both surface and groundwater. The following hydrographs24 figures are from San Bernardino Basin Area (SBBA) wells pertaining to EVWD’s service area. The overall trend is a decline in groundwater levels since 1985, with six wells showing historically low water levels in the red recharge zone. This means the basin must be recharged. One well is in the green target zone and one well is in the blue no-recharge zone, indicating two of the eight wells have sustainable groundwater levels. 23 Source: Valley District State of the Drought: http://conserve.sbmwd.org/state-of-the-drought/ 24 Source: 2020 Regional Water Management Plan: https://www.sbvmwd.com/home/showdocument?id=6454 46 Figure 4-1. Hydrograph of Well at Plant No. 6 with Depth to Groundwater in the Recharge Zone 47 Figure 4-2. Hydrograph of Well at Plant No. 41 with Depth to Groundwater in the Recharge Zone Figure 4-3. Hydrograph of Well at Plant No. 9A with Depth to Groundwater in the Recharge Zone 48 Figure 4-4. Hydrograph of Well at Tri City with Depth to Groundwater in the Recharge Zone Figure 4-5. Hydrograph of Well at Plant No. 94 with Depth to Groundwater in the Recharge Zone 49 Figure 4-6. Hydrograph of Well at Plant No. 102 with Depth to Groundwater in the Recharge Zone One Well in the Target Zone Figure 4-7. Hydrograph of Well at Plant No. 27 with Depth to Groundwater in the Target Zone 50 One Well in the No Recharge Zone Figure 4-8. Hydrograph of Well at Plant No. 142 with Depth to Groundwater in the No Recharge Zone Extent EVWD is concerned about severe, extreme, and exceptional (D2-D4) droughts that impact the District’s ability to meet 11 MGD water supply mission criteria. The Planning Team described such an event as an acute drought lasting seven years or longer. However, declining basin levels indicate that EVWD is experiencing a 20-year chronic drought, which may impact EVWD’s ability to withstand shorter acute droughts in the future. 2018 rainfall and snowmelt helped with recharge, but not enough to reverse the downward trend shown in most wells. Industrial, agricultural, and manufacturing sectors heavily reliant on SBBA water will likely be impacted if they do not have an alternate source of water. The mission criteria are focused on meeting indoor water needs and fire flow, with a focus on vulnerable communities and other critical customers. Commercial activity is not on the priority list, so long-term drought is expected to have a significant regional economic impact. Future development could also be impacted if there is insufficient water supply to support projected population growth. To mitigate this, EVWD is continually working toward planning and implementing water efficiency measures so water supply exceeds demand for projected population growth scenarios. 51 4.3.1.1.2 Historic events Figure 4-9. San Bernardino Basin Area Precipitation Index The graph above in Figure 4-9 shows historic precipitation25 trends in the SBBA from the 1930s to present, including the target safe yield and historic low and high years. According to the Palmer Drought Severity Index26, drought has been severe to extreme in the following years since 1950:  1951  1959-1961  1972  1984  1987 25 Source: 2020 Regional Water Management Plan: https://www.sbvmwd.com/home/showdocument?id=6454 26 Source: Palmer Drought Severity Index: https://www.ncdc.noaa.gov/temp-and-precip/drought/historical- palmers/psi/195001-201911 52  1989-1991  1997  2000-2004  2007-2009  2012-2018 Figure 4-10. Snapshot of Extreme Drought in Southern California According to the San Bernardino County Hazard Mitigation Plan, the County declared a local drought emergency in 2014 in response to the most recent drought, which is considered the most severe in over 100 years. The overall observation from viewing monthly snapshots of the Palmer Index from 1950 to present day is that occurrences of drought are increasing in frequency and duration, yet have mid to extremely moist years in between. 4.3.1.1.3 Probability of Occurrence The probability of drought in any given year is high, due to the increasing frequency of drought events in the 20th century. However, the probability of a 7-year severe to 53 exceptional drought that would impact EVWD’s ability to meet service levels is low (1 percent), considering a drought of this nature has not historically occurred. 4.3.1.1.4 Vulnerability The service area will face similar degrees of drought due to the hazard’s regional nature. Utilizing the J100 worksheet, the service area is 20 percent (0.2) vulnerable to drought. The surface water supply is most vulnerable, followed by the groundwater supply. However, from June to November, EVWD has a 6-month per year guaranteed water supply agreement with the Bear Valley Mutual Water Company, which reduces vulnerability to water shortages, particularly during summer months. In addition, EVWD, Valley District, and other local agencies have developed a staged Regional Water Shortage Contingency Plan as part of the 2015 San Bernardino Valley Regional Urban Water Management Plan.27 This includes issuing water conservation rebates to incentivize customers to use efficient appliances. Also, EVWD plans to recharge the basin with recycled water once SNRC is online. The recharge rate should cover a portion of the 11 MGD mission criterium. During drought, EVWD will not incur asset recovery costs, as infrastructure should not be damaged. Additional operations and maintenance costs are possible, as mentioned in the ‘Location’ section above. Currently, the basin has enough water supply to meet mission criteria during typical droughts. EVWD is vulnerable to a severe/exceptional long-term drought, which although is unlikely, could prevent the District from meeting water supply service levels, require complying with enhanced regulatory requirements, and/or result in water rationing for all customers. 4.3.1.1.5 Consequence A severe/exceptional long-term drought can cause a water shortage, which has high financial and operational impacts. EVWD would need to find alternate sources of water, coordinate with other water agencies pumping water from the SBBA to conserve water and sustain service, execute the Water Shortage Contingency Plan to restrict water use in compliance with strict regulatory guidelines, and potentially change operations to extend pumps.  Alternate water sources to meet demand: During previous droughts, EVWD experienced substantial reductions in SWP water. Finding alternate sources, i.e. leasing water rights from farmers, can be exponentially more expensive. During a drought, the region at large is affected, driving up water prices. Valley District recommends EVWD maximally use entitlements to local surface waters, invest in 27 Source: 2015 San Bernardino Valley Regional Urban Water Management Plan / Regional Water Shortage Contingency Planning: https://www.sbvmwd.com/Home/ShowDocument?id=5660 54 treatment facilities, and undertake well drilling. However, surface water may not be available during a drought and well drilling would still contribute to further drawing down the basin.  Regional coordination during a water shortage: EVWD is one of several water agencies pumping from the SBBA and some of the other agencies are comparatively more reliant on groundwater. Coordination is required to meet minimum service levels, particularly for indoor water use, fire flow, and critical customers.  Regional Water Shortage Contingency Plan (The Plan) and regional impact: The Plan includes a staged approach to ration water and reduce demand. According to California Water Code Section 31029, violating the Ordinance can result in serious fines and penalties. The Plan impacts the service population by requiring behavioral change and buy-in to conservation efforts, particularly eliminating non-essential water use activities, like washing cars and maintaining lawns. Drought also has a significant regional economic impact. Businesses dependent on high water consumption could see a substantial increase in water bills. This has a ripple effect on the community, impacting business owner and employee income, regional goods and services, and the regional gross domestic product.  Operational changes: Workaround time and costs are in further extending pumps to reach a lower water depth. EVWD estimates this would increase costs at each pump station by 10 percent. However, a possible consequence of deep basin pumping is land subsidence, so a regional feasibility study may be needed to ensure the basin’s storage capacity is not permanently reduced. 4.3.1.1.6 Risk The overall risk of drought is high. According to the BTAC, the probability of a long-term severe/exceptional drought is low28, but EVWD is moderately vulnerable and the regional economic impact is considerable. Drought has the potential to impact future development. Further, droughts exacerbate other threats, including wildfires, flash floods, and mud/landslides. Climate Change Considerations: Climate change is expected to impact droughts, which have been increasing in frequency over the last two decades and lasting for longer durations than previous occurrences. The California’s Fourth Climate Change Assessment29 concluded that by 2100, water supply 28 Source: 2020 Regional Water Management Plan: https://www.sbvmwd.com/home/showdocument?id=6454 29 Source: California’s Fourth Climate Change Assessment: http://www.climateassessment.ca.gov/state/overview/#temperature 55 from snowpack is projected to decline by two-thirds. Further, water management practices are expected to experience challenges from extreme weather events, including hotter, dryer weather patterns. Equally, Valley District is continuously monitoring groundwater levels and planning for various scenarios, with a focus on recharging the basin when possible. Regional planning somewhat mitigates EVWD’s risk to a drought. Total mitigation from planning efforts is challenging as climate change increases uncertainty. Also, regional coordination will be crucial to ensure the area can sustain minimum service levels. See FEMA guidance30 for drought mitigation measures. 4.3.1.2 Earthquake 4.3.1.2.1 Description Definition An earthquake is a sudden, rapid shaking of the Earth caused by the breaking and shifting of rock beneath the Earth's surface. For hundreds of millions of years, the forces of plate tectonics have shaped the Earth as the massive plates that form the Earth's surface move slowly over, under, and past each other. Sometimes the movement is gradual. At other times, the plates are locked together, unable to release the accumulating energy. When the accumulated energy grows strong enough, the plates break free causing the ground to shake. Ground shaking from earthquakes can collapse buildings and bridges; disrupt gas, electric, water utilities, and phone service; and could trigger landslides, flash floods, and fires within EVWD’s service area. Buildings located on unstable soil are at risk and if an earthquake occurs in a populated area, could cause deaths, injuries, and extensive property damage. Location The San Andreas fault is within EVWD’s service area and most facilities are located between the San Jacinto and San Andreas fault lines (depicted in yellow lines below). Several critical facilities are on the San Andreas fault along the foothills of the San Bernardino National Forest. Because of the proximity to two major fault lines, earthquakes could damage 100 percent of EVWD’s water and wastewater facilities and water and sewer mains. 30 Source: FEMA Drought Mitigation Recommendations: https://www.fema.gov/media-library- data/1488477287215-9959f09d64e20592d5be3dfbef9c9af5/External-Report- Format_OGSI_Consolidated_Report.pdf 56 Figure 4-11. GIS image with EVWD facilities and earthquake fault lines Extent 1. According to the USGS Modified Mercalli Scale ( 57 Table 4-4), the appropriate earthquake threat level for EVWD is of 7.0 or greater magnitude. This threat level is expected to damage facilities and the distribution system and prevent EVWD from meeting mission criteria. 58 Table 4-4 Earthquake Magnitude and Associated Effects Magnitude Shaking Description / Damage 1 Not felt Not felt except by a very few under especially favourable conditions. 2 Weak Felt only by a few persons at rest, especially on upper floors of buildings. 3 Weak Felt quite noticeably by persons indoors, especially on upper floors of buildings. Many people do not recognize it as an earthquake. Standing motor cars may rock slightly. Vibrations like the passing of a truck. Duration estimated. 4 Light Felt indoors by many, outdoors by few during the day. At night, some awakened. Dishes, windows, doors disturbed; walls make cracking sound. Sensation like heavy truck striking building. Standing motor cars rocked noticeably. 5 Moderate Felt by nearly everyone; many awakened. Some dishes, windows broken. Unstable objects overturned. Pendulum clocks may stop. 6 Strong Felt by all, many frightened. Some heavy furniture moved; a few instances of fallen plaster. Slight damage. 7 Very strong Damage negligible in buildings of good design and construction; slight to moderate in well-built ordinary structures; considerable damage in poorly built or badly designed structures; some chimneys broken. 8 Severe Damage slight in specially designed structures; considerable damage in ordinary substantial buildings with partial collapse. Damage great in poorly built structures. Fall of chimneys, factory stacks, columns, monuments, walls. Heavy furniture overturned. 9 Violent Damage considerable in specially designed structures; well-designed frame structures thrown out of plumb. Damage great in substantial buildings, with partial collapse. Buildings shifted off foundations. 10 Extreme Some well-built wooden structures destroyed; most masonry and frame structures destroyed with foundations. Rails bent. 59 4.3.1.2.2 Historic Events According to the USGS31, four greater-than 7.0 magnitude earthquakes have occurred within a 200-mile radius of EVWD’s service area since year 1900. The greatest earthquake was the magnitude 7.9 San Francisco quake along the San Andreas fault in 1906. Figure 4-12. California Recent Earthquakes 4.3.1.2.3 Probability of Occurrence Figure 4-13 below shows the EVWD system between the San Andreas fault line in red and San Jacinto in orange. This data is from the California Working Group on Earthquake Probabilities.32 The Working Group was organized by the U.S. Geological Survey (USGS), the California Geological Survey (CGS), and the Southern California Earthquake Center (SCEC). Critical Tier 1 facilities along the San Andreas fault are designated with yellow pins. 31 Source: USGS Earthquake Map 32 Source: Google Earth Fault Lines with Probabilities: http://opensha.usc.edu/ftp/kmilner/ucerf3/ucerf3_timedep_30yr_probs.kmz 60 Figure 4-13. Critical Tier 1 Facilities Along the San Andreas Fault According to the Working Group on California Earthquake Probabilities, there is approximately a 20 percent chance that an earthquake with a 7.0 or greater magnitude will impact EVWD’s service area within the next 30 years.33 The annualized probability is therefore 1/30 years * 20 percent = 0.6667 percent chance of a 7+ magnitude earthquake impacting the service area in any given year. While the probability appears to be low, an earthquake along the San Andreas fault is overdue and could strike suddenly, without warning. Therefore, earthquakes are overall considered likely. Figure 4-14. Earthquake Probability Along the San Andreas Fault in EVWD’s Service Area 33 Source: Working Group on California Earthquake Probabilities: http://www.wgcep.org/UCERF3 61 4.3.1.2.4 Vulnerability AWWA J100-10 guidance recommends vulnerabilities for magnitude 7+ earthquakes as follows: 1 (100 percent vulnerable) for buildings constructed before 1988 and 0.8 (80 percent vulnerable) for buildings constructed after 1988. Arcadis conducted a site inspection to assess structural vulnerability for critical facilities located along the foothills, including Plants 134, 148, 149, 59, and 56. The facilities, regardless of age, were in overall good condition with adequate anchoring and support. However, due to fault line proximity, all assets within the service area are very vulnerable to a 7+ magnitude earthquake and will likely experience maximum ground shaking. A vulnerability score of 1 is applied to facilities along the San Andreas fault line and 0.8 to all remaining facilities in the service area. Water and sewer mains are considered vulnerable as well. According to EVWD’s 2019 Water System Master Plan, about half of all water pipeline material is asbestos cement, which according to the EPA 34 is classified as having moderate/high vulnerability to seismic activity. About one quarter of water pipes are ductile iron, with low/medium vulnerability and the last quarter are steel pipes, with vulnerability dependent on the joint type. According to the EPA, more than half of the drinking water pipe failures from the Kobe, Japan earthquake were from joints pulling apart. Also, wastewater pipes are more prone to damage, though may still be operational with some leakage. The community is very vulnerable to earthquakes, as they have the potential to significantly damage critical infrastructure and prevent EVWD from meeting mission criteria for months if not longer. Further, the community will be dealing with compounding issues beyond water. Homes, other utility services, and critical infrastructure could be damaged. 34 Source: Pipe vulnerability: https://www.epa.gov/sites/production/files/2018-02/documents/180112- earthquakeresilienceguide.pdf 62 Figure 4-15. Earthquake Vulnerability 4.3.1.2.5 Consequence EVWD expects maximum ground shaking and fault rupture. Liquification is possible, but the Regional Urban Water Management Plan35 says liquification risk is low. Ground shaking and fault rupture can economically burden EVWD and the community from asset repair/replacement costs, workaround costs, and loss of service. EVWD estimates two months for recovery time. During this time, EVWD may not be able to meet minimum water quality and quantity requirements.  Economic burden to EVWD: Earthquakes could damage 50-80 percent of building structures, wells, and other critical equipment along the fault, requiring costly asset repair/replacement. Newer buildings, i.e., SNRC and Headquarters, are estimated to sustain 10-15 percent damage. However, damage to water and sewer distribution assets results in the greatest consequence. An estimated 10 percent of water pipelines will be replaced and while the system is damaged, isolated areas may be without water service. Pipeline ruptures could also drain EVWD storage tanks. Damaged sewer lines could leak raw sewage, impacting 35 Source: BTAC Regional Water Management Plan: https://www.sbvmwd.com/home/showdocument?id=6454 63 human and environmental health. Workaround costs while repairing the system will likely be high; emergency management may include trucking in bottled water and/or delivering water with temporary trucks and storage tanks; cleaning up possible chlorine spills if Plants are damaged; running back-up generators for approximately 2 months or longer at Headquarters, Plant 134, and pump stations; costs associated with public relations and communication; other staff time to handle emergency operations.  Economic burden to the community: Water and wastewater services have notable ripple effects on the communities and businesses they serve. According to FEMA, water and wastewater services are respectively worth $105 and $49 per capita per day. EVWD estimates the entire service area, or 103,000 customers, could be impacted. The regional economic cost of losing water and wastewater services for two months is approximately $1 billion. Without these critical services, routine life is halted. Residents may be temporarily displaced and businesses – from restaurants to hospitals to industrial operations – may need to temporarily shut down or find alternate water sources and means to safely dispose of waste. In addition to economic consequences, EVWD estimate some staff fatalities and injuries, which could impact the District’s ability to carry out emergency operations. Note on consequence to wastewater services: The Sterling Natural Resource Center’s costs are currently estimated placeholders and will be updated once construction is complete. 4.3.1.2.6 Risk Earthquakes pose the greatest risk to EVWD’s service area relative to other threats, currently and in the future. Because of water and sewer line breaks, EVWD estimates that the total population – 103,000 customers – will be impacted in the event of a 7+ magnitude earthquake. The risk is high and potentially catastrophic, and one of the few risks EVWD expects will disrupt service for several months to the overall service area. Although the annual probability of occurrence is low, the vulnerability and consequence are so significant, that this threat surpasses EVWD’s risk tolerance. The annual probability therefore plays less of a role than the other risk factors due to the catastrophic nature, to EVWD and the community, should a major earthquake occur close to or within the service area. Once the repairs are complete, earthquakes don’t pose a direct risk to future population growth. 64 4.3.1.3 Wildfires 4.3.1.3.1 Description Definition A wildfire is an uncontrolled fire that occurs in forest wildland or brush covered areas. They can result from a variety of ignition sources including natural causes, such as Santa Ana Winds and lightning, or anthropogenic sources like arson and debris burning. While people play a role in igniting fires, the environment has become steadily more flammable due to more frequent droughts in the 21st century. As environmental conditions have shifted, population has grown, and urban areas have simultaneously expanded. Some people choose to live closer to nature, where natural vegetation meets homes and communities. These areas are called the Wildland-Urban Interface. Often, new residents are unaware of the higher wildfire risk and benefits from additional education efforts to enhance situational awareness. Controlled burns, essential for fire management, are less frequent due to impacts on residential areas near such natural settings. With fewer controlled burns dry brush has a tendency to accumulate, providing added fuel for wildfires. In nature, wildfires provide an important source of restoration for woodland communities with many plant and animal species depending on their regular occurrence. However, for many California communities, these fires are natural hazards that can indiscriminately spread throughout an area. For EVWD, wildfires usually occur in the San Bernardino Mountains and travel down the foothills into the service area. Extent According to CalFire36, sections of the Cities of Highland and San Bernardino along the foothills are within “Very High Fire Hazard Severity Zones” shown in red below. Many of EVWD’s critical facilities are located along the foothills. During wildfires, the District has limited or no access to these facilities, which can impact service. 36 Source: Cities of Highland and San Bernardino Wildfire Threat Level: https://osfm.fire.ca.gov/media/5946/highland.pdf 65 Figure 4-16. City of Highland Wildfire Severity Zone in Local Responsibility Area 66 Figure 4-17. City of San Bernardino Wildfire Severity Zone in Local Responsibility Area Location The following EVWD facilities are located within the very high hazard zones: Plants 37, 59, 69, 99, 101, 129, 131, 134, 140, 142, 148, 149, and Headquarters. While these facilities are at highest risk, other facilities could be impacted as well depending on the wildfire. Buried pipes should be protected underground, but new pipeline constructed with PVC material could potentially melt, as happened in the 2018/2019 wildfires in Sonoma County. 67 Figure 4-18. Critical Facilities Along the Foothills 4.3.1.3.2 Historic Events Wildfires occur annually in Southern California, typically after long, dry summers in the autumn months, triggered by manmade causes or the Santa Ana Winds. According to the USGS 37 , “Santa Ana Winds are a natural phenomenon in Southern California that contributes to the region’s fire ecology.” The winds are most common from October through March. High pressure builds in Nevada’s Great Basin, cold air sinks, and is directed toward the gap in local mountains. As the air moves downslope, it warms, which drops relative humidity. The result is a fast moving, warm to hot, dry wind capable of sparking and spreading wildfires. According to CalFire38, the following wildfire incidents occurred within about 10 miles of EVWD’s service area, with several reaching the service area and damaging residences. Historic wildfires have not caused structural damage to EVWD assets but have scorched metal fences. During the 2003 “Old Fire”, EVWD issued a boil water order because of loss of pressure to a part of the system. 37 Source: USGS Santa Ana Winds: https://www.usgs.gov/media/images/santa-ana-winds 38 Source: Cal Fire Incidents: https://fire.ca.gov/incidents/IncidentSearch?q=san+bernardino+2015 68 Table 4-5. Five-Year Wildfire History Name Location Start Date Acres Mill 2 Fire Mill Creek Rd and Bryant St, east of Mentone 7/12/2015 54 Sterling Fire In service area: Sterling Avenue x Foothill Drive East 6/25/2015 100 Bryant Fire Bryant Street at Hwy 38, City of Yucaipa 8/3/2017 325 Mart Fire In service area: Highland Ave and City Creek Road, Highland 6/27/2017 670 Bridge Fire In service area: off Greenspot Rd and Santa Ana Canyon Rd, Highland 7/14/2017 460 Hidden Fire In service area: Hwy 330, 1 mile north of Highland 7/12/2017 46 Seine Fire In service area: off Piedmont Drive and Seine Avenue, Highland 7/22/2017 20 Mile Fire In service area: Hwy 18 x Old Waterman Canyon Rd., 1 mile south of Crestline 7/31/2017 100 Little Mountain Fire University Pkwy. and Varsity Ave., San Bernardino City 12/5/2017 260 Gray Fire Muscoy 7/13/2018 12 Sterling Fire Sterling Ave and Foothill Dr, City of San Bernardino 8/31/2018 125 Old Water Fire Near Old Waterman Canyon Road and Hwy 18. 10/24/2019 145 Hillside Fire Off of W 59th and Hill Dr, in San Bernardino National Forest 10/31/2019 200 4.3.1.3.3 Probability of Occurrence The probability of wildfire occurrence is highly likely (60 percent) as several wildfires occurred within or close to the service area in every year except for 2016. Santa Ana Winds occur annually and increase wildfire risk. 4.3.1.3.4 Vulnerability and Consequence EVWD and the community are vulnerable to wildfires. As mentioned in the ”Location” section, facilities along the foothills are most vulnerable. Of these, the following facilities have a greater consequence if unavailable: 69  Plant 134: EVWD’s only surface water treatment plant is located along the foothills. As the homeless crises continue to grow in California, fire risk could increase if fires built for cooking and warmth grow uncontrollable. A small homeless population is known to find refuge in the foothills. Plant 134 is therefore vulnerable to both anthropogenic and naturally occurring wildfires. Without Plant 134, EVWD cannot treat surface water from the SWP or the Santa Ana River, which is currently 20 percent of the total supply. This loss of water could strain EVWD 1) financially with unexpected capital costs to recover the Plant and 2) operationally by forcing a greater reliance on groundwater. The operational impact would be highest during a drought, when EVWD is conserving groundwater resources and relies more on surface water.  Facilities with hydropneumatics systems: Located along the foothills and provide water to customers at higher elevations. The hydropneumatics systems are single points of failure, with each providing water to between 35-70 homes. If compromised, these homes would lose water services until the hydropneumatics systems were repaired/replaced.  Regarding the distribution system: depressurized pipelines, or a pressure-loss event, has occurred and could occur again during a wildfire from several causes – a power outage, leaking storage reservoirs, broken water mains, and other system disturbances. A pressure-loss event could cause backflow, allowing contaminants to enter the drinking water system. Water quality may be compromised and could impact human health, causing injuries and potentially fatalities. EVWD would work to restore pressure, flush the lines, disinfect the system, and monitor for contaminants, but these efforts may not be possible if critical facilities are not available. For customer safety, EVWD is prepared to issue a boil water order; duration may vary depending on wildfire damage. EVWD and the community face high costs to recovering from wildfires. EVWD would need to invest in capital projects to recover lost assets, and water quality and quantity may be compromised for portions of the service area. Community members may lose their homes or businesses. One notable vulnerability mitigating factor is that the fire department responds quickly to emergencies to contain and suppress fires. For this reason, the District’s assets range in their vulnerability to wildfire (0.05 to 0.3). However, the fire department may be reliant on EVWD’s hydrants for firefighting. Further coordination may be needed so water and fire departments can successfully respond to a wildfire event. Table 4-6 summarizes consequences to infrastructure, the environment, humans, vegetation, and the economy: 70 Table 4-6. Wildfire Consequences Infrastructure Environment Human Vegetative Economic Power outages Erosion Fatalities and injuries Crop damage Business disruption Water/gas/communication line disruption Wildlife destruction Smoke inhalation Tree damage Property loss Road closures Habitat loss Human evacuation Species endangered Suppression cost Roadway destruction Species endangered Animal evacuation Invasive species increased Revenue loss Water and air pollution 4.3.1.3.5 Risk Wildfire risk is high for EVWD with an annual likelihood of occurrence, moderate vulnerability for several critical assets, and high consequence to the District and community. Vulnerability is slightly reduced because fire departments respond quickly. This indicates that fire management in the area is experienced with handling the events. However, wildfire risk is expected to increase in the future. Climate Change Considerations California EPA released a 2018 climate change report39 stating that the five largest fire years since 1950 occurred in 2006, 2007, 2008, 2012, 2015. The study had only preliminary data on 2017 at the time, but estimated 2017 was the second largest fire year in terms of acreage. Another study summarized by the California’s Fourth Climate Change Assessment 40 concluded that by 2100, the average temperature is projected to increase by 5.6 to 8.8 degrees Fahrenheit assuming business-as-usual greenhouse gas emission levels. Conclusively, hotter temperatures could increase the frequency of extreme wildfires within Southern California. 39 Source: CalEPA Climate Change Report: https://calepa.ca.gov/2018/05/09/impacts-of-climate-change- in-california-significant-and-increasingly-stark-new-report-says/ 40 Source California’s Fourth Climate Change Assessment: http://www.climateassessment.ca.gov/state/overview/#temperature 71 4.3.1.4 Floods & Flash Floods 4.3.1.4.1 Description Definition FEMA defines flooding as “a general and temporary condition of partial or complete inundation of normally dry land areas from the overflow of inland or tidal waters or the rapid accumulation of runoff of surface waters from any source.” However, all floods are not alike. Some floods develop slowly, sometimes over a period of days. But flash floods can develop quickly, sometimes in just a few minutes and without any visible signs of rain. Flash floods often have a dangerous wall of roaring water that carries rocks, mud, and other debris and can sweep away most things in its path. Even very small streams, gullies, creeks, culverts, dry streambeds, or low-lying ground that appears harmless in dry weather can flood. If the rainfall intensity exceeds the evaporation rate and infiltration capacity of the soil, surface runoff occurs. It also occurs when rainfall hits impervious surfaces, such as roadways and other paved areas. Water flows across the surface as either confined or unconfined flow. In an undeveloped area, the water runoff system is provided by nature. In ever increasing urban areas flooding has necessitated the need for new or upgraded drainage systems. Other natural hazards like drought and wildfires can impact flooding. Even a little precipitation after a wildfire can cause mud and landslides, partly because vegetation that would normally absorb water has been burned off and partly because post-wildfire soils are erodible. The result is a torrent of water, soil, and rock with damaging downstream impacts on roads and potentially infrastructure. The following are several terms that are relevant to flooding and important for citizens to know:  Flood Watch: Flooding is possible. Tune in to NOAA Weather Radio, commercial radio, or television for information.  Flash Flood Watch: Flash flooding is possible. Be prepared to move to higher ground; listen to NOAA Weather Radio, commercial radio, or television for information.  Flood Warning: Flooding is occurring or will occur soon; if advised to evacuate, do so immediately.  Flash Flood Warning: A flash flood is occurring; seek higher ground on foot immediately. Location and Extent Flood Zone A and AE have areas with a 1 percent annual chance of flooding and a 26 percent chance of flooding over the life of a 30-year mortgage. These are classified as high-risk areas and should be considered significant if a facility lies within the flood zone. 72 Areas surrounding bodies of water are more prone to flooding, depending on the topography. The facilities in Table 4-7. are within a 0.5-mile radius of Flood Zone A or AE. The facilities in bold are directly within Flood Zone A or AE as shown on the map in Figure 4-19. Table 4-7. Facilities Within a 0.5-mile Radius of Flood Zone A or AE Facility Flood Zone Sterling Natural Resource Center Plant 11 Plant 12 Plant 25 Plant 27 Plant 28 Plant 33 Plant 34 Plant 37 Plant 39 Plant 40 Plant 56 Plant 107 Plant 125 Plant 127 Plant 130 Flood Zone AE Sterling Natural Resource Center Plant 11 Plant 12 Plant 24 Plant 25 Plant 27 Plant 28 Plant 34 Plant 37 Plant 40 Plant 56 Plant 59 Plant 107 Plant 129 Plant 130 Plant 134 Plant 141 Plant 142 Plant 143 Plant 146 Plant 147 Plant 151 Flood Zone A 73 Figure 4-19. FEMA Flood Hazard Map, Adoption date: October 17th, 2019 4.3.1.4.2 Historic events Historic events are pulled for Highland and San Bernardino from the NOAA Storm Events Database.41 Floods:  December 2010: EVWD lost road access to Plant 134 during a 2010 flood event and received FEMA funding to build a bridge over the lowland area where water typically accumulates during heavy rains and flash floods.  September 2015: Various Southern California counties experienced heavy rainfall and flooding, and debris flow from Silverado Canyon. A tropical cyclone moving 41 Source: NOAA Storm Events Database: https://www.ncdc.noaa.gov/stormevents/choosedates.jsp?statefips=6%2CCALIFORNIA 74 through the West Coast caused the flood. Two homes in the San Manuel Indian Reservation sustained damages. Flash Floods:  October 1997: Localized heavy rain developed over the San Bernardino Mountains. Between 1.5 and 2.0 inches of rain fell on a recently burned area southwest of Running Springs. Most of the rain fell in less than one-hour, loosening debris and soil on Holcomb Hill, which flowed into and blocked drainage through box culverts. The result was a six-foot wall of mud, debris and water flowing over cars, roads, and homes. In all, 27 homes, an apartment complex, Aquinas High School, and 14 automobiles were damaged. Total estimated losses exceeded $2.5 million.  February 2004: Thunderstorms with heavy rain caused flooding and mud slides along the foothills of the recently burned area. Then, two days later, 12 to 25 inches of snow fell over the San Bernardino mountains and between 1.6 to 3.2 inches of heavy rain fell over the lower elevations. This caused flash flooding and mudslides along the lower slopes, foothill, and out into the valley floors and desert areas.  September 2004: Flash flooding caused road closures due to downed power lines and debris in the roadway.  October 2004: Heavy rains over the San Bernardino Mountains caused a torrent of mud and water to run down Lytle Creek, depositing more than three feet of mud on Glen Helen Road and Lytle Creek. One car was swept away, and one fatality resulted from the fast-moving mud and floodwater.  December 2004: Heavy rain during a major storm caused mud and rockslide in upper Waterman Canyon and flooding in Lytle Creek and Hesperia.  January 2005: A 35-year-old pregnant woman was swept away by a flash flood in City Creek. The creek rose very quickly from a trickle to a 6-feet deep torrent when a blockage upstream finally gave way. Her car was swept 2 miles downstream, and her body was recovered two days later.  October 2006: Rain and hail formed over San Bernardino, damaging 18 homes and business and 2 vehicles. An 8-feet-wide x 75-feet-long x 4-foot-deep water hole cut off access to Electric Road. Mud and boulders covered streets when flood water receded. There were no reported injuries.  August 2014: Heavy rains over the San Bernardino Mountains caused mud and landslides, causing road damage and closures. 25 homes were damaged, costing about $11 million county-wide. 75 4.3.1.4.3 Probability of Occurrence Overall, a flood event is likely (60 percent), with a notable event occurring every few years. Drought and wildfires reduce soil infiltration and increase chances of flash floods. Flash floods are more likely than floods, and either event is more likely to occur in the fall or winter months. Flash floods can cause mud and landslides due to EVWD’s proximity to the foothills. The USGS map42 below shows the likelihood of mud and landslides. High elevation areas in the San Bernardino Mountains indicate landslides are probable or likely. Historically, mud and landslides have flowed down the foothills and into EVWD’s service area. Figure 4-20. Mud and Landslide Likelihood 42 Source: USGS Landslide Map: https://usgs.maps.arcgis.com/apps/webappviewer/index.html?id=ae120962f459434b8c904b456c 82669d 76 4.3.1.4.4 Vulnerability EVWD has historically provided water services during floods, flash floods, and resulting mud and landslides. Therefore, EVWD’s vulnerability is low (0.1 to 0.2). According to historic events, road access can become blocked or limited from mud, debris, rapidly moving water, and/or large water pools. However, road access is typically cleared within a few days, and the flood events should not uniformly impact the service area due to varying topography. Of the facilities within Flood Zone A, Plant 134 is the most critical, and EVWD has already mitigated loss of road access by building a bridge. Losing one or two of the remaining facilities in the Flood Zone should not impact EVWD’s ability to meet mission criteria. However, EVWD could be vulnerable if several single access roads to critical facilities are inaccessible. The maps below highlight roads required to access facilities and show Tier 1, 2, and 3 critical facilities. Road access to critical plants in the floodplain should be prioritized for road clearing. Figure 4-21. Tier 1 Critical Single-Access Roads Table 4-8. Tier 1 Critical Roads Plant Street Name Start End Headquarters Greenspot Rd. Church St. Headquarters 39 Date St. Valaria Dr. End of Date St. 56 Hemlock Dr. Willow Dr. Shasta Dr. 59 Hemlock Dr. Willow Dr. Aspen Dr. 99 La Praix St. 28th St. Plant 99 101 Seine Ave. Diablo Rd. Mountain Top Dr. 129 Vista Clara St. Santa Angela St. Calle Del Rio St. 134 Highland Ave. Summertrail Pl. City Creek Rd. 143 Abbey Way Merris St. Plant 143 77 Plant Street Name Start End 148 Highland Ave. Church St. Base Line 149 Cloverhill Dr. Easton Ln. Marcus Ln. Figure 4-22. Tier 2 Critical Single-Access Roads Table 4-9. Tier 2 Critical Roads Tier 2 Critical Roads Plant Street Name Start End Plant 24 Harrison St Del Norte Dr E Lynwood Dr Plant 28 Court St S. Del Rosa Dr Del Rosa Ave Plant 33 Sterling Ave Edgemont Dr Marshall Blvd Plant 34 Street to Plant E. Highland Ave Plant 34 Plant 108 Crest View Lane Hillcrest Ct Fairwood Lane Plant 132 San Francisco St Fresno St Sparks St Plant 140 Pleasant View Lane Evans Lane Van Leuven Lane Plant 141 Third St Sterling Ave Lankershim Ave Plant 146 Old Greenspot Road Church St Merris St Plant 147 Abbey Way Merris St. Plant 147 Plant 151 Sixth St Sterling Ave Lankershim Ave 78 Figure 4-23. Tier 3 Critical Single-Access Roads Table 4-10. Tier 3 Critical Roads Tier 3 Critical Roads Plant Street Name Start End Plant 11A / 12 Pedley Rd Ward St Sixth St Plant 37 Road to Plant Foothill Dr Plant 37 Plant 40 E Third St Palm Ave Plant 40 Plant 125 Greenspot Rd Church St Plant 125 Plant 142 Santa Ana Canyon Rd N. Fork Rd Marianne Lane Local Mitigation Plan Regulation Checklist (Requirement §201.6(c)(2)(ii)) and (Requirement §201.6(c)(3)(ii)) The District maintains private flood insurance and does not insure assets through the NFIP, nor does the district have facilities which qualify as Repetitive Loss (RL) or Severe Repetitive Loss (SRL) properties. Nevertheless, RL and SRL properties likely exist within the District’s service area. This information is protected and thus details are not directly available to the District. According to the 2017 County of San Bernardino Multi- Jurisdictional Hazard Mitigation Plan, 12 RL properties exist throughout the County. Most of the RL properties within the County are in high, localized mountain areas due to debris flow, which could be located within the District’s service area.1 EVWD will continue to review and design mitigation projects in accordance with NFIP requirements as appropriate. 79 4.3.1.4.5 Consequence As mentioned above, EVWD may not have road access to one or more facilities for several days until roads are cleared of debris. Because the SCADA system can be operated from multiple locations, operations should not be impacted and EVWD expects to continue water services. However, flood events could damage building envelopes and/or critical assets within facilities, resulting in unbudgeted asset recovery costs. The community may be impacted, as flash flood events have caused fatalities, injuries, and/or damages to homes and businesses. The most expensive flood event within the last 10 years cost San Bernardino County approximately $11 million. Overall, the consequence of a flood, flash flood, or resulting mud/landslide is medium-low. 4.3.1.4.6 Risk Although flood events are likely, the vulnerability and consequence are relatively low. EVWD may increase coordination with road services to prioritize removing debris from roadways required to access their facilities. However, the overall risk to the community and EVWD is tolerable. Mud and landslides can be dangerous but are not expected to disrupt water or wastewater services to the community. Real-estate developers should review historic events and further evaluate land within flood zones and along the foothills prone to mud and landslides. Climate change considerations Flash floods, mud, and landslides are linked with drought and wildfires. See “Drought’ and “Wildfire’ sections for climate change considerations. Droughts and wildfires are expected to increase in frequency. Flash floods, mud, and landslides could as well. While the probability of occurrence may increase, EVWD’s vulnerability and consequence are not expected to change. The risk should therefore not increase from climate change, as low vulnerability and consequence are consistently low. 4.3.1.5 Land Subsidence 4.3.1.5.1 Description Definition According to the USGS, land subsidence can result from excessive groundwater pumping. Over-pumping causes groundwater levels to decline, aquifer-system compaction, and land subsidence. The consequence is permanent aquifer-system storage loss. The causes of land subsidence in California are groundwater pumping, peat loss, and oil extraction. In the 1970s, the San Joaquin Valley experienced historic subsidence rates of more than 1 foot per year. The Bunker Hill Basin has not experienced notable subsidence 80 and EVWD is working toward increasing aquifer recharge efforts as a preventative measure. Further, EVWD has diversified water sources to include surface water in addition to groundwater. Valley District and Western Municipal Water District are the basin Water Masters and oversee basin depth management. Because EVWD is not directly responsible for the basin, land subsidence is not included in the risk model but is included within this report, as EVWD will face consequences and can contribute with recharge efforts. Location The USGS map43 in Figure 4-24 identifies EVWD’s service area as susceptible to land subsidence if pumping becomes excessive. Land subsidence is typically possible in areas reliant on groundwater. Figure 4-24. Potential Areas of Land Subsidence Due to Groundwater Pumping In the 2020 Regional Urban Water Management Plan, the Basin Technical Advisory Committee (BTAC) provided an inconclusive analysis of subsidence risk. In the report, BTAC states that “risk areas for subsidence in the SBBA would be classified as any area where a clay layer has been dewatered below the lowest recorded water level”. The map below shows areas with water levels below historically low 1965 levels. The section line 43 Source: California USGS Land Subsidence Map: https://ca.water.usgs.gov/land_subsidence/california- subsidence-areas.html 81 is outside EVWD’s service area, but several subsidence risk areas shaded in red are within EVWD’s service area. Figure 4-25. Subsidence Risk Areas in the SBBA Extent Extensometers measured land subsidence in California from 1926-1970 44 . Over the course of 44 years, the low end of subsidence was 0.007 meters per year, or around 0.3 inches per year. At the high end, subsidence was greater than 0.19 meters per year, or greater than 7.6 inches per year; at points in the San Joaquin Valley, around one foot per year. Efforts are in place to monitor and prevent Bunker Hill Basin subsidence since damage is irreparable. 44 Source: Central Valley Land Subsidence: https://www.usgs.gov/centers/ca-water-ls/science/land- subsidence-san-joaquin-valley?qt-science_center_objects=0#qt-science_center_objects 82 Figure 4-26. Land Subsidence in the Central Valley from 1926 to 1970 4.3.1.5.2 Historic Events There are no known historic events of land subsidence in EVWD’s service area. 4.3.1.5.3 Probability of Occurrence The probability of land subsidence overtime is correlated with drought (1 percent). If drought persists, the aquifer is not recharged, and water demand exceeds supply for several years, then EVWD could experience land subsidence. Though the District is not a member of the Chino Basin, water management rationale from the 2015 Chino Basin Subsidence Management Plan is applicable as a general statement: “Pumping of the deep aquifer system causes groundwater-level decline that is much greater in magnitude and lateral extent than groundwater-level decline caused by pumping of the shallow aquifer system45.” This means that if EVWD extends wells into the deep aquifer system, then the probability of land subsidence is expected to increase. 45 Source: Chino Basin Subsidence Management Plan: http://www.cbwm.org/docs/engdocs/Land%20Subsidence/20150724%20-Source: 83 4.3.1.5.4 Vulnerability Valley District’s basin monitoring and recharge efforts are ongoing. EVWD may be moderately vulnerable to land subsidence. Water and sewer pipes may be vulnerable to leaks and breaks. Groundwater recharge and water conservation efforts lower vulnerability, while drought years could increase vulnerability, particularly if EVWD extends wells deeper into the aquifer system. Permanently losing groundwater storage capacity is the worst-case scenario. The community has low vulnerability to land subsidence, approximately 20 percent. Subsidence is dependent on geology, so likely wouldn’t impact the service area consistently. Areas shown in red in Figure 4-26 above are more vulnerable than others. Subsidence may impact some foundations for homes and businesses. However, subsidence occurs slowly and will likely never reach the rate of the San Joaquin Valley in the 1970s. Overall, EVWD can still provide water and wastewater services to the community. 4.3.1.5.5 Consequence Subsidence would likely occur in the darker red subsidence risk areas shown in Figure 4-26. If subsidence did occur in those areas, the cost over time to repair building foundations and pipes could be significant. In addition to infrastructure, the aquifer-system is vulnerable to permanent storage loss, which poses the highest consequence. Groundwater is 80 percent of total water supply. As mentioned in the ‘probability of occurrence’ section, pumping water from greater depths increases the likelihood of subsidence. If storage is lost and the upper layer of the aquifer subsides, then EVWD would need to extend wells deeper, further increasing the risk. Once subsidence occurs, the basin has increasingly higher chances of subsidence worsening and of further storage loss. Therefore, conditions that enable subsidence should be monitored and prevented when possible. 4.3.1.5.6 Risk The probability of subsidence is low enough that land subsidence is within EVWD’s risk tolerance. However, the consequence is high if subsidence does occur. Because the Water Master’s report was inconclusive, risk is currently unclear. Still, the Water Master is actively monitoring for and prepared to act with any indication of subsidence and EVWD will continue to support the BTAC’s efforts to manage the basin. 4.3.2 Malevolent Threats Malevolent adversaries can come from outside or inside the organization and inflict physical or cyber damage to critical assets. 84 4.3.2.1 Physical Insider and Outsider Threats 4.3.2.1.1 Description To determine the threat level, EVWD evaluated the physical outsider threat spectrum below and selected “Local Extremist Group” as the worst probable outcome. Local Extremist Groups may contaminate water or engage in gun violence. Vandals and criminals are also considered in the risk analysis as they could damage EVWD facilities. Criminals who target EVWD facilities could be motivated to steal scrap material and copper wire – resalable materials. They may be less incentivized to damage equipment. EVWD estimates they can still meet mission criteria if equipment (i.e., booster pumps, the treatment equipment, and raw and treated water pipes) is damaged. The top concerns are gun violence followed by surface water contamination. EVWD also evaluated the physical insider threat spectrum, which includes EVWD employees, contractors, and vendors. EVWD selected “Disgruntled (Revenge)”, assuming the worst probable case would be an employee or ex-employee seeking revenge and engaging in possible gun violence. The threat level increases with adversary sophistication. 4.3.2.1.2 Historic Events EVWD has historically experienced threats on personnel from disgruntled customers and an incident involving arson by a physical outsider at the Del Rosa yard. Neither incident resulted in fatalities or injuries, but the building sustained major damage and many permanent records were destroyed. The incidents prompted EVWD to improve physical security at District facilities. While not occurring at EVWD, the 2015 San Bernardino terrorist attack at the San Bernardino County Department of Public Health Christmas Party resulted in 14 fatalities and 22 injuries. The attack consisted of gun violence and attempted bombing at the Inland Figure 4-27. Physical Outsider Threat Spectrum Figure 4-28. Physical Insider Threat Spectrum 85 Regional Center in San Bernardino. This incident is an example of workplace violence at a public agency. 4.3.2.1.3 Probability of Occurrence In July 2019, the EPA issued updated guidance for estimating the likelihood of a malevolent act on water systems. See Appendix E EPA Guidance on Malevolent Threats for further details. However, the Planning Team chose a more conservative approach to threat likelihood calculations for malevolent acts. Because threat is one factor within the larger risk equation, if threat likelihood is five orders of magnitude less than other factors (i.e. vulnerability and consequence), the risk of physical attack becomes negligible, which does not pass the Planning Team’s sense check. The guidance issued by the EPA recommends the probability of an attack on EVWD as 10e-6 percent, estimating one attack (physical assault that disables infrastructure and terrorizes staff) per 10 years among the 100,000 water utilities within the United States. EVWD believes the increasing frequency 46 of shootings warrants a higher likelihood, especially given historic incidents at EVWD and since two shootings at municipalities have occurred in the last ten years, on May 31, 2019 in Virginia Beach and on August 5, 2013 in Saylorsburg Pennsylvania. The Planning Team therefore selected the following likelihoods for physical threats:  Physical Outsider (extremist – active shooter, contamination): 0.1 percent, which is twice as likely as the EPA guidance.  Physical Outsider (criminal or vandal): 10 percent, once every 10 years based on EVWD’s history dealing with local criminal activity.  Physical Insider (active shooter): 1 percent, once every 100 years based on the increased frequency of workplace shootings. 46 Source: Mass Shooting Incidents in the United States: https://www.statista.com/statistics/811487/number-of-mass-shootings-in-the-us/ 86 Figure 4-29. Mass Shooting Incidents in the United States from January 1982 to August 2019 4.3.2.1.4 Vulnerability For physical security, the vulnerability analysis answers: “How effective is the existing security system and building design at protecting each of the critical assets against identified threats?” Physical vulnerability is measured by the existing deterrence, detection systems, delay features and the response measures. The Planning Team used a five-point scale from low to very high vulnerability (L, LM, M, H, HH) and accordingly assigned numbers from 0.1 to 0.9. Vulnerability scores were provided by the J100 methodology (see Appendix F in the J-100 Methodology) and subject matter experts according to best judgement. To evaluate physical security, Planning Team members and Arcadis conducted site visits. The following facilities were evaluated:  Headquarters  Plant 134  Plant 39 87 A detailed summary is in Appendix G Physical Security Assessment. Overall, EVWD facilities vary in countermeasures. The most protected facilities are Headquarters, SNRC, and Plant 134. Headquarters and SNRC have or will have security features to protect staff, including gated staff parking and badge entry. Plant 134 has a security guard 7 days a week at night with random start/stop times in case a criminal/local extremist is monitoring the facility. EVWD is also updating fencing at Plant 134 and SNRC. However, all field sites rely on the same master lock and Plant 134 uses a pin code. Because the pin code and locks have not changed in several years, most Plants are accessible and therefore vulnerable. Contract maintenance personnel and landscapers have access and retired / terminated staff may as well.  Deterrence: varying lighting and signage  Detection: varying video surveillance and alarm systems, and access-controlled doors  Delay: fencing around the circumference (often barbed wired)  Response: police response time ranges from a few minutes to much longer depending on the location; Plant 134 has an onsite security guard at night. EVWD has consistently been improving security measures. The scores for physical insider and outside threats ranged from 0.1 to 0.9. Therefore, vulnerability is moderate, as some facilities are well protected while others are vulnerable to vandalism and criminal activity. However, EVWD operations are still vulnerable to sophisticated physical adversaries outside and inside the organization. 4.3.2.1.5 Consequence and Risk The consequence and risk to EVWD is highest for gun violence from a physical outsider or insider. The insider will have greater access to the administration buildings and could cause more damage. Staff fatalities and injuries mean the District could lose key staff needed to perform unique functions within the organization. Also, the psychological impact of workplace violence is substantial. Employees may fear coming to work and suffer from post-traumatic stress disorder. The process of recovering from such trauma make take years and EVWD may experience staff turnover. As a relatively small organization, losing staff could impact operations and business continuity. The highest consequence and risk to the region is a surface water contamination event. Groundwater wells are difficult to access, so are not vulnerable to a malevolent contamination event. Accidental groundwater plumes move slowly and EVWD closely monitors and immediately responds to these events. Therefore, EVWD is concerned with accidental or malevolent surface water contamination from the Santa Ana River, the State Water Project, or within the distribution system. Backflow contamination is also possible and difficult to trace. Water contamination would impact public health and potentially 88 cause fatalities and injuries. EVWD could face regulatory fines and lose public confidence. The regional impact depends on the type and extent of contamination. 4.3.2.2 Cyber Insider and Outsider Threats 4.3.2.2.1 Description Cyber threats can impact operations and the organization by targeting SCADA, IT, Finance, communication systems, sensitive/critical documents, and key staff. According to the Director of National Intelligence, the Federal Bureau of Investigation (FBI), and the Department of Homeland Security (DHS), cyber risk is the top threat facing business and critical infrastructure in the United States. A recent AWWA report titled “Cybersecurity Risk & Responsibility in the Water Sector”47 summarizes recent cyberattacks on water systems and the consequences. According to the report, a March 2018 technical alert from the FBI and DHS warned of a multi-stage intrusion campaign by Russian government cyber criminals who are targeting the US water sector in addition to other sectors. This means all water utilities should be aware of, and if possible, prepared for nation-state attacks on business continuity systems. The consensus is that nation-state cyber criminals are gathering access and intel but will likely only attack in the event of war between the United States and the nation-state. Water systems across the country have increasingly experienced cyberattacks, with tactics including phishing, malware, ransomware, tampering with Industrial Control Systems, manipulating valve/flow operations and altering chemical treatment formulations. Social engineering attempts lure employees into clicking links or opening attachments that contain malware. Cyberattacks can occur from anywhere in the world, so proximity and specificity are not limiting factors. The internet allows malevolent adversaries in any geography to use automation to probe networks and randomly find vulnerabilities. Cyber criminals can therefore fall anywhere on the threat spectrum, from vandal/criminal looking for financial gain to nation-state attempting to undermine the U.S. critical infrastructure in wartime.  Regarding the cyber insider: the insider can include EVWD staff as well as vendors/contractors. There are only 1-2 internal staff capable of executing a sophisticated attack, and they are unlikely to do so. However, EVWD contracts out SCADA management, and is currently updating policies around vendor access and controls. 47 Source: AWWA Cybersecurity Risk and Responsibility in the Water Sector: https://www.awwa.org/Portals/0/AWWA/Government/AWWACybersecurityRiskandResponsibility. pdf?ver=2018-12-05-123319-013 89 4.3.2.2.2 Location The following assets were identified as critical: IT/OT systems  GIS: This system houses critical location information for all EVWD’s operations technology assets.  Data Center: Houses mission critical operational, financial, administrative assets, i.e., servers, information storage systems and critical network connectivity hardware.  Laserfiche: Online administrative documents and contracts repository.  Frontier Internet: Sole provider for the organization’s business and operations broadband needs.  4506 Switch: Core networking switch for the organization that does not have any redundancy.  Del Rosa Radio Tower: Core wireless networking tower for the organization. The tower has some redundancy, but failure would significantly impact SCADA system operations. People  Network Administrator: A single Network Administrator with no backup personnel.  SCADA SME: The organization does not have an onsite subject matter expert for SCADA that can serve as a backup in case TESCO, the vendor, is not able to service SCADA systems. Facilities Plant 146, 147, 134 and HQ are mission critical locations and selected as a sample size to represent EVWD’s system. Arcadis conducted a site walkthrough at these locations and provided a visual inspection of the security perimeter for the site’s cyber assets and a high-level assessment of the functional state, configuration and robustness for meeting the organization’s mission criteria.  Plant 146: This site contains two wells and a booster pump that pumps water to Plant 143. The site gate was secured with a simple physical key-based padlock and approximately 6-feet-high walls with barbed wire. No electronic access control mechanisms or closed-circuit TV (CCTV) monitoring equipment were noted. The PLC cabinets do not have access control mechanisms to electronically monitor and log activity. Observation from this site indicate that a physical attack on the site and cyber assets could go unmonitored, unrecorded, and unnoticed for a 90 reasonable amount of time, meaning the attacks have a greater chance of success. Without controls in place, EVWD does not have visibility to whether unauthorized intrusions are from an insider or outsider malevolent criminal.  Plant 147: This site contains a well, booster pump, large storage tank, and a building that houses electrical equipment along with SCADA PLC and other technology equipment. The site does not have electronic access control mechanisms or CCTV monitoring equipment. The PLC cabinets, while located inside the building behind a locked door, do not have access control mechanisms to electronically monitor and log activity. Observation from this site are consistent with observations for Plant 147, indicating that a physical attack on the site and cyber assets could go unmonitored, unrecorded, and unnoticed for a reasonable amount of time, meaning the attacks have a greater chance of success. Without controls in place, EVWD does not have visibility to whether unauthorized intrusions are from an insider or outsider malevolent criminal.  Plant 134: This site is secured with a combination of cement enforced walls and fencing. The site has a PIN based electronic keypad for access control and CCTV monitoring. However, the keypad access PIN is not routinely reset and is therefore accessible to multiple current and former staff. The use of the keypad is not logged. The HMI portion of the SCADA assets on this site run the ClearSCADA software package on a Windows 7 Pro x64 operating system. TESCO is the sole vendor for the SCADA PLC package. The vendor has direct uncontrolled remote access to the site; according to the TESCO, this is required to provide 24/7 remote support services. However, this indicates vendor controls, including password protection, could be improved. In addition, the PLC cabinets do not have access control mechanisms to electronically monitor and log activity.  Headquarters: EVWD’s Headquarters facility houses the Data Center. The room was secured with a badged/keycard access reader, making the data center the most secure of all locations regarding cyber assets. The data center room does contain an adequate fire suppression system that is intended to activate before water sprinklers can be activated. Also, EVWD firewalls have intrusion detection capabilities that are logged, and networking equipment is controlled via ID badges with limited personnel access. However, the data center does not have CCTV monitoring and the data center contains many mission critical servers as well as a core switch identified as “Switch 4506”, which is a single point of failure. No backup data center location was identified. The District has a specific firewall rule on their business system that allows limited access to the SCADA network from the business network for IT monitoring and configuration maintenance, as well as operator alerting and virtual private network (VPN) remote access. 91 4.3.2.2.3 Historic Events and Probability of Occurrence EVWD estimates they experience one major cyberattack per system per year via email phishing attempts. The probability of occurrence is high for cyber outsider threats (100 percent) and low for both accidental cyber insider accidental (20 percent) and malevolent (5 percent). Cyberattacks are increasing in prevalence and sophistication and are targeting water utilities (among other sectors). A cyber criminal recently attempted to divert a $4 million payment by posing as an EVWD contractor. EVWD was able to catch the incident in time and the payment was not made. It is important to note that cyber criminals may be monitoring internal EVWD communication and might have a heightened level of awareness to know who within the organization to target, which contractor is receiving large payments, and the correct terminology to use. 4.3.2.2.4 Vulnerability A Cybersecurity Vulnerability Assessment evaluated the condition, configuration, governance, and functions of EVWD’s Information Technology (IT) and Operations Technology (OT) system components. A workshop along with a site walkthrough of EVWD’s IT/OT Systems was conducted on August 19, 2019. IT systems support day to day administrative, financial and regulatory work. OT systems support EVWD’s SCADA system. The goal of the workshop was to work with the stakeholders at EVWD to identify critical systems and assets, discuss their functional role in meeting the organization’s mission critical services, identify applicable threats, and discuss the threat likelihood based on EVWD’s history, EVWD subject matter experts, and EPA guidance. For the Vulnerability Assessment, Arcadis leveraged key elements of the industry best practice NIST Cybersecurity Framework v1.1 48 to provide a high-level snapshot of EVWD’s cybersecurity posture through review of strategy, policies, and procedures. EVWD’s Network Administrator completed the Vulnerability Assessment, providing scores according to a five-point NIST recommended scale. 48 Source: NIST Cybersecurity Framework v1.1: https://nvlpubs.nist.gov/nistpubs/CSWP/NIST.CSWP.04162018.pdf Figure 4-30. NIST Five-Point Maturity Scale 92 A follow up business continuity workshop was conducted on October 9, 2019 to review the Cybersecurity Vulnerability Assessment results and discuss recommended mitigation measures. EVWD’s average score was 0.98 out of 5.00 scale across the following categories: identification, protection, detection, response, and recovery. Protection scored the highest, which reduces vulnerability and is likely why EVWD has not historically experienced a major cyberattack. Identification scored the lowest, and a business continuity asset inventory may help identify critical cyber assets and data flows, and target protection toward the high-risk assets. The overall score indicates EVWD is vulnerable to a cyberattack from outside or inside the organization. There are gaps within the following: an organizational cybersecurity policy from an executive level, a recognized standard, and standard operating procedures. This can result in miscommunication and misunderstanding if multiple organizational levels are not aligned in prioritizing cyber objectives and risks. Also, the lack of organizational alignment can impact investments made into cybersecurity, leaving the system more vulnerable and less redundant. The District’s vulnerability using the J100 worksheet is 0.7 for cyber outsider while cyber insider is 0.9. The completed assessment with comments is in Appendix H NIST Cybersecurity Assessment. 4.3.2.2.5 Consequence The consequence of a cyberattack is high. According to EVWD staff, a ransomware attack could potentially disable critical business and backup systems, shutting down operations for years. If the SCADA system was disabled, EVWD may need to operate manually for up to 6 months, and the organization may not have staff resources to execute manual operations. EVWD continuously monitors treatment and changes in water quality, so an attack that alters chemical treatment formulation should be caught relatively quickly with limited consequence. IT and finance systems have a higher consequence. EVWD estimates recovering compromised IT systems would cost $4 million total: $2 million to replace hardware and software and $2 million in staff and vendor time. For Finance, a cyber outsider historically requested $4 million in redirected payment when posing as a vendor on a major construction project. A cyberattack could also prevent EVWD from receiving revenue. If EVWD business continuity systems are compromised, the public could lose confidence in EVWD’s ability to safeguard sensitive customer information, provide accurate meter readings, and ensure public safety if treatment is reconfigured. 93 Figure 4-31. EVWD Cybersecurity Vulnerability Assessment Results 94 4.3.2.2.6 Risk Cyberattack risk is among the top three highest risks. The threat level has grown rapidly in the last decade along with technological advances while IT staff resources have remained the same. EVWD does not currently have enough IT staff to prevent and respond to cyberattacks. Current IT staff are therefore a single point of failure within the organization, with unique knowledge of the system and limited time to execute mitigation initiatives and reduce vulnerability. EVWD is currently evaluating options to outsource business continuity services to augment current IT staff. However, without governance and controls in place, outsourced IT services may increase vulnerability to a cyberattack. 4.3.3 Dependency Hazards Dependency hazards consider the context of EVWD’s supply chain – specifically, which products or equipment are required to meet mission criteria and could pose a threat if the supplier or stock is unavailable. 4.3.3.1 Loss of Power 4.3.3.1.1 Description In recent years, power utilities have begun shutting down portions of the power grid to avoid causing wildfires during high winds. However, water and wastewater utilities are dependent on power providers to pump water and wastewater throughout the distribution system and sewer lines. During a power outage, the water system must rely more heavily on storage capacity and back-up generation to continue services. If storage capacity runs out, generators are not available, or fuel supply is not enough to continue running generators throughout a power outage, then EVWD may not meet their mission criteria. Power utilities across California are growing risk averse. This year, Southern California Edison (SCE), EVWD’s sole power provider, has initiated planned public safety power shutoff events during high winds. PG&E in Northern California has incurred high costs, faced regulatory fines, lost public confidence, and declared bankruptcy after investigations determined their electric lines caused major wildfires. The community is highly dependent on power, water, and wastewater services. EVWD customers may need to evacuate the area and businesses may shut down during power outages. EVWD is particularly concerned about customers at higher elevation, where more power is required to deliver water. EVWD may need to prioritize asset and system redundancy for critical and contractual customers, including hospitals, the San Manuel Band of Mission Indians, and others. 95 4.3.3.1.2 Historic Events and Probability of Occurrence Santa Ana Winds typically occur in the fall and winter months and result in rapidly moving warm winds that gain speed as they descend the San Bernardino Mountain foothills. SCE has initiated planned power shut offs in nearby jurisdictions for hours and up to 4 days. Power loss for longer than 1 day can impact operations. If reservoirs are full, EVWD may have 2.5 days of water available. The District can gravity flow to some portions of the service area and use onsite or mobile generators elsewhere. Overall, power outages are increasing in frequency and duration as power utilities attempt to reduce wildfire risk. The probability of occurrence is 50 percent as EVWD expects power loss every year, with an outage lasting several days approximately every other year. 4.3.3.1.3 Vulnerability, Consequence, and Risk EVWD is somewhat vulnerable considering some storage and on-site power generation is available. However, transporting mobile generators to the foothills has proven difficult, so the District is investing in vehicles capable of moving mobile generators. This investment, along with recent purchases of additional generators, has reduced EVWD’s vulnerability. Plants without generators are more vulnerable (0.9) as compared to plants with generators (0.1 to 0.2). However, all generators require fuel to run. One recommendation is for EVWD to have ample fuel supply in case generators are required for power outages lasting several days. Regarding business continuity, EVWD would have issues communicating and functioning without an internet connection. Operators could run the system manually and Finance could continue paying bills and receiving payments, as offsite billing is available. The consequence is high if EVWD does not have power for extended periods of time. The District can likely meet mission criteria for up to 7 days but may not be able to provide water and wastewater services if the power outage lasts for longer, assuming fuel is readily available. If fuel supply is cut off, then generators would not be able to support EVWD’s operations and business continuity services, and service levels may not be met after a couple of days. Power outages have risen on the list of concerns over the last few years and are EVWD’s greatest dependency hazard. 4.3.3.2 The State Water Project 4.3.3.2.1 Description The State Water Project provides approximately 20 percent of EVWD’s water supply. The remaining 80 percent is from groundwater. Today, EVWD can still meet the mission criteria for water supply with groundwater alone. However, SWP water is a dependency hazard during a drought, when surface water supplies become highly critical to avoid 96 over-pumping groundwater. Further, the California Department of Water Resources has said the SWP is vulnerable to climate change and earthquake risks, stating, “There is clear evidence of the vulnerabilities in the Sacramento-San Joaquin Delta (Delta) posed by climate change and earthquake risk. As sea levels continue to rise, the Delta will be faced with increasing water levels and salinity, which will dramatically alter and harm water quality and supply locally and for 27 million Californians across the state. Immediate action is needed to upgrade Delta infrastructure, ensuring the state’s largest supply of clean water is climate resilient and able to respond to these risks.”49 If either drought, climate change, or an earthquake prevent delivery of SWP water, then EVWD will not be able to use SWP to recharge groundwater levels and/or for indoor water use. 4.3.3.2.2 Historic Events and Probability of Occurrence During the last drought, SWP allocation to Valley District decreased to 8 percent. In comparison, the current (December 2019) allocation is 92 percent. To put this in perspective, EVWD received about 1.1 MGD and 12.6 MGD when Valley District’s allocation was respectively at 8 percent and 92 percent. Therefore, EVWD likely won’t entirely lose access to SWP water but could lose a significant portion during a severe to extreme drought. The probability of occurrence is 10 percent. 4.3.3.2.3 Vulnerability, Consequence, and Risk EVWD is vulnerable to losing SWP water, scoring a 0.5 for vulnerability. The District is more dependent on SWP water during droughts, right when the allocation is reduced. To lower vulnerability, EVWD and Valley District recharge the basin with SWP water during wet or normal conditions, knowing this water will be needed during drought years. The consequence and risk of losing SWP water is greater reliance on groundwater, and further described in drought and land subsidence hazard analyses sections. 4.3.3.3 Critical Spares EVWD relies on specialized equipment to operate water and wastewater services. Water supply equipment is vulnerable to single supplier and/or supply chain issues and natural disasters. Critical and vulnerable equipment includes surface water treatment equipment at Plant 134, earthquake valves on several reservoirs, generators, electrical equipment, and booster pumps across critical facilities. Critical spares for wastewater service will be determined once SNRC is online. Supply chain issues do not pose a significant risk. EVWD estimates the likelihood of occurrence for supply chain issues is approximately once every ten years (10 percent), and consequence is low. Consequence may be costly temporary workaround measures 49 Source: State Water Project Delta Conveyance: https://water.ca.gov/Programs/State-Water- Project/Delta-Conveyance 97 and operational changes. For example, if membrane equipment is not available, then EVWD can temporarily reallocate water supply to groundwater until treated surface water is available. However, critical spares are vulnerable and do pose a high risk in case of natural disaster, which does have the potential to damage several facilities at once. The District’s assets are approximately 0.9 vulnerable to loss of critical spares, with the exception of SNRC which scored a 0.5 for vulnerability. In the event of an earthquake or wildfire, EVWD should have enough spares on hand to respond to the emergency. See earthquake and wildfire threat analyses for more information on vulnerability, probability of occurrence, and consequence. In case several facilities require critical spares at once, EVWD should inventory critical spares and evaluate existing contracts with suppliers, potentially identifying additional vendors in case of emergency or if existing vendors go out of business. 4.3.4 Proximity Hazards 4.3.4.1 Description Proximity hazards consider EVWD’s geographic context to understand which neighboring industrial processes could impact EVWD’s ability to meet mission criteria. For example, a former military site could contaminate groundwater. The service area is primary residential, while proximity hazards are more associated with industrial areas. Still, gas stations are sprinkled throughout, and a cluster of industrial operations are in the southwest corner of the service area. The basin flows from the northeast to the southwest, meaning contamination would flow away from EVWD wells and service area. However, the industrial operations could still have downstream impacts and require regional coordination to monitor water quality. The proximity hazard analysis includes historic and updated information. Historic information: In compliance with the state and local Department of Health Services’ Drinking Water Source Assessment and Protection (DWSAP) Program, EVWD worked with the San Bernardino Valley Water Conservation District to complete surface and groundwater assessments between 2001 and 2003. The following water sources were assessed:  Surface Water: North Fork Ditch / Santa Ana River, State Water Project  Groundwater Wells: 9, 11, 12, 24A, 24B, 25, 28, 39, 40, 107, 120, 132-2, 141, 142, 143, 146A, 147 Updated analysis: Arcadis conducted a proximity hazard analysis in 2019 in ArcGIS to identify HAZMAT facilities and pipelines, mining operations, and landfill operations within a one to three-mile radius of critical facilities and pipelines. HAZMAT facilities include 98 power plants, chemical facilities, military cleanup sites, and superfund sites. HAZMAT pipelines in the service area are natural gas transmission pipelines. 4.3.4.2 Historic Events and Probability of Occurrence Findings from the 2001 – 2003 DWSAP Program: PCE and/or nitrates were found in some surface and groundwater sources. Surface water was evaluated using the Surface Water System Method, leveraging information from Watershed Sanitary Survey Updates. Groundwater was evaluated using the Calculated Fixed Radius method, which involves inventorying possible contaminating activities (historic and current) and identifying which activities are in close enough proximity to impact water quality. Findings include: Wells:  Nitrates are detected in most Wells, likely from the following activities: junk/scrap/salvage yards, septic systems, agricultural activity applying fertilizers/pesticides/herbicides, lumber processing and manufacturing, high density housing, sewer collection systems, cemetery/graveyards, parks, and schools.  PCE was also detected in Wells near the airport, abandoned military installations known for contaminant plumes, dry cleaners, and/or local machine/auto shops (Wells 9A, 12A, 28A, 132-2, 141). Surface Water:  The SWP is susceptible to contamination from gas stations, dry cleaners, and recreational activity.  The North Fork Ditch / Santa Ana River supply has nitrates, likely from junk/scrap/salvage yards and funeral/graveyard services. See Appendix I Drinking Water Source Assessments for detailed assessments. Findings from the 2019 Proximity Hazard Analysis: The Norton Air Force Base was located on property now owned by the San Bernardino International Airport Authority and is a superfund, military cleanup, and landfill site. The former air force base is the most significant proximity hazard in the service area and has historically impacted groundwater quality and soil near the site. Contaminants include freon, dioxins, lead, arsenic, PCBs, PCE, TCE, chromium, xylene, and vinyl chloride. The EPA put remedies in place to protect public health and the environment and evaluates site remediation progress every five years. No further remediation is required; 99 groundwater monitoring, landfill gas monitoring, inspections and maintenance efforts are ongoing. This site can potentially impact groundwater until the EPA closes the case. Figure 4-32. Proximity Hazard: Norton Air Force Base In addition to the Norton Air Force Base, two power plants and an active natural gas pipeline owned by Southern California Edison are proximity hazards. In case of accidental leak / explosion, the only critical facility and single point of failure is SNRC, without which EVWD cannot treat wastewater. However, the likelihood of an explosion that causes severe damage to SNRC and compromises mission criteria is low. The likelihood of a minor incident that causes minimal damage could occur once every 10 to 20 years, or a probability of occurrence of 5 to 10 percent. 100 Figure 4-33. Proximity Hazard: Active Natural Gas Transmission Line Lastly, accidental hazmat contamination near the Santa Ana River or the State Water Project could potentially impact Plant 134 treatment operations and surface water quality. Historically, an automotive accident spilled diesel in the Santa Ana River, which caused some operational issues for EVWD, but did not impact service levels. 4.3.4.3 Vulnerability, Consequence, and Risk EVWD has worked toward reducing vulnerability by constructing sanitary seals to prevent chemicals and degraded surface and groundwater from moving through the well borings and coming in contact with the groundwater source. Large concrete slabs are constructed around the wellheads, the ground surface is sloped to drain away from the wells, and large control zones have been erected around the wells. The vulnerability ranges from 0.05 to 0.1. Proximity hazards are therefore not a high risk for EVWD. Groundwater contamination from the Norton Air Force Base has already occurred. EVWD is actively monitoring 101 groundwater quality and EPA remediation efforts are ongoing. Because contaminants flow away from wells, EVWD is not vulnerable to greater exposure. To account for directional basin flow, the proximity hazard analysis was expanded, and no significant industrial operations were identified within a three-mile radius of the eastern boundary. Because the existing industrial operations are on the westside, the consequence to EVWD’s service area is low. See Appendix J Proximity Hazard Analysis for a summary of proximity hazards in EVWD’s service area. 4.4 RISK SUMMARY The Risk Summary provides an overview of the outcomes of the hazard profiles which are used to quantify the risks posed by potential threats within the service area. A critical piece of the 2020 Plan Update is to compare the District’s risk for each natural and man- made hazard profile and identify where the greatest opportunities for mitigation and operational improvements exist. The District can compare each risk quantitatively using a risk model that follows J100 methodology. The risk model calculates risk in dollars for each hazard profile by multiplying the consequence, vulnerability, and hazard likelihood (or probability of occurrence). The equation follows the following steps: Consequence ($) x Vulnerability (%) x Threat Likelihood (%) = Risk ($) Consequences are monetary estimates of physical damage, health and safety impacts, and economic impacts related to natural and man-made hazards. Consequences are estimated based on a combination of J100 and FEMA benefit-cost analysis methodologies and best practices. Vulnerability and threat likelihood are based either on “low (0.1 - 0.3), medium (0.4 - 0.6), high (0.7 - 0.9)” scores or when possible, calculated based on EPA or NIST guidance (i.e., for malevolent threats). 4.4.1 Hazard Summary The Planning Team used the results of the quantified risk assessment to prioritize which hazards may present the greatest concern to the District, identify which critical assets may need to be protected to reduce risk, and develop potential mitigation solutions. Table 4-11. summarizes the J-100 results qualitatively. Ratings range from low (0.1 – 0.3), moderate (0.4 – 0.6), to high (0.7 – 0.9). 102 Table 4-11. Hazard Assessment Matrix Probability of Occurrence Consequence of Impact Vulnerability Risk Extreme Drought Moderate High Moderate High Earthquake High High High High Wildfires High High Moderate High Floods & Flash Floods High Moderate Low Moderate Land Subsidence Low High Moderate Unclear (per RRA) Physical Insider Threat Low High Moderate Moderate Physical Outsider Threat Moderate High Moderate Moderate Cyber Insider Threats Low High High High Cyber Outsider Threats High High High High Loss of Power High High Moderate High State Water Project Low High Moderate Moderate Critical Spares Moderate Low High High Proximity Hazards High Moderate Low Low 4.4.2 Risk Target For this analysis, the District has advised a $1 million cost threshold for the risk mitigation target. While it would require operational reprioritizing, the District can tolerate risks below $1 million. The J100 model estimates the Utility and Regional Financial Risk if an event were to occur. EVWD multiplied the Utility and Regional Risk Scores by a factor of 20 to account for a typical 20-year planning cycle. EVWD can then evaluate which mitigation actions may cost less than the estimated total lifecycle (20-year) risk and produce a positive return on investment. This risk target helps to prioritize projects based on their potential to lessen potential impacts posed by the associated hazard. 4.4.3 Risk Analysis Results The Risk Analysis Results provide a summary of the hazards and the potential financial risk posed to the District’s service. Overall, the highest risks result from threats that can impact EVWD system-wide, either physically or through virtual business continuity 103 systems. For example, an earthquake is projected to impact the entire service area, and therefore can cause greater damage than a flash flood, which may impact a portion of the District. The system-wide risks could interrupt water and wastewater services, while EVWD’s current level of redundancy can withstand threats that cause isolated incidents. The expected system-wide threats are earthquakes, cyber threats from outside the organization, drought, wildfire along the foothills, and power outages. Note: In the risk model, system-wide risks are aggregated (summed) to demonstrate the full expected impact. The impact at the facility or asset level is also shown in Figure 4-35 below. The following threat-asset pairs present high risks that cost equal to or greater than $1 million over a 20-year planning cycle. Full J100 risk analysis results are in the J100 model in Appendix F, tab “Risk Model”. Highest Risk (>$10 million)  Earthquake: A 7+ magnitude earthquake could impact all facilities, water pipelines, and sewer pipelines due to fault line proximity. Of the assets, the water and sewer pipes are most costly and time intensive to repair and portions of the service area are expected to lose water and wastewater services for months during the recovery period. Critical assets within facilities, including wells, surface water treatment equipment, and pumps, are also costly and may require repair/replacement. In total, earthquakes are the most expensive threat and most likely to disrupt critical water and wastewater services for the longest duration.  Cyber Outsider: The second greatest risk is a cyberattack on financial, IT, and SCADA systems from outside the organization. Cyberattacks are increasing in prevalence and sophistication, attacks are expected from nation-states, and EVWD has limited staff resources to address all vulnerabilities and respond to a crisis. Limited IT staff at EVWD have technical knowledge of the system and EVWD is vulnerable to knowledge loss if IT staff leave the organization.  Drought: A severe to exceptional long term (7+ year) drought could impact EVWD’s water resources and create adverse environmental conditions, making the District more vulnerable to other disasters like wildfires, flash floods, and land subsidence. Surface water may not be available due to low precipitation and reduced SWP allocation, and groundwater resources would need to be carefully rationed. Drought can also impact the region economically; water shortages may push residents and development opportunities from the service area, reducing regional gross domestic product.  Wildfire: A wildfire along the foothills could damage several critical EVWD facilities and many homes. EVWD could lose Plant 134, the only surface water treatment plant, and hydropneumatics systems along the foothills, which would interrupt water service to homes at higher elevations. The annual Santa Ana Winds 104 increase the likelihood of occurrence. Wildfires create soil conditions prone to flash floods, and mud and landslides are expected to cause further damage along the foothills. Loss of life and injuries are expected. Residents along the foothills should expect water service interruption and likely would need to evacuate until the fire is contained. The fire department uses EVWD water services, and while the District expects to meet fire flow requirements, coordination is required as EVWD will likely face operational constraints. Lastly, Southern California Edison is expected to cut power during high winds and wildfires. Wildfires are expensive and create cascading operational issues for EVWD and the region.  Accidental Cyber Insider: Cyber threats can originate from inside or outside the organization. The cybersecurity vulnerability assessment found a training gap, leaving staff prone to spear-phishing attempts, which could infect cyber systems with malware or ransomware. Also, a contractor previously accidentally deleted critical information and EVWD has no policy around removable media devices. High Risk ($5 – 10 million)  Malevolent Cyber Insider: EVWD does not expect its own staff to act malevolently. However, the District outsources SCADA services and is evaluating outsourcing IT services. Currently, governance, policies, and procedures are insufficient to control cybersecurity breaches – accidental or malevolent – from contractors. TESCO staff have shared passwords to remotely access EVWD’s SCADA system, which is against best practice. This leaves EVWD’s SCADA system vulnerable to TESCO employees. Outsourcing IT functions could similarly increase vulnerability if access is not adequately controlled. Also, Managed Service Providers have historically been targeted by malevolent cyberattacks, so EVWD would need assurance for data back-ups in case of a breach.  Loss of Power: Annual power loss is expected due to the Santa Ana Winds. The duration of power loss can vary depending on the event. Power utilities have grown increasingly risk averse and are more prone to shutting off power to avoid causing a wildfire. EVWD has worked to mitigate this risk by investing in generators. However, the service area topology varies, and power is required to deliver water to homes at higher elevations. Power loss can strain EVWD operationally and halt day-to-day life for residents and some businesses. Over the last two decades, dependency on power has increased along with dependency on technology in day- to-day life. 105 Medium-High Risk ($1 - 5 million)  Contamination / Physical Outsider: A local extremist group could contaminate water at Plant 134 or backflow contaminants into the distribution system. EVWD monitors for contaminants, but contamination could cause deaths, injuries, and a loss of public confidence.  Physical Insider or Outsider Assault: The rate of gun violence in the United States has increased over the last few decades. In 2019, a Virginia Beach water utility experienced deaths and injuries after a disgruntled employee opened fire inside an office complex. EVWD has received threats from angry citizens and experienced arson that caused significant damage to an administrative building and prompted increased security at facilities. Human Resources has expressed a need for additional support during employee terminations. An insider is likely to inflict more damage than an outsider, as an insider would have badge access to nearly all areas within Headquarters, SNRC, and other facilities.  Equipment Failure: Hydropneumatics systems are single points of failure respectively for 30-70 residents living at higher elevation, who rely on the systems for water delivery. Several hydropneumatics systems are aging and could fail in the next 5 years, particularly at Plants 59, 101, and 34.  Loss of State Water Project Water: State Water Project water is critical for basin recharge during normal conditions and indoor water supply during a drought. Losing this resource would increase reliance on groundwater. Six of eight wells monitored by the Valley District are currently at historic lows and are in the ‘recharge’ zone. SWP water is vulnerable to climate change and earthquakes.  Flash Flood: Facilities along the foothills can experience flash floods and resulting mud and landslides. Road access could be obstructed, preventing staff from accessing the facilities. Several facilities have single access roads. See Figure 4-35 ranking the risks from highest to lowest for risks > $1 million. 106 Figure 4-34. Risk Summary 107 5 CAPABILITY ASSESSMENT The District operates according to a set of authorities, policies, programs, and funding that allow it to provide critical lifeline services. An effective planning process evaluates the capacity of existing authoritative frameworks, programs, and initiatives prior to setting a mitigation strategy to ensure that the strategy is implementable and does not conflict with existing priorities. This section takes stock of available authorities, resources, policies, and programs that will shape the District’s ability to accomplish the mitigation strategies put forth in this Plan. 5.1 EXISTING PLANS AND PROGRAMS In preparation for the mitigation strategy update, the District reviewed and evaluated existing policies, programs, plans, and partnerships for their ability to authorize and support mitigation activities to reduce risk. 5.1.1 Regulatory Framework The District is authorized by the State of California Water Code to define its own ordinances and status of operation. The District’s policies are established by the District’s Board of Directors. Ordinance 366 authorizes the District’s General Manager to declare a local emergency. Additionally, Ordinance 366 gives the General Manager and the Safety and Regulatory Affairs Coordinator the authorization to implement the and amend the emergency response plan as deemed necessary. Ordinance No. 397 and Ordinance No. 389 act as the regulatory guidelines under which the District has the authority to enforce the Districts terms and conditions of declared rules and regulations. See Table 5-1. These ordinances give the District the authority to operate, take actions, and administer and enforce State and Regional regulations required to maintain and protect utility service. Local Mitigation Plan Regulation Checklist Requirement §201.6(b)(3)) [The local mitigation plan shall include] review and incorporation, if appropriate, of existing plans, studies, reports, and technical information. Requirement §201.6(c)(3) [The local mitigation plan shall include] a mitigation strategy that provides the jurisdiction’s blueprint for reducing the potential losses identified in the risk assessment, based on existing authorities, policies, programs and resources, and its ability to expand on and improve these existing tools. The Capability Assessment documents EVWD’s existing authorities, policies, programs, and resources and notes the District’s ability to expand on and improve these existing policies and programs. 108 Table 5-1. District Regulations Ordinance Number Name Description 366 An Ordinance of the Board of Directors of the East Valley Water District Adopting Emergency Response Plan and Authorizing Its General Manager to Promulgate Orders and Regulations During a Local Emergency Authorizes the District’s General Manager to promulgate such orders and regulations as deemed necessary for the protection of life and property during a local emergency. This ordinance also provides the General Manager and Safety and Regulatory Affairs Coordinator the authorization to implement amendments to the District’s ERP as deemed necessary. This ordinance was adopted March 2005. 389 East Valley Water District Sewer Regulations and Service Charge Provides the rules and regulations for the construction, repair, and use of District sewerage facilities, to establish the rates and charges for such facilities and provide for their enforcement. Last updated December 14, 2019. 397 East Valley Water District Water Regulations and Service Provides the rules and regulations applicable to the administration and operational activities of the District. Last updated January 1, 2020. 5.1.2 Existing Plans Current EVWD capabilities and mechanisms available in existing plans and programs were reviewed to confirm there are no existing mechanisms that conflict with hazard mitigation initiatives. The District found no instance of conflicting directive. In fact, the goals and objectives of many planning efforts are closely related to hazard mitigation. As the Planning Team worked through the planning process, the Team referenced existing plans to ensure coordination with the District’s partners. Each of these planning documents promote data collection and sharing, goals, and actions to reduce risk and protect District assets and services, including:  Regional Urban Water Management Plan The 2015 San Bernardino Valley Region Urban Water Management Plan (UMP) is a regional planning document created to comply with California’s Urban Water Management Planning Act. The District was one of nine agencies who participated Local Mitigation Plan Regulation Checklist Requirement §201.6(b)(3)) Review and incorporation of existing EVWD plans is fundamental to ensuring consistency between the 2020 Plan Update and the other plans. Existing EVWD plans provide a foundation of technical information and existing District efforts to consider and align throughout the 2020 Plan Update process. 109 in the planning process of the 2015 update of the SBVRUMP. The UMP delineates water shortage contingencies to be adopted by the District in events of regional water shortage. Information from the UMP is incorporated in the District Profile and Risk Assessment to inform the mitigation strategy and identify mitigation actions in a drought scenario.  Water System Master Plan The 2019 Water Master Plan Update (WMP) presents water supply to water demand projections based on existing, near term, and build out conditions through 2040. These demand projections include information regarding proposed developments and development trends expected within in the District’s service area. These trends were used to inform the future population projections in the 2020 Plan Update. The WMPU provided content for the hazards and risks section through discussion of groundwater well and quality. Additional information such as funding sources, projects, asset redundancy during emergencies are incorporated throughout the 2020 Plan Update.  Sewer System Management Plan The Sewer System Management Plan (SSMP) includes condition information on all District pipelines and deterioration graphs for pipeline materials. Capacity deficiencies and improvements have been identified to strengthen the District’s systems/facilities. The 2019 SSMP was in development at the time of this 2020 Plan Update, so the Planning Team reviewed the 2014 SSMP for consistency. This does not impact the alignment and scopes of the HMP or the SSMP; however, the District intends integrate future iterations of the HMP and the SSMP with the most up-to-date planning information available.  Wastewater Collection System Master Plan (WCSMP) District projects have been identified that address rehabilitation, deterioration, capacity, and vulnerabilities to District systems/facilities. Additionally, the WCSMP provides a short term and long-term Capital Improvement Project timeline to address the implementation of WCSMP Projects.  RRA / J100, ERP, THIRA The District executed the 2020 Plan Update in coordination with an RRA/J100, ERP update, and THIRA. The RRA / J100 provides the inputs to the Chapter 4 Risk Assessment for the 2020 Plan Update, including potential threats and hazards and define relevancy and likelihood of each threat to the District. The RRA also provides the basis to incorporate benefit-cost analysis concepts into the Implementation Strategy. See Chapter 6.3 for further detail. The District also reviewed the Hazard Mitigation Plans of regional partners to ensure the mitigation strategy reflects the mutual goals of the California Water Plan, San Bernardino 110 County Multi-Jurisdictional Hazard Mitigation Plan, and the State of California Hazard Mitigation Plan. The mitigation strategy contains goals and objectives to reflect the District’s existing internal plans and shared interests of other State and County plans. Future District plans are intended to incorporate the knowledge gained through the 2020 Plan Update. Table 5-2 provides a summary matrix of how each plan reviewed relates to and supports hazard mitigation planning. Table 5-2. Existing District Plans and Relation to Hazard Mitigation Planning Hazards / Vulnerabilities / Risks Mitigation Strategy Projects Policy/ Regs. Goals Internal Plans Aligned with Hazard Mitigation Priorities 2019 Water Master Plan Update X X X 2019/20 RRA / J100 X X X X 2019/20 ERP X X X X 2019/20 THIRA X X X X 2014 Sewer System Management Plan X X 2013 Wastewater Collection System Master Plan X X 2015 San Bernardino Valley Regional Urban Water Management Plan X X X X External Plans Aligned with Hazard Mitigation Priorities 2018 California Water Plan Update X X X 2017 San Bernardino County Multi-Jurisdictional Hazard Mitigation Plan X X X X X 2018 State of California Hazard Mitigation Plan X X X X X 111 5.1.3 Collaborative Agencies As a government agency, the District has access to Emergency Managers Mutual Aid (EMMA), Emergency Management Assistance Compact (EMAC) and FEMA for national mutual aid. The District also engages in mutual aid agreements under ERNIE, which provides the District with a support network in the event of a disaster. EVWD is also a member of the California Water/Wastewater Agency Response Network (CalWARN). CalWARN develops emergency preparedness programs to offer mutual aid to public and private water and wastewater utilities within the State of California. The District is a participating member of the San Bernardino Valley Municipal Water District (SBVMWD). SBVMWD acts a wholesale water supplier for the District, City of Loma Linda, City of Redlands, City of San Bernardino Municipal Water Department, West Valley Water District, Yucaipa Valley Water District, City of Colton, City of Rialto, and Riverside Highland Water Company. Through UMP plan updates driven by SBVMWD, the District actively coordinates with the other water suppliers to discuss best practices, share knowledge and experiences with other participating agencies and jurisdictions. 5.2 IMPLEMENTATION CAPACITY 5.2.1 Administrative and Technical The Planning Team was intentionally organized to have equal representation and participation of all District departments to avoid unnecessary redundancies in the mitigation strategy. With leadership from the Planning Team chair and Core Team (see Section 2.1.1), each department will facilitate the implementation of mitigation actions either through integration into existing programs and initiatives or through project funding and construction. Department heads will be responsible for monitoring project implementation. Should existing policies and programs require amendment or adjusting to accommodate hazard mitigation strategies and actions, the Board of Directors has the power to amend the District’s ordinances and policies. Local Mitigation Plan Regulation Checklist (Requirement §201.6(c)(3)) The District reviewed its internal capacity to expand on and improve existing policies and programs to administer the mitigation strategy, including administrative, technical, and financial capabilities. 112 5.2.2 Financial The District’s Capital Improvement Program (CIP) is a five-year planning schedule with each year approved in correlation of findings from the Water and Wastewater Master Plans. The CIP is funded through the following District fiscal resources:  Revenue from water sales  Revenue from sewer services  Fees for new facilities from developers  Metering availability charge  If necessary, local bond funds Mitigation actions in the 2020 Plan Update must be incorporated into the CIP in order for the District to generate a funding plan. Through the California Department of Water Resources, local grants and/or loans are available for water conservation, groundwater management, studies and activities to enhance local water supply reliability. Project eligibility depends on the type of organization(s) applying and participating in the project and the specific type of study or project. More than one grant or loan may be appropriate for a proposed activity. The District in the past has been a recipient of FEMA Pre-Disaster Mitigation Program grant assistance and State Revolving Fund (SRF) loans to implement mitigation projects. SRF funding an upgrade of treatment technology at the District’s Plant 134, incorporating a small water system in EVWD, and the design of the Sterling Natural Resource Center to further enhance the Districts capabilities in supplying a safe and dependable water system to the public. FEMA Pre-Disaster Mitigation grant program funds have funded a seismic reservoir study to understand and plan to mitigate seismic risk. The District intends to expand the CIP to include the risk and updated hazard knowledge gained through the 2020 Plan Update. The District will annually review the CIP project list and integrate mitigation knowledge and strategies into the CIP prioritization process. The District will incorporate mitigation projects in the CIP project list to expand the integration of mitigation information in the annual District budget and pursue grant funding to implement hazard mitigation projects. 5.2.3 Education and Outreach One of the District’s core intentions of conducting education and outreach is to promote awareness of potential risks posed to the District. The District engages the community through outreach efforts and acts as a resource to educate stakeholders of potential risks within the District and mitigating measures that they can take at home or work. These efforts include hosting water conservation art contests for local K-12 schools, establishing Water Conservation Plans, and maintaining Conservation Programs which have led to an overall decrease in water consumption by 30 percent. Some outreach and education initiatives included under the Water Conservation Plans and 113 Conservation Programs include toilet and showerhead efficiency, weather-based irrigation controller direct installation, and drought tolerant plant workshops. The District's water conservation outreach and education programs aim to provide visible results for community members to feel confident in their role in efficient water use and drought response. The District intends to expand its education and outreach to the community through the future SNRC. SNRC facility will produce recycled water to replenish the Bunker Hill Groundwater Basin. This unique center will provide the District additional opportunities to engage the community in topics such as water conservation and other relevant hazards, like land subsidence and earthquake. The District recognizes the importance of engaging community members in developing mitigation techniques and plans. Consistent with the emphasis on outreach, the District will continue to foster collaboration with the community. 114 6 MITIGATION STRATEGY Hazard mitigation is a continuous effort of the District, demonstrated by the accomplishments and projects completed since 2015 in a Mitigation Progress Report. Upon completion of the Risk Assessment, plan reviews, and review of completed mitigation projects, the Planning team re-addressed its goals, objectives, actions and resources necessary to mitigate hazards within the service area to reflect new information and changes to District priorities. The finished mitigation strategy presented herein lays out the goals and objectives, actions, and resources necessary to mitigate the potential threats posed by hazards within the service area and minimize potential losses to both the District and the community. 6.1 MITIGATION 5-YEAR PROGRESS REPORT Since the 2015 Plan, the District has continuously pursued actions to become a more resilient water service provider. The 2015 Plan provided actions to accomplish their goals under four hazards: earthquake, wildfires, drought, and flooding/flash flooding. Risks and Local Mitigation Plan Regulation Checklist Requirement §201.6(c)(3): [The plan shall include the following:] A mitigation strategy that provides the jurisdiction’s blueprint for reducing the potential losses identified in the risk assessment, based on existing authorities, policies, programs, and resources, and its ability to expand on and improve these existing tools. Requirement §201.6(c)(3)(i): [The hazard mitigation strategy shall include a] description of mitigation goals to reduce or avoid long-term vulnerabilities to the identified hazards. Requirement: §201.6(c)(3)(ii): [The mitigation strategy] must also address the jurisdiction’s participation in the National Flood Insurance Program (NFIP), and continued compliance with NFIP requirements, as appropriate. Requirement: §201.6(c)(3)(iii): [The mitigation strategy section shall include] an action plan describing how the actions identified in section (c)(3)(ii) will be prioritized, implemented, and administered by the local jurisdiction. Prioritization shall include a special emphasis on the extent to which benefits are maximized according to a cost benefit review of the proposed projects and their associated costs. Local Mitigation Plan Regulation Checklist (Requirement §201.6(d)(3)) The 2020 Plan Update revised the mitigation strategy to reflect progress in local mitigation efforts. 115 hazard information discovered through the 2015 Plan Update was incorporated into other District Plans for implementation. For example, the prioritized mitigation actions from the 2015 Plan were incorporated into the District’s CIP. Table 6-1 lists the 2015 mitigation actions that have been completed by the District and provides additional context on actions taken to improve services that were not listed in the 2015 plan. Table 6-1. District Mitigation Progress Report Hazard 2015 Project Completed Additional Notes Earthquake Perform inspection and prepare vulnerability assessment of existing facilities Key facilities were inspected as part of the RRA/Plan 2020 Update. Earthquake Install seismic valves and flex- tend couplings at key reservoirs The District has pursued grant funding to install seismic valves and flex tend couplings at key reservoirs. Valves are for automatic shut off while flex couplings allow for flexibility in the pipes. Earthquake Install back-up power generators at key facilities and stock-pile critical operating equipment, supplies, and parts. The District has continued to stockpile critical operating equipment, supplies and parts. For example, the District currently has 10 generators and has ordered 3 more to supply additional backup power to critical facilities. Earthquake Reinforce anchoring of critical utilities at plants (e.g. electrical supply, pump, SCADA. Etc.). The District has a ten-year Energy Saving Performance Contract with Honeywell International Inc. to design and install of facility improvements to increase energy efficiency, such as upgrading pump systems, installation of SCADA controls, and implementing an Automated Demand Response program. Wildfire Develop GIS mapping of wildfire areas for analysis/planning Effectively complete as part of the RRA/Plan 2020 Update. Wildfire Clearing of debris and brush to establish fire break in and around facilities. Debris and brush clearing around facilities is maintained as much as encroachment regulations allow. Wildfire Inspect structures for wildfire vulnerability The District includes in their Operations and Maintenance Plan to include daily inspections of every Plant sites 5 days and 116 Hazard 2015 Project Completed Additional Notes week while the Treatment plant is inspected every day of the week. This includes site inspections for brush and accessibility issues. Wildfire Retrofit facility with fire retardant materials and fire-fighting equipment; Install fire hydrants at key facilities. All facilities have utilized fire protection materials and installed fire hydrants at critical facilities. Wildfire Establish emergency response plan and provide training. The District is currently establishing an Emergency Response Plan and implementing training in coordination with the 2020 Plan update. Wildfire Establish and conduct fire hydrant and valve-exercising plan. The District has a fire hydrant and valve exercise plan. It takes approximately 5 years to work through the District’s entire the system on valve inspections. Wildfire Install back-up power generators at key facilities. Funding for additional generators to back up critical facilities is currently being sought after. Since the 2015 Plan, the District has been successful in seeking funding for emergency backup power, and plans to continue to seek funding for additional backup power supplies. Wildfire Maintain safe and adequate access to all plant sites. The District faces challenges maintaining safe and adequate access to critical facilities located in high elevations. Since the 2015 Plan, the District has invested in road paving for a few of the facilities in high elevation. Drought Establish Water Conservation Plan and Education Programs; Develop outreach effort plans to communicate drought usage requirement. The District has established Water Conservation Plans and Conservation Programs which has led to an overall decrease in water consumption by 30 percent. Some of the initiatives include toilet and showerhead efficiency, cash for grass, and drought tolerant plant workshops. Drought Improve water supply reliability (including transfers, conjunctive use programming, and emergency connections); develop a drought mitigation/allocation plan; Develop recycled water system. The future Sterling Natural Resource Center will be a recycled water system which treats approximately 10 million gallons of wastewater daily for recharge/89 into the Bunker Hill Groundwater Basin. This project aims to create a drought-proof recycled water system. Construction of the 117 Hazard 2015 Project Completed Additional Notes plant began in 2018 and is scheduled for completion in 2022. Drought Develop water efficiency program and rate-based conservation incentives. The District maintains a two-component rate for water consumption: fixed and variable. Including a variable rate promotes water conservation by financially incentivizing efficient water consumption. Flooding/Flash Flooding Raise key facilities and equipment above potential flooding level. The District has provided ongoing efforts to potential service disruptions caused by of flooding. Including rehabilitation efforts to construct concrete pedestals that elevate wells to prevent flooding. 6.2 MITIGATION GOALS AND OBJECTIVES The Risk Assessment and Capability Assessment work together to form an organization’s goals, objectives, and actions related to mitigation. The District’s Planning Team applied information from the RRA, THIRA, and ERP to review and update the mitigation goals and objectives in the 2020 Plan Update. Using the 2015 Plan as the basis, the Planning Team completed a strength and opportunity assessment of each existing goal as it relates to the District’s current priorities. This process helps the District identify opportunities for improvement and new goals and objectives to better reflect the District’s current mitigation priorities. East Valley updated each existing goal and objective from the 2015 Plan and added 7 goals to address the hazards profiled in the 2020 Plan Update. The District’s mitigation goals and objectives are organized by the category of hazards: natural, malevolent, dependency, and proximity. Additionally, all Hazards goals provide the overarching principles that are universally applicable to all profiled hazards. Consideration of relevant mitigation plans are incorporated in the creation of goals and objective for the District, i.e. the California Water Plan (2018). Local Mitigation Plan Regulation Checklist (Requirement §201.6(c)(3)(i)) The Mitigation Goals and Objectives reflect the District’s aspirations to reduce or eliminate long-term vulnerabilities to natural and man-made hazards, and have been revised from 2015 to reflect new priorities and to mitigate hazards with the highest risk. 118 6.2.1 All Hazards Goal: Protect lives, mitigate damage to infrastructure, and meet levels of service for the District’s customers. Objectives:  Continually understand and measure impacts, including consequence and vulnerability, on critical assets from all hazards.  Periodically provide state and local agencies with updated information about hazards, vulnerabilities, and mitigation measures.  Comply with all applicable local codes and standards while ensuring the protection of life, property, and continuity of service.  Ensure that all District investment in high-risk areas is protected by mitigation measures that improve safety and protect infrastructure.  Identify and mitigate all imminent threats to life safety.  Establish partnerships with all levels of government and the business community to improve and implement methods to protect level of service.  Educate District employees and customers of the risks, mitigation actions, and contingency plans established to enhance safety. 6.2.2 Drought Goal: Improve drought preparedness through mitigation over the long-term in alignment with the objectives of the California Water Plan (2018). Objectives:  Identify and secure new water sources to increase diversity, redundancy, and reliability in the water supply.  Improve operational efficiency and transfers by maintaining water production and distribution to ensure reliable service to customers.  Reduce water demand by prioritizing water use for health and safety purposes.  Focus on water conservation measures that reduce nonessential water uses.  Adhere to State drought level regulation updates. 6.2.3 Earthquakes Goal: Avoid damages to District property. The District is adhering to new building, mechanical, and fire codes critical to the protection of property and life and the reduction of seismic risk, fire and flood hazards. Objectives: 119  Pursue funding for retrofit programs to bring non-compliant structures up to code. These codes help water utilities design and construct reservoirs, pump stations, groundwater wells, and pipelines that resist the forces of nature and ensure safety.  Design new District facilities to withstand an 8.0 earthquake. This area of Southern California is a high earthquake risk and exists on the fault zone. 6.2.4 Wildfires Goal: Minimize the potential risks resulting from the exposure of District residents to manmade and natural wildfires. Objectives:  Increase the capacity of the District to respond to wildfires, including preparedness activities such as interagency planning.  Require identification of critical facilities in need of improvement, and alternatives for mitigation.  Implement improvements and upgrades to existing and new facilities in wildfire hazard areas. 6.2.5 Floods and Flashfloods Goal: Minimize the potential flood risks at the District’s critical facilities. Objectives:  Require identification of critical facilities at risk and alternatives for mitigation.  Implement floodproofing measures and upgrade critical facilities in flood hazard areas.  Continually increase the District’s understanding of flood hazards as it relates to critical facilities. 6.2.6 Land Subsidence Goal: Prevent excessive groundwater pumping which may induce land subsidence. Objectives: Local Mitigation Plan Regulation Checklist (Requirement §201.6(c)(3)(ii)) As a utility, the District is self-insured and does not participate in the National Flood Insurance Program. Nevertheless, EVWD will continue to review and design mitigation projects in accordance with NFIP requirements as appropriate. 120  Support the San Bernardino Valley Municipal Water District efforts for responsible basin management. 6.2.7 Physical Adversary Goal: Prevent and promote preparedness for physical threats inside and outside the District’s facilities. Objectives:  Maintain headquarter evacuation preparedness with staff.  When applicable, implement physical protective features into the design of the building to heighten security measures. 6.2.8 Cyber Attack Goal: Minimize potential risks resulting from breach of cyber security and strengthen resistance against cyber failure. Objectives:  Expand staff education and training for cyber security, including manual operations in case of system failure.  Increase resources to prevent compromises to cybersecurity.  Develop a contingency strategy or recovery plan if the system is compromised. 6.2.9 Dependency Hazards (Loss of Power) Goal: Maximize service continuity to the greatest extent possible. Objectives:  Maintain an accurate inventory of the District’s critical spares.  Identify vendors or establish Memorandums of Understanding (MOUs) to access critical supplies in case of an event.  Ensure accessibility to supply critical spares in the event of a disaster.  Continually collaborate with other utility companies to expand knowledge base of alternative energy sources.  Identify alternative sources of power.  Identify facilities in need of retrofit or improvement to allow for alternative energy sources.  Maximize State Water Project resource while maintaining reliable alternate and redundant water sources by developing a strategy and set benchmarks to annually bank State Water Project credits. 121 6.2.10 Proximity Hazards Goal: Prevent proximity hazards from effecting the quality of water the District provides. Objective:  Actively monitor ground wells.  Leverage regional working groups, such as ERNIE, to discuss and collaborate on proximity hazards that may impact water quality. 6.3 MITIGATION ACTIONS The Planning Team has compiled a list of recommended mitigation actions, including projects and initiatives, to correspond to the goals and objectives presented above. Mitigation actions identified during workshops are in Appendix K Mitigation Initiatives, which includes a prioritized project list and implementation strategy. This section describes the process to prioritize mitigation actions and identify an implementation strategy. Local Mitigation Plan Regulation Checklist (Requirement §201.6(c)(3)(ii)) Appendix K provides a comprehensive and specific range of mitigation actions and projects to reduce impacts from hazards, including at least one action for every hazard relevant to the District service area, with the exception of land subsidence because the District does not have authority over the Bunker Hill Basin. Floods and Flash Floods are lower priority hazards for this planning cycle as floods pose low vulnerability and moderate risk, therefore the action items are focused on recovery rather than mitigation for this planning cycle. The actions provided in Appendix K focus on strengthening existing District assets and expanding initiatives to protect new and existing buildings and infrastructure. 122 6.3.1 Action Prioritization Multiple factors were considered to establish the mitigation priorities included in the 2020 Plan Update. New risk and hazard information incorporated into the 2020 Plan Update process has allowed the District to revise the strategy for mitigation action prioritization. Coordination of the 2020 Plan Update in tangent with other District Plan updates has altered the planning process and diversified the knowledge gained from District Plan updates. These coordination efforts have allowed the District to identify new hazards, changes in potential risk and impact, and ultimately expanded the action prioritization process by incorporating new knowledge and factors considered in the mitigation prioritization process. These factors include hazard ranking, project benefit, project cost, and funding availability. 6.3.1.1 Hazard Ranking The District’s Risk Assessment for the 2020 Plan Update quantifies risk associated with each evaluated natural and man-made hazard. The hazards are ranked relative to highest and lowest associated risk. Projects that reduce natural hazards presenting the greatest risk are prioritized over those with lower risk. 6.3.1.1.1 Quantified Consequence Analysis The consequence analysis determines monetary impacts of hazards on EVWD systems and service population if EVWD’s system is compromised and mission is not met. Quantifying consequences helps to prioritize mitigation actions by determining which actions would provide the most future benefits are compared to the project cost and potential risk of the associated hazard. Several assumptions are made within the consequence analysis, but the aim is to be consistent and accurate rather than precise. By consistently applying cost assumptions, the risk model output is a list of risks with relative dollar values that can be ranked. EVWD can then determine the dollar threshold above which mitigation is needed. Consequence is divided and subdivided as follows. Definitions and rationale include: Local Mitigation Plan Regulation Checklist Requirement: §201.6(c)(3)(iii): [The mitigation strategy section shall include] an action plan describing how the actions identified in section (c)(3)(ii) will be prioritized, implemented, and administered by the local jurisdiction. Prioritization shall include a special emphasis on the extent to which benefits are maximized according to a cost benefit review of the proposed projects and their associated costs. 123 EVWD Financial Loss EVWD Financial loss is comprised of physical asset loss and District liability costs. Physical assets costs are from EVWD’s insurance valuations for asset replacement. Business continuity asset costs are estimates from EVWD’s Planning Team.  Asset recovery costs: the cost of recovering the asset. Includes the components below: o Temporary workaround cost: percent of the asset replacement cost. o Asset repair cost: percent of the asset replacement cost. o Asset replacement cost: costs come from EVWD’s insurance data. Asset recovery equation: (Temporary workaround cost (%) + asset repair cost (%)) * asset replacement cost = asset recovery cost. While some threats would destroy an asset and require full replacement (e.g. an earthquake), many assets would not need to be fully replaced (e.g., we are assuming 40 percent of a building would need to be replaced if hit by a tornado, based on the J100 guidance).  Liability costs (EVWD only) o Number of deaths and cost per death: the estimated cost per employee death is $825,000, considering hospital and legal fees. o Number of injuries and cost per injury: estimating injuries cost 20 percent of a death. o Regulatory compliance issues: EVWD could face regulatory issues during a drought for noncompliance with staged water rationing. o Loss of public confidence: A contamination, cybersecurity breach, or other event could cause a loss of public confidence. Customers may refuse to pay bills. Other costs are more intangible, including loss of trust and reputation. EVWD Liability equation: (# of deaths * cost of death) + (# of injuries * cost of injury) + regulatory compliance + loss of public confidence cost. Regional Financial Loss Regional financial loss includes the following:  Number of deaths and cost per death: Assuming the cost per death is $7,400,000. This number is higher than the cost for EVWD employees, not because of differences in life valuation, but because deaths within the region carry greater legal fees and are not covered by workers comp.  Number of injuries and cost per injury: assuming injuries cost 20 percent of a death. 124  Deficit of minimum acceptable demand: Estimated number of customers impacted.  Duration of service loss (days): Number of days EVWD delivers < 11 MGD water supply criteria.  Regional economic output ($/day): FEMA estimates water services are valued at $105 per capita per day while wastewater services are worth $49 per capita per day. Regional liability equation: (# of deaths * cost of death) + (# of injuries * cost of injury) + (Deficit of minimum acceptable demand (#) * duration of service loss (#) * regional economic output ($). Total Consequence Adding EVWD and Regional Financial Loss results in the Total Consequence Cost to EVWD if the threat-asset pair were to occur. The annualized costs are multiplied by 20 to account for a 20-year planning cycle. EVWD can then decide if mitigation measures have a sufficient return on investment against the 20-year cycle. The factors that make the biggest impact on consequence are asset replacement costs, deaths, injuries, and duration of service loss. 6.3.1.2 Benefit-Cost Review A benefit-cost review for mitigation planning differs from a benefit-cost analysis used for specific mitigation projects. A benefit-cost review can be relatively simple but should cover monetary and non-monetary costs and benefits associated with each action. The benefit- cost review conducted for the District’s mitigation strategy is integrated into Appendix K, Mitigation Project Initiatives. The Planning Team qualitatively evaluated the potential benefit of each mitigation action within the context of the potential consequence if the action were not implemented. For example, upgrading water storage tanks that are not seismically sound will maintain or increase the District’s water storage capacity and benefit the service area population by providing a more reliable and possibly greater alternative supply of potable water in case of a severe drought or water shortage. In addition to the qualitative benefit, the Planning team used the 20-year quantified risk described in Section 6.3.1.1.1 Quantified Consequence Analysis to consider the potential monetized impact of an action. Note that the specific actions listed are conceptual and do not include a project scope and level of protection, therefore it is not possible to execute a benefit-cost analysis based on the level of protection provided by a project. Nevertheless, the quantified risk demonstrates an order of magnitude monetized impact to review and consider in the project prioritization process. The risk was quantified using FEMA benefit-cost analysis methodologies that can be further refined as projects are scoped. These methods (described briefly in Section 6.3.1.1.1) prioritize mitigation 125 actions that protect facilities vulnerable to high asset damage, service disruption, and health and economic impacts to the service area population. The Planning Team identified order of magnitude costs for each action using historical costs of facility improvements and expert judgement. Project costs will be re-evaluated and updated in the Mitigation Initiative list as the actions are further explored and scoped. 6.3.1.3 Funding Availability Without grant or loan assistance, existing sources of funding are limited to the District’s Capital Improvements Program. The Planning Team prioritized projects currently funded through the Capital Improvement Plan. The Planning Team provided an initial project rank during the mitigation strategies workshop based on risk analysis results. All rankings were determined by the consensus of the Planning Team. Given the extreme importance of maintaining critical functions in times of emergencies and the large number of customers who depend and rely on District services and infrastructure, those mitigation measures shown to improve disaster resistance, readiness, and/or recovery capacity are generally given higher priority. Using the above criteria for establishing mitigation priorities, each measure was assigned a priority ranking as follows:  High – Projects that will be the primary focus of implementation over the next three years.  Medium – Projects that may be implemented over the next five years.  Low – Projects that will not be implemented over the next seven years unless conditions change (new program/funding source). 6.3.2 Implementation Strategy An implementation strategy is the key to any successful planning effort. The implementation strategy defines the way in which the project priority comes into practice Local Mitigation Plan Regulation Checklist (Requirement §201.6(c)(3)(iv)) & (Requirement §201.6(c)(3)(iii)); (Requirement §201.6(d)(3)) The District prioritized mitigation actions that present the greatest potential for maintaining critical district functions and operability and reducing impacts to the service area population if disruption occurs. This includes reviewing qualitative benefits and quantitative risk compared to order of magnitude project costs to prioritize projects with greatest return on investment. These actions reflect new information received in the Risk Assessment and prioritize projects that mitigate the highest- ranking hazards. 126 and addresses critical concerns for any project: the responsible party, and the funding source. Strategic project management by the District is vital to the implementation of prioritized projects. By involving a representative of each department within the District, the Planning Team was able to develop a realistic implementation strategy for each mitigation action that reduces potential redundancies in District operations. The implementation strategy for the District is incorporated into Appendix K: Mitigation Actions. Each mitigation action has an assigned District Department, identified potential funding sources, estimated a timeframe for completion, and status of the project. The responsible department is accountable for executing the projects and monitoring progression throughout implementation. Projects are identified as short term (less than 3 years) or long term (more than 3 years). Potential funding sources may be internal, i.e. Capital Improvement Program, or external, i.e. FEMA HMGP funding. Local Mitigation Plan Regulation Checklist (Requirement §201.6(c)(3)(iv)) & (Requirement §201.6(c)(3)(iii)) The District’s Mitigation Initiatives list in Appendix K identifies the District Department responsible for implementing and administering the action, potential funding sources, and expected timeframes for completion. 127 7 PLAN MAINTENANCE The Hazard Mitigation Plan must remain up to date to remain effective in mitigating hazards and protecting the District’s assets and service area population. This section describes how the District will incorporate mitigation actions and initiatives into existing implementation mechanisms, and continue to monitor, evaluate, and update the plan. The Planning Team will be responsible for coordinating implementation of Plan action items and undertaking the formal review and maintenance process. 7.1 PLAN INTEGRATION The principal planning mechanism for funding approval and project prioritization is the District’s Capital Improvement Program (CIP) and annual budget. The District’s CIP is a five-year planning schedule that earmarks funds for a fiscal year. Long-term capital planning is a dynamic process and part of the District’s overall strategic plan. The Planning Team is committed to reviewing the Mitigation Initiatives list on an annual basis in coordination with CIP reviews and grant opportunities to integrate mitigation into existing CIP projects and on-going maintenance and position for grant funding. Local Mitigation Plan Regulation Checklist Requirement §201.6(c)(4)(i): [The plan maintenance process shall include a] section describing the method and schedule of monitoring, evaluating, and updating the mitigation plan within a five-year cycle. Requirement: §201.6(c)(4)(ii): [The plan shall include a] process by which local governments incorporate the requirements of the mitigation plan into other planning mechanisms such as comprehensive or capital improvements, when appropriate. Requirement §201.6(c)(4)(iii): [The plan maintenance process shall include a] discussion on how the community will continue public participation in the plan maintenance process. Local Mitigation Plan Regulation Checklist (Requirement §201.6(c)(4)(ii)) The CIP is the local planning mechanism where hazard mitigation information and actions may be incorporated for implementation. The mitigation projects will be evaluated annually in coordination with the CIP review and grant proposal coordination to leverage existing CIP projects and maintenance plans to incorporate mitigation. External sources of funding opportunities will also be pursued, such as grant funding applications. The District will continue to integrate the data, information, and mitigation goals and actions into future updates of the RRA and ERP. 128 In addition to the CIP, the District conducted the 2020 Plan Update in coordination with a Risk and Resilience Assessment for America’s Water Infrastructure Act and Emergency Response Plan update. The three plans all build from each other, sharing hazard profiles, vulnerabilities, risks, and mitigation initiatives to provide a solid foundation for the District to plan for and respond to hazards and threats. Each of these plans must be updated every five years, and the District is committed to performing the updates in coordination to streamline planning processes and reduce redundant efforts. 7.2 MONITORING, EVALUATING, AND UPDATING The information on hazards, vulnerabilities, consequences, and risks in the 2020 Plan Update is based on the most recent and credible resources and processes available. The District intends to update the HMP on a five-year cycle from the date of initial plan adoption. Nevertheless, new hazard events tend to identify new vulnerabilities and priorities that need to be reflected in the HMP as soon as possible so the plan remains effective. Therefore, the District’s Planning Team will convene at least annually to monitor implementation progress and integrate the mitigation strategy into the CIP. As part of this annual monitoring process, the Planning Team will review the following:  Recent hazard events that have affected the District service area.  Any new studies or information that may affect the Risk Assessment or prioritization of projects.  New regional coordination initiatives that require District support and discuss how they might adjust priorities.  Appendix K, Mitigation Initiatives and revise the implementation strategy to document progress on mitigation activities, project needs, and identify the need for any new mitigation actions or changes to existing ones.  Potential projects to apply for grant funding and resources needed to develop a funding proposal. The Planning Team will develop an annual progress report for District Board presentation for review and discussion. Annual monitoring will be conducted until 2024, a year before the five-year planning cycle for the 2020 Plan update expires. In 2024, the Planning Team Local Mitigation Plan Regulation Checklist (Requirement §201.6(c)(4)(i)) The District will continue to monitor, evaluate, and update the HMP over the course of 5 years until the next required FEMA update. The Planning Team will monitor the Plan and implementation strategy list for coordination with the CIP, evaluate the priorities and effectiveness of mitigation actions in achieving HMP goals and objectives, and update the mitigation actions and implementation strategy when necessary. 129 will reconvene to evaluate the plan effectiveness and incorporate new RRA and ERP details into the HMP. The 2024 five-year plan update will include the following steps:  Review development changes and service demands for changes and adjust as necessary.  Update the RRA based on most recent hazard events, technical information available, updated best practices, and projects implemented.  Revise the mitigation strategy to account for changes in development within the District’s service area, and threat and hazard updates.  Coordinate with agency partners and stakeholders to report mitigation strategy updates and leverage similar hazard mitigation initiatives.  Provide the public an opportunity to comment on the draft update, and revise as appropriate based on public comment. The District Board of Directors is responsible for the final adoption of the HMP, following notification from CalOES and FEMA that the HMP is approved pending adoption. 7.3 CONTINUED PUBLIC INVOLVEMENT The District values collaboration and input from its stakeholders and the public. After the Plan adoption, the District will apprise the public of 2020 Plan Update actions through the District’s website (http://www.eastvalley.org). Additionally, the public is welcome to address concerns at District Board meetings, which are held every second and fourth Wednesday of the month and are open to the public, with agendas and meeting minutes posted to the District’s website. The District welcomes public input regarding Plan updates and will provide contain contact information to direct public comments and concerns. Local Mitigation Plan Regulation Checklist (Requirement §201.6(c)(4)(iii)) The District will continue public involvement in the plan maintenance process after adoption of the 2020 Plan Update through annual monitoring review meetings. Any updates to the 2020 Plan Update will be posted online via EVWD Board meeting minutes. Citizens are welcome to contact the District with any ongoing comments or concerns. East Valley Water District Draft Water Shortage Contingency Plan Attachment 3: Adoption Resolution B OAR D AG E N D A S TAF F R E P O RT Agenda Item #5. Meeting Date: June 23, 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 2021.10 to Approve the O perating and C apital Bud gets fo r F is cal Year 2021-22 R E COMME N D AT IO N: S taff rec ommends that the Bo ard o f Direc tors (Board ) ad o p t R es o lution 2021.10 ap p roving the O p erating and C ap ital Budgets for fisc al year (F Y) 2021-22. B AC KG R O UN D / AN ALYS IS : T he F Y 2021-22 O p erating and C ap ital Budgets have been developed to c o ntinue to provide high quality water d elivery and wastewater collectio n s ervices to Dis tric t ratep ayers . In d evelop ing the fisc al plan fo r next year, staff remained foc us ed on key issues . At the s ame time, staff ensured that exp end itures d irectly c o rrelate to Agenc y G oals and O b jec tives . T he O perating Bud get is pres ented by p rogram, eac h having s tated goals and o b jectives fo r the up coming fis cal year that align with Agenc y G o als , and eac h ac companied b y funding requests to s upport tho s e o b jec tives . T he C apital Bud get s p ecific ally identifies equip ment s c hed uled fo r replac ement o r upgrade, and projec ts fro m the C ap ital Impro vement P ro gram (C I P ) d esignated as high p rio rity d ue to age and c o nditio n or having ins uffic ient capac ity to meet anticipated growth. Revenues: As dis c us s ed during the Bo ard wo rks hop o n May 19, 2021, to tal revenue projec ted for F Y 2021-22 is $41,304,000, a 4% increas e o ver revenue p ro jec ted for the prior year. F acto rs affec ting revenue p ro jec tions includ e: C o nsumptio n b ased o n F Y 2018-19; Meter C harge and Tiered R ate increas e, effec tive January 2022; C hange to was tewater collec tio n and treatment rates , effec tive May 2022; Decreas ed interes t rates earned o n investments; Decreas ed disc onnec tion charges due to C alifornia G overnor Executive O rder N-42-20 and the C O VI D- 19 pand emic ; and S NR C No n-R ate R evenue. P rojec ted revenues are s ummarized in the c hart b elow: Expenses: T he Dis trict ac counts for all operating expens es at the p ro gram level. Each program is evaluated on an annual b as is to d etermine its effectivenes s. As a result, s o me p ro grams may b e redefined o r enhanc ed, in o rder to ens ure that the p ro grams run effec tively and with a high level o f ac countability. F Y 2021-22 p ro gram exp ens es are b ud geted $32,893,000, an 8% inc reas e compared to the prio r fis c al year. To tal p rogram expens es are pres ented b y c os t typ e b elo w: Capital Outlay: T he C apital O utlay Bud get is an effo rt to plan for the rep lacement of vehic les and equip ment. T he o b jec tive is to s tand ardize the replacement proc es s in ord er to c reate a managed sys tem of p urc has ing and funding c ap ital eq uip ment, thereby allo wing the Dis trict to ac c urately plan and budget fo r future need s . T he cost o f independent studies encomp as s ing lo ng-term infrastruc ture p lanning are als o inc luded in C ap ital O utlay. T he F Y 2021-22 C ap ital O utlay Budget totals $1,130,000 and inc ludes a combinatio n of eq uipment p urc has es and inves tments in tec hno lo gy, as s ummarized in the tab le b elo w: Capital Improvement P rogram (C IP): T his year ’s prop o s ed C ap ital Impro vement P rogram Bud get totals $47,356,000 and fo c uses on c o mp leting the S terling Natural R esourc e C enter (S NR C ), implementing lo ng-term s olutions fo r po tential water quality is s ues at P lant 134, and c ontinued rehab ilitation o f c ritical infras tructure to ens ure s ys tem reliab ility in future years. T he C I P Budget is fully fund ed utilizing $5,059,000 from o p erating revenue and $43,427,000 fro m G rants and Lo ans . A summary of the C I P Bud get fo r 2021-22, by project type, is s hown in the fo llowing table: T he Mid-Year Bud get R eview conducted in F eb ruary of each year will allo w the Distric t to measure ac tual revenue agains t revenue projectio ns and determine whether exces s revenue, if any, are s uffic ient to fund additio nal projects . Debt S ervice: T he Dis tric t will pay d eb t servic e on s ix debt instruments in F Y 2021-22. Both water and was tewater revenues are p ledged as sec urity for revenue b o nd s , while o nly water revenues are pledged fo r repayment of exis ting lo ans . A p reliminary calc ulation based o n b udget numbers has res ulted in F Y 2021-22 debt s ervice c o verage o f 283%, well in excess o f the 120% req uired by b o nd doc uments . Debt s ervic e payments sc heduled fo r F Y 2021-22 are s hown in the following tab le: Budget Funding: C urrent year water and was tewater rate revenue will p ay fo r all F Y 2021-22 o p erating exp ens es , d eb t s ervice o n District deb t, and will c ontribute to ward the current year C ap ital Budget, which includ es C ap ital O utlay, and year one of the multi-year C ap ital Imp rovement P ro gram. In ad d itio n to rate revenue, the C apital Bud get will als o b e fund ed by grants and proceeds from lo w interes t s tate lo ans . T he tab le belo w dis p lays expend iture typ es inc lud ed in the F Y 2021-22 Bud get, and the fund ing s ourc es availab le to p ay those exp enditures : Conclusion: S taff has ded icated a s ignific ant amo unt o f time to the c areful evaluatio n o f revenue and p ro gram exp enditures , to develo p a bud get that will p ro vide s uffic ient funding to meet the needs of the community, c red itors , and other stakeho lders . T hroughout the c o ming year, s taff will clos ely monito r revenues versus p rogram s p ending, and propos e adjustments as nec es s ary to ens ure the Distric t’s fis c al sus tainability. R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: Brian Tomp kins C hief F inancial O fficer AGE N C Y GOALS AN D OB J E C T IVE S: G oal and O b jec tives I I - Maintain a C o mmitment to S us tainab ility, Trans p arency, and Ac countability a) P rac tic e Transparent and Ac countable F isc al Management R E VIE W B Y O T HE R S : T his agend a item has b een reviewed b y all dep artments , the C ommunity Advis o ry C o mmis sion, and was pres ented as an information only item at the June 9, 2021 Bo ard meeting. F IS CAL IMPAC T T he F Y 2021-22 O perating Budget is b alanced, and the C ap ital Budget is fully fund ed . ATTAC H M E NTS: Description Type P resentation P resentation F Y 202 1-22 Draft Budget Backup Material Resolution 202 1.10 Resolution Lette r April 21, 2021 FY 2021-22 OPERATING AND CAPITAL BUDGETS REVENUE CONSIDERATIONS Water •Consumption Based on FY 2018-19 •Meter Charge and Tiered Rate Increase, Effective January 2022 Wastewater •Change to Wastewater Collection and Treatment Rates, Effective May 2022 Other Income •Decreased Interest Rates Earned on Investments •Adjusted Disconnection Charges Due to California Governor Executive Order N-42-20 and the COVID-19 Pandemic •SNRC Non-Rate Revenue 2 DISTRICT-WIDE REVENUES Water Sales $17,288,000 Meter Charges $9,280,000 Wastewater Collection $4,815,000 Wastewater Treatment $8,708,000 Other $1,213,000 TOTAL REVENUE -$41,304,000 EXPENSE CONSIDERATIONS •Transition From SBMWD Treatment Services •Contract Services and Supplies for SNRC •District Provided Equipment for the SNRC •Debt Service Down $1 Million from FY 2020-21 •Salary Survey •Rehabilitation of Existing Water Tanks •Amortization of Long-Term Pension Obligations 3 DISTRICT-WIDE EXPENSES FUNDED BY OPERATING REVENUE Employment Expenses $12,123,000 Water Costs $768,000 Contracted Wastewater Treatment $7,844,000 Power Costs $2,160,000 Materials & Supplies $1,578,000 Contract Services $7,977,000 Other Operating Expenses $443,000 Debt Service $3,352,000 Capital Expenditures $5,059,000 TOTAL EXPENSES -$41,304,000 4 WATER FUND Water Sales $17,288,000 Meter Charges $9,280,000 Other Charges $404,000 SOURCE OF REVENUE Operations $19,098,000 Debt Service $3,082,000 Capital Expenditures $4,792,000 EXPENDITURES / OTHER USES BUDGET HIGHLIGHTS •Rate Adjustments •External Funding Sources •Completed AMI Project •Debt Service Down $1.0 Million FISCAL YEAR 2021-22 TOTAL WATER BUDGET = $26,972,000 5 WASTEWATER FUND Wastewater Collection $4,815,000 Wastewater Treatment $8,708,000 Other Charges $809,000 SOURCE OF REVENUE Operations $13,795,000 Debt Service $270,000 Capital Expenditures $267,000 EXPENDITURES / OTHER USES FISCAL YEAR 2021-22 TOTAL WASTEWATER BUDGET = $14,332,000 BUDGET HIGHLIGHTS •SNRC Startup •Staffing •Contracts •Recycled Water Discharge •Rate Adjustments •Alternate Funding Sources 6 PROGRAM EXPENDITURE SUMMARY DESCRIPTION WATER FUND WASTEWATER FUND TOTAL FY 2020-21 BUDGETED CHANGE 1000 - Governing Board $ 170,800 $ 73,200 $ 244,000 $ 257,000 -5% 2000 - General Administration 931,500 397,500 1,329,000 1,302,000 2% 2100 - Human Resources 1,322,400 349,600 1,672,000 1,325,000 26% 2200 - Public Affairs 1,340,900 503,100 1,844,000 1,589,000 16% 2300 - Conservation 614,000 - 614,000 624,000 -2% 3000 - Finance & Accounting 890,250 380,750 1,271,000 1,272,000 0% 3200 - Information Technology 895,900 341,100 1,237,000 973,000 27% 3300 - Customer Service 1,022,400 424,600 1,447,000 1,507,000 -4% 3400 - Meter Services 321,000 - 321,000 290,000 11% 4000 - Engineering 1,114,400 477,600 1,592,000 1,544,000 3% 5000 - Water Production 4,539,000 - 4,539,000 4,493,000 1% 5100 - Water Treatment 900,000 - 900,000 905,000 -1% 5200 - Water Quality 521,000 - 521,000 480,000 9% 6000 - Maintenance Admin 378,000 42,000 420,000 434,000 -3% 6100 - Water Maintenance 2,658,000 - 2,658,000 2,485,000 7% 6200 - Wastewater Maintenance - 950,000 950,000 803,000 18% 6300 - Water Reclamation - 9,555,000 9,555,000 8,586,000 11% 7000 - Facilities Maintenance 971,750 244,250 1,216,000 1,022,000 19% 7100 - Fleet Maintenance 506,700 56,300 563,000 500,000 13% TOTAL $19,098,000 $ 13,795,000 $32,893,000 $30,391,000 8% 7 BUDGET SUMMARY BY PROGRAM 8 DEBT SERVICE 2020A Bonds $1,605,000 2020B Bonds $599,000 SRF Loans $253,000 US Bank Loan $454,000 SBVMWD Loan $441,000 FY 2021-22 PAYMENTS $3,352,000 Debt Proceeds Used For Plant 134 Treatment Upgrade Plant 134 Hydro Electric Plant Administration / Operations Facility Honeywell Energy Projects 4 Million Gallon Underground Tank 9 OPERATING BUDGET SUMMARY DESCRIPTION WATER FUND WASTEWATER FUND TOTAL Revenue Sales & Services $ 26,568,000 $ 13,523,000 $ 40,091,000 SNRC Non-Rate Revenue - 632,000 632,000 Other Charges 175,000 140,000 315,000 TOTAL REVENUE $ 26,743,000 $ 14,295,000 $ 41,038,000 Expenditures Operations $ 19,098,000 $ 13,795,000 $ 32,893,000 Debt Service 3,082,000 270,000 3,352,000 Capital Outlay 1,080,000 50,000 1,130,000 Capital Improvement Projects 3,712,000 217,000 3,929,000 TOTAL EXPENDITURES $ 26,972,000 $ 14,332,000 $ 41,304,000 10 CAPITAL BUDGET FUNDING SUMMARY DESCRIPTION WATER FUND WASTEWATER FUND TOTAL Capital Outlay $ 1,080,000 $ 50,000 $ 1,130,000 Capital Improvement Program 11,152,000 36,204,000 47,356,000 TOTAL EXPENDITURES 12,232,000 36,254,000 48,486,000 Operating Revenue 4,792,000 267,000 5,059,000 Reserves - - - Grants / Loans 7,440,000 35,987,000 43,427,000 TOTAL SOURCES $ 12,232,000 $ 36,254,000 $ 48,486,000 •Total Full-Time Positions: 76 •Part-Time Positions: 1 •Position Changes: 2 •Customer Service Rep I •Transition from Part-Time to Full-Time •Associate Engineer •Sr. Administrative Assistant Retired •New Full-Time Positions: 9 •Water Reclamation Manager •Sr. Treatment Plant Operator •Treatment Plant Operator III (4) •Plant Maintenance Technician I (2) •Administrative Analyst 11 AUTHORIZED POSITIONS BUDGET2021-22 Fiscal Year Draft Highland, California CONNECTING PEOPLE & TECHNOLOGY when it brings people together. – Matt Mullenweg Technology is best How to Read the Budget East Valley Water District’s Fiscal Year 2021-22 Operating and Capital Budgets provides customers, ratepayers and members of the community with detailed information about the District’s programs and operations. The goal of the budget document is to provide transparency to the community regarding the services, programs and operations of the District. The operating and capital budget include: PROGRAM SUMMARIES The Program Summaries section provides the structural overview, key goals and objectives, accomplishments for the previous year and the program budget. FISCAL YEAR BUDGET 2021-2022 1. Transmittal Letter – A letter from John Mura, General Manager/CEO to outline the District’s approach and methodology in developing the budget. 2. Introduction – Overview of East Valley Water District, the financial plan and operating guide. 3. Financial Summary – Methodology and principles to provide guidelines to assist in the formulation and consideration of the comprehensive annual budget. 4. Water and Wastewater Funds – Financial projections, assumptions and considerations for revenue, expenses, and operations. 5. Consolidated Financial Summary – Snapshot of the District’s revenues and expenses. 6. Program Summaries – Individual program summaries highlighting the accomplishments, goals and proposed operating budget for the specific program. 7. Capital Budget – Summary of capital budget and proposed capital improvement projects. 8. Glossary – Explanation of key terms and acronyms used throughout the document. Information Technology FUNCTION The Information Technology Department oversees the District’s technology infrastructure to support essential business and operational functions. The functions utilize industry specific software programs required to meet agency needs. The Department implements routine cybersecurity training campaigns to mitigate financial and data loss. In addition to software management the Department proactively schedules hardware replacements from the point of procurement to installation. The replacement program is a plan near end-of-life hardware to reduce the risk of downtime. Lastly, the Department coordinates and implements agency-wide technology by facilitating vendor access and support for technology focused projects. EAST VALLEY WATER DISTRICT | PAGE 99 GOALS OBJECTIVES #1 Ensure Reliability of Technology Infrastructure for Primary Business and Operation requirements 1. Install and configure Network Infrastructure and Technology to establish operating and business functions at SNRC.2. Complete transition of direct fiber connection for HQ and SNRC to mitigate business disruption. 3. Upgrade End-of-Life Cisco servers to strengthen network infrastructure4. Coordinate the installation of Modern SCADA radios with Operation and contractor to increase communication reliability. #2 Improve Systems and Cybersecurity Measures for Response Functions 1. Continue monthly email phishing campaign to reduce click rate and educate staff on security risk. 2. Develop an inventory of new and existing information technology systems and cross-train IT staff on standard operating procedures.3. Identify and create a business continuity plan to respond to emergencies efficiently. #3 Analyze Current Systems to Enhance Reporting and Automate Processes 1. Enhance Microsoft BI reporting capabilities to address Conservation and Human Resource’s reporting requirements. 2. Complete a comprehensive Cityworks and GIS infrastructure assessment with Engineering to align with the organization’s needs recommended through the IT strategic plan.3. Assist Operations and Maintenance on identifying requirement for an asset management system. PROGRAM SUMMARIES FY 2020-21 ACCOMPLISHMENTS Goal 01 Fortified IT Infrastructure for Reliability and Expanded Services for HQ, the SNRC and Plant 134 • Upgraded VMWare licenses to expand Network Infrastructure for the SNRC and HQ.• Expanded hardware needs for office and field staff through mobile devices and laptops. Goal 02 Proactively Improved Systems and Cybersecurity Measures for Internal and Emergency Response Functions • Engaged staff with monthly phishing emails to improve cybersecurity to mitigate security risk. • Assessed and enhanced remote capabilities for staff and EOC operations.• Implemented imaging software to allow image and recovery of computer systems to minimize downtime. Other Accomplishments • Fully transitioned staff for remote work through Covid-19 Pandemic.• Implemented New Deployment Software for existing and new hardware. • Provided additional staff with mobile devices for field use. • Assisted Administration with implementation of PrimeGov - New Agenda Management Software. INFORMATION TECHNOLOGY Significant Changes Funding to contract services increased to cover SNRC services (support expansion, Spectrum fiber). IT Services were established to support remote working capabilities and implement VPN enhancements for new remote environment. Levels of Service The Information Technology Program has six KPI metrics that are associated with the District’s Goals and Objectives of: • Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) • Strive to Provide World Class Customer Relations (III-B) FISCAL YEAR BUDGET 2021-2022 | PAGE 100 Program Budget Allocation $1,237,000 PROGRAM SUMMARIES EAST VALLEY WATER DISTRICT | PAGE 101 The program’s performance related to these metrics are included in the following table. Key Performance Indicators Changes Agency Goal Key Performance Indicator Target FY 2018-19 FY 2019-20 FY 2020-21 IV-A Elevate Cybersecurity awareness by sending out test ‘phishing’ emails 800 844 862 1,019 IV-A Maximize system availability 99% 99% 99% 99% IV-A Cybersecurity awareness results for phishing email click rate <7% 5% 7.4% 6% IV-A Complete disaster recovery drill (system restoration, power outages, emergency notifications) 2 1 1 2 III-B Receive ‘Excellent’ scores on IT satisfaction surveys submitted by staff >95% 88% 98% 96% III-B Minimize resolution time for help desk issues submitted by staff 24 Hrs. 23.3 16.4 24 Hrs Program Budget Detail FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 262,147 $ 338,000 $ 271,000 $ 366,000 $ 28,000 8% 5102 Temporary Labor - - - - - 0% 5103 Overtime - - - - - 0% 5200 Benefits 78,865 120,000 96,000 199,000 79,000 66% OPERATING EXPENSES 6201 Materials & Supplies 53,723 42,000 44,000 45,000 3,000 7% 6203 Office Supplies 56 1,000 - 1,000 - 0% 6301 Contract Services 359,485 449,000 286,000 606,000 157,000 35% 6307 Uniforms 872 1,000 - 1,000 - 0% 6402 Telephone 5,769 6,000 9,000 7,000 1,000 17% 6501 Memberships & Dues 2,554 1,000 - 1,000 - 0% 6502 Professional Development 393 14,000 4,000 10,000 (4,000) -29% 6503 Education Assistance - - - - - 0% 6504 Meetings 722 1,000 - 1,000 - 0% IT TOTAL $ 764,586 $ 973,000 $ 710,000 $1,237,000 $ 264,000 27% Department Name Function Goals & Objectives Accomplishments Program Budget Detail EAST VALLEY WATER DISTRICT | PAGE i IntentionallyTHIS PAGE LEFT BLANK EAST VALLEY WATER DISTRICT | PAGE ii Table of Contents HOW TO READ THE BUDGET Transmittal Letter..............................................................1 FY 2019-20 Accomplishments .....................................11 District Management .......................................................13 Resolution 2021.10 ...........................................................14 Introduction ......................................................................15 Budget Guide .....................................................................17 Statistical/Supplemental Information .......................20 District Vision ....................................................................23 Organizational Structure ...............................................26 Industry Benchmarks ..................................................33 Financial Summary ......................................................45 Financial Policies .............................................................47 Budget Process ...............................................................53 Current & Proposed Budget Cycle Calendar .......55 Basis of Budgeting ..........................................................56 Fund Structure ..................................................................57 Fund/Program Relationship .........................................59 Budget Summary ............................................................60 Revenue Summary ..........................................................61 Expenditure Summary .....................................................71 Debt Overview .................................................................79 Net Position/Fund Equity ..............................................84 Long Range Financial Plan ..........................................89 Water Fund ......................................................................95 Wastewater Fund .......................................................109 Consolidated Financial Schedules .....................121 Program Summaries .................................................127 Program Descriptions ...................................................129 Position Summary Schedule ......................................130 Governing Board .......................................................133 General Administration ............................................139 Human Resources .....................................................145 Public Affairs .................................................................151 Conservation ...............................................................157 Finance & Accounting ..............................................163 Information Technology ...........................................169 Customer Service ......................................................175 Meter Services .............................................................181 Engineering ..................................................................187 Water Production .......................................................193 Water Treatment .........................................................201 Water Quality ..............................................................207 Water Maintenance ...................................................213 Wastewater Maintenance .......................................219 Water Reclamation ...................................................225 Facilities Maintenance .............................................231 Fleet Maintenance....................................................237 Capital Budget .............................................................243 Capital Budget Summary ...........................................245 Capital Outlay .................................................................245 CIP Five-Year Schedule ...............................................248 Capital Improvement Projects ...............................251 Infrastructure Accomplishments ..........................271 Glossary ..........................................................................275 Acronyms .....................................................................281 Chart of Accounts .....................................................285 Organization of the Budget Document IntentionallyTHIS PAGE LEFT BLANK TR A N S M I T T A L L E T T E R EAST VALLEY WATER DISTRICT | PAGE 1 TRANSMITTAL LETTER The annual budget development provides an opportunity for cooperation and collaboration with the understanding that an efficient operation requires high degrees of teamwork and focus. DISTRICT MANAGEMENT FY 2019-20 ACCOMPLISHMENTS RESOLUTION 2021.10 FISCAL YEAR BUDGET 2021-2022 | PAGE 2 EAST VALLEY WATER DISTRICT | PAGE 3 Honorable Chairman, Governing Board, District Ratepayers, and Community Members, It is my honor to present East Valley Water District’s (District, EVWD) Fiscal Year (FY) 2021-22 Operating and Capital Budgets (budget). This budget has been assembled as a foundational guide and tool for our employees, stakeholders, and community to gain insight and understanding into the District’s strategies, operations and goals. The Operating and Capital Budgets have been created through the strategy planning process, which actively engaged District Board, staff, and community members. The budget presents a comprehensive financial plan that includes a forecast of operating and non-operating revenues and expenditures; financing of long-term capital improvement plans and funding for the repayment of long-term debt. After many years of strategic planning and development, the Sterling Natural Resource Center (SNRC) will come online and begin operations in 2022. With the additional service, the District has developed a comprehensive launch strategy, a detailed staffing plan to ensure a safe and functioning facility, and the respective operational expenses and revenue generated through the operations. These elements have been incorporated through the addition of the a Wastewater Reclamation program in the FY 2021-22 Operating and Capital Budget. Individuals are invited to participate in the discussions and decisions that affect the District’s fiscal priorities and service to the community. BUDGET PROCESS Every January, the budget process begins with the Governing Board creating and adopting the annual District- wide goals. EVWD staff will then develop the plans and programs needed to meet the goals and District financial forecasts. The complex effort allows for an efficient process maintaining the goals and priorities as a foundation, while considering ongoing operational needs in the development of the program and capital expenses. STRATEGIC PLANNING EFFORTS East Valley Water District has set out to be a world class organization, with a focus not only on providing safe and reliable drinking water but enhancing and preserving the quality of life for our community. The Governing Board, staff, and the community have developed a District vision that empowers the organization to take actions to be innovative, efficient, and effective. Carrying out this vision requires a commitment to being a performance-based organization which values results. Given the high expectation of the District, it is important to communicate the nature of key projects, including the required planning steps, environmental awareness, and clear prioritization to allow for on-going daily operations while addressing specific long-term needs. TRANSMITTAL LETTER FISCAL YEAR BUDGET 2021-2022 | PAGE 4 The District began Strategic Planning efforts in 2012 with the identification of key projects and staffing adjustments. From that point, the District has enhanced these efforts to include development of the District Vision, Core Values, and annual District-wide Goals. To connect these elements in a manner that not only guides day-to-day decision making, but also long-term planning, the Five-Year Work Plan was developed in 2018. Strategic Planning Workflow Strategic Plan Priorities O p e r ation E t e r n a Factor Strat e g i I n i t i a tiv e VISION Enhance and preserve the quality of life for our community through innovative leadership and world class public service. VISION L E A D ERSHIP P A RTNERSHI PSTE W A R D S HIP S T R A T E GIC PLAN D I S T RICT-WIDE GOALS5-Y E A R W O R K PLAN STRATEGIC PLAN Optimize Infrastructure Systems Maximize the District’s Position Continue to Be a Premier Agency Financial Stability with Full Understanding of Operational Complexities Protect Organizational investments 01 Implement Effective Solutions Through Visionary Leadership 02 Maintain a Commitment to Sustainability, Transparency, and Accountability 03 Deliver Public Service with Purpose While Embracing Continuous Growth 04 Promote Planning, Maintenance and Preservation of District Resources TRANSMITTAL LETTER EAST VALLEY WATER DISTRICT | PAGE 5 DISTRICT-WIDE GOALS AND OBJECTIVES Given the dynamic organizational needs, District-wide goals are developed by building off the Five Year Plan to identify the highest priorities and typically most complex efforts to be undertaken each fiscal year. These activities are outside regular operations, and serve to develop an understanding of the areas that will require a commitment of significant resources, such as policy decisions, staff time, funding, and/or equipment. This process is completed as part of the General Manager/CEO’s annual evaluation, where the Governing Board establishes the District-wide goals for the upcoming year. Priorities for FY 2021-22 follow the District’s strategic priorities and are implemented within the program and capital goals. PROGRAMMATIC GOALS AND OBJECTIVES All program goals have been designed to support the priorties outlined in the Strategic Plan, Five-Year Work Plan and the District-wide Goals and Objectives. REVENUE PROJECTIONS Anticipated rate and non-rate revenues are projected to understand the financial resources available to fund the activities identified for the fiscal year. Given the significant potential impacts of external factors such as the economy, drought conditions, and demand, the District calculates these figures in a fiscally conservative manner. A process is in place to allow for adjustments to reflect for actual revenue trends at quarterly intervals throughout the year and ultimately reported in the Comprehensive Annual Financial Report. Optimize Infrastructure • Continue Making Progress on Design and Construction of Essential Capital Improvement Projects • Prepare for the Completion and Operation of the SNRC Financial Stability With Full Understanding of Operational Complexities • Consider Short and Long-Term Impacts of COVID-19 on District Operations and Capital Needs • Develop a Five-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 Succession Planning, Staffing Plan, and a Classification & Compensation Study • Conduct and Develop Educational Programs to Foster 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 The budget represents actions needed to implement the District’s short-term and long-term goals and objectives. FISCAL YEAR BUDGET 2021-2022 | PAGE 6 EXPENDITURE PROJECTIONS Expenditure projections are costs estimates developed to achieve program goals and objectives along with daily operational needs. This information is presented from multiple perspectives, including the District-wide perspective, for each fund, and for individual programs. Once initial expenditures are developed, they are compared to the revenue projections. During the budget process, if expenditures were projected above available revenues, the organization could use the strategic nature of the budget to re-evaluate goals to ensure maintenance of consistent expectations with available financial resources. BUDGET ADOPTION To provide an opportunity for discussion and participation, the budget was presented to the Governing Board in phases at a series of three public meetings. In addition, the information was presented during two public meetings of the Community Advisory Commission for review and feedback. The Community Advisory Commission is a group of five residents appointed by the Governing Board to provide input to support efforts of transparency and accountability. The annual budget must be adopted by June 30, in order to begin the new fiscal year on July 1. PROGRAM MONITORING AND BUDGET ADJUSTMENTS Given that the budget is developed based on projections, each program monitors monthly expenses. Each quarter the budget to actuals are reviewed by staff to allow for an opportunity to take formal budget adjustments to the Governing Board for consideration. Consistent budget review eases the transition of programs from year-to-year. Each year staff presents a comprehensive update to the Governing Board midway through the fiscal year. This item is discussed at an open public meeting and provides a summary of budget activity along with updated forecasts for the remainder of the year. Budget Summary The budget for FY 2021-22 is balanced and reflects EVWD’s commitment to maximizing resources to meet or exceed the expectations of District stakeholders. Operating expenses incurred by the District’s programs are allocated to the Water and Wastewater Funds based on the assumed benefit of services to each fund. Both the Water and Wastewater Funds are self-supporting based on rates received for services provided. Total projected revenues for FY 2021-22 are $41,304,000. FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed % Change  REVENUE Operating Revenue $ 39,634,511 $ 39,518,000 $ 40,686,595 $ 40,326,000 2% Non-Operating Revenue 710,168 347,000 396,423 978,000 182% TOTAL REVENUE $ 40,344,679 $ 39,865,000 $ 41,083,018 $ 41,304,000 4%  EXPENDITURES Operating & Maintenance $ 28,591,289 $ 30,391,000 $ 21,024,396 $ 32,893,000 8% Debt Service 4,249,104 4,379,000 4,182,184 3,352,000 -23% Capital Expenditures 5,114,324 5,095,000 5,864,000 5,059,000 -1% Reserve Transfer To/(From) 2,389,962 - - - - TOTAL EXPENDITURES $ 40,344,679 $ 39,865,000 $ 31,070,580 $ 41,304,000 4% WATER FUND The Water Fund has identified $26,972,000 in both revenue and expenses. Key considerations when developing the budget for this fund included the allocation of water consumption within the Budget Based Rate Structure, system security, water quality solutions, and preventative maintenance programs. Revenue projections are developed with source assumptions being 64% water sales, 34% meter charges, and 2% other charges. The District reviews rates on a three to five year cycle and adjusts accordingly to continue providing reliable services to the community. EVWD conducted a rate analysis in FY 2020-21 with the Governing Board adopting a water rate adjustment to take effect January 1, 2022. Projected expenditures have been developed through a comprehensive organizational budget process to achieve District-wide goals, maintain operations, and remain within revenue projections. Expenses for the Water Fund consist of 71% program, 18% capital, and 11% debt service. TRANSMITTAL LETTER EAST VALLEY WATER DISTRICT | PAGE 7 Sources of Revenue Water Fund Expenses by Cost Center All expenses incurred for operating and maintaining the distribution system, infrastructure repairs, and replacements are included in the calculation of expenses. Program expenses include all operating expenses. 34% Meter Charge 64% Water Sales 2% Other 71% Program Expenses 18% Capital 11% Debt FISCAL YEAR BUDGET 2021-2022 | PAGE 8 WASTEWATER FUND The Wastewater Fund has identified $14,332,000 in both revenues and expenses. When developing the budget for this fund, key considerations included the repair of the collection system, equipment investments for system maintenance, finalizing the construction of the SNRC, and beginning wastewater treatment operations. Wastewater Fund revenue projections have been developed based on historical revenues with source projections including 61% treatment, 34% collection, and 6% other. The District reviews rates on a three to five year cycle and adjusts accordingly to continue providing reliable services to the community. A complete rate analysis was conducted in FY 2020-21 and the Governing Board approved new wastewater rates take effect at the start of SNRC operations. Projected expenses have been developed through the budget process to support the Five-Year Work Plan and achieve District-wide goals, maintain operations, and remain within projected revenues. Expenditures for the Wastewater Fund consist of 67% Treatment, 30% Program Expenditures, 2% Capital Expenditures, and 1% Debt Service. Sources of Revenue Wastewater Fund Expenses by Cost Center Wastewater revenues consist of collection charges, treatment charges, and miscellaneous revenues such as interest income and capacity charges for new services. 61% Wastewater Treatment 34% Wastewater Collection 1% Debt 6% Other 67% Treatment 30% Other Program Expenses 2% Capital PROGRAM HIGHLIGHTS As a results-oriented based organization, East Valley Water District has identified 18 programs essential to operations. Program-based budgeting allows for costs to be clearly identified while easily measuring benefits as outlined in the Key Performance Indicators (KPI) and completion of Goals and Objectives. With the completion of the SNRC planned for early 2022, a new program has been created to oversee the treatment and disinfection of wastewater. The Water Reclamation program has been created and will be staffed incrementally over FY 2021-22. STAFFING The District continues to strategically evaluate the workforce needs to facilitate world-class service. The FY 2021-22 Budget has identified 76 authorized full-time positions along with one part-time position. This is an increase of ten positions from FY 2020-21. East Valley Water District will begin implementing the staffing plan developed with the staffing considerations for the SNRC and the increased District duties needed for daily operations. One part-time position has been repurposed to full-time and the District will continue to assess the daily operational needs and long- term strategic priorities. STERLING NATURAL RESOURCE CENTER The SNRC will present a new opportunity for East Valley Water District to begin treating wastewater for the community. As construction reaches the final stage, we are working to begin the transitionary phases from construction to operations. As outlined in the budget, this transition will include the onboarding of new staff, start of operations and the launch of a new Wastewater Reclamation program to oversee operations and maintenance. TRANSMITTAL LETTER EAST VALLEY WATER DISTRICT | PAGE 9 • The Governing Board is the District’s legislative body responsible for serving as the organizational policy makers. • General Administration is responsible for overseeing the day-to-day District operations. • Human Resources is responsible for personnel related programs. • Public Affairs oversees internal and external communications programs. • Conservation encourages sustainable water use. • Finance and Accounting provides transparent and responsible oversight of District funds. • Information Technology is responsible for District technology and software programs. • Customer Service provides the community with world class customer relations. • Meter Services maintains a network of approximately 23,000 Advanced Metering Infrastructure (AMI) meters and conducts maintenance, and meter replacement. • Engineering implements infrastructure projects needed to provide safe and reliable services. • Water Production is responsible for monitoring and operating the entire water system. • Water Treatment is responsible for treating the three sources of supply. • Water Quality complies with all required drinking water regulations. • NEW! Water Reclamation responsible for treating and disinfecting wastewater. • Water Maintenance maintains the District’s water transmission and distribution system. • Wastewater Maintenance repairs and safeguards the conveyance system. • Facilities Maintenance repairs and maintains all District sites. • Fleet Maintenance cares for vehicles and equipment. FISCAL YEAR BUDGET 2021-2022 | PAGE 10 It is important to note that most of the new positions identified in this budget will not be staffed until late 2021 or early 2022. Since this timeline has notable impacts on staffing costs, salary and benefit costs have been prorated to reflect that actual anticipated time the position will be filled during the year. EXTERNAL CONSIDERATIONS In addition to the District’s daily operational needs, there are factors that must be considered when developing the budget document. At the time of developing the FY 2021-22 budget, the world was recovering from the coronavirus (COVID-19), a global pandemic and the subsequent economic repercussions. The financial implications of this public health emergency are significant, with regional, national and global impacts on economies. From customer’s ability to pay their utility bill to national staffing shortages, COVID-19 will continue to be a significant focus of the District over the upcoming fiscal year. On February 1, 2020, the District implemented Senate Bill (SB) 998 which requires changes to the process of discontinuing water service for delinquent customers. The new policy was then paused due to the State’s moratorium of utility disconnections brought on due to COVID-19, with the State considering new legislation to change the discontinuation process. The District is anticipating the moratorium will be lifted within this fiscal year, with the parameters for this process still in development at the time of budget adoption. Once the moratorium is lifted, the District will resume service disconnections as a result of non-payment in accordance with all state requirements. Additional regulations regarding affordable rates, water conservation, and capital project funding continue to be topics of discussion that would have potential operational impacts. Maintaining compliance with regulations is an essential component to District operations. Several pieces of proposed legislation could have a profound impact on the daily operations of East Valley Water District. The District continues to actively engage in legislative activities and participate in proposed legislation discussions. In May 2021, the State of California issued a drought declaration to 41 counties with 83% of San Bernardino County classified as being in an extreme drought. If California declares a drought emergency for the County of San Bernardino or the entire State, the declaration will have a significant impact to the daily operations of multiple Programs within the District. The current economic climate and inflation impacts are also a consideration in the development of this document, both from an investment revenue perspective and operational costs such as construction, labor and materials. When calculating the Capital Budget, these factors were incorporated in the consideration of project costs. The District is required to comply with Department of Industrial Relations regulations, which include labor compliance requirements for public works. These factors impact the costs of the District’s Capital Budget compared to private sector projects. 31111 Greenspot Road, Highland, California 92346 (909) 889-9501 | www.eastvalley.org | @eastvalleywater #waterneverquits #1440minutes365days IMPORTANT ANNOUNCEMENTS WE’RE HERE TO SERVE YOU PUBLIC HEARING POSTPONED CALL US AT (909) 889-9501: NEXT STEPS: As a precautionary measure due to COVID-19, District offices are currently closed to the public until further notice. However, we are still here to serve you. Striving to maintain a high-level of transparency and encourage community participation, the District has postponed the Proposed Changes to Water and Wastewater Collection Rates public hearing originally scheduled for April 8. You may see staff on the field performing essential system maintenance duties. For the safety of the community and Districtstaff, please remember to keep at least 6 feetof physical distance. For questions about rates, please call the District at (909) 889-9501 or visit eastvalley.org/rates2020. • For questions about your account • Report a water emergency or leak • Wash your hands often and thoroughly • Wash clothes worn in public • The Governing Board will consider a new hearing date once California’s Stay at Home order has been lifted • New hearing notices will be sent by mail, social media, and the District website6’ [ CONSIDERING YOUR WATER NEEDS DURING THE 75 GALLONS PER PERSON, PER DAYTEMPORARY EXPANSION COVID-19 PANDEMIC 60 GALLONSPER PERSON,PER DAY 15 GALLON EXPANSION+ Temporarily Expanding Your Indoor Water Budget USE THIS EXTRA WATER TO: In working together to prevent the spread of COVID-19, effective April 1, the District will temporarily expand customers’ Tier 1 (indoor) water budget from 60 to 75 gallons per person, per day. This adjustment will provide residents with peace of mind while taking steps to prevent the spread. To learn about your water budget and its tiers, visit eastvalley.org/mywaterbudget. CAPITAL IMPROVEMENT PROGRAM The District’s Capital Improvement Program (CIP) is a five-year planning schedule with each year approved in the correlating fiscal year’s budget based on findings of the Water and Wastewater Master Plans. Scheduled projects in FY 2021-22 total $58,508,000 for water and wastewater projects, and include: DEBT EVWD utilizes debt funding to finance large capital projects. For FY 2021-22, the District has outstanding debt which has been utilized for water treatment facilities, energy efficiency improvements, mutual water company consolidations, and infrastructure projects. Debt is not used to fund operating expenses. Debt service for FY 2021-22 on all outstanding debt is $3,352,000. FY 2020-21 ACCOMPLISHMENTS The District made significant progress on major projects in FY 2019-20 while also adapting to the changing environment resulting from the COVID-19 pandemic. We continued to embrace technology to enhance community engagement while carrying out operational activities that resulted in reliable service delivery to our customers. TRANSMITTAL LETTER EAST VALLEY WATER DISTRICT | PAGE 11 Optimize Infrastructure North Fork The District completed a preliminary design report for an additional Surface Water Treatment Plant on the east end of the service area to maximize the use of water accessed through the North Fork Water Company (NFWC). This report considered the high- level design recommendations, siting, environmental documentation, and included an engineer’s cost estimate. Financial Stability With Full Understanding of Operational Complexities Rates The District refinanced the 2010 and 2013 Bonds for an annual savings of nearly $400,000 without extending maturity dates while maintaining the AA- credit rating. In light of the COVID-19 pandemic, the District postponed the scheduled Proposition 218 hearing planned for 2020, and held a rate hearing in early 2021 for water and wastewater charges. Acknowledge Unknowns The District responded to the COVID-19 pandemic. Through the response process, the District proclaimed an emergency allowing for the submittal of approximately $150,000 in cost reimbursements. Protect Organizational Investments Culture The District continues to evaluate the on-going staffing needs of the organization along with long-term career aspirations of team members. A staffing plan for the next three years has been developed including considerations for the addition of SNRC operations and administrative staff as well as preparing for approaching retirements. COVID-19 has highlighted the tools available for internal communication including Team virtual meetings, emails, and InformaCast communication system. • Plant 134 Process Improvements (TTHMs & Sludge Management) • Tank/Reservoir Rehabilitation Plant 108 and Seismic Study • Plant 101 Hydro Tank Rehabilitation • General Facilities Rehabilitation/Relocation • Well & Booster Improvements/Rehabilitations • Wastewater Main 11th Street Rehabilitation • SNRC FISCAL YEAR BUDGET 2021-2022 | PAGE 12 Maximize the District’s Position Infrastructure The District purchased the remaining AMI meters during FY 2019-20 to avoid a significant material cost increase. Phase Five of the AMI installation completed the transition of the District to 100% remote read in 2021. The transition has allowed for meter readers to be trained in customer service and AMI maintenance along with assisting in the field as needed, avoiding any need for staffing reductions in that area. Win-Win with Developers The District worked with multiple developers as it related to development fees and the establishment of Community Facilities Districts (CFDs). Repair/Rehabilitation Multiple facilities received critical maintenance including enhancements at Plant 39 with the resurfacing and re-coating of tank 39-1’s interior, rehabilitation of four booster pumps, and the rebuild of the plant’s well. Also, the fourth-year cycle was completed for membrane filters replacement at Plant 134. To enhance staff’s hands-on skills, they completed an in-house water main project on Barton Road installing approximately 1,000 linear feet of new water main and 30 new services. Have Others See the District As A Premier Agency Regional Involvement Despite COVID-19, the District continued to encourage collaboration and cooperation. The General Manger/CEO continued to serve as a Board member on the Inland Empire Economic Partnership and the Highland Senior Center. The Governing Board continued to represent the District in regional efforts. Additionally, the District continued to foster partnerships with the community through the donation of surplus vehicles to non-profit organizations. Regional and educational partnerships blossomed through the continued engagement in the Water and Resource Management Pathway; a benefit of the virtual learning environment was that this pathway course was available to all San Bernardino City Unified School District juniors and seniors. The District’s Employee Events Association continued its partnership with Jefferson Hunt Elementary School in addition to other charitable causes throughout the year. The District received reaccreditation for the Special District Leadership Foundation’s Transparency Certificate of Excellence and was recognized as the Top Workplace in the Inland Empire for the small employer category. AWARDS 1. California Special Districts Association (CSDA) Transparency Award 2. Government Finance Officers Association (GFOA) Award for FY 2019-20 Budget 3. California Society of Municipal Finance Officers (CSMFO) Excellence Award for FY 2019-20 Budget 4. Top Workplace 1st Place Award by the Inland News Group in Small Company Category 5. District of Distinction by the Special District Leadership Foundation David E. Smith Chairman of the Board Phillip R. Goodrich Vice Chairman of the Board Chris Carrillo Governing Board Member Ronald L. Coats Governing Board Member James Morales, Jr. Governing Board Member Kerrie Bryan Director of Administrative Services Justine Hendricksen District Clerk Kelly Malloy Director of Strategic Services Patrick Milroy Operations Manager Jeff Noelte Director of Engineering & Operations Brian Tompkins Chief Financial Officer SUMMARY Over the past year, East Valley Water District staff embraced technology to continue to provide world-class service for our community, even during a global pandemic. This spirit and drive will continue to be ingrained within our culture as we look ahead to the upcoming year. The team is proud to launch operations at the new Sterling Natural Resource Center and begin providing a new Wastewater Reclamation service within our District. With individuals working together, using the latest technology, we will continue to enhance the quality of life within the community and provide essential public services. The budget development continues to be a collaborative process, involving members of our community, the Governing Board, and every District employee. I would like to thank the members who participated in this process, and I am proud to present East Valley Water District’s FY 2021-22 Operating and Capital Budgets. DISTRICT MANAGEMENT Respectfully Submitted, John Mura General Manager/CEO EAST VALLEY WATER DISTRICT | PAGE 13 FISCAL YEAR BUDGET 2021-2022 | PAGE 14 IntentionallyTHIS PAGE LEFT BLANK EAST VALLEY WATER DISTRICT | PAGE 15 IN T R O D U C T I O N INTRODUCTION The financial plan serves as a policy document, operations guide for programs, and as a means of transparent communication. FISCAL YEAR BUDGET 2021-2022 | PAGE 16 STATISTICAL/SUPPLEMENTAL INFORMATION BUDGET GUIDE DISTRICT VISION ORGANIZATIONAL STRUCTURE INDUSTRY BENCHMARKS Budget Guide The budget document is the District’s annual financial plan prepared by District staff and approved by the Governing Board. The financial plan serves as a policy document, operations guide for programs, and as a means of transparent communication. The intended audiences of the budget document are citizens, local businesses, creditors, governmental agencies, and other stakeholders. BUDGET DOCUMENT SECTIONS The budget document consists of seven sections, including: Transmittal Letter This section includes the District Officials, General Manager/CEO’s Budget Transmittal Letter, Strategic Plan, District-Wide Goals, and Priorities. Introduction This section includes the Budget Guide, Statistical/Supplemental Information, Organizational Structure, and District Vision. Financial Summary This section presents an in-depth District-wide overview of the FY 2021-22 Budget. Consolidated Financial Schedules This section is a comprehensive summary of the District’s Operating Budget presented for the District as a whole and for each of the District Funds. Program Summaries This section provides comprehensive information for each functional program within the District including their operational budget. The FY 2021-22 Budget is organized into the following summary programs: EAST VALLEY WATER DISTRICT | PAGE 17 • Governing Board • General Administration • Human Resources • Public Affairs • Conservation • Finance and Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Maintenance • NEW Water Reclamation • Facilities Maintenance • Fleet Maintenance INTRODUCTION FISCAL YEAR BUDGET 2021-2022 | PAGE 18 Each program section includes: • Program Personnel: This section is the authorized personnel allocated to each program with a program organization chart. • Program Structure: This chart displays the chain of command for program personnel. • Function: This section includes a basic description of the responsibilities of each program. • Goals & Objectives: This section identifies specific goals and objectives for FY 2021-22. • Accomplishments: This section includes highlights from FY 2020-21. • Significant Changes: This section identifies causes of requests compared to differences in funding requests compared to the previous year. • Levels of Service: This section links Key Performance Indicators to the Agency’s Goals and Objectives. • Key Performance Indicators: These tables present measures that help the District define and evaluate a program’s performance. • Program Budget Detail: This section is a breakdown of the program expenditures by category or line item. Capital Budget This section presents the Capital Outlay expenditures and Capital Improvement Projects for the FY 2021-22 Budget. Glossary This section provides definitions for general terms, acronyms, and the Chart of Accounts used throughout the budget document. BUDGET AWARDS The Government Finance Officers Association of the United States and Canada presented a Distinguished Budget Presentation Award and the California Society of Municipal Finance Officers presented the Excellence Award to the District for its annual budget for the fiscal year beginning July 1, 2020. In order to receive these awards, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device. These awards are valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA and CSMFO to determine its eligibility for another award. CCaalliiffoorrnniiaa SSoocciieettyy ooff MMuunniicciippaall FFiinnaannccee OOffffiicceerrss Certificate of Award Operating Budget Excellence Award Fiscal Year 2020-2021 Presented to the East Valley Water District For meeting the criteria established to achieve the CSMFO Excellence Award in Budgeting January 31, 2021 Marcus Pimentel Michael Manno, Chair CSMFO President Recognition Committee Dedicated Excellence in Municipal Financial Reporting PRESENTED TO East Valley Water District California For the Fiscal Year Beginning July 1, 2020 Executive Director GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award INTRODUCTION EAST VALLEY WATER DISTRICT | PAGE 19 BUDGET FINANCIAL INFORMATION East Valley Water District operates on a fiscal year, or budget time period, that begins on July 1 and ends June 30. The columns typically presented are: FY 2019-20 Actuals Actual financial information for FY 2019-20 as reported in the Comprehensive Annual Financial Report. The actual financial information is reported in the budget document on a budgetary basis. FY 2020-21 Budget The FY 2020-21 Budget was adopted by the Governing Board on June 24, 2020 and may also include any adjustments approved by the Governing Board at the Mid-Year Budget Review. FY 2020-21 Projected The FY 2020-21 Projected column reflects the adopted budget in addition to any amendments approved by the Governing Board during the fiscal year. The FY 2020-21 Projected column is also adjusted to reflect management’s estimate of what revenues and expenditures will be at the end of the fiscal year. FY 2021-22 Proposed This column initially reflects the FY 2021-22 Proposed Budget submitted by the General Manager/CEO. After the Governing Board reviews and approves the FY 2021-22 Budget, the information in the FY 2021-22 column changes, if necessary, to reflect the Board’s actions. Amount Changed and % Change These columns provide the amount changed/percent change from the previous year’s budget to the newly proposed budget. FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed information are presented to facilitate user analysis.Three years of financial Statistical/Supplemental Information EVWD provides water and wastewater services to residents within its 30.1 Square mile area. This includes over 103,000 people within the cities of Highland and San Bernardino, portions of the unincorporated County of San Bernardino, the San Manuel Band of Mission Indians, and Patton State Hospital. The District was formed through a local election of mostly citrus grove operators, to have water service provided by a public agency. EVWD is located in the foothills of the San Bernardino Mountains, 65 miles east of Los Angeles in the County of San Bernardino. WATER SOURCES With a service area just over 30 square-miles, the District has three sources for water, the Santa Ana River (SAR), the Bunker Hill Groundwater Basin, and the State Water Project. The SAR starts with natural springs and snow melt high in the San Bernardino Mountains. Groundwater is drawn from the Bunker Hill Basin, a natural underground storage area made up of soil, sand, and gravel. A portion of the District’s water is imported from Northern California through the State Water Project. EVWD has access to this water through San Bernardino Valley Municipal Water District (Valley District). The District anticipates using the allocated North Fork shares for groundwater replenishment rather than treated and used in the water distribution system directly. Not only will this help to contribute to a healthy basin level, it will offset the District’s cost obligation toward the Groundwater Council. INTRODUCTION 210 210 santa a n a r i v e r sant a a n a r i v e r plun g e c r e e k plunge creek eld e r c r e e k cit y c r e e k city c r e e k sa n d c r e e k tw i n c r e e k tw i n c r e e k warm cr e e k cook creek mil l c r e e k N Highland Seven Oaks Dam San Bernardino DISTRICT BOUNDARY MAP B u n k e r Hill Basin I m p o r ted State Water Pro j e c t San t a A n a River 83% 12%5% Groundwater Surface Water Surface Water FISCAL YEAR BUDGET 2021-2022 | PAGE 20 INTRODUCTION EAST VALLEY WATER DISTRICT | PAGE 21 WASTEWATER COLLECTION & TREATMENT The District is responsible for the collection and conveyance of wastewater within the service area. Currently, all wastewater is sent to the City of San Bernardino Municipal Water Department (SBMWD) facilities, where it is treated in accordance with a Joint Powers Agreement. In 2018, East Valley Water District successfully received authorization for reorganization to include wastewater treatment authority by the Local Agency Formation Commission (LAFCO). This allows for the District to construct and ultimately operate facilities to treat wastewater collected from within its service area. EVWD is constructing the SNRC in the City of Highland that will treat up to 8 million gallons of wastewater daily for recharge into the Bunker Hill Groundwater Basin. This project will create a drought-proof recycled water supply which will result in hundreds of millions of gallons of water stored for use in dry years for beneficial reuse higher in the Santa Ana River watershed. This project broke ground in late 2018 with operation beginning in early 2022. Once construction on the SNRC is completed, East Valley Water District will be responsible for treating the wastewater generated within its service area. POPULATION GROWTH Population growth projections vary within EVWD’s service area due to a number of proposed developments with unspecified timing for completion. There are a number of future developments planned within the EVWD service area including: • The development of diverse housing from large estate lots to multi-family units. Additional planned services of the area may include 14 to 21 acres of commercial services, a new fire station equipped with a police substation, and a new art school. The new development consists of approximately 1,650 acres and may add approximately 11,800 to 12,400 new residents in the District upon buildout anticipated in 2035. • Unit development project offering a variety of housing opportunities. The development density allows for a minimum of 250 housing units and a maximum of 800 house units. The development will be located along Greenspot Road and the 210 Freeway. • Residential planned community of 316 housing units. The permitted land use types of this area focus towards low to medium density residential units with additional inclusion of open space, agriculture, parks and recreation. CLIMATE The climate in the cities of Highland and San Bernardino varies throughout the year, but overall is considered arid. On average, there are 283 days of sunshine per year. Temperatures average a daily high of 94 degrees in the summer and a daily low of 42 degrees during the winter. This area typically averages 13 inches of precipitation annually, mostly during the months of January through March. *Income information retrieved from census.gov. $67,000 California Average $47,000 EVWD $41,000 City of San Bernardino $57,000 County of San Bernardino $55,000 City of Highland Average Household Income FISCAL YEAR BUDGET 2021-2022 | PAGE 22 GOVERNMENT East Valley Water District is a California Special District established in 1954. The District has a five-member Governing Board elected by voters at-large to staggered four-year terms. The Governing Board represents the public’s interest as policy makers with regards to rate for service, policies, ordinances, and budget adoption. Appointed by the Governing Board, the General Manager/CEO is responsible for overseeing daily operations and managing staff resources. The District is a rate-based organization that receives no tax-related revenue and operates in accordance with Division 12 of the California Water Code. East Valley Water District’s service area includes the City of Highland, San Manuel Band of Mission Indians, Patton State Hospital, and portions of both the City and county of San Bernardino. Additionally, the District is within the Sphere of Influence of the Inland Valley Development Authority which oversees the reuse of the former Norton Air Force Base. EDUCATION Residents within East Valley Water District’s service area have access to award winning K-12 schools through the Redlands Unified School District (RUSD) and San Bernardino City Unified School District (SBCUSD). Higher education institutions located near East Valley Water District’s service area include: California State University, San Bernardino; California Baptist University; Loma Linda University; University of California at Riverside; and University of Redlands. Community colleges within the region include: Crafton Hills College; Riverside City College; and San Bernardino Valley College. HOSPITAL & MEDICAL FACILITIES Hospital and medical facilities located in or near the East Valley Water District service area include Arrowhead Regional Medical Center, Loma Linda University Medical Center, Kaiser Foundation Hospital, Redlands Community Hospital, Community Hospital of San Bernardino, J. Pettis Veteran’s Administration Hospital, and St. Bernardine Medical Center. Additionally, there are a number of urgent care and outpatient facilities located throughout the region. TRANSPORTATION Public transportation is available within the East Valley Water District service area through OmniTrans. With a variety of routes, OmniTrans provides busing services throughout the San Bernardino Valley, including cities of Highland and San Bernardino. Community members have access to the Metrolink commuter rail service, which provides long distance transportation to commuters from the San Bernardino area to major centers of employment including Los Angeles and Orange County. Interstate 210 and both State Route 18 and 330 traverse through the District’s boundaries. These roadways provide access to major transportation corridors including Interstates 215, 15, and 10; and State Routes 18, 38, 60, and 91. The District has partnered with the San Bernardino City Unified School District and San Bernardino Valley College to develop a Water and Resource Management Pathway Program. By working with local schools, EVWD highlights career opportunities in the water industry including educational requirements. Graduates have a specialized skill that can jumpstart their career after high school. INTRODUCTION EAST VALLEY WATER DISTRICT | PAGE 23 PUBLIC SAFETY East Valley Water District serves members of the community within the cities of Highland and San Bernardino, unincorporated County of San Bernardino and San Manuel Band of Mission Indians. Within these communities law enforcement is provided by the San Bernardino County Sheriff’s Department, City of San Bernardino Police Department, and San Manuel Department of Public Safety. Fire protection services are provided by the California Department of Forestry and Fire Protection (CalFire), San Bernardino County Fire Department, and the San Manuel Fire Department. MAJOR EMPLOYERS Major employment industries within the cities of Highland and San Bernardino include education, mental health services, public administration, rail, health care, public safety, casinos, transportation, and construction. DISTRICT VISION East Valley Water District has set out to be a world class organization, with a focus not only on providing safe and reliable drinking water but enhancing and preserving the quality of life for our community. Through a series of planning measures, the Governing Board, staff, and the community have developed a District Vision that empowers the organization to take actions to be innovative, efficient, and effective. Following meetings with the community, Governing Board, and staff at all levels of the organization, a Five-Year Work Plan has been prepared with an emphasis on the elements needed to clearly look to the future. This effort is designed to consider general policy direction and highlight priority projects that allows for the consideration of specific tasks necessary for implementation. The District now has a series of measurable guiding elements that have established varying degrees of direction for operational and planning decisions. The Strategic Plan includes: the District Vision, Core Values, Agency Goals and Objectives, Five-Year Work Plan, Annual District-Wide Goals, Program Goals, and Individual Goals. By setting clear expectations, all staff members are encouraged to be active participants in operations while looking for opportunities to make a positive impact on the community. Enhance and Preserve the Quality of Lifefor our community through innovative leadershipworld class public service.& FISCAL YEAR BUDGET 2021-2022 | PAGE 24 Implement Effective Solutions Through Visionary Leadership A. Identify Opportunities to Optimize Natural Resources B. Maximize Internal Capabilities through Ongoing Professional Development C. Strengthen Regional, State and National Partnership D. Encourage Performance Based Results through Staff Empowerment Maintain a Commitment to Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management B. Utilize Effective Communication Methods C. Pursue Alternative Funding Sources D. Provide Quality Information to Encourage Community Engagement Deliver Public Service with Purpose While Embracing Continuous Growth A. Advance Emergency Preparedness Efforts B. Strive to Provide World Class Customer Relations C. Promote a Positive Organizational Culture D. Embrace an Environment of Active Learning and Knowledge Sharing Promote Planning, Maintenance and Preservation of District Resources A. Develop Projects and Programs to Ensure Safe and Reliable Services B. Enhance Planning Efforts that Respond to Future Demands C. Dedicate Efforts Toward System Maintenance and Modernization D. Enable Fact-Based Decision Making Through State-of-the-Art Data Management I.II. III.IV. STRATEGIC PLAN Agency Goals and Objectives To maintain momentum and encourage continued growth, the District adopted these foundational principles in January 2018. INTRODUCTION EAST VALLEY WATER DISTRICT | PAGE 25 CORE VALUES DISTRICT SPOTLIGHT Leadership Motivating a group of people to act towards achieving a common goal or destination. Partnership Developing relationships between a wide range of groups and individuals through collaboration and shared responsibility. Stewardship Embracing the responsibility of enhancing and protecting resources considered worth caring for and preserving. 30.1 SQ. MILE SERVICE AREA 103,000 POPULATION SERVED ACTIVE GROUNDWATER WELLS MONITORED BY THE DISTRICT 15 3,400 SAMPLES COLLECTED IN 2020 242 HYDRANTS FLUSHED 1,743 HYDRANTS REPAIRED, REPLACED OR PAINTED 1,500 FEET OF WATER MAIN REPLACED 300 MILES OF WATER MAINS 285 WATER LEAKS REPAIRED 220 MILES OF SEWER MAINS 121 MILES OF SEWER CLEANED 5,079SEWERMANHOLES 6,000,000 AVERAGE GALLONS OF SEWER CONVEYED DAILY 28,977,000 GALLONS OF WATER STORAGE 16,400,000 AVERAGE GALLONS OF WATER PRODUCED DAILY 48 MILES OF SEWER VIDEO MONITORING20,000+ ADVANCED METERS INSTALLED Ratepayers/Community Members SR. ADMINISTRATIVE ASSISTANT DIRECTOR OF ADMINISTRATIVE SERVICES WATER QUALITY COORDINATOR SR. TREATMENT PLANT OPERATOR FACILITY MAINTENANCE COORDINATOR ASSOCIATE ENGINEER FACILITY MAINTENANCE WORKER SR. WATER PRODUCTION OPERATOR WATER PRODUCTION OPERATOR III WATER PRODUCTION OPERATOR II SR. FIELD SERVICE WORKER FIELD SERVICE WORKER III FIELD SERVICE WORKER II FIELD SERVICE WORKER I EQUIPMENT MECHANIC III STOREKEEPER/ BUYER METER READER II METER READER I GENERAL MANAGER/CEO DISTRICT CLERK GOVERNING BOARD (5) (7) (2) (3) WATER QUALITY TECHNICIAN (4) (4)(2) DIRECTOR OF ENGINEERING & OPERATIONS HUMAN RESOURCES COORDINATOR DIRECTOR OF STRATEGIC SERVICES OPERATIONS MANAGER WATER PRODUCTION SUPERVISOR FIELD SERVICE SUPERVISOR SENIOR ENGINEER (3) PUBLIC AFFAIRS COORDINATOR COMMUNITY RELATIONS REPRESENTATIVE (PT) PUBLIC AFFAIRS SPECIALIST CONSERVATION COORDINATOR CONSERVATION / PUBLIC AFFAIRS MANAGER ADMINISTRATIVE ASSISTANT FISCAL YEAR BUDGET 2021-2022 | PAGE 26 ORGANIZATIONAL STRUCTURE Legal Counsel CUSTOMER SERVICE REPRESENTATIVE III CUSTOMER SERVICE REPRESENTATIVE II CUSTOMER SERVICE REPRESENTATIVE I (3) (2) Management General StaffExecutive Management Elected Officials LEGEND CHIEF FINANCIAL OFFICER ELECTRICAL & INSTRUMENTATION CONTROLS TECHNICIAN WASTEWATER TREATMENT PLANT OPERATOR I-III FINANCE MANAGER INFORMATION TECHNOLOGY MANAGER ACCOUNTANT SR. ACCOUNTING TECHNICIAN ACCOUNTING TECHNICIAN SR. ADMINISTRATIVE ASSISTANT SR. CUSTOMER SERVICE REPRESENTATIVE NETWORK ADMINISTRATOR INFORMATION SYSTEMS TECHNICIAN Positions reporting to the Water Reclamation Manager will be added as the SNRC nears completion later in FY 2021-22 WASTEWATER TREATMENT PLANT MECHANIC I-II ADMINISTRATIVE ANALYST * All positions are full-time unless noted otherwise as part time (PT). WATER RECLAMATION MANAGER SR. WASTEWATER TREATMENT PLANT OPERATOR INTRODUCTION EAST VALLEY WATER DISTRICT | PAGE 27 FISCAL YEAR BUDGET 2021-2022 | PAGE 28 PROGRAM STRUCTURE East Valley Water District has built a world class team of individuals committed to the Agency Vision and Core Values. The Organizational Chart reflects the current 76 authorized positions in relation to the chain of command structure. It is important to note that the District fosters a collaborative work environment which encourages communication and cooperation between different programs. A more detailed look at staffing can be viewed within each individual Program. The District currently has 18 programs, which are overseen by various members of the Executive Management Team. This chart reflects the organizational structure based on Program oversight. Program Level Operational Responsibilities Overview Ratepayers/Community Members Governing Board General Manager/CEO District Clerk Administration Public Aairs Conservation Director of Strategic Services Chief Financial Ocer Director of Engineering & Operations * This program is overseen by a Director position but managed by a member of the Executive Team. Director of Administrative Services Engineering *Operations *Water Reclamation Human Resources Finance Customer Service InformationTechnology Operations Manager Meter Services Water Production Water Treatment Water Quality Water Maintenance Wastewater Maintenance Facilities Maintenance Fleet Maintenance Ratepayers/ Community The individuals, businesses and stakeholders receiving services from East Valley Water District. Governing Board The Governing Board is the legislative body of the organization. Comprised of five members elected at-large to four-year staggered terms of office. District Clerk General Administration General Administration is responsible for ensuring the District’s business and operations daily activities are performed following Federal, State, and District Board approved policies. The General Manager/CEO provides daily oversight for interagency relations for advancing the District’s initiatives. INTRODUCTION EAST VALLEY WATER DISTRICT | PAGE 29 Director of Administrative Services Human Resources Human Resources is responsible for administering programs to attract and retain a diverse and qualified workforce. This program also oversees the District safety program to ensure staff maintain a safe work environment. Additionally, this program is responsible for managing the District’s Pathway Program and Risk Management Program. Director of Strategic Services Public Affairs Public Affairs oversees internal and external communication programs consistent with the District’s Vision and guiding principles. Through community and media relations, the Program provides effective and strategic communications to various stakeholders. The Program is also responsible for grant writing, emergency preparedness, and facility rental programs. Conservation Conservation is responsible for overseeing programs that facilitate and encourage sustainable water use throughout the District. Additionally, this program is responsible for communicating conservation benchmarks to various regulatory agencies, tracking and monitoring legislative affairs and advocating on behalf of the District’s legislative platform. Chief Financial Officer Finance & Accounting Finance and Accounting oversees the business operations of the District in order to provide accountability and adequate control over the use of District funds. Staff downloads meter read data, audits data, and submits data files to a third-party vendor for bill printing and mailing. Information Technology Information Technology oversees the District’s technology infrastructure to support essential business and operational functions. The functions utilize industry specific software programs required to meet agency needs. The Program implements routine cybersecurity training campaigns to mitigate financial and data loss. Customer Service Customer Service provides the community with prompt, courteous, and world class customer relations. of allocating resources to meet the needs of District stakeholders. The budget reflects the commitment Director of Engineering & Operations Engineering The Engineering Program responsibilities include infrastructure planning, maintaining a safe and reliable water supply, and ensuring compliance with Federal and State regulations. The Program oversees wastewater collection and treatment capital projects. Water Reclamation The Water Reclamation Program is responsible for treating and disinfecting 8.0 million gallons of wastewater per day (MGD). Reclamation of wastewater generated by District customers will transition from a service contracted with the SBMWD, to in-house operations at the newly completed SNRC during FY 2021-22. Operations Manager Meter Services The Meter Service program maintains a network of approximately 23,000 Advanced Metering Infrastructure meters. The Program conducts routine maintenance, testing and replacement of meters to ensure billing is accurate. Water Production Water Production is responsible for the daily monitoring and operations of the entire water production system to ensure preventative maintenance of all pumps, motors, wells, boosters, reservoirs, pressure regulating valves (PRVs), hydro-pneumatic plants, and the Supervisory Control and Data Acquisition (SCADA) system. Water Treatment Water Treatment is responsible for management of three different sources of supply used by the District. The Program is responsible for the operation of Plant 134, a Surface Water Treatment Plant, and two unique groundwater treatment facilities at Plant 28 and Plant 39. Water Quality Water Quality is responsible for ensuring District compliance with State and Federal Drinking Water Regulations. This program manages Backflow Prevention, Water Sampling, and the Fire Hydrant Flushing Programs. Water Maintenance The Water Maintenance Program is responsible for the repair and replacement of the District’s 300 miles of water pipeline. Water Maintenance coordinates with Engineering and Water Production to install water service lines, fire hydrants, meters, valves, and all related equipment. Wastewater Maintenance The Program’s purpose is prevention of wastewater spillage and leaks. This is accomplished by routine inspections, cleaning, repairs, and replacements of the District’s 220 miles of collection pipelines. FISCAL YEAR BUDGET 2021-2022 | PAGE 30 SEWER INTRODUCTION EAST VALLEY WATER DISTRICT | PAGE 31 Facilities Maintenance Facilities Maintenance is responsible for the maintenance of all District facilities. The division’s oversight includes administration buildings, water facilities, District-owned vacant properties, and easements. Fleet Maintenance Fleet Maintenance is responsible for the preventative maintenance program for all District vehicles and heavy equipment. This includes the procurement of fleet items and maintain compliance with State and Federal air quality rules and regulations. Budget Summary by Program The sum of many pieces makes the whole, and through the 18 programs East Valley Water District is able to provide world-class services to the community it serves. The graphic below displays the budget allocation for each program within the FY 2021-22 Operating and Capital Budgets. 28%WaterReclamation 9%WaterMaintenance 13%WaterProduction 6%Public Aairs 4%Administration 4%Finance 4%IT 3%WastewaterMaint. 3%WaterTreatment 2%Fleet2%Conservation 2%Water Quality 4%Facilities 4%CustomerService 5%Human ResourcesRisk Management 5%Engineering 1%Board 1%MeterSrvce. FISCAL YEAR BUDGET 2021-2022 | PAGE 32 IntentionallyTHIS PAGE LEFT BLANK Industry Benchmarks IN D U S T R Y BE N C H M A R K S EAST VALLEY WATER DISTRICT | PAGE 33 Industry Benchmarks allow East Valley Water District to examine itself in comparison with other utilities across the United States. FISCAL YEAR BUDGET 2021-2022 | PAGE 34 Industry Benchmarks East Valley Water District strives to provide world-class service to the community, customers and stakeholders. As part of EVWD’s embracement of continuous improvement, the District began reviewing industry data and metrics to establish benchmarks for services across the District. The following tables pull data from the American Water Works Association (AWWA) 2020 Utility Benchmarking Program and represent a snapshot of over 150 water and wastewater utilities across the United States. The survey was taken in 2020 and pulled perfomance results from the fiscal year 2019. For additional information about the industry data used, visit www.awwa.org. STAFFING LEVELS This indicator provides a measure of the number of employees reported at each utility. CUSTOMER ACCOUNTS PER EMPLOYEE This indicator provides a measure of employee efficiency as expressed by the total number of active accounts serviced by utility employees. INTRODUCTION EAST VALLEY WATER DISTRICT | PAGE 35 50 100 150 200 250 300 350 Sample Size: 84 346 299 30 60 66 Water Utility(Sample Size 44)Combined Utility-Water Operations (Sample Size 88)EVWD 25th Percentile 75th Percentile EVWD Median EVWD CombinedUtility 339 356 476 616 25th Percentile Median 75th Percentile EVWD RETIREMENT ELIGIBILITY This indicator provides a measure of the number of regular employees eligible for retirement. STRATEGIC WORKFORCE PLANNING The following set of indicators provides a measure of the utility’s ability to prepare for the changing workforce. FISCAL YEAR BUDGET 2021-2022 | PAGE 36 10% 20% 30% 40%Sample Size: 78 • Level of Strategic Workforce Planning: Succession plan is an integral part of our organization’s comprehensive strategic plan. • Level of Decision-Maker Commitment: There is a commitment from decision makers on succession planning. • Level of Resources and Collaboration: Gather resource for developing and implementing succession planning; collaborate with other agencies and programs. • Role in Strategic Vision and Goals: Value the role of succession planning in achieving the strategic vision and goals of our organization. 31% 25th Percentile Combined Utilities EVWD Median 75th Percentile 22%14% 42% Level 1 Never Practiced at Utility Level 2 Activity Implemented Not Often Level 3 Activity Implemented Sometimes Level 4 Activity Implemented Frequently Level 5 Activity Implemented Always Strategic Workforce Planning (Sample Size 67) Decision-Maker Commitment (Sample Size 67) Strategic Vision and Goals (Sample Size 67) Resources and Collaboration (Sample Size 66) EVWD INTRODUCTION EAST VALLEY WATER DISTRICT | PAGE 37 EMPLOYEE VACANCIES The following indicators evaluate how well the utility has established, incorporated and maintained an effective workforce succession plan. DEBT RATIO The debt ratio indicator quantified a utility’s level of indebtedness. 2 4 6 8 10 12 Average Employee Tenure (Years)Average Length of Position Vacancies (Days) 10 20 30 40 50 60 70 80 90 10% 20% 30% 40% 50% Sample Size: 83 *Data based on FY 2019 Combined Utilities - Water Operations(Sample Size 65) 9 25th Percentile Median 75th Percentile EVWD Combined Utilities - Water Operations(Sample Size 53) 11 13 95 61 40.6 11 90 Combined Utilities EVWD 25thPercentile Median 75thPercentile 52% 41%45% 31% RETURN ON ASSETS This indicator provides an estimate of the utility’s financial effectiveness. DEBT-SERVICE COVERAGE RATIO The debt-service coverage ratio, also known as debt coverage ratio, is the ratio of net operating income to total debt service. FISCAL YEAR BUDGET 2021-2022 | PAGE 38 .5% 1% 1.5% 2% 2.5% 3% 3.5% 4%Sample Size: 76 0.5 1 1.5 2 2.5 3 3.5 Sample Size: 66 Combined Utilities-Water Operations EVWD 25th Percentile 1.3% Median 75th Percentile 2.4% 4.1% 2% Combined Utilities-Water Operations EVWD 25th Percentile 1.65 Median 75th Percentile 2.38 3.59 2.83 INTRODUCTION EAST VALLEY WATER DISTRICT | PAGE 39 BOND RATING A utility’s bond rating is a grade that indicates its creditworthiness. RISK AND RESILIENCY The following indicators aim to look at the utility’s readiness for emergences. 14 21 41 Sample Size: 67 Moody’s S&P FITCH Baa 1 2 3 BBB +/-B +/-Lower Medium Grade A1 A+A+Upper Medium GradeA2AA A3 B A- Aa1 AA+AA+ High GradeAA2AAAA Aa3 AA-AA- Aaa AAA AAA Prime Lower Media Grade Upper Medium Grade High Grade Prime EVWD Combined Utilities Risk Assessment and Response Preparedness (Sample Size 68) No Plan Level 1 Level 2 Level 3 EVWD Recovery and Mitigation Plan (Sample Size 68) Emergency Response Planning (Sample Size 70) Cybersecurity Preparedness (Sample Size 66) METERING PREVALENCE This indicator looks at the percentage of water accounts that were fully metered for billing purposes. DELINQUENCY RATE This indicator provides a look at the percentage of overall accounts delinquent over the given fiscal period. Due to the fluctuations of the COVID-19 pandemic, this benchmark is pulling data from FY 2018. FISCAL YEAR BUDGET 2021-2022 | PAGE 40 • Level 1: Quarterly or Bimonthly • Level 2: Monthly • Level 3: Daily • Level 4: 2-6 Times Daily • Level 5: Hourly • Level 6: More Frequently than Hourly (15 Minutes) 2% 4% 6% 8% 10% 12% 14% 16%Sample Size: 57 Combined Utilities-Water Operations EVWD 25thPercentile Median 75thPercentile 17% 7.7% 3.7% 9% Residential (Sample Size 75) Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 EVWDCommercial (Sample Size 73) Wholesale (Sample Size 52) INTRODUCTION EAST VALLEY WATER DISTRICT | PAGE 41 REGULATORY COMPLIANCE - WATER This indicator quantified the percentage of time each year that the utility meets all health-related drinking water standards required. REGULATORY COMPLIANCE - WASTEWATER (COLLECTION SYSTEM OPERATIONS) Regulatory compliance for wastewater is expressed as a percentage of the number of events per the facility’s permit limits in compliance with the summation of the total number of compliance events in the reporting period. 100%Compliance Sample Size: 88 Sample Size: 60 100%Compliance96.7%Compliance 25th Percentile Median 75th Percentile EVWD 25th Percentile Median EVWD 75th Percentile MGD OF WATER PRODUCED PER EMPLOYEE This indicator provides a measure of employee efficiency as expressed by the amount of potable water delivered by utility employees per year. Comparing water production for FY 2019. HYDRANT EFFECTIVENESS - OUT OF SERVICE INDICATOR This indicator provides a measure of reliability of water hydrants in the utility service area. The aggregate data indicates out-of-service hydrants. FISCAL YEAR BUDGET 2021-2022 | PAGE 42 0 0.05 0.1 0.15 0.2 0.25 0.3 Sample Size: 73 EVWD = 0% Out-of-Service Hydrants 25th Percentile Median 75th Percentile 1.5%.80% .30% 0.280.210.15 0.24 25th Percentile Median 75th Percentile EVWD Combined Utilities (Sample Size 53) NONCAPACITY AND CAPACITY SEWER OVERFLOW These indicators measure the total number of noncapacity and capacity sewer overflow events express as the ratio of the number of events per 100 miles of sanitary collection system piping. COLLECTION SYSTEM INTEGRITY This indicator quantified the condition of a wastewater collection system expressed as the annual number of failures per 100 miles of collection system piping. INTRODUCTION EAST VALLEY WATER DISTRICT | PAGE 43 0.5 1 1.5 2 2.5 3 3.5 Sample Size: 67 EVWD = 0% Failures6.6 2.5 0.5 25th Percentile Median 75th Percentile Noncapacity Sewer Overflow Rate (Sample Size 76) 25th Percentile Median 75th Percentile EVWD Sewer Overflow Rate (Sample Size 62) 3.7 2.4 1.6 .3 .5 0 FISCAL YEAR BUDGET 2021-2022 | PAGE 44 IntentionallyTHIS PAGE LEFT BLANK EAST VALLEY WATER DISTRICT | PAGE 45 FINANCIAL SUMMARY FI N A N C I A L S U M M A R Y The annual budget is an opportunity to establish priorities for the fiscal year, identify means to evaluate results, and ensure that the planned operations and capital projects responsibly use District resources. BUDGET PROCESS FINANCIAL POLICIES CURRENT & PROPOSED BUDGET CYCLE CALENDAR FISCAL YEAR BUDGET 2021-2022 | PAGE 46 FUND STRUCTURE BASIS OF BUDGETING FUND/PROGRAM RELATIONSHIP REVENUE SUMMARY BUDGET SUMMARY EXPENDITURE SUMMARY NET POSITION/FUND EQUITY DEBT OVERVIEW LONG RANGE FINANCIAL PLAN Financial Policies The East Valley Water District financial management policies provide a basic framework for the overall fiscal management of the District. The policies represent a foundation for addressing changing circumstances and conditions, and to assist in the decision-making process. Financial policies represent guidelines for evaluating both current activities and proposals for future programs. They also reflect long-standing principles and practices, which have enabled the District to maintain its financial stability. Policies are reviewed annually to ensure the guidelines represent a realistic, current framework for policy decisions. OPERATING AND CAPITAL BUDGET POLICY Purpose and Scope The purpose of this policy is to provide guidelines to assist in the formulation and consideration of a comprehensive annual budget, one of the most important financial activities the District undertakes each year. Those guidelines include a Strategic Plan and Capital improvement Plan, which assist in completing financial planning cycles that deliver efficient and effective public services. This policy applies to all funds under the budgetary and fiscal control of the Governing Board. Balanced Budget The District will adopt a balanced budget for each fund this policy covers, where the sum of estimated revenues and use of reserves is equal to or greater than current expenditures. Expenditures will include operating expenses, debt service, and the operating budget’s contribution to the CIP. Short-term operating deficits will be mitigated by raising rates and fees or cutting costs. The use of one-time revenues and development fees for the funding of operating costs is not permitted, and reserves may only be used for the purpose for which they were intended in accordance with the District’s designated funds policy. The budget development process is outlined on pages 53-55. INVESTMENT POLICY Purpose and Scope The purpose of this policy is to establish guidelines for the prudent investment of District funds in conformance with California Government Code (CGC) requirements. The policy applies to all funds under direct authority of the District, which does not include funds held in trust for the District’s retirement plans and post-employment health benefits. EAST VALLEY WATER DISTRICT | PAGE 47 FINANCIAL SUMMARY FISCAL YEAR BUDGET 2021-2022 | PAGE 48 Objectives CGC §53600.5 states that, when investing and managing public funds, the primary objectives, in priority order, of the District’s investment activities shall be: • Safety: Safety of principal is foremost, therefore, investments shall be undertaken in a manner that seeks to preserve capital while mitigating risks such as interest rate risk and credit risk. • Liquidity: The investment portfolio shall remain sufficiently liquid to enable the District to meet all operating requirements that can reasonably be anticipated. • Return on Investment: The investment portfolio shall be designed for attaining the best yield while keeping in mind that return is secondary to the objectives of safety and liquidity. Delegation of Authority The authority of the District’s Governing Board to invest District funds is derived from CGC § 53601. CGC § 53607 allows the Board to delegate that authority to the District’s Chief Financial Officer/Treasurer. The District’s Chief Financial Officer has historically been selected to serve as this delegated authority. This delegation expires and may be renewed annually, by Board resolution, in conjunction with the annual review of the investment policy. Authorized Investments The District is empowered by CGC §53600 et. seq. to invest in certain types of investments. The District policy is more restrictive than the CGC regarding allowable investments due to the size of the District’s investment portfolio and limited staff resources available to manage invested funds. Safekeeping and Internal Control To protect against potential losses caused by the collapse of a security dealer, all book-entry securities are kept in safekeeping by a third-party bank trust department, acting as agent for the District under the terms of a custody agreement. Internal controls have been established to help ensure assets are protected from loss, theft or misuse. Controls include separation of transaction authority from record-accounting, and confirmation of telephone transactions for investments and wire transfers. Reporting In accordance with CGC §53646, the Chief Financial Officer will prepare, and render to the Governing Board, a quarterly investment report within 30 days of the end of each quarter. The report shall list types of investments, maturity, par and market values of each investment, transactions occurring during the quarter, and identification of funds managed by a third-party. RESERVE POLICY Purpose The District recognizes that fiscal responsibility requires anticipating, and preparing for, unforeseen events, in addition to ensuring sufficient funding is available for current operating, capital, and debt service needs. To that end, the District has adopted a Designated Funds (Reserve) Policy as part of prudent financial planning and to ensure sufficient funding for current and future needs. FINANCIAL SUMMARY General Provisions The following provisions and principles are established for building and utilizing reserve funds: • Interest: Interest income will be credited to reserve funds until maximum target levels have been reached. Once a fund reaches the established maximum, interest will be allocated to other funds. • Funding Priority: Fund balances are reviewed annually to determine whether maximum target levels have been reached. Operating reserves will be funded first. When operating reserves are at their target levels, Capital reserves will be funded. The Governing Board will determine how excess monies will be allocated after reserves are at their maximum levels. • Pay Go Versus Debt: For funding of capital acquisitions and improvements, the District will analyze the use of reserves and/or issuing debt to determine the optimal funding strategy. Current and future liquidity positions will also be considered. Types of Reserves The District has established and will strive to maintain the following funds: Operating Fund The Operating Fund is used for unanticipated operating expenses. This fund is designated by the Board to maintain working capital for current operations and to meet routine cash flow needs. 1. Target Level – Funding shall be targeted at a minimum amount equal to 90 days of the District’s budgeted total operating expenses, and the maximum amount shall not exceed 120 days of the budgeted total operating expenses. 2. Events or Conditions Prompting the Use of the Fund – Upon Board authorization, this fund may be routinely utilized by staff to cover temporary cash flow deficiencies caused by timing differences between revenue and expenses and extraordinary decreases in revenues and unexpected increases in expenses. 3. Periodic Review Dates for Balances – Fund balances and target level will be reviewed by staff and the Board during the preparation and approval of the annual budget. EAST VALLEY WATER DISTRICT | PAGE 49 O p e r a t ing Fund C a p it a l R eplacement F u n d Re s t r i c t e d F unds Includes debt proceeds, customer deposits and developer fees. Capital Replacement Fund Both the water and wastewater divisions will maintain a replacement fund for the replacement of capitalized assets when they reach the end of their useful lives. The source of replacement funds will be user fee revenue from the respective fund. 1. Target Level – The minimum target level should be equal to one years depreciation as determined by depreciation recorded for the previous fiscal year. The maximum balance shall not exceed the projected needs for five years according to the District’s Capital Improvement Plan. 2. Events or Conditions Prompting the Use of the Fund – Staff will recommend assets to be replaced during the Capital Improvement Plan / Capital Budget presentation. As projects are approved, funds will be appropriated from undesignated funds or available revenues. 3. Periodic Review Dates for Balances – Fund balances and projected improvement projects will be reviewed by staff and the Board during the preparation and approval of the annual budget. Restricted Funds 1. Bond Proceeds – Typically consist of construction fund monies, and a debt service reserve. a. Target Level – The debt service reserve requirement, if applicable, is established at the time of issue. b. Events or Conditions Prompting the Use of the Fund – Construction fund monies must be spent on applicable projects, while the debt service reserve can only be used in the event of a shortfall of pledged revenues. 2. Development Fees – Consists of capacity fees paid by developers to buy into the utility infrastructure system paid for by the investment of existing customers. a. Target Level – Capacity fees are collected to pay for facility additions or improvements to support demands on the system by new development. b. Events or Conditions Prompting the Use of the Fund – Capacity fees may be used for Capital Improvement Projects necessitated wholly, or in part, by new development. DEBT POLICY The purpose of this policy is to establish guidelines for the issuance and management of District Debt, and to provide guidance for decision makers with respect to options available for financing infrastructure, and other capital projects, so that the most prudent, equitable, and cost effective financing can be chosen. Standards for Use of Debt Financing When appropriate, the District will use long-term financing to: • Achieve an equitable allocation of capital costs/charges between current and future system users; • Provide more manageable rates in the near and medium term; and • Minimum rate volatility. The District will not construct or acquire a facility if it is unable to adequately provide for the subsequent annual operation and maintenance costs of the facility throughout its expected life. In addition, capital projects financed through debt will not be financed for a term longer than the expected useful life of the project. FISCAL YEAR BUDGET 2021-2022 | PAGE 50 FINANCIAL SUMMARY EAST VALLEY WATER DISTRICT | PAGE 51 Methods of Financing The Finance Program will investigate all possible project financing alternatives including, but not limited to: annual operating revenue, reserves, bonds, loans, and grants. When applicable, development fees will be used to pay for increase capital costs resulting from new development. The District may legally issue short and long-term financing using the following debt instruments: • Inter-Fund Borrowing – May be used for short-term cash flow imbalances due to grant terms, and interim financing pending issuance of long-term debt. • Lines of Credit – May be considered as short-term borrowing. The Chief Financial Officer shall determine when it is prudent to recommend that the District enter into an agreement with a commercial bank or other financial institution for the purpose of acquiring a line or letter of credit. • Capital Lease Debt – May be used for equipment purchases where cost exceeds $50,000 and financing terms are cost effective. • State Revolving Fund (SRF) Loans – Based on availability, loans are low or zero interest for water and wastewater infrastructure projects with a term of 20 to 30 years. • Joint Powers Agency Revenue Bonds – Financing may be obtained through the issuance of debt under a joint exercise of powers agreement with such debt payable from amounts paid by the District under a lease, installment sale agreement, or contract of indebtedness. • Refunding Revenue Bonds – The District may issue refunding revenue bonds to refund District indebtedness pursuant to the State of California local agency refunding revenue bond law (Title 5 of the California Government Code). Compliance The use of bond proceeds must be monitored to ensure compliance with all Internal Revenue Code arbitrage rebate requirements, and requirement under California Government Code §8855. The District is also responsible for verifying compliance with all undertakings, covenants, and agreements of each debt issue, typically including: • Annual appropriations of revenue to meet debt service payments; • Timely transfer of debt service payments to the Trustee; • Compliance with insurance requirement; and • Compliance with rate covenants. Board Discretion This policy is intended to serve as a guide and in no way restricts the ability of the District Governing Board to review proposed rate actions, debt issuances, or other actions of substance to the District. FISCAL YEAR BUDGET 2021-2022 | PAGE 52 IntentionallyTHIS PAGE LEFT BLANK Budget Process The budget reflects direction from the Governing Board as established by the District Vision and communicated to District staff through various meetings and workshops. The purpose of this budget document is to communicate the District’s financial priorities with citizens, local businesses, creditors, rating agencies, other local agencies and stakeholders, and District staff. The FY 2021-22 Budget represents guidelines established to address the District’s short-term and long-term goals and objectives. This document also demonstrates the District’s ability to use financial resources for completing critical capital projects for current and future customers as well as the District’s commitment to meet its financial obligations. Staff is confident that the financial framework outlined in the FY 2021-22 Budget will allow the District to deliver reliable, high-quality water and wastewater services to its customers in a prudent and sustainable manner. Each year, administrative and operational program managers establish goals and objectives in support of the District’s Strategic Initiatives and Five-Year Work Plan which, upon adoption by the Governing Board, provide clear direction to staff regarding District-wide priorities. Progress is measured throughout the fiscal year and reported to the Governing Board. Moreover, in developing the budget, staff utilized the District Vision for prioritizing District resources for operational and capital activities. STAKEHOLDER INPUT The District has established a Community Advisory Commission (CAC) which meets regularly at publicly noticed meetings, to discuss significant affairs of the District, including development of the annual budget. Members of the CAC are civic minded community leaders who donate their time to provide input to staff on agenda items. DISTRICT VISION To help ensure consistent purpose, East Valley Water District has adopted a comprehensive statement that serves as a guide for the decision- making process throughout the organization. This element of the Strategic Plan remains consistent year-to-year. It includes the District’s Vision, Core Values, and Agency Goals and Objectives. FINANCIAL SUMMARY EAST VALLEY WATER DISTRICT | PAGE 53 District Vision Adopt Budget Monitor Programs and Adjust as Necessary District-Wide Goals Five-Year Work Plan Establish Performance Indicators and Estimate Costs Develop Program Goals and Objectives FIVE-YEAR WORK PLAN The District has adopted a Five-Year Work Plan identifying a series of long-term objectives that link management and staff work efforts to the District’s Strategic Plan. Objectives in the Five-Year Work Plan have estimated completion dates ranging from 3 to 20 years and present the core work efforts to which District financial and human resources will be dedicated. The Five-Year Work Plan will be revised annually to reflect when progress is made on complex objectives, status of long-range or cyclical planning measures, and external considerations that require a significant response or operational adjustment. DISTRICT-WIDE GOALS AND OBJECTIVES District-wide goals established with the annual budget are typically developed directly from the Five-Year Work Plan and usually define incremental steps from the long-term objectives that will be completed during the upcoming fiscal year. District-wide goals, also referred to as GM goals as they are part of the General Manager/CEO’s annual performance evaluation, are adopted as program goals in one or more of the District’s Programs and Capital Budgets. DEVELOP PROGRAM GOALS AND OBJECTIVES Each program manager is tasked with developing achievable and measurable goals and objectives to be implemented in a single fiscal year. This endeavor clearly identifies the planned efforts of the program for the given period, links the program’s efforts to the District-wide goals when possible, and allows program employees to propose / establish individual goals that support the District’s long-term goals and vision. Program goals and objectives were presented by program managers to the Governing Board and public at a public workshop in April. ESTABLISH KEY PERFORMANCE INDICATORS & ESTIMATE COSTS To assess the organization’s productivity and effectiveness, unique key performance indicators were utilized as a quantitative measure. Cost estimates reflect the anticipated expenses for accomplishing each program’s day-to-day operational tasks, special projects and overall program goals. Once this effort has been completed, expenses can be compared to revenue projections. In situations where expenses are projected to exceed revenues, staff works collaboratively to reevaluate activities to fit within available funds. ADOPT BUDGET The final budget document was assembled, including projected revenues, expenditures, and funding of all goals and objectives proposed by program managers if possible. The document was presented to the East Valley Water District Governing Board at the first regular meeting in June for discussion. Barring any revisions or corrections, the budget is agendized at the second Board meeting in June for adoption. A hard copy version of the final budget document is available to the public on request, or can be viewed in its entirety on the District website. FISCAL YEAR BUDGET 2021-2022 | PAGE 54 HIGHLAND, CALIFORNIA LEADERSHIP | PARTNERSHIP | STEWARDSHIP FIVEYEAR WORK PLAN [2021] FINANCIAL SUMMARY PROGRAM MONITORING & BUDGET ADJUSTMENTS In January of each year, District management meets to analyze revenues and spending to determine whether realized revenue has exceeded revenue projections to the extent that additional program services or capital projects can be proposed, and to determine whether transfers between budget line items are necessary to ensure that budget limitations are not exceeded. Requests for budget adjustments are submitted by program managers to Executive Management for review, who then forward the requested adjustments to Finance for incorporation into proposed budget amendments to be presented to the Governing Board at a Mid-Year Budget Review in February. When possible, adjustments have no net effect on the original budget balance unless additional revenue is available. However, if revenue shortfalls or unanticipated costs are realized, and transfers between line items cannot meet the projected deficit, a recommendation to defer capital projects or draw on reserves is usually required to meet the shortfall. All proposed changes are presented to the Governing Board at a Mid-Year budget review. CURRENT & PROPOSED BUDGET CYCLE CALENDAR EAST VALLEY WATER DISTRICT | PAGE 55 June 23, 2021 FY 2021-22 Budget Adoption November 10, 2021 First Quarter FY 2021-22 Budget Review at Public Board Meeting January 20, 2022 Budget Meeting to Distribute FY 2022-23 Worksheets to Program Managers February 9, 2022 FY 2021-22 Mid-Year Budget Review at Public Board Meeting March 10, 2022 FY 2022-23 Capital Outlay and Capital Improvement Program Planning Meeting March 25, 2022 FY 2022-23 New Position Requests, Program Goals and Objectives Due to Finance March 25, 2022 FY 2022-23 Capital Outlay and Capital Improvement Project Requests Due to Finance April 8, 2022 FY 2022-23 Program Budget Requests Due to Finance April 20, 2022 FY 2022-23 Proposed Goals and Objectives Workshop at Public Board Meeting April 25, 2022 FY 2022-23 Capital Outlay and Capital Improvement Program Budget Review with Executive Managers and General Manager/CEO May 5, 2022 Meet with CAC to present and discuss proposed program goals and objectives and revenue projections for FY 2022-23 May 11, 2022 FY 2022-23 Revenue Projection Workshop at Public Board Meeting May 20, 2022 FY 2022-23 Budget Complete with all Revisions June 2, 2022 Meet with CAC to Present Draft Budget for FY 2022-23 June 8, 2022 FY 2022-23 Budget Presentation at Public Board Meeting June 22, 2022 FY 2022-23 Budget Adoption at Public Board Meeting FISCAL YEAR BUDGET 2021-2022 | PAGE 56 Basis of Budgeting The District’s financial records are kept in accordance with Generally Accepted Accounting Principles (GAAP) for governmental enterprise funds. Therefore, the District follows the GAAP requirement that enterprise funds use the full accrual basis of accounting. However, there are exceptions where the accrual basis is not conducive to effective presentation of the District’s budget because it does not allow discrete presentation of some significant uses of current financial resources. In these cases, GAAP is not followed, and instead those uses of current resources are shown as expenditures rather than as a reduction to a previously recorded liability, or a capitalized cost. Exceptions to GAAP used for the District’s budget presentation are as follows: • Compensated absence expense reflects the change in related accrued liabilities during the accounting period on the GAAP basis, but for budget purposes expense includes anticipated leave time to be used and/or cashed by employees during the fiscal year. • Principal payments on Long-Term Debt are applied to reduce the outstanding liability on a GAAP basis; shown as a current expenditure on a Budget basis. • Capital Outlay and Construction costs are capitalized and expensed over the useful life of the asset on a GAAP basis; shown as a current expenditure on a Budget basis. • Depreciation is recorded annually to expense the cost of a capital asset over its useful life on a GAAP basis but is not contemplated on the Budget basis. • Interest payments related to financing for the cost of a capital asset during construction are capitalized on the GAAP basis but are reported as a current expense on a Budget basis. • Pension expense is budgeted based on employer contribution rates assigned by the California Public Employee’s Retirement System (CalPERS). For financial statement reporting, pension expense is recorded based on the change to the net pension liability in accordance with Governmental Accounting Standards Board Statement No. 68. FINANCIAL SUMMARY the GAAP requirement that enterprise funds use the full accrual basis of accounting. The District follows EAST VALLEY WATER DISTRICT | PAGE 57 Fund Structure Generally Accepted Accounting Principles require that East Valley Water District, a California special district, account for its activities as a single, governmental enterprise fund. The activities of enterprise funds closely resemble those of ongoing businesses in that rates and fees charged for services are intended to cover the cost of operations and capital needs. Though it is a single Enterprise Fund, East Valley Water District engages in two separate and distinct business- type activities including the distributions of potable water, and the collection and treatment of wastewater. Accordingly, the District’s budget is organized based on these activities, or sub-funds, hereafter referred to as the Water Fund and the Wastewater Fund. The Water Fund accounts for the costs of acquiring raw water, treating the water, and then pumping and distributing the treated water to District customers. The Wastewater Fund accounts for the cost of maintaining a system of pipelines responsible for collecting wastewater from residential and commercial customers and delivering the wastewater to treatment facilities. Currently, wastewater flows are collected by a large interceptor line and sent to the SBMWD Treatment Plant where the wastewater is treated and released into the Santa Ana River. EVWD collects wastewater treatment fees from its customers and then remits those fees on a monthly basis to the SBMWD in a simple pass-through, where revenue is equal to expense. FINANCIAL SUMMARY RAW WATER SOURCES WATER PRODUCTION PLANTS DISTRIBUTION & STORAGE COLLECTION & CONVEYANCE WATER FUND WASTEWATER FUND RECYCLED WATER DISCHARGE CITY OF SAN BERNARDINO SEWER TREATMENT AND WATER RECLAMATION FACILITIES Future Present COLLECTION & CONVEYANCEWASTEWATER TREATMENT STERLING NATURAL RESOURCE CENTER CITY OF SAN BERNARDINO CUSTOMER USE OFF ON RECYCLED WATER RECHARGE SNRC 2022 FISCAL YEAR BUDGET 2021-2022 | PAGE 58 However, in May the District will begin operating its own wastewater recycling plant, named the SNRC, and will no longer rely on the SBMWD for wastewater treatment. The District has established its own treatment charges in order to fund the labor and other operating costs, and debt service, related to this new facility. See the Revenue Summary section of this document for a discussion about new revenues from recycled water recharge and power generation related to the SNRC. The Water and Wastewater Funds both rely on a significant amount of facilities and infrastructure. Accordingly, each fund contributes to the maintenance, replacement and improvement of that infrastructure. When the issuance of debt is appropriate to fund major capital projects, each fund has the authority to issue debt. To support these costs each fund adopts its own user rates, fees and charges, and has its own self-balancing set of accounts. Budgets for each fund are adopted to support the associated capital, and debt service costs, to make reasonable contributions to reserves, and to pay for an allocated portion of operating and maintenance program expenses. Both funds are supported by centralized customer service, engineering, and general administrative functions, the cost for which is allocated between the two funds. Flow of Funds Additional detail about the activities and budgets of each fund are included at the Water Fund and Wastewater Fund tabs in this document. Water Sales System Charges Water Fund Wastewater Fund Investment/Other Income Water Operations, Capital Expendituresand Debt Service Collection Charges Investment/Other Income WastewaterTreatment Charges City of San BernardinoWastewaterTreatment Expense Wastewater Operations,Capital Expendituresand Debt Service SharedAdministrationPrograms Ma y 2 0 2 2 EAST VALLEY WATER DISTRICT | PAGE 59 Fund/Program Relationship District operating and maintenance expenses are all budgeted and accounted for by Program. Expenses incurred by Program’s are then allocated to the Water and Wastewater Funds based on the assessed benefit of program services to each fund. The benefit assessment entails the evaluation of each program and the services provided through activity based costing. Programs with activities fully aligned with the purpose of one fund or the other, are charged fully to the appropriate fund, while programs with general and administrative type functions are generally allocated using a 70%-30% split. The percentage allocation is often adjusted for unique circumstances. For example, with the implementation of water budget-based rates, allocated costs for Customer Service were shifted from the Wastewater Fund to the Water Fund due to the increased cost of administering the new rates. Below is a table illustrating the Fund/Program relationship for the current fiscal year: FINANCIAL SUMMARY Program Water Fund Wastewater Fund Total 1000 Governing Board $ 170,800 $ 73,200 $ 244,000 2000 General Administration 931,500 397,500 1,329,000 2100 Human Resources/Risk Management 1,322,400 349,600 1,672,000 2200 Public Affairs 1,340,900 503,100 1,844,000 2300 Conservation 614,000 - 614,000 3000 Finance 809,750 346,250 1,156,000 3200 Information Technology 895,900 341,100 1,237,000 3300 Customer Service 1,102,900 459,100 1,562,000 3400 Meter Services 321,000 - 321,000 4000 Engineering 1,114,400 477,600 1,592,000 5000 Water Production Administration 568,000 - 568,000 5000-51 Source of Supply 2,861,000 - 2,861,000 5000-52 Pumps & Boosters 659,000 - 659,000 5000-54 Transmission & Distribution 451,000 - 451,000 5100 Water Treatment 900,000 - 900,000 5200 Water Quality 521,000 - 521,000 6000 Maintenance Administration 378,000 42,000 420,000 6100 Water Maintenance 2,658,000 - 2,658,000 6200 Wastewater Maintenance - 950,000 950,000 6300 Water Reclamation - 9,555,000 9,555,000 7000 Facilities Maintenance 971,750 244,250 1,216,000 7100 Fleet Maintenance 506,700 56,300 563,000 TOTAL OPERATING EXPENSES $ 19,098,000 $ 13,795,000 $ 32,893,000 FISCAL YEAR BUDGET 2021-2022 | PAGE 60 Budget Summary The budget for FY 2021-22 is balanced and reflects East Valley Water District’s commitment to allocating anticipated resources to meeting the expectations of District ratepayers, creditors, and other stakeholders. The District projects that it will receive $41,304,000 in revenue during FY 2021-22 and has developed a budget plan to allocate $32,893,000 toward funding of program operations, $3,352,000 toward the amortization of outstanding debt, and $5,059,000 toward capital asset improvement and replacement. The table below presents a summary of revenue by type, and expenditures by cost category, and is followed by a discussion of revenue and expenditures. FINANCIAL SUMMARY Water Fund Wastewater Fund FY 2021-22 Total REVENUE / SOURCES Water Sales / Wastewater Collection Charges $ 17,288,000 $ 4,815,000 $ 22,103,000 Wastewater Treatment Charges - 8,708,000 8,708,000 Water System (Meter) Charges 9,280,000 - 9,280,000 Other Operating Income - 632,000 632,000 Other Charges and Income 404,000 177,000 581,000 TOTAL REVENUE / SOURCES $ 26,972,000 $ 14,332,000 $ 41,304,000 OPERATING EXPENSES Employment Expenses $ 8,763,400 $ 3,359,600 $ 12,123,000 Water Costs 768,000 - 768,000 Contracted Wastewater Treatment - 7,844,000 7,844,000 Power Costs 1,900,000 260,000 2,160,000 Materials & Supplies 1,235,950 342,050 1,578,000 Contract Services 6,103,200 1,873,800 7,977,000 Other Operating Expenses 327,450 115,550 443,000 TOTAL OPERATING EXPENSES $ 19,098,000 $ 13,795,000 $ 32,893,000 OTHER USES Debt Service $ 3,082,000 $ 270,000 $ 3,352,000 Capital Outlay 1,080,000 50,000 1,130,000 Capital Improvement Program Contribution 3,712,000 217,000 3,929,000 TOTAL OTHER USES 7,874,000 537,000 8,411,000 TOTAL OPERATING EXPENSES/OTHER USES 26,972,000 14,332,000 41,304,000 NET SURPLUS (DEFICIT) $ - $ - $ - EAST VALLEY WATER DISTRICT | PAGE 61 Revenue Summary Revenue projections are key to determining the amount of financial resources available to support District programs and other obligations. Therefore, projections are developed early in the budget process and then presented to the District’s Governing Board in May. East Valley Water District receives 97% of its revenue from user rates and fees; the District receives no increment from property or sales taxes. Rates and fees are reviewed on three to five year cycles and adjusted as necessary to cover the costs of providing services to ratepayers. The District derives its authority for setting rates from §31000 California Water Code and rate adjustments are adopted at public hearings conducted in accordance with requirements established by California Propositions 26 and/or 218. The District has six revenue categories based on rates: Forecasting revenue projections requires consideration of external factors that could impact the demand for water services. Elements factored into the FY 2021-22 forecasts included potential drought declaration, construction activity within the service area, and the opening of the Sterling Natural Resource Center. In addition, water and wastewater rate revenues are highly reliant on new development and rate increases for sustained growth. FINANCIAL SUMMARY • Water Sales • Meter Charges • Wastewater Collection • Wastewater Treatment • Other Charges • SNRC Non-Rate Revenue FY 2021-22 Projected Revenue 5.0 10.0 15.0 20.0 25.0 Revenue History and Forecast (In Millions) 42% Water Sales 2% SNRC Non-Rate Revenue 22% Meter Charges 21% WastewaterTreatment 12% WastewaterCollection 1% Other Charges/Revenue Water Revenue FY 2018-19 FY 2019-20 FY 2020-21Estimated FY 2021-22Projected FY 2022-23Projected FY 2023-24Projected Wastewater Revenue 25.5 26.6 27.3 26.9 27.5 28.2 16.415.314.313.113.213.7 FISCAL YEAR BUDGET 2021-2022 | PAGE 62 Water sales are also reliant on consumer demand, which increases, or decreases based on weather, water rates, and occasionally drought conditions. The 2016 drought in California forced the District, and like agencies, to promote conservation and reduce water usage as part of a State-wide effort. Although an end to that drought was declared in April 2017, after three years of average to heavy rain and snowfall, the State appears to be heading into another severe drought. This is leading to more conservation efforts being driven by the State through legislation and reporting requirements. Construction within the region has been picking up over the last 2-3 years, but large residential developments within the District have been challenged by community members concerned about impacts on existing residents and traffic circulation. Two large tracts of homes, representing approximately 750 residential units, are moving forward and are at various stages of the construction process. The District was involved in the establishment of a Community Facilities District in 2020, with another planned for 2021. Revenue projections include the addition of 50 new residential customers annually over the next five years. A larger development of approximately 3,000 homes and businesses is being revisited but will likely not result in any construction activity until after FY 2023-24. The most significant factor affecting District revenue in FY 2021-22 will be the opening of the SNRC water reclamation facility. With this plant online the District will no longer send wastewater to the SBMWD for treatment but will treat and recycle wastewater for groundwater recharge. Anaerobic digesters at the SNRC will also allow the District to produce energy from wastewater and other high grade waste accepted from third-party haulers. As a result, new revenue sources associated with the SNRC include: 1. Payment from the groundwater basin-master for recycled water used for recharge; 2. Tipping fees from liquid waste haulers; and 3. Energy produced by digester will offset the facility’s power operating costs. There is a potential to sell excess power produced by the digesters to the Edison power grid. A more detailed description of the District’s major revenue sources, and related trends, is included in the following sections, including a discussion of new revenue streams under Other SNRC Income. In addition, the Water Fund and Wastewater Fund sections of this document include a detailed discussion of the rates used to calculate FY 2021-22 revenue projections. WATER SALES The District produces potable water for sale to four customer classes; single-family residential, multi-family residential, commercial and irrigation. All customers are billed on a monthly cycle based on the amount of water usage, which is metered and measured in hundred cubic feet (HCF) where 1 HCF is equal to 748 gallons. The District bills for water consumption in three ascending ‘Water Budget’ rate tiers. Therefore, as customer water usage exceeds established tier widths or thresholds, water becomes more expensive. Water Budget tiers are unique in that tier width, or the number of units (HCF) billed at each tier, is determined based on the individual customer’s characteristics. For single and multi-family customers, the Tier 1 width is determined based on the number of occupants in a dwelling and is intended to allocate the customer with sufficient water for indoor health and safety needs. Tier 2 width is based on a customer’s landscaped square footage, and the measured evapotranspiration, or the rate at which plants and soil lost moisture during the month being billed. The Tier 2 budget is intended to allocate sufficient water for efficient irrigation of the landscaped square footage. Tier 3 is billed for water use in excess of the Tier 1 and 2 budgets and is deemed to be inefficient use. SINGLE FAMILY RESIDENTIAL MULTI FAMILY RESIDENTIAL COMMERCIAL IRRIGATION CustomerClasses FINANCIAL SUMMARY Irrigation meter customers receive only a Tier 2 budget as described above, with usage in excess of the budget billed at the Tier 3 rate. Finally, commercial customers, having neither occupants or landscaped area associated with their domestic meter, receive Tier 1 and 2 water budgets based on the business’ historical water usage, with excess usage billed at the Tier 3 rate. The table below summarizes water sales volume (HCF) by billing tier for the last three years, and also includes conservative projections for FY 2021-22. Water consumption is expected to decrease in FY 2021-22 due to rate adjustments, adopted in May 2021 and effective January 2022, as well as evolving State guidelines that will require water agencies, such as EVWD, to enforce stricter water conservation measures. The rate adjustments mentioned above will have three phases, each taking effect on January 1, 2022, 2023 and 2024. Based on the projection of water sales in volume, and the tier rates that will be effective throughout the year, the District has projected water sales of $17.3 million for FY 2021-22. The graph below shows water sales trends for four years and the current year projection. Additional information about water rates is available in the Water Fund section of this document. Customer Consumption In Hundred Cubic Feet FY 2018-19 Actual FY 2019-20 Actual FY 2020-21 Estimated FY 2021-22 Projected Tier 1 3,633,298 3,777,126 3,696,721 3,631,000 Tier 2 2,346,603 2,406,396 2,659,770 2,313,000 Tier 3 1,111,457 1,096,457 1,237,088 1,180,000 TOTAL 7,091,358 7,279,979 7,593,579 7,124,000 EAST VALLEY WATER DISTRICT | PAGE 63 the District has experienced success in reducing water consumption and stabilizing revenues. Since the adoption of budget based rates, FISCAL YEAR BUDGET 2021-2022 | PAGE 64 WATER SYSTEM CHARGES Also referred to as Meter Charges, this revenue consists of a fixed monthly charge assessed to customers based on the size of the meter serving their property. East Valley Water District sets its meter charge rates to generate between 35% and 40% of annual water operating revenue. In doing so, the District is able to shift some of the burden for revenue stability from unpredictable water sales, such as during times of severe drought and water restrictions, to a more reliable fixed charge. Meter charges were last adjusted at the beginning of FY 2017-18 and were also included in a Cost of Service Analysis and Rate Study completed in January 2021. Adjustments proposed by the January study were adopted by the District in May 2021 and are scheduled to become effective in three phases, on January 1 of each year 2022 through 2024. Revenues have been slightly impacted by infill development in the last two years as there have been approximately 35 residential and 15 commercial new connections to the District system. They are also impacted by charges collected on construction meters which can exceed $150,000 annually. In addition, there are two developments totaling approximately 750 units moving forward which will likely add 50 - 75 new connections each year for the next 10 years. With the implementation of phase 1 of rate adjustments in January 2022, Meter Charge revenue is projected to be $9,280,000 for FY 2021-22. $20M $18M $16M $14M $12M $10M $8M $6M $4M $2M Water Sales Trends FY 2017-18 Actual FY 2018-19 Actual FY 2019-20 Actual FY 2020-21 Estimated FY 2021-22 Projected $17,063,891 $15,746,654 $16,902,370 $18,210,000 $17,288,000 Tier 1 Tier 2 Tier 3 FINANCIAL SUMMARY Meter Charges WASTEWATER COLLECTION (SYSTEM) CHARGES This charge is assessed to District customers to fund the maintenance and replacement of wastewater collection pipelines, make wastewater debt service payments, and fund program services associated with the Wastewater Fund. Currently the rate structure includes a fixed monthly charge of $15.36 for single-family residences, and a combination of fixed and volumetric charges for commercial and multi-family customers – currently $3.90, and $.55 per HCF of water usage, respectively. Wastewater collection rates were last adjusted in October 2012, so wastewater collection revenue has remained relatively flat over the past nine years. However, collection rates were included in the Cost of Service Analysis and Rate Study completed in January 2021. The study proposed a change in how multi-family residential account are billed, changing from a method based predominantly on water usage of the master account, to a fixed charge per dwelling unit served by the master account. This change brings billing for multi-family residential accounts into alignment with the methodology in place for single-family residential accounts. Commercial accounts will continue to be billed a monthly flat charge plus a volumetric charge based on water usage. Changes proposed by the Cost of Service Analysis, including a schedule of rate adjustments, were adopted in May 2021. Rate adjustments will be implemented in three phases, beginning on the first day of the month in 2022 (likely May) that the SNRC will become operational, and followed by adjustments on the first day of January of years 2023 and 2024. Accordingly, projected revenue for FY 2021-22 includes 10 months of revenue under the current rates and 2 months under the newly adopted rates. Projected wastewater collection revenue for FY 2021-22 is $4,815,000. EAST VALLEY WATER DISTRICT | PAGE 65 $8.85M $8.95M $9.1M $9.25M FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21Estimated FY 2021-22Projected $8,999,756 $9,009,881 $9,023,267 $9,071,000 $9,280,000 FISCAL YEAR BUDGET 2021-2022 | PAGE 66 Wastewater Collection Charges WASTEWATER TREATMENT REVENUE Wastewater generated by District customers is currently delivered to and treated by SBMWD facilities in accordance with a Joint Powers Agreement (JPA). Under the JPA the SBMWD establishes wastewater treatment rates to be charged to District customers. The District then bills customers within its service area at the SBMWD established rates, receives customer payments, and then remits collected treatment revenues to the SBMWD at the end of each month. However, the District is preparing to begin operation of its own water recycling facility known as the SNRC that, upon completion, will allow the District to treat its own wastewater and no longer contract with the SBMWD for wastewater treatment. The SNRC is scheduled for completion in May 2022. SBMWD Treatment Rates SBMWD rates in effect at the beginning of FY 2021-22 include a fixed monthly charge of $21.55 for single-family residential customers, and a combination of fixed and volumetric charges for commercial and multi-family customers. Multi-family accounts are billed a small fixed monthly charge of $1.97, plus a volumetric charge of $1.53 per HCF of water used. Commercial accounts are billed a small fixed monthly charge of $3.52 plus a volumetric charge ranging from $1.29/ HCF to $3.18/HCF depending on the type of business run by the commercial customer. SNRC Treatment Rates On May 12, 2021 the District adopted its own wastewater treatment rates which will become effective when the SNRC begins operations in May 2022. Accordingly, FY 2021-22 treatment revenue projections include 10 months at SBMWD rates and 2 months at rates established by the District. $1M $2M $3M $4M $5M FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21Estimated FY 2021-22Projected $4,668,923 Single-Family Multi-Family Commercial $4,643,732 $4,647,347 $4,647,000 $4,815,000 Rates established for the SNRC differ from those of the SBMWD in two ways. First, multi-family residential accounts will no longer be billed based on water usage but will be billed a fixed charge for each dwelling unit as single-family residential accounts are. Second, commercial customers will no longer be classified in one of 12 customer categories but will be classified based on ‘strength’ of the wastewater they discharge into one of three categories: low strength, medium strength, or high strength. Total Wastewater Treatment Charges projected for FY 2021-22 are $8,708,000. Wastewater Treatment Revenue SNRC NON-RATE REVENUE Commencement of operations at the SNRC on or around May 1, 2022 will not only mean that the District will assess and collect its own wastewater treatment revenue, but other revenue streams surrounding the anaerobic digesters and recycled water will begin to be realized including the following sources. Local Resource Investment Program (LRIP) In October 2018, EVWD signed an agreement to sell up to 11,000 acre-feet annually of recycled water produced by the SNRC to Valley District. Valley District will initially pay $173 per acre-foot for recycled water made available to recharge the local groundwater basin. EVWD estimates that the SNRC will produce and recharge 6,000 acre feet annually when the plant is in full operation, but in May and June of 2022, as the plant is transitioning to operation, the District estimates that 375 acre feet of recycled water will be produced and recharged for which it will receive an LRIP Contribution from Valley District of $65,000. FINANCIAL SUMMARY EAST VALLEY WATER DISTRICT | PAGE 67 $1M $2M $3M $4M $5M $6M $7M $8M $9M FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 Estimated FY 2021-22 Projected $8,697,671 CIty SNRC $8,592,950 $8,496,012 $8,486,000 $7,166,000 $1,542,000 FISCAL YEAR BUDGET 2021-2022 | PAGE 68 Waste Hauler Tipping Fees In order to maximize the power generation capacity of the SNRC digester, activated wastewater sludge from the SNRC will be supplemented by contracting with high grade food waste haulers to dispose of their waste at the SNRC. The District anticipates that haulers will pay $.08 per gallon to unload up to 130,000 gallons daily. The District projects that it will unload approximately 7.084 MG for $567,000 during FY 2021-22. Electrical Power Generation Gases released and burned by the anaerobic digesters will be used to generate electrical power to help offset the cost of supplying the SNRC with power. The District has also installed a two way electric meter for situation where the digesters are generating surplus power which can be sold to the power grid at $.127 per kilowatt hour. The District does not anticipate any revenue from power sales during the SNRC’s startup year. The table below provides a summary of all projected non rate revenue from the SNRC for FY 2021-22. OTHER CHARGES AND INCOME Other charges are assessed according to an adopted fee schedule, but are only charged to users who request, or require, use of District resources beyond the scope of delivering water and wastewater services. Charges include initiation of service fees, and charges related to collection of customer payments, including delinquent fees, final notice fees, and disconnect/reconnect fees. In prior years, revenue from charges related to collection of delinquent customer payments have been significant, so the District has been successfully implementing procedures to reduce the number of service disconnections for non-payment. However, a new California law effective February 1, 2020 mandates that residential customers not be disconnected until payment is at least 60 days overdue. Further, a COVID-19 related Executive Order from California’s Governor effective March 17, 2020 which mandates that utilities not disconnect customers during the COVID-19 state of emergency has not been lifted and will further reduce delinquency fees. For FY 2021-22 projections, service disconnection related charges have been reduced to a fraction of what might be assessed without COVID-19 related prohibitions. Revenue Type Unit of Measure Volume FY 2021-22 Fee Per Unit Non-Rate Revenue Total LRIP Contribution Acre Foot 375 AF $ 173.00 $ 65,000 Tipping Fees Gallon 7.084 MG 0.08 567,000 Power Sales kWh 0 0.13 - $ 632,000 Other Charges Disconnect Notice Charge $207K Investment Income $59K Miscellaneous Revenue $80K Reconnect Fees $120K Delinquent Fees $80K Initiation of Service $35K EAST VALLEY WATER DISTRICT | PAGE 69 FINANCIAL SUMMARY Other Income included in FY 2021-22 projections are facilities rentals, interest, and miscellaneous revenue. Projections for interest revenue have decreased as yields are expected to decline, and the amount of investible funds held by the District will be depressed as the District continues to pay for the construction costs of the SNRC and then wait 30 to 60 days for reimbursement. In total, the FY 2021-22 projection for Other Charges and Income is $581,000, which is calculated using adopted fees and an estimate of the number of occurrences for each type of fee based on historical trends. implemented procedures to reduce the number of service disconnections.The District has successfully FISCAL YEAR BUDGET 2021-2022 | PAGE 70 IntentionallyTHIS PAGE LEFT BLANK Expenditure Summary The District prepares its annual budget and financial plan based on operating expenses proposed by program managers, debt service payments scheduled in accordance with covenants and contractual obligations to bondholders and other creditors, and capital expenditures prioritized in the District’s Capital Improvement Program and equipment replacement schedules. Resources required for these expenditures are then appropriated from the District’s Water and Wastewater funds. Operating expenses are addressed on the following pages by broad cost category as listed on the Budget Summary on page 60. Expenses are presented in more detail, by account type, in the Water and Wastewater Fund Sections, and again, by Program in the Program Summaries. EMPLOYMENT EXPENSES Employment expenses at the beginning of FY 2021-22 will include salaries and benefits paid for 76 full-time employees (FTEs) and one part-time employee, and District contributions toward retiree health insurance. The number of FTEs will grow during FY 2021-22 as the District prepares for the opening of a new wastewater treatment plant (the SNRC) in May 2022. Nine employees will be needed to staff the plant, but they will as the plant begins operations. Treatment operators will be the priority hires, followed by maintenance and administrative staff. Employees are represented by two in-house bargaining units, or employee partnerships, which have negotiated a three-year Memorandum of Understanding (MOU) regarding wage and benefit adjustments through FY 2020-21. Negotiations for an updated MOU were delayed due to the COVID-19 related economic downturn, but a new three year agreement through June 2023 was finalized in September 2021. Salaries include regular wages, overtime and on-call pay, paid leave time, incentives, and differential payments which are awarded upon attainment of designated certifications. Under the terms of the new MOU, salaries increased by 5% in year one (FY 2020-21) to eliminate an agreed-upon policy to pay staff 5% below market median and then award up to 5% incentives at year end (10% for management) based on performance measures. In years two and three salaries will be adjusted to market median based on a survey conducted by an independent consultant, or by a 2% COLA for salary categories that were not affected by the survey. Pay scale step increases of 2.5% are also available for 32 employees who have not reached the top step in their pay range, subject to annual performance evaluations. With the new SNRC positions, and the terms of the new MOU, projected salaries expense for FY 2021-22 is $8,104,000. EAST VALLEY WATER DISTRICT | PAGE 71 Expenditures by Category FINANCIAL SUMMARY 1% Other Operating 22.1% WastewaterTreatment 2.7%27.7% Employment Expenses 12.4% Capital Expenditures 11.2% Debt Service 18.6% Materials/ Contract Services 4.3% Power Costs Water Costs FISCAL YEAR BUDGET 2021-2022 | PAGE 72 Benefit programs include a retirement plan with the CalPERS, a cafeteria health insurance plan, a deferred compensation plan with employer matching, and worker’s comp and Medicare insurance. Overall, benefits are expected to increase by 2.7% to $3,964,000 for FY 2021-22. The most significant of employee benefits is the CalPERS retirement plan. Funding requirements for the plan are determined through actuarial valuations conducted by CalPERS and include contributions from both the District and the employees. In recent years, unfunded pension liabilities have risen significantly as the plan struggles to meet the expectation administrators have set to earn a 7% return on plan assets each year. The rise of unfunded liabilities has led plan administrators to adopt 25 year amortization schedules, requiring increased contributions ensure that the plan is ultimately fully funded. However, instead of relying on the administrator plans for funding, the District has implemented an aggressive 15-year level-pay plan to amortize unfunded pension liabilities in order to reduce the cost of this liabilities. While the 15-year plan requires higher initial annual contributions, the shorter amortization period is projected to save the District $3.5 million. District paid costs related to the retirement plan are projected to increase 3%. Healthcare costs are also split between the District and employees as the District pays 90% to 95% of premiums of a designated ‘benchmark’ insurance plan, with employees paying the balance. Premiums for the benchmark plan increased 2.7% for calendar year 2021, therefore a similar increase for the cost of healthcare benefits has been projected. The District also contributes toward retiree health insurance premiums until the age of 65, provided they meet all eligibility requirements for this benefit. Workers compensation and life insurance premiums, cell phone allowances, and auto allowances for managers make up the remaining benefits. Total District paid benefits are expected to increase 9.2% to $4,019,000 for FY 2021-22 due primarily to the addition of the SNRC operations staff. Salaries and Benefits $2M $4M $6M $18M $10M $12M FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 $6,579,029 Salaries Benefits $6,987,671 $7,279,277 $7,122,979 $8,104,000 $3,203,162 $3,076,788 $3,362,642 $3,680,387 $4,019,000 WATER COSTS The District anticipates customer demand for approximately 16,346 acre-feet, or 5.38 billion gallons of water during FY 2021-22. This is approximately 7% lower than total water sold in FY 2020-21. Included in this projection are scheduled rate adjustments, and stronger messaging expected about the impending drought, which tend to apply downward pressure on water demand. The District meets customer demand by procuring water from three different raw water sources – groundwater, surface water, and the purchase of imported water. Each of these sources have associated rates, fees or assessments charged by other agencies/companies as explained below: • Groundwater – the District obtains approximately 74% of its water supply through its wells pumping water from the Bunker Hill groundwater basin. Fees associated with pumping groundwater consist of an assessment paid to the San Bernardino Basin Groundwater Council (GC), a collaborative effort formed in January 2018 for the purpose of purchasing imported water to restore and maintain sustainable groundwater levels. Groundwater Council assessments are based on historical pumping levels by each of the signers to the GC Framework Agreement, and the District’s assessment for FY 2021-22 is projected to be $445,000. However, the District receives credit against the assessment for Santa Ana River surface water that it allows to flow past the District’s intake into groundwater recharge basins. Net of the expected credit, the final assessment the District will pay to the Groundwater Council is projected to be $304,000. • Surface Water – stockholder assessments paid to the NFWC on Company shares owned by the District. Annual assessments are set to cover the costs of operating NFWC and includes delivery of Santa Ana River surface water, also based on the number of shares owned. The District owns approximately 7,140 shares and projects that the assessment will be $9 per share and has budgeted $64,000 accordingly. • Purchased Water – paid to Valley District to buy State Water Project at $126 per acre foot (AF) when available. Due to very light snow and rainfall in Northern California last winter, only 5% of the normal allocation of water is available from the State Water Project. The District should be able to purchase up to 3,175 acre feet of imported water during the upcoming fiscal year and has budgeted $400,000 accordingly. Water availability from the State Water Project will be uncertain in the future without normal rainfall in the winter of 2021-22. Total water costs associated with these three sources are projected to be $768,000 for FY 2021-22. Water Costs EAST VALLEY WATER DISTRICT | PAGE 73 FINANCIAL SUMMARY $200K $400K $600K $800K $1M FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21Estimated FY 2021-22Projected $939,239 Purchased Water GW Assessment-Cons Dist GW Council Assessment Surface Water $527,716 $534,180 $588,397 $768,000 FISCAL YEAR BUDGET 2021-2022 | PAGE 74 WASTEWATER TREATMENT As outlined in the discussion about wastewater treatment revenue, the District will transition from contracting with the SBMWD, to commencing its own wastewater treatment operations at the brand new SNRC in May 2022. The transition will begin in May by diverting approximately a quarter of wastewater flows to the new plant. Every two weeks an additional portion of the flows will be diverted until full flows are going to the SNRC at the end of June 2022. While this phased approach to diverting flows is taking place in May and June 2022, some flows will continue going to the SBMWD’s treatment facilities and the District will be charged for those scaled down treatment services. For this reason, payments to the SBMWD in FY 2021-22 are higher than treatment revenues collected under SBMWD established rates. Wastewater Treatment Costs $2M $4M $6M $8M $10M $12M strives to create a sustainable future by maximizing the use of resources. The Sterling Natural Resource Center FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 Estimated FY 2021-22 Projected Contracted Treatment SNRC Operating Costs $8,697,671 $8,592,950 $8,536,014 $8,478,000 $7,844,000 $1,711,000 This graph of annual payments to the SBMWD for those treatment services has represented approximately 22% of the District’s annual budget in past years. Going forward, however, contracted treatment payments will be replaced by new debt service payments, SNRC treatment staff salaries, and other operating costs displayed in other sections of this budget, and also summarized in the Water Reclamation program summary. In this year of transition, during which the SNRC will only be operational for two months, ‘in-house’ costs are expected to include the elements shown in the pie chart on the right. POWER COSTS Power costs include the electrical power to extract groundwater through wells, to treat imported water, surface water, and groundwater when necessary, and to distribute water throughout nine pressure zones within the District using booster pumps. Power costs will also be incurred for the SNRC in FY 2021-22 as the new plant’s anaerobic digesters are activated in February 2022, and then three months later as the plant’s screening, aeration, and all other processes are activated to complete the commissioning process allowing the plant to recycle water. Although rates for electrical power have been increasing, the District has been implementing various energy conservation measures over the last several years. In 2014, Honeywell conducted and implements an energy efficiency study which involved installation of high efficiency pumps at several plants. In 2018, a hydroelectric generation facility at the District’s Surface Water Treatment Plant (Plant 134), was installed to help mitigate power costs there, and in the fall of 2022, as the SNRC digesters near full capacity, they will generate electrical power to significantly lower, if not eliminate, power costs to run the whole treatment plant. Even with these efforts to control costs, some rates applicable to District plants have increased as much as 15% annually. Accordingly, District operations staff works closely with representatives from Southern California Edison (SCE) to ensure that water production facilities are assigned Time-Of-Use (TOU) rates wherever possible, and to maximize facility operation during off-peak rates. Total District power costs were $2.2 million in FY 2020-21 due to the higher than anticipated demand for water. For FY 2021-22 the District is projecting lower demand for water, as explained under Water Costs, and has budgeted $1.9 million to produce, treat, and distribute water to residents, and an additional $260,000 for the startup of the SNRC. Accordingly, the total budget to power District plants in FY 2021-22 is $2,160,000. EAST VALLEY WATER DISTRICT | PAGE 75 FINANCIAL SUMMARY FY 2021-22 SNRC Operating Costs $398K Contract Services $853K Salaries and Benefits $260K Power $188K Materials and Supplies $12K Other FISCAL YEAR BUDGET 2021-2022 | PAGE 76 Power Costs MATERIALS AND SUPPLIES Materials and supplies are purchased to assist staff with the performance of their daily tasks. For administrative programs, materials ordinarily consist of office supplies, informational/ educational printed materials for the public, books and reference materials for staff, and small office equipment. For operating and maintenance programs, materials also include some office supplies, but also include items such as chemicals for water treatment, small tools and parts for distribution system repairs, fuel and lubricants, and fill materials for backfilling trenches, among other items. Materials costs are budgeted to increase 23% to $1,578,000 for FY 2021-22. Significant variances between prior year contract services costs and projections for the upcoming year include: • Public Affairs budget for materials added $50,000 for ribbon cutting and other ceremonies to celebrate the opening of the SNRC. • Water Production has increased its materials budget by $35,000 due to courtesy notifications from various vendors regarding upcoming cost increases. $500K $1M $1.5M $2M $2.5M Materials and Supplies FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21Estimated FY 2021-22Projected Wells Boosting Water Treatment Wastewater Treatment $1,749,726 $1,595,613 $1,588,178 $2,196,818 $2,160,000 $595K Plant Repair Materials $66K Small Tools $147K Fuel $186K Printed Materials $481K Chemicals $103K Office Supplies EAST VALLEY WATER DISTRICT | PAGE 77 FINANCIAL SUMMARY CONTRACT SERVICES Contract services are proposed by program managers to fund ongoing needs for outside services, and periodic needs for technical expertise to help meet program goals and objectives. For administrative programs outside services include, but are not limited to, legal services, banking and payment processing, printing, and insurance, while contract services would include rate consultants, engineering consultants, and legislative advocates. Operating and maintenance programs primarily use ongoing outside services such as paving, electrical repair, landscape maintenance, and equipment maintenance. The budget for contract services is expected to increase 22% to $7,977,000 for FY 2021-22. Significant variances between prior year contract services costs and projections for the upcoming year include: • Public Affairs budget includes the fully burdened cost of a Sheriff’s Deputy ($150,000) who will increase patrols and presence of law enforcement at critical District facilities and will utilize office space at the SNRC for report writing. • Information Technology has added nearly $100,000 to its contract services budget to account for the cost of maintenance and support for new IT infrastructure at the SNRC. • Engineering has added $161,000 to its contract services budget to fund the District’s contribution toward a regional planning efforts for the Santa Ana River. • Water Maintenance increased the street repairs budget $200,000 due to rising permit and asphalt costs for Field crews to complete water main repairs. • Facilities Maintenance reflects an increase of $141,000 to its contract services budget to increase security guard services at critical facilities. Contract Services are necessary elements for managing each Program’s budget.Materials, supplies, and contract expenses $4,291,000 Professional Services $384K Building & Landscape Maintenance $1,070,000 Utilities & Other $819K Permits $670K Insurance $496K Printing $247K Banking & Financial OTHER OPERATING EXPENSES Other Operating Expenses budgeted for FY 2021-22 total $443,000 and includes professional development, memberships and dues, licensing, meeting expenses, employee recognition, and education assistance. EVWD emphasizes professional growth and leadership, encouraging employees to utilize resources made available by the District to continue learning through formal education, certifications, and collaboration with other agencies responsible for delivering similar service to its ratepayers. The chart shown to the right depicts the allocation of Other Operating Expenses budgeted for FY 2021-22. FISCAL YEAR BUDGET 2021-2022 | PAGE 78 Other Expenses investment East Valley Water District makes into its employee programs.Other Operating Expenses represent the $16K Education Assistance $194K Professional Development $126K Membership Dues $45K Meetings $17K Other $27K Employee Recognition Debt Overview East Valley Water District’s debt service payments in FY 2021-22 will be $3,352,000 on total outstanding debt of $52,596,000 as of June 30, 2021. The District issues debt for the purpose of building and improving capital assets, and to refund/refinance previously issued debt when interest rates and other circumstances make it financially prudent. In September 2020, the District refunded its outstanding 2010 and 2013 Revenue bonds with 2020 Series A & B Refunding Revenue bonds in order to achieve annual interest savings of approximately $400,000. The District’s Debt Management Policy states that debt may only be issued to finance capital projects that have been incorporated into the District’s Capital Improvement Program, and that debt will only be used to finance projects if it is the most cost-effective means of doing so and the District’s credit rating will not be negatively impacted. District policy prohibits the issuance of long-term debt to fund operating activities. TYPES OF DEBT Revenue Bonds Revenue bonds are issued to finance the construction or upgrade of water and wastewater facilities. Debt service is payable out of water and wastewater system net revenue. • 2020A Refunding Revenue Bonds: issued to refund outstanding 2010 Revenue bonds and save $380,000 annually on interest. The 2010 bonds had been issued to finance pipeline and other infrastructure projects. 2020A bonds outstanding total $16,885,000, and bear (tax-exempt) interest of 3.00% to 5.00%. • 2020B Refunding Revenue Bonds: issued to refund outstanding 2013 Revenue bonds, which had been issued to finance the construction of a new administration and operations headquarters. 2020B bonds outstanding total $13,615,000, and bear (taxable) interest of 0.42% to 2.93%. State Water Resources Control Board (SWRCB) Loans SWRCB loans are utilized to finance the construction or upgrade to clean drinking water or recycled water projects. Debt service is payable out of water and wastewater system net revenue. • Treatment Plant 134: borrowed to finance upgrades to treatment technology at the District’s Plant 134. The total loan outstanding is $5,602,000 bearing interest at 0%. • SNRC: borrowed as primary funding for water recycling plant known as the SNRC. Total loan requested is $150.3 million with $115.8 million drawn down to date. Interest on the loan is 1.8% and annual debt service on the full loan will be approximately $6.82 million annually. The debt service on this loan is not included in the tables on the following pages. Assessment Districts loan agreements signed in support of the State’s consolidation of mutual water companies with failing water infrastructure within the District’s service area. The District is responsible for ensuring payment on the State loans, which is payable from assessments on property formerly served by the water companies. • Arroyo Verde & Eastwood Farms: borrowed to fund installation of new water distribution system connected to the District’s water supply facilities. Loans outstanding total $344,000 and bear interest at 0%. EAST VALLEY WATER DISTRICT | PAGE 79 FINANCIAL SUMMARY FISCAL YEAR BUDGET 2021-2022 | PAGE 80 Other Loans – Subordinate Financing agreements signed with equipment vendors, installers, or construction project managers for the purchase or installation of equipment with useful lives of 20 year or less. Repayment periods are 10 years and debt service payments are paid out of energy cost savings. • U.S. Bank Loan: borrowed to finance construction and implementation of several energy conservation measures. The total loan outstanding is $1,304,000 at an interest rate of 2.3%. • Valley District Loan: borrowed from the Valley District (Valley District), the region’s State Water Project (SWP) contractor, for the construction of an SWP turnout and hydro-electric generation facility leading to the District’s treatment plant - Plant 134. Loan principal outstanding of $2,150,000 bears interest at the Local Agency Investment Fund (LAIF) apportionment rate, currently 0.44%. Debt service is payable over 10 years out of water net revenue and energy cost savings. IMPACT OF CURRENT DEBT LEVELS A schedule of FY 2021-22 debt service payments, by debt issue, is shown in the following schedule: As detailed above, debt service for FY 2021-22 on all outstanding debt is $3,352,000 – this is a decrease of nearly $1.03 million from debt service payments in FY 2020-21. The decrease is related to the final maturity of Series 2001 Certificates of Participation that had been refinanced by the 2010 revenue bonds, and to the sewer portion of the 2010 revenue bonds which had only a 10-year term. $3,352,000 represents 8.1% of the District’s total budget for FY 2021-22. This level of debt service does not affect utility services provided to District ratepayers but does directly impact the number of Capital Projects that can be funded by operating revenues. WATER FUND WASTEWATER FUND Debt Issue Principal Interest Principal Interest Total 2020A Refunding Revenue Bonds $ 895,000 $ 710,000 $ - $ - $ 1,605,000 2020B Refunding Revenue Bonds 105,000 224,000 170,000 100,000 599,000 SWRCB Loan-Treatment Plant 234,000 - - - 234,000 SWRCB Loans - Assessment Districts 19,000 - - - 19,000 US Bank Loan 425,000 29,000 - - 454,000 SBVMWD Loan 430,000 11,000 - - 441,000 TOTAL $ 2,108,000 $ 974,000 $ 170,000 $ 100,000 $ 3,352,000 EAST VALLEY WATER DISTRICT | PAGE 81 FINANCIAL SUMMARY The following table presents District debt level ratios compared to 2015 Southwest Regional medians reported by Fitch ratings. Ratio Fitch Median EVWD Outstanding debt per customer (21,576 accts)$ 1,634 $ 2,438 All-in debt service as % of gross revenue (1)26%10% (1) Gross revenue does not include wastewater treatment charges, which are a pass- through to the SBMWD. Total Debt Service Through Maturity WATER FUND WASTEWATER FUND Fiscal Year Principal Interest Principal Interest Total 2021-22 $ 2,108,000 $ 974,000 $ 170,000 $ 100,000 $ 3,352,000 2022-23 2,163,000 916,000 175,000 99,000 3,353,000 2023-24 2,223,000 854,000 175,000 98,000 3,350,000 2024-25 1,813,000 793,000 175,000 97,000 2,878,000 2025-26 1,458,000 749,000 175,000 96,000 2,478,000 2027-31 5,662,000 3,218,000 915,000 440,000 10,235,000 2032-36 6,606,000 2,232,000 1,010,000 344,000 10,192,000 2036-41 7,602,000 1,242,000 1,150,000 199,000 10,193,000 2041-46 5,539,000 211,000 780,000 35,000 6,565,000 2047-52 - - - - - TOTAL $ 35,174,000 $ 11,189,000 $ 4,725,000 $ 1,508,000 $ 52,596,000 stipulates that debt may only be issued to finance capital projects. The District’s Debt Management Policy FISCAL YEAR BUDGET 2021-2022 | PAGE 82 FUTURE DEBT LEVELS The addition of the SWRCB Loan for the SNRC will substantially increase the District’s annual debt service requirement. Contractual payments on this loan will begin one year after completion of construction, which will be approximately July 2022. As noted in other discussions about the fiscal impact of the SNRC in this document, wastewater treatment services are currently provided by the SBMWD and payments under that contract shown as Wastewater Treatment operating expense. When the SNRC is operational, wastewater treatment payments to the SBMWD will be replaced with labor, materials, and other direct treatment costs, and debt service. The graph below presents total debt service on existing debt, and future SNRC loan payments, through maturity. Debt Service BOND RATINGS Credit risk is the potential that creditors will suffer financial loss if the District fails to fulfill its obligation to make timely payments to holders of District debt. This risk is measured by the assignment of a rating to the District’s bonds by a nationally recognized credit rating organization. Strong credit ratings provide benefits to District ratepayers in the form of reduced debt service costs. Prudent financial management policies resulted in a bond rating of AA- from both Standard & Poor’s, and Fitch ratings when the District issued 2020 A & B series revenue bonds in September 2020 to refund its 2010 and 2013 series revenue bonds. The AA- rating is considered a high quality, investment grade rating. $2M $4M $6M $8M $10M 20 2 1 - 2 2 20 2 2 - 2 3 20 2 3 - 2 4 20 2 4 - 2 5 20 2 5 - 2 6 20 2 6 - 2 7 20 2 7 - 2 8 20 2 8 - 2 9 20 2 9 - 3 0 20 3 0 - 3 1 20 3 1 - 3 2 20 3 2 - 3 3 20 3 3 - 3 4 20 3 4 - 3 5 20 3 5 - 3 6 20 3 6 - 3 7 20 3 7 - 3 8 20 3 8 - 3 9 20 3 9 - 4 0 20 4 0 - 4 1 20 4 1 - 4 2 20 4 2 - 4 3 20 4 3 - 4 4 20 4 4 - 4 5 20 4 5 - 4 6 20 4 6 - 4 7 20 4 7 - 4 8 20 4 8 - 4 9 20 4 9 - 5 0 20 5 0 - 5 1 20 5 1 - 5 2 Recycled Water Wastewater Fund Water Fund EAST VALLEY WATER DISTRICT | PAGE 83 FINANCIAL SUMMARY DEBT CAPACITY AND DEBT SERVICE COVERAGE The District has no policy limitation, and there is no statutory limitation, on the amount of debt that may be issued by the District, however, bond covenants for the District’s 2020 Revenue Bonds require an additional bonds test prior to issuing additional obligations payable from Net Operating Revenue. The test determines the amount of additional debt that may be issued by calculating the amount of net revenue available for additional debt service payments. The Revenue Bond documents, as well as loan agreements with the SWRCB and US Bank, require that the District maintain a debt service coverage ratio equal to 1.2 or 120 percent of annual debt service. The FY 2021-22 proposed operating budget provides the net revenue to debt ratios shown in the table below. Net Revenue in excess of annual debt service (excess coverage) provides funding for the District’s CIP and contributions to Replacement Reserves. Debt Service Coverage Water Fund Wastewater Fund Total REVENUE Sales and Services $ 26,568,000 $ 14,155,000 $ 40,723,000 Other Charges 175,000 772,000 947,000 Interest & Miscellaneous Revenue 229,000 37,000 266,000 TOTAL REVENUES $ 26,972,000 $ 14,332,000 $ 41,304,000 OPERATING EXPENSES Programs $ 19,098,000 $ 13,795,000 $ 32,893,000 TOTAL OPERATING EXPENSES $ 19,098,000 $ 13,795,000 $ 32,893,000 NET REVENUE $ 7,874,000 $ 537,000 $ 8,411,000 ANNUAL DEBT SERVICE $ 3,082,000 $ 270,000 $ 3,352,000 DEBT COVERAGE RATIO 2.55 1.99 2.51 Fund Equity & Reserves As previously discussed, EVWD operates water and wastewater enterprise activities; the District does not have governmental or non-major enterprise activities as part of its operational structure. For financial reporting purposes, each of the District’s activities report Equity, the excess of assets over liabilities, as Net Position. Also for financial reporting purposes, Net Position is reported in three distinct classifications: For budgeting purposes, and for purposes of this discussion, the three classifications above will be referred to as designations of the District’s equity, rather than Net Position. Restricted and unrestricted equity are spendable reserves, Equity Invested in Capital Assets is not. Equity Invested in Capital Assets maintains a running balance of resources previously spent on the acquisition and construction of capital assets, less outstanding long-term debt, and net of depreciation of those capital assets over time. It does not include spendable funds that are available for appropriation and is therefore not considered as part of the budget process. Restricted Net Position includes unspent proceeds from issuance of long-term debt and developer paid capacity fees. These funds are available for appropriation for capital projects, but only as defined by contractual agreement with bondholders and other creditors, or by studies adopted by the District that state the purpose and amount of capacity fees to be collected from developers. Debt proceeds are used only for projects specifically stated in debt agreements, and capacity fees are used only for construction of projects that expand the capacity of the District’s infrastructure. Accordingly, appropriations from Restricted funds will appear in the District’s capital budget when appropriate. Unrestricted fund equity is the residual after the balances in the other two classifications of equity have been determined. The District has the most flexibility in determining how unrestricted equity may be appropriated, and the Governing Board has done so by establishing a Reserve Policy, which is summarized on pages 48-50. The policy establishes three designations for unrestricted equity, and has defined their purpose, order of priority for funding, target levels, and uses. Those unrestricted designations are the: The Operating Reserve has the highest priority and is funded first out of any excess of revenue over expenditures at the end of each fiscal year. When the Operating Reserve has reached its FINANCIAL SUMMARY FISCAL YEAR BUDGET 2021-2022 | PAGE 84 • Invested in Capital Assets • Restricted • Unrestricted • Operating Reserve • Capital Replacement Reserve • Rate Stabilization Reserve Operating Reserve WATER ENTERPRISE Capital Replacement Reserve Capital Replacement Reserve Rate Stabilization Reserve Operating Reserve WASTEWATER ENTERPRISE Rate Stabilization Reserve Capacity Fees Capacity Fees Water Unrestricted Reserves Wastewater Unrestricted Reserves Restricted Reserves target level of 120 days operating expenses, excess funds are applied to the Capital Replacement Reserve up to a target level of $10 million. Finally, a Rate Stabilization Reserve has been created to offset unexpected revenue shortfalls at a target level of 45 days of budgeted operating expenses. If all funds have been fully funded, the remainder reverts to the Operating Reserve. Expenditure of funds out of any of the Unrestricted Reserve categories will be replenished with excess Operating Reserves, and then by transfer from reserves with lower priority. The District’s Governing Board may take action to transfer balances between the Unrestricted Reserve designations. WATER FUND RESERVES The table on the following page presents changes to the Water Fund unrestricted and restricted equity, broken down by reserve designation, over a five year period, and includes beginning balances, annual activity, and ending balances. Target levels for each of the reserve designations, in accordance with the District’s reserve policy, are also shown. Unrestricted Reserves Funding for unrestricted reserves is built into rates when the District conducts a cost-of-service analysis; this occurs approximately every five years. In March 2015, the District adopted a new tiered rate structure to provide revenue stability prior to California’s severe drought in which strict conservation mandates were imposed by the State. Revenue stability was achieved by the new rates structure, as is evidenced by the growth of reserve balances for FY 2017-18 through FY 2021-22 in the chart below. In addition, reserve balances realized significant growth in FY 2018-19 due to the sale of surplus land. Restricted Reserves The table also includes balances and activity for restricted water capacity fees. Although the receipt of capacity fees is not included in revenue projections and budgeted, accumulated fees are available for appropriation for certain capital improvement projects. Water Reserves FINANCIAL SUMMARY $14M $12M $10M $8M $6M $4M $2M $8,141,879 $6,484,818 $6,489,732 $8,169,188 $8,169,188 $3,000,000 $14,595,000 $13,738,648 $13,738,648 $13,738,648 $2,171,212 $1,996,379 $2,284,023 $2,559,776 $2,559,776 EAST VALLEY WATER DISTRICT | PAGE 85 Water Operating Water Capital Replace Restricted Capacity Fees FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21Estimated FY 2021-22Projected Unrestricted and Restricted Equity - Water FY 2017-18 Actual FY 2018-19 Actual FY 2019-20 Actual FY 2020-21 Projected FY 2021-22 Budgeted WATER OPERATING RESERVE Maximum Target Level 120 Days Operations $ 5,174,000 $ 5,505,000 $ 5,850,000 $ 6,025,000 $ 6,366,000 Beginning Fund Balance 6,786,369 8,141,879 6,484,818 6,489,732 8,169,188 Revenue 27,296,029 26,754,320 27,179,063 27,804,791 26,972,000 Operating/Non-Operating Expenditures (17,714,108) (18,098,700) (18,717,810) (18,567,779) (20,072,000) Capital Expenditures (2,645,333) (2,938,973) (4,132,028) (4,919,000) (4,792,000) Debt Principal Payments (2,581,078) (2,924,244) (2,564,311) (2,638,556) (2,108,000) Interfund Sale of Land / Land Sale - 7,550,536 --- Transfer to Capital Replacement Fund (3,000,000) (12,000,000) (1,760,000)-- ENDING WATER OPERATING RESERVE $ 8,141,879 $ 6,484,818 $ 6,489,732 $ 8,169,188 $ 8,169,188 WATER CAPITAL REPLACEMENT FUND Minimum Target Level $ 10,000,000 $ 10,000,000 $ 10,000,000 $ 10,000,000 $ 10,000,000 Beginning Fund Balance - 3,000,000 14,595,000 13,738,648 13,738,648 Transfer from Operating Fund 3,000,000 12,000,000 1,760,000 Capital Expenditures (405,000) (2,616,352) - ENDING WATER CAPITAL REPLACEMENT FUND $ 3,000,000 $ 14,595,000 $ 13,738,648 $ 13,738,648 $ 13,738,648 TOTAL UNRESTRICTED EQUITY - WATER $ 11,141,879 $ 21,079,818 $ 20,228,380 $ 21,907,836 $ 21,907,836 RESTRICTED RESERVES No Target Level - - - - - Beginning Fund Balance $ 1,962,255 $ 2,171,212 $ 1,996,379 $ 2,284,023 $ 2,559,776 Fees Collected 208,957 310,946 287,644 275,753 - Debt Issued Capital Expenditures - (485,779) ENDING WATER CAPACITY FEES $ 2,171,212 $ 1,996,379 $ 2,284,023 $ 2,559,776 $ 2,559,776 TOTAL RESTRICTED EQUITY - WATER $ 2,171,212 $ 1,996,379 $ 2,284,023 $ 2,559,776 $ 2,559,776 FISCAL YEAR BUDGET 2021-2022 | PAGE 86 WASTEWATER FUND RESERVES The following table presents changes to the Wastewater Fund unrestricted and restricted equity, broken down by reserve designation, over a five year period, and includes beginning balances, annual activity, and ending balances – only the operating reserve currently has a balance. The target levels established for each reserve designation, in accordance with the District’s reserve policy, are also shown. FINANCIAL SUMMARY EAST VALLEY WATER DISTRICT | PAGE 87 Unrestricted and Restricted Equity - Wastewater FY 2017-18 Actual FY 2018-19 Actual FY 2019-20 Actual FY 2020-21 Projected FY 2021-22 Budgeted WASTEWATER OPERATING RESERVE Maximum Target Level 120 Days Operations $ 3,824,000 $ 4,056,000 $ 4,140,000 $ 4,108,000 $ 4,600,000 Beginning Fund Balance 3,029,546 1,706,085 3,306,271 2,311,575 2,165,247 Revenue 13,419,092 14,133,243 13,280,507 13,278,228 14,332,000 Operating/Non Operating Expenditures (13,788,012) (12,796,707) (13,194,436) (12,419,556) (13,895,000) Capital Expenditures (859,541) (341,350) (980,767) (895,000) (267,000) Debt Principal Payments (95,000) (95,000) (100,000) (110,000) (170,000) Interfund Sale of Land/Land Sale - 700,000 --- ENDING WASTEWATER OPERATING RESERVE $ 1,706,085 $ 3,306,271 $ 2,311,575 $ 2,165,247 $ 2,165,247 TOTAL UNRESTRICTED EQUITY - WASTEWATER $ 1,706,085 $ 3,306,271 $ 2,311,575 $ 2,165,247 $ 2,165,247 RESTRICTED WASTEWATER CAPACITY FEES No Target Level - - - - - Beginning Fund Balance $ 698,889 $ 982,850 $ 1,283,577 $ 4,215,330 $ 4,492,001 Fees Collected 283,961 300,727 2,931,753 276,671 - Debt Issued ----- Capital Expenditures ----- ENDING WASTEWATER CAPACITY FEES $ 982,850 $ 1,283,577 $ 4,215,330 $ 4,492,001 $ 4,492,001 TOTAL RESTRICTED EQUITY - WASTEWATER $ 982,850 $ 1,283,577 $ 4,215,330 $ 4,492,001 $ 4,492,001 Unrestricted Reserves The District last adjusted Wastewater Rates in October 2012. This fact, combined with the funding of preliminary studies and design, and ensuing litigation, related to a planned water recycling plant, have limited the District’s ability to accumulate and grow balances in Wastewater reserves. New rate adjustments were adopted in May 2021, including rates for the new water reclamation plant nearing completion, but those rates will not become effective until the plant is operational around May 2022. With an effective date so late in the upcoming fiscal year, the rate adjustments are not expected to have any impact on reserves in FY 2021-22 so no related change to reserve fund balances is shown. As the operating reserve target level has not been met, no funding is available for the Wastewater capital replacement reserve. Restricted Reserves The table also includes balances and activity for restricted Wastewater capacity fees. Although the receipt of capacity fees is not included in revenue projections and budgeted, accumulated fees are available for appropriation for certain capital improvement projects. Wastewater Reserves FISCAL YEAR BUDGET 2021-2022 | PAGE 88 $1,706,085 $3,306,271 $2,311,575 $2,165,247 $2,165,247 $982,850 $1,283,577 $4,215,330 $4,492,001 $4,492,001 $500K $1M $1.5M $2M $2.5M $3M $3.5M $4M $4.5M Wastewater Operating Restricted Capacity Fees FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 Estimated FY 2021-22 Projected The Long-Range Financial Plan provides a forward-looking view of the District’s operating funds, allowing District management and others to evaluate the long-term sustainability of the District’s operating budget. It helps determine whether financial resources will be available to achieve the District’s long-term goals and objectives, and to contribute to capital programs and reserve levels. It also provides a starting point for future decision making regarding the district’s spending and projected revenues. As a water and wastewater utility, the districts’ long-term planning efforts have always included consideration of the age, condition, and efficiency of infrastructure used to deliver services to District customers, along with compliance with water quality regulations. But in recent years, the omnipresent threat of drought in California has raised preservation and sustainability of water supplies, and water quality, as prominent issues in planning for future operations. Based on these identified priorities, the District has developed goals that will have a significant impact on the District’s operating budget over the next few years, including: • Cost recovery through user rates versus development fees, • Construction of a water recycling plant (SNRC), • Find alternative water supply and promote conservation, • Meet all water quality standards, and • Replacement of aging pipelines and increased water storage capacity. The achievement of these goals is subject to certain assumptions but will remain a priority as they support the District Vision and Strategic Plan. EAST VALLEY WATER DISTRICT | PAGE 89 Long Range Financial Plan FINANCIAL SUMMARY Goal Assumption Link to District Goals & Objectives Utility User Rates Support Reasonable Costs Related to Existing Customers; Development Fees Pay for New Infrastructure • Water Usage Per capita will not increase due to Conservation efforts • Development will add 50 customers annually to District service area • Practice Transparent and Accountable Fiscal Management • Pursue Alternative Funding Sources Construct SNRC for Recycled Water Supply • Digesters at SNRC will provide new revenue streams (energy sales, tipping fees) that will help ensure fiscal sustainability • Identify Opportunities to Optimize Natural Resources • Enhance Planning Efforts that respond to Future Demand • Pursue Alternative Funding Sources FISCAL YEAR BUDGET 2021-2022 | PAGE 90 Goal Assumption Link to District Goals & Objectives Find / Utilize Additional Water Supply • State Project Water will be available to purchase for delivery to District plants and for basin recharge • Enhance Planning Efforts that respond to Future Demand • Strengthen Regional, State and National Partnerships Replace Aging Pipelines • New rate structure will provide revenue stability and adequate funding for pipeline replacement program • Develop Projects and Programs to Ensure Safe and Reliable Services • Dedicate Effort Toward System Maintenance and Modernization Meet Water Quality Standards • SRF Funding Will Be Available to Upgrade Treatment Processes for Imported Water High in Organics • Develop Projects and Programs to Ensure Safe and Reliable Services USER RATES & DEVELOPMENT FEES The District has updated all water and wastewater user rates, development capacity fees, and miscellaneous fees and charges within the last two fiscal years. Capacity Fees were adopted in December 2019 and are based on an independent capacity fee study. The adopted fees include a provision for annual adjustment each July based on the prior calendar year’s Construction Cost Index. Water & wastewater utility rates, and miscellaneous fees and charges, were adopted in May 2021. The utility rates were based on a five year cost of service analysis and financial model, that considered the cost of capital improvement projects including the construction of a new surface water treatment plant at the east end of the district. Rate adjustments will occur in three phases on January 1 of each year 2022, 2023, and 2024 with the exception that Phase 1 of wastewater rates will not be implemented until the SNRC is brought online. Updated miscellaneous fees and charges are primarily fees related to the collection of delinquents accounts and charges for Engineering services. Rates established in May 2021 should support District operations for the next five years. CONSTRUCTION OF THE SNRC Construction on the SNRC will be completed during FY 2021-22, including anaerobic digesters capable of generating three megawatts of electrical power. In order to generate this amount of electricity, sludge resulting from wastewater treatment will be supplemented by high grade food waste accepted from waste haulers, for which the District expects to receive tipping fees. Power cost offsets, tipping fees, and revenue from the sale of recycled water for recharge to the Groundwater Basin Watermaster are projected to total $7.2 million when the SNRC reaches full capacity. When combined with wastewater treatment fees of approximately $9.5 million, total projected ‘revenue’ for the SNRC should be sufficient to cover SNRC operating and debt service costs over the next 10 years. FIND / UTILIZE ADDITIONAL WATER SUPPLY The District built a State Water Project turnout at its Surface Water Treatment Plant in order to utilize as much imported water as feasible. This strategy would preserve water in underground aquafers and allow the District to take delivery of, and treat, water at a high elevation, using gravity to assist with water distribution to customers. The alternative is to incur significant pumping costs by extracting water with wells and then pumping it uphill to customers. California, however, appears to be heading into another serious drought, in which case State Water Project deliveries are unreliable. For FY 2021-22, State Water Project contractor agencies have been told their annual allocation of imported water will be cut to 5%. EVWD will likely incur increasingly higher power costs to pump groundwater over the next five years. PIPELINE REPLACEMENT As mentioned under User Rates, adopted rates included funding for the Capital Improvement Program including water main replacements. Having the funding available to proactively replace pipelines, rather than responding to emergency calls, will save on labor and water losses. FY 2022-26 FORECAST Revenue Forecast As discussed in the previous section, water and wastewater rate adjustments are expected to increase over the next five years due to modest building development and rate adjustments. Rate adjustments were adopted in May 2021 and will become effective in January 2022. Water Revenue projections include proposed rate adjustments as well as a modest growth rate of 1% annually. Small infill development was considered as part of these projections, as were larger developments of 250 and 580 units that are expected to complete construction on initial units in January 2022. Sales per capita is expected to remain flat as water budget based tiered rates implemented by the District incentivize consumers to use water efficiently. When the District completes construction on the SNRC in May 2022, it will mark the beginning of wastewater treatment and water recycling operations for the District, and the collection of the related revenue. Beginning in 2022, the District will adopt and collect its own wastewater treatment rates in support of SNRC operations and debt service. Other revenue sources will also become available with the commencement of operations at the SNRC. Recycled water produced by the SNRC will be sold to Valley District under a Local Resource Investment Program (LRP) established to recharge the Bunker Hill Groundwater Basin. Also, anaerobic digesters at the SNRC will accept food waste from haulers, generating tipping fees, and convert the waste, along with sludge from SNRC treatment processes, into energy. The energy will likely be sufficient to power operations at the SNRC. LRP revenue, tipping fees and power cost offsets are expected to be approximately $7.2 million when the SNRC is operating at capacity. FINANCIAL SUMMARY EAST VALLEY WATER DISTRICT | PAGE 91 Star Food Waste Material Remaining After Wastewater Treatment Co-Digestion of Waste Material Renewable Electricity SNRC How C-Digesti o Work FISCAL YEAR BUDGET 2021-2022 | PAGE 92 Operating Cost forecast Operating costs for the District include salaries and benefits, maintenance and operation of the water distribution and wastewater collection systems, contract services and materials and supplies. Costs also include monthly payments to the SBMWD for wastewater treatment services through June 2022. In May 2022 the SNRC will begin operations and contract payments to SBMWD will be phased out over May and June 2022, as the District gradually diverts wastewater flows to the SNRC, and those payments will be replaced by staff and direct operating costs related to the new water reclamation fund. Employment Expenses Labor & Benefits are the largest costs in the District’s operating budget and are adjusted in accordance with a memorandum of understanding (MOU) with employees – the most recent three-year MOU, which became effective in September 2020. The agreed upon MOU is effective for FY 2021-22, FY 2022-23, and FY 2023-24, and for purposes of forecasting labor expenses for the next four years, a 4% annual increase has been used. Retirement plan contributions make up two-thirds of total benefit costs and are expected to increase 1% per year, and other benefit costs including medical and are projected to increase 5% per year. Staffing levels will increase by 10 full-time positions in FY 2021-22 as the District recruits for operator and maintenance positions at the new SNRC Water Reclamation Plant. Nine full-time employees will be added to operate the facility at an estimated cost of $1.8 million. Hiring will occur in phases leading up to the expected May 2022 commencement of operations at the SNRC, beginning with the Water Reclamation Manager position which will be filled in July 2021. A full- time position will also be added in Customer Service. Contracted Wastewater Treatment FY 2021-22 will be the final year in which the District pays to send all of its wastewater flows to the SBMWD for treatment. In May 2022 the District will begin a three month startup of the new SNRC Water Reclamation Plant, gradually diverting wastewater to the SNRC until it is handling all of the District’s flows in July 2022. Thereafter, monthly contract payments to the City averaging more than $550,000 per month, or $8.6 million annually, will cease and be replaced by operating costs associated with a treatment plant. However, one stipulation of the agreement to terminate contracted treatment services with the SBMWD was that the District will continue to pay the SBMWD $700,000 annually to assuage the effects of the loss of revenue from the District. Termination payments will continue for 10 years. Power Costs The District has tried to insulate ratepayers from significant increases in the cost of electricity by implementing energy conservation measures, installing a hydro-electric generation facility, and constructing digesters at the SNRC to convert gases from treatment processes into energy. With all of these measures in place the District has still experienced increased power costs at plants without alternative energy sources, or generation capabilities, on site, so the District projects that energy costs will increase between 4% and 5% for the next five years. Materials and Supplies Materials and supplies are projected to increase by 5% in FY 2021-22 as the SNRC is brought online and chemicals and other supplies need to be purchased. In the following years cost increases are based on inflation projections of 3% in FY 2022-23, and additional 0.25% increases every year thereafter. These significant inflation percentages are supported by notification from vendors stating that COVID-19 and supply chain interruptions are creating shortages and increasing costs. 4-5%Increase Other Contracted Services Other Contracted Services such as maintenance on existing facilities, consulting, customer bill generation and printing are increasing 22% to $8 million for FY 2021-22, due primarily to commencement of SNRC operations in May 2022. Thereafter an inflation adjustment factor of 3% has been used to project costs for future as vendors are expected to realize, and pass through, the increased cost of materials for the reasons explained above. Debt Service Forecast Debt service costs include principal and interest on Revenue Bonds and Loans issued to finance system improvements. Future debt service cost projections include an additional loan from the State Revolving Fund issued to finance the construction of the SNRC. The final loan amount will not be determined until the project is complete, however, the additional debt related to this project is expected to increase annual debt service from $3.4 million in FY 2022, to $10.2 million in FY 2023-24. A schedule of future debt service, including on the State Revolving Fund loan from the SWRCB, is shown on page 55 of this document. Revenue Funded Capital Expenditures Forecast Revenue funded capital project spending is projected to average $4.2 million over the next five years. Projects included in the forecast are discussed in the five-year Capital Improvement Program section of this budget. FIVE YEAR FORECAST – FY 2021-22 THROUGH FY 2025-26 The following financial forecast is presented to provide a general understanding of how long-term goals will affect operating revenue and expenditures over the next five years. FINANCIAL SUMMARY EAST VALLEY WATER DISTRICT | PAGE 93 FORECAST FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 REVENUE Water Sales / Wastewater Collect $ 22,103,000 $ 23,422,000 $ 24,390,000 $ 24,883,000 $24,895,000 Wastewater Treatment 8,708,000 9,725,000 10,425,000 10,805,000 10,824,000 LRP Revenue 65,000 1,038,000 1,038,000 1,038,000 1,038,000 Meter Fees 9,280,000 9,671,000 9,826,000 9,854,000 9,881,000 Power Offset, Energy Sales, Tipping Fees 567,000 5,526,955 6,150,955 6,151,634 6,152,315 Other Operating Charges 315,000 565,000 566,000 593,000 594,000 Investment Income 207,000 278,000 539,000 581,000 667,000 Capacity Fees - - - - - Other Income 59,000 60,000 60,000 60,000 60,000 TOTAL REVENUE / SOURCES $ 41,304,000 $ 50,285,955 $ 52,994,955 $ 53,965,634 $ 54,111,315 FISCAL YEAR BUDGET 2021-2022 | PAGE 94 FORECAST FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 EXPENDITURES Labor & Benefits $ 12,123,000 $ 13,634,080 $ 14,011,816 $ 14,307,060 $ 14,607,855 Water Costs 768,000 826,000 826,000 826,000 826,000 Contracted Wastewater Treatment 7,844,000 700,000 700,000 700,000 700,000 Power Costs 2,160,000 5,829,950 5,929,950 6,030,704 6,131,461 Contract Services 7,977,000 10,091,000 10,176,000 10,263,000 10,352,000 Materials 1,578,000 2,330,000 2,345,000 2,362,000 2,379,000 Other Operating Expenses 443,000 977,138 994,881 1,013,026 1,031,586 Debt Service 3,352,000 3,353,000 10,169,000 9,697,000 9,297,000 Capital Outlay 1,130,000 1,050,000 1,100,000 1,100,000 1,100,000 Capital Improvement Program 3,929,000 4,135,000 3,925,000 4,345,000 4,625,000 TOTAL EXPENDITURES $ 41,304,000 $ 42,926,168 $ 50,177,647 $ 50,643,790 $ 51,049,902 CHANGE IN EQUITY $ - $ 7,359,787 $ 2,817,308 $ 3,321,844 $ 3,061,413 BEGINNING UNRESTRICTED EQUITY $ 28,896,942 $ 28,896,942 $ 36,256,729 $ 39,074,037 $ 42,395,881 ENDING UNRESTRICTED EQUITY $ 28,896,942 $ 36,256,729 $ 39,074,037 $ 42,395,881 $ 45,457,294 activity, and accomplish multiple long range District goals. The SNRC will create a new enterprise EAST VALLEY WATER DISTRICT | PAGE 95 WATER FUND WA T E R F U N D Budget based rates promote water efficiency and are based on the cost of service while remaining equitable and fair. FISCAL YEAR BUDGET 2021-2022 | PAGE 96 East Valley Water District understands the importance of preserving California’s water supplies. It has taken many steps to encourage water use efficiency. The water budget-based rates promote water efficiency and are based on the cost of service; it is equitable and fair; and supports sustainable behavior change. The SWRCB approves the water budget-based rate structure for its ability to produce superior water savings, and the alternative approach is compliant with the California Drought Conservation Regulations. Additionally, water budget-based rates encourage efficient water use and provide security for the District’s long-term financial position. The District collects a monthly fixed charge based on meter size serving the property. RATES In FY 2020-21, the Board adopted new rates that will increase over a three-year period beginning January 1, 2022. On May 19, 2021 the public hearing was held in accordance with Proposition 218. Water Fund WATER FUND EAST VALLEY WATER DISTRICT | PAGE 97 Commodity Charges Rates FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Tier 1 $ 1.73 $ 1.73 $ 1.83 $ 1.98 Tier 2 2.46 2.46 2.61 2.54 Tier 3 3.44 3.44 3.64 3.93 Monthly Meter Charges Meter Size FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 5/8 in. $ 23.06 $ 23.06 $ 23.06 $ 24.01 3/4 in. 29.27 29.27 29.27 30.85 1 in. 41.71 41.71 41.71 44.52 1 1/2 in. 72.81 72.81 72.81 78.69 2 in. 110.13 110.13 110.13 119.70 3 in. 228.30 228.30 228.30 229.05 4 in. 402.44 402.44 402.44 352.07 6 in. 819.14 819.14 819.14 693.79 8 in. 1,503.25 1,503.25 1,503.25 1,923.98 FISCAL YEAR BUDGET 2021-2022 | PAGE 98 Monthly Fire Line Service Charges Meter Size FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 1 in.$ 8.78 $ 8.78 $ 8.78 $8.78 1.5 in.13.18 13.18 13.18 13.18 2 in.17.57 17.57 17.57 17.57 3 in.26.35 26.35 26.35 26.35 4 in.35.14 35.14 35.14 35.14 6 in.52.7 52.7 52.7 52.7 8 in.70.27 70.27 70.27 70.27 10 in.87.84 87.84 87.84 87.84 Projected Tier Revenue by Customer Class Customer Class Tier 1 Tier 2 Tier 3 Total Residential $ 4,091,000 $ 3,525,000 $ 1,977,000 $ 9,593,000 Multi-Family 1,821,000 1,012,000 882,000 3,715,000 Commercial 987,000 102,000 483,000 1,572,000 Irrigation / Construction - 1,345,000 1,063,000 2,408,000 TOTAL $ 6,899,000 $ 5,984,000 $ 4,405,000 $ 17,288,000 Water Sales (Acre Feet) CLASS NO. OF ACCOUNTS TIER 1 TIER 2 TIER 3 TOTAL TOTAL SALES Residential 19,853 4,959 3,297 1,089 9,345 $ 9,593,000 Multi-Family 463 2,243 908 579 3,730 3,715,000 Commercial 988 1,172 78 250 1,500 1,572,000 Irrigation 275 - 1,036 735 1,771 2,408,000 TOTALS 21,579 8,374 5,319 2,653 16,346 $ 17,288,000 The table below projects the amount of water to be produced for FY 2021-22. The amount of water produced is more than the amount of water sold to account for unanticipated water demand, state-mandated water reserves, and regular system water loss. Water Production (Acre Feet) SOURCE OF SUPPLY FY 2017-18 Actual FY 2018-19 Actual FY 2019-20 Actual FY 2020-21 Projected FY 2021-22 Budgeted Ground Water 12,649 12,649 12,549 12,800 12,826 Surface Water 3,675 3,515 3,647 3,574 3,581 Purchased Water 800 800 800 800 800 TOTAL 17,124 16,964 16,996 17,174 17,207 ASSUMPTIONS AND TRENDS The development of the revenue projections for FY 2021-22 requires management to estimate customer consumption for the next year. The District will provide water services through approximately 21,576 domestic and irrigation connections in FY 2021-22. In addition, 255 commercial fire services and 21 temporary hydrant meters are connected to the District’s system. Water demand is estimated at 7,121,000 hundred cubic feet of water (HCF = 748 gallons). The estimate is based on the rate study’s selection of FY 2018-19 consumption for the projecting revenue requirements. Staff is confident that the above projection will allow significant funding for program goals and objectives without considerable risk of overstatement. EVWD considers multiple factors in calculating each customer’s monthly water budget: Since the adoption of water budget-based rates, the District has experienced success in reducing water consumption and stabilizing revenues to ensure our operating and capital needs of the District are adequately funded. HOW WATER BILLS ARE CALCULATED – RESIDENTIAL Indoor Water Budgets are unique to each customer and is based on the number of occupants residing in the house. Each occupant is budgeted 60 gallons of water per day (gpd) for efficient indoor use, which is then multiplied by the number of days in the billing period. Tier 1 Indoor Budget Example Outdoor Water Budgets are unique to customer property, and it is based on the irrigable landscape. Irrigable landscape represents the square footage of the property’s landscape requiring irrigation (e.g., grass, parkways, trees, bushes, and various plants). Tier 2 Factors In determining the customer’s outdoor budget, the following factors and conversions are made during each billing cycle. • Square Footage of Landscape Area (Irrigable Landscape) – When the District restructured its uniform rates to budget based rates in FY 2014-15, the District hired a consultant that provided property information for each customer’s parcel located within the District’s service area. The consultant used an advanced camera that was attached to an airplane flown over the District boundary capturing each parcel’s unique square footage. EAST VALLEY WATER DISTRICT | PAGE 99 WATER FUND • Number of Occupants • Number of Dwelling Units • Medical Needs • Horses/Livestock • Business Needs • Agricultural Needs • Irrigable Landscape • Weather • Meter Size 60 Gal 748 Persons Per Household Per Person, Per Day Days in Billing Cycle Number of Gallons In One Unit Tier 1 Budget 60 Gal 74835Days 8,400 Gallons or 12 Units of Water for Tier 1 Budget Example:Tier 1 budget calculation for a home with 4 occupants during a 35 day billing cycle. FISCAL YEAR BUDGET 2021-2022 | PAGE 100 • Crop Coefficient (Kc) – Are the properties of plants used in predicting evapotranspiration (ETo). Below is a table listing the values used in each month. The District has elected to use the Cool-Season crop coefficient. • Evapotranspiration (ETo) – the process by which water is transferred from the land to the atmosphere by evaporation from the soil and other surfaces and by transpiration from plants. ETo is measured in inches, which is captured and recorded by a state-certified weather station. The District received ETo data from the California Irrigation Management Information System (CIMIS) Station ID 251, located at Beattie Middle School, 7800 Orange St, Highland, California 92346. The sum of the daily ETo measurement during the billing period is used in the calculation for efficient outdoor water usage. • Square Footage to Gallons Conversion – The District provides water in the measurement of HCF (1 unit = 748 gallons), but the ETo rate is measured in inches. Additionally, the measurement of irrigable landscape is square foot which must be converted to gallons to determine the outdoor budget. One square foot equals 0.62 gallons. The sum of the billing periods ETo is multiplied by 0.62 gallons to develop the efficient outdoor water budget. Tier 2 Outdoor Budget Example Month JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC ANNUAL AVERAGE Cool Season Plant Factor 0.61 0.64 0.75 1.04 0.95 0.88 0.94 0.86 0.74 0.75 0.69 0.60 0.80 Warm Season Plant Factor 0.55 0.54 0.76 0.72 0.79 0.68 0.71 0.71 0.62 0.54 0.58 0.55 0.60 One Foot On e F o o t WATER One Cubic Foot = 7.48 Gallons One F o o t One Foot WATER 1 Inch of Water per Square Foot = 0.62 Gallons 1” 7480.620.95 Irrigated Sq. Ft.Monthly Evapotranspiration Rate Note: This rate varies per day and month Monthly Plant Factor Note: Plant factor changes each month Number of Gallons In One Unit Sq. Ft. to Gallons Conversion Factor for Irrigation 748 15,884 Gallons or 22 Units of Water for Tier 2 Usage Tier 2 Usage 0.620.953,000 8.99 Irrigated Sq. Ft.Evapotranspiration Rate Plant Factor Sq. Ft. to Gallons Conversion Factor for Irrigation Number of Gallons In One Unit Example: Tier 2 budget calculation for a home with 3,000 sq. ft. of irrigable area. 1,500 Sq. Ft. 1,500 Sq. Ft. 0.95 8.99 May Plant Factor Evapotranspiration Rate Sq. Ft. = Square Feet HCF = Hundred Cubic Feet or 1 Billing Unit Tier 3 Inefficient Use When a customer exceeds their Tier 1 and Tier 2 budgets, the excess units of water used are billed at the Tier 3 rate. The District has developed its rates in accordance with Proposition 218, allowing the District and agencies alike, to charge customers additional charges for the additional cost incurred by the District, including but not limited to, imported water cost, electricity expenses for pumping and boosting water throughout the distribution system, and chemicals need the treatment process. HOW WATER BILLS ARE CALCULATED – NON RESIDENTIAL Non-Residential water budget is calculated differently from residential to ensure water budgets for this customer class are equitable and cover the cost of supplying water to these establishments. The water budgets for this customer class are determined below: Tier 1 and Tier 2 Water Budgets The indoor (Tier 1) and outdoor water (Tier 2) budget are calculated by taking the average of the last two years actual HCF consumption for each Tier, then it’s multiplied by 90%. Calculating non-residential customers in this manner encourages conservation and shares the cost of operating the District. Tier 3 Inefficient Use When a customer exceeds their Tier 1 and Tier 2 budgets, the excess units of water are billed at the Tier 3 rate. WATER SALES - MONTHLY METER CHARGE The District’s Operating Revenue includes fixed charges, which are based on the size of the meter serving the customer’s property. The rates meet the compliance requirements of Proposition 218. Meter Charges have been established based on a comprehensive third-party cost of services analysis, and the rates provide funding for operating and capital needs. EAST VALLEY WATER DISTRICT | PAGE 101 WATER FUND Monthly Meter Charge Revenue by Meter Size Meter Size No. of Services Rate July–Dec Rate Jan–June Total 5/8 in. 3,661 $ 23.06 $ 24.01 $ 1,034,000 3/4 in. 12,903 29.27 30.85 4,654,000 1 in. 4,215 41.71 44.52 2,180,000 1 1/2 in. 267 72.81 78.69 243,000 2 in. 299 110.13 119.70 412,000 3 in. 78 228.30 229.05 214,000 4 in. 22 402.44 352.07 99,000 6 in. 17 819.44 693.79 155,000 8 in. 6 1,503.28 1,923.98 123,000 Fire Service 1 1/2 in. 10 13.18 13.18 2,000 Fire Service 4 in. 50 35.14 35.14 22,000 Fire Service 6 in. 125 52.70 52.70 80,000 Fire Service 8 in. 55 70.27 70.27 46,000 Fire Service 10 in. 15 87.84 87.84 16,000 TOTALS 21,576 $ 9,280,000 FISCAL YEAR BUDGET 2021-2022 | PAGE 102 OTHER CHARGES & OTHER REVENUE SOURCES Other charges and other revenue include fees related to the collection of delinquent accounts, investment revenue, reimbursements from other agencies, facility rentals, and other miscellaneous revenue. Assumptions and Considerations This income source is made up of the following: • Initiation of Service, Delinquent, and Non-Sufficient Funds fees have decreased. The decision to decrease this source is due to the following contributing factors: −The process for Discontinuation of Residential Water Service Policy required by SB 998. −The impact the pandemic has on Disconnection/Reconnection charges which are normally collected during the delinquency process. The two factors above are revenue-neutral because these are fees, are related to and charged to delinquent customers, the charge is collected for sending the notice and field service worker to turn on/off water services. −The LAIF interest rate has trended downwards for the last 12 months, and the lag between SNRC construction payments and depositing SRRF loan proceeds and other funding sources. EXPENSES The Water fund is one of two enterprise funds the District operates. All expenses incurred are for operating and maintaining the distribution system, infrastructure repairs, and replacements. The District has debt service payments due semi-annually. Theses debts the District has incurred provided full or partial funding for multiple capital improvement projects. Assumptions and Considerations for Operating Expenses Expenses are based on the cost of providing water to meet customer demands. • Electricity Expense for operating wells, pumps and boosters, treatment plants and other facilities. • Chemical Expense purchased for the treatment of source water before it enters the distribution system for consumption. The cost trends for chemicals are stable, with no foreseeable significant increases. • Contract Services are expenses incurred for services provided by third parties. Many District programs utilize consultants or vendors who offer quality and economical services. Since these services are unique to the program, it is difficult to list them all. Program Managers are responsible for researching or pre-bidding services in developing their program’s budget. • Materials and Supplies are needed to support field operations and general administration related to operating the District. • The District is continuing to focus effort towards the Conservation Program, which is committed to assisting customers with conservation efforts through the continuance of the rebate programs and instructor-led seminars and demonstrations. Water Fund Expenses by Cost Center 5%Customer Service 35% Administration 12%Transmission& Distribution 12%Source ofSupply 11% Debt Service 18% Capital Expenditures 4% Treatment 3% Pumps & Boosters Debt Service & Capital Expenses The District has issued debt to pay for capital expenditures for replacing, improving, or adding infrastructure. In addition to debt financing, the District also budgets a portion of operating revenue each year to cash finance certain capital projects. CONCLUSION The Water Fund is balanced, however, in the future a rate study must be conducted to ensure proper rates are charged when considering the issuance of new debt to fund capital improvement projects and the District continues to meet debt service obligations as set forth in debt covenants. District staff will continue to monitor the revenues and expenses and present the progress to the Governing Board on a periodic basis. EAST VALLEY WATER DISTRICT | PAGE 103 WATER FUND FY 2020-21 PROPOSED WATER FUND BUDGET FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed REVENUES 4100 Water Sales $ 16,899,286 $ 16,868,000 $ 18,210,000 $ 17,288,000 $ 420,000 2% 4200 Meter Charges 9,025,766 9,020,000 9,071,000 9,280,000 260,000 3% 4301 Late Fee Payment 233,266 40,000 164,064 40,000 - 0% 4303 Disconnect Notice Charge 287,997 155,000 2,898 95,000 (60,000)-39% 4605 Other Operating Charges 106,964 56,000 255,470 40,000 (16,000)-29% 4701 Interest Income 476,500 225,000 33,618 179,000 (46,000)-20% 4704 Miscellaneous Revenue 34,394 34,000 67,741 50,01100 16,000 47% TOTAL REVENUES $ 27,064,174 $26,398,000 $ 27,804,791 $26,972,000 $ 574,000 2% OPERATING EXPENSES SOURCE OF SUPPLY/WELLS 5101 Regular Labor $ 411,385 $ 295,000 $ 392,214 $ 303,000 $ 8,000 3% 5103 Overtime 20,288 13,000 30,956 13,000 - 0% 5200 Benefits 161,536 148,000 183,834 146,000 (2,000)-1% 6101 Purchased Water 704,460 400,000 31,295 400,000 - 0% 6102 Groundwater Replenishment 111,625 304,000 138,757 304,000 - 0% 6103 Water Assessment 16,811 122,000 92,598 64,000 (58,000)-48% 6201 Materials & Supplies 51,644 61,000 56,656 61,000 - 0% 6204 Chemicals 94,902 150,000 85,054 150,000 - 0% 6301 Contract Services 237,396 276,000 287,373 263,000 (13,000)-5% 6311 Landscape Services 70,974 40,000 77,064 40,000 - 0% 6402 Telephone - - 591 - - 0% FISCAL YEAR BUDGET 2021-2022 | PAGE 104 FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed 6403 Electricity $ 1,125,816 $ 1,250,000 $ 1,778,757 $ 1,350,000 $ 100,000 8% 6405 Permits 70,405 100,000 74,845 100,000 - 0% 6504 Meetings 443 1,000 - 1,000 - 0% SOURCE OF SUPPLY TOTAL $ 3,077,685 $ 3,160,000 $ 3,229,994 $ 3,195,000 $ 35,000 1% PUMPS & BOOSTERS 5101 Regular Labor $ 14,842 $ 74,000 $ - $ 103,000 $ 29,000 39% 5103 Overtime 6,568 4,000 12,651 4,000 - 0% 5200 Benefits 31,258 38,000 29,131 57,000 19,000 50% 6201 Materials & Supplies 10,360 23,000 4,877 23,000 - 0% 6301 Contract Services 12,142 81,000 176,978 81,000 - 0% 6311 Landscape Services - 35,000 31,375 35,000 - 0% 6403 Electricity 349,651 400,000 521,565 400,000 - 0% PUMPS & BOOSTERS TOTAL $ 424,821 $ 655,000 $ 776,577 $ 703,000 $ 48,000 7% TREATMENT 5101 Regular Labor $ 251,332 $ 252,000 $ 252,054 $ 243,000 $ (9,000)-4% 5103 Overtime 48,655 39,000 47,555 39,000 - 0% 5200 Benefits 147,321 150,000 146,222 147,000 (3,000)-2% 6201 Materials & Supplies 27,710 23,000 87,051 30,000 7,000 30% 6204 Chemicals 138,693 150,000 125,206 150,000 - 0% 6301 Contract Services 96,550 249,000 161,332 254,000 5,000 2% 6301 Uniforms - 2,000 1,235 2,000 - 0% 6311 Landscape Services 30,257 14,000 30,002 14,000 - 0% 6401 Utilities 3,640 10,000 2,247 10,000 - 0% 6402 Telephone 1,830 - 26,740 2,000 2,000 0% 6403 Electricity 112,710 150,000 140,588 150,000 - 0% 6405 Permits - - - - - 0% TREATMENT TOTAL $ 858,698 $ 1,039,000 $ 1,020,232 $ 1,041,000 $ 2,000 0% TRANSMISSION & DISTRIBUTION 5101 Regular Labor $ 1,355,576 $ 1,302,000 $ 1,308,680 $ 1,248,000 $ (54,000)-4% 5103 Overtime 267,813 236,000 319,160 235,000 (1,000)0% 5200 Benefits 665,934 681,000 601,021 697,000 16,000 2% 6201 Materials & Supplies 290,847 305,000 569,582 340,000 35,000 11% 6202 Tools 35,571 26,000 30,876 26,000 - 0% 6204 Chemicals 23,300 50,000 30,081 50,000 - 0% 6301 Contract Services 248,430 165,000 213,667 178,000 13,000 8% EAST VALLEY WATER DISTRICT | PAGE 105 WATER FUND FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed 6307 Uniforms $ 32,292 $ 40,000 $ 25,442 $ 40,000 $ - 0% 6310 Street Services 522,959 325,000 403,776 525,000 200,000 62% 6405 Permits 18,132 - 23,040 - - 0% 6406 Postage - 2,000 - 2,000 - 0% 6502 Professional Development 175 2,000 587 2,000 - 0% 6503 Education Assistance - 3,000 - 3,000 - 0% 6504 Meetings - - - - - 0% TRANSMISSION & DIST. TOTAL $ 3,461,029 $ 3,137,000 $ 3,525,912 $ 3,346,000 $ 209,000 7% CUSTOMER SERVICE 5101 Regular Labor $ 431,153 $ 433,500 $ 446,656 $ 481,100 $ 47,600 11% 5102 Temporary Labor 14,194 - - - - 0% 5103 Overtime 5,327 10,900 2,100 10,900 - 0% 5200 Benefits 220,852 266,300 257,747 317,600 51,300 19% 6201 Materials & Supplies 2,276 5,500 5,540 5,500 - 0% 6202 Tools 1,752 3,000 950 3,000 - 0% 6203 Office Supplies 1,930 2,800 1,865 2,800 - 0% 6301 Contract Services 148,457 98,800 132,060 98,800 - 0% 6302 Banking Services 179,769 187,300 169,017 180,300 (7,000)-4% 6303 Printing & Publishing 4,175 7,000 3,718 7,000 - 0% 6304 Legal Services - 3,500 - 3,500 - 0% 6306 Rents & Leases 7,873 - - - - 0% 6307 Uniforms 3,364 5,800 5,800 5,800 - 0% 6308 Billing Services 40,158 36,400 38,874 42,000 5,600 15% 6309 Shut Off Notice Services 201,217 195,000 110 50,000 (145,000)-74% 6402 Telephone 5,935 10,000 12,584 10,000 - 0% 6406 Postage 82,782 107,100 95,732 107,100 - 0% 6502 Membership & Dues - 700 - 700 - 0% 6502 Professional Development 444 10,500 - 10,500 - 0% 6503 Education Assistance - - - - - 0% 6504 Meetings 757 2,000 - 2,000 - 0% 6703 Cash Over/Short 5,076 700 - 700 - 0% 6704 Bad Debt Expense 3,649 11,100 21,594 4,100 (7,000)-63% CUSTOMER SERVICE TOTAL $ 1,361,140 $ 1,397,900 $ 1,194,347 $ 1,343,400 $ (54,500)-4% FISCAL YEAR BUDGET 2021-2022 | PAGE 106 FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed ADMINISTRATION 5101 Regular Labor $ 2,876,543 $ 2,977,900 $ 2,969,198 $ 3,062,400 $ 84,500 3% 5102 Temporary Labor 472 - - - - 0% 5103 Overtime 25,767 56,300 23,309 56,300 - 0% 5104 Standby 32,364 33,000 37,434 33,000 - 0% 5200 Benefits 1,401,583 1,608,000 1,614,469 1,567,650 (40,350)-3% 6201 Materials & Supplies 183,875 199,500 207,099 229,850 30,350 15% 6202 Tools 19,203 16,900 12,765 16,900 - 0% 6203 Office Supplies 19,471 28,500 15,337 26,400 (2,100)-7% 6205 Conservation Rebates 144,259 145,000 62,623 154,000 9,000 6% 6301 Contract Services 1,135,126 1,475,950 1,273,987 1,935,000 459,050 31% 6302 Banking Services 6,291 14,000 8,410 12,600 (1,400)-10% 6303 Printing & Publishing 100,426 303,400 78,225 323,800 20,400 7% 6304 Legal Services 104,658 127,000 73,500 113,000 (14,000)-11% 6306 Rents & Leases 12,490 11,250 15,348 15,000 3,750 33% 6307 Uniforms 24,363 31,150 20,114 36,150 5,000 16% 6311 Landscape Services 50,768 42,000 35,842 98,250 56,250 134% 6312 Janitorial Services 97,712 100,400 111,790 107,900 7,500 7% 6314 Litigation Services - 28,000 15,270 28,000 - 0% 6401 Utilities 24,202 10,500 40,456 10,500 - 0% 6402 Telephone 51,753 119,600 81,196 86,550 (33,050)-28% 6403 Electricity 56,584 90,000 95,249 82,500 (7,500)-8% 6404 Fuel 92,397 112,500 124,887 121,500 9,000 8% 6405 Permits 46,316 135,100 61,329 135,800 700 1% 6406 Postage 17,316 74,100 7,653 52,700 (21,400)-29% 6501 Memberships & Dues 70,119 92,400 109,380 128,700 36,300 39% 6502 Professional Development 56,076 130,650 32,563 112,350 (18,300)-14% 6503 Education Assistance 1,989 9,100 - 16,100 7,000 77% 6504 Meetings 12,211 30,400 4,968 19,400 (11,000)-36% 6505 Employee Recognition 18,001 18,900 6,765 25,900 7,000 37% 6701 General Insurance 205,691 379,300 286,721 562,000 182,700 48% 6702 Insurance Claims 7,445 7,000 50 7,000 - 0% 6704 Bad Debt Expense - 1,000 - 700 (300)-30% 6705 OPEB Retirees 216,337 269,300 119,628 291,700 22,400 8% ADMINISTRATION TOTAL $ 7,111,808 $ 8,678,100 $ 7,545,565 $ 9,469,600 $ 791,500 9% TOTAL OPERATING EXPENSES $ 16,295,181 $ 18,067,000 $ 17,292,627 $19,098,000 $ 1,031,000 6% EAST VALLEY WATER DISTRICT | PAGE 107 WATER FUND FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed OTHER USES 7101 Debt Principal $ 2,565,000 $ 2,639,000 $ 2,638,556 $ 2,108,000 $ (531,000)-20% 7102 Debt Interest 1,393,639 1,427,000 1,275,152 974,000 (453,000)-32% 7500 Reserve Contribution 1,946,624 - 1,679,456 - - 0% 8101 Capital Outlay 930,967 1,195,000 1,321,000 1,080,000 (115,000)-10% 8999 Capital Improvement Program 3,932,763 3,070,000 3,598,000 3,712,000 642,000 21% OTHER USES TOTAL $ 10,768,993 $ 8,331,000 $ 10,512,164 $ 7,874,000 $ (457,000)-5% SUMMARY Total Revenue $ 27,064,174 $ 26,398,000 $ 27,804,791 $ 26,972,000 $ 574,000 2% Total Operating Expenses 16,295,181 18,067,000 17,292,627 19,098,000 1,031,000 6% Total Other Expenses 10,768,993 8,331,000 10,512,164 7,874,000 (457,000)-5% TOTAL $ 27,064,174 $26,398,000 $ 26,125,335 $26,972,000 $ 574,000 2% NET $ - $ - $ - $ - $ - - $24,588,000 $27,105,000 $26,504,000 $25,832,000 $26,398,000 $26,972,000 $5M $10M $15M $20M $25M $14,533,000 $16,368,000 $16,062,000 $17,549,000 $18,067,000 $19,098,000 Water Fund Revenues vs. Expenses FY 2016-17Actual FY 2017-18Actual FY 2018-19Actual FY 2019-20Projected FY 2020-21Projected FY 2021-22Proposed Operating Expenses Revenues FISCAL YEAR BUDGET 2021-2022 | PAGE 108 IntentionallyTHIS PAGE LEFT BLANK EAST VALLEY WATER DISTRICT | PAGE 109 WASTEWATER FUND WA S T E W A T E R F U N D The activities of enterprise funds closely resemble those of ongoing businesses in which the purpose is to conserve and add to resources while funding operating expenses from current revenues. FISCAL YEAR BUDGET 2021-2022 | PAGE 110 Wastewater Fund The Wastewater Fund pays for all activities related to the operations and maintenance of the wastewater collection infrastructure as well as the treatment of wastewater. All treatment charges collected from customers are remitted to the SBMWD until the SNRC becomes operational. On May 19, 2021 the Governing Board adopted new rates effective after January 1, 2022. Due to the effective date of new rates and rate structure, changes require rate and revenue to be calculated for two scenerios. RATES There are two sets of rates that make up the Wastewater Charge: 1. East Valley Water District Collection System Charge that includes conveyance and maintenance of the wastewater mains and; 2. SBMWD Wastewater Treatment Charge that includes the treatment and disposal of waste. Each set of rates has two components: 1. System Charge based on customer type, Residential or Commercial. 2. Service Charge based on the amount and concentration of the wastewater discharged into the wastewater system. Amount and concentration have a direct impact to the entire wastewater system and treatment facility. The adopted rates by customer class are listed in the rate tables below. Wastewater Collection System Charges EAST VALLEY WATER DISTRICT | PAGE 111 Customer Type Units Monthly Fixed Charge Usage (HCF)Charge per HCF Total JULY 2021 THROUGH APRIL 2022 Single-Family Residential 19,229 $ 15.36 $ 2,954,000 Multi-Family 458 3.90 1,100,000 $ 0.55 623,000 Non-Residential 612 3.90 578,000 0.55 342,000 TOTAL 20,299 $ 3,919,000 WASTEWATER FUND FISCAL YEAR BUDGET 2021-2022 | PAGE 112 The newly adopted rates effective January 1, 2022 have been restructured to charge customers in a manner consistent with the nature of the customer class. The rate restructure adds another layer of equitability because it considers the number of units associated with an account by merging Single-Family and Multi-Family Residential as one customer class since they have a similar impact to the collection system. WASTEWATER TREATMENT CHARGES May 1, 2022 thru June 30, 2022 The rate study identified and required changes to the calculation of treatment charges. The first is changing the volumetric rates from customer type to strength and concentration of organic materials and suspended solids by customer profile. The second change was reclassifying Multi-Family from commercial to residential. EVWD Volumetric Reclassification Reclassification Rate Table Customer Type Units Monthly Fixed Charge Usage (HCF)Charge per HCF Total MAY 1, 2022 THRU JUNE 30, 2022 Single-Family Residential 19,229 $ 14.25 -$ - $ 548,000 Multi-Family Residential 10,654 13.46 --287,000 Non-Residential, Low Strength 471 10.33 65,700 0.35 33,000 Non-Residential, Med Strength 70 10.33 10,300 0.46 6,000 Non-Residential, High Strength 70 10.33 22,400 0.46 10,000 Patton 1 10.33 16,700 0.57 12,000 TOTAL $ 896,000 TOTAL WASTEWATER COLLECTION REVENUE $ 4,815,000 Customer Type Classification Multi-Family Residential Reclassification Commercial/Retail/Dry Non Res - Low Strength Restaurants/Hotels Non Res - High Strength Laundromats/Government/ Office Non Res - Medium Strength Building/Motels Non Res - Low Strength Schools/Churches Non Res - Low Strength Convalescent Homes Non Res - Medium Strength Office Buildings/Motels Non Res - Low Strength Auto Repair/Service/Carwash Non Res - Low Strength Patton Patton Customer Type Collection Variable Treatment Variable Patton $ 0.57 $ 1.79 Non-Res - Low Strength 0.35 0.96 Non-Res - Med Strength 0.46 1.54 Non-Res - High Strength 0.46 3.42 RESIDENTIAL East Valley Water District bills residential customers a monthly wastewater charge based on the number of dwelling units, up to four units, per single-family property. Properties with four or more units are classified as multi-family. The table below identifies the number of services and the wastewater charges per month. COMMERCIAL The District currently bills commercial customers on a monthly basis for wastewater. The charge consists of four components—two flat rates and two consumption based rates. The two flat rates are EVWD’s system charge and the SBMWD’s treatment charge. The two consumption based rates are for EVWD’s Collection Charge per hundred cubic feet (HCF) and the SBMWD’s Treatment Charge per HCF. Additionally, the consumption based rates are calculated using the following formula [($.55/HCF EVWD Collection Charge + SBMWD Treatment Charge) x HCF used]. Shown below is a schedule of commercial wastewater rates for FY 2021-22. Wastewater Treatment Revenue EAST VALLEY WATER DISTRICT | PAGE 113 WASTEWATER FUND MAY 1, 2022 THRU JUNE 30, 2022 Single-Family Residential 19,229 $ 23.37 -$ - $ 899,000 Multi-Family Residential 10,654 20.86 -- 444,000 Non-Residential, Low Strength 471 10.83 65,700 0.96 74,000 Non-Residential, Med Strength 70 10.83 10,300 1.53 17,000 Non-Residential, High Strength 70 10.83 22,400 3.42 78,000 Patton 1 10.83 16,700 1.79 30,000 TOTAL $ 1,542,000 TOTAL WASTEWATER TREATMENT REVENUE $ 8,708,000 Customer Type Units Monthly Fixed Charge Usage (HCF)Charge per HCF Total JULY 2021 THROUGH APRIL 2022 Single-Family Residential 19,229 $ 21.55 -$ - $ 4,144,000 Multi-Family 458 1.97 1,100,000 1.53 1,692,000 Non-Residential 612 3.52 578,000 Various 1,330,000 TOTAL 20,299 $ 7,166,000 FISCAL YEAR BUDGET 2021-2022 | PAGE 114 Wastewater Treatment Revenue - Non Rate SNRC Wastewater Treatment Revenue - Other Income Wastewater Treatment Revenue - Summary Revenue Type Unit of Measure Volume FY 2021-22 Fee Per Unit Amount Tipping Fees Gallon 7.084 MG $ 0.08 $ 567,000 LRIP Acre Foot 375 AF 173.00 65,000 Power Generation kWh 0.13 - TOTAL $ 632,000 Revenue Type Amount Miscellaneous Revenue $ 6,000 Facility Rental Fee 3,000 Returned Payment Fee 2,500 Disconnect/Reconnect Fee 40,000 Disconnection Notice Charge - Delinquent Fee 57,500 Service Initiation Charge 40,000 Interest Revenue 28,000 TOTAL $ 177,000 Revenue Type Wastewater System Charges $ 4,815,000 Wastewater Treatment (SBMWD) 7,166,000 Wastewater Treatment (SNRC) 1,542,000 Non Rate Revenue - SNRC 632,000 Other Income 177,000 TOTAL $ 14,332,000 accountability and responsibility in our fiscal management practices. The budget document demonstrates REVENUES Wastewater revenues consist of collection charges, treatment charges, and miscellaneous revenues such as interest income and capacity charges for new services. The District anticipates a small increase in revenue related to the assessment of wastewater collection charges to vacant homes. Those revenues will be remitted to the SBMWD, therefore having no impact on District Operations. EXPENSES Operating expenses have remained the same overall in the Wastewater Fund. The District continues to conduct preventative maintenance programs on the wastewater mains such as videoing the lines and cleaning the lines on a regular schedule. Additionally, staff has invested more time and efforts into the spot repairs of the mains when sags and cracks are found in the lines when reviewing video tapes of the wastewater system. With the implementation of Water Budget Based Rates, costs associated with Customer Service and Information Technology were shifted to the Water Fund because of increased efforts to administer the new tiered rates. The District plans to begin wastewater treatment at the SNRC in May 2022. Completion of the SNRC will mitigate the impacts of future droughts by providing a long-term reliable water supply. CONCLUSION The Wastewater Fund is balanced, however, a rate study will need to be conducted prior to new debt issuance to ensure proper rates are charged to fund future capital improvement projects and that the District continues to meet debt service obligations as set forth in the bond covenants. District staff will continue to monitor the revenues and expenses and present the progress to the Governing Board on a quarterly basis. EAST VALLEY WATER DISTRICT | PAGE 115 WASTEWATER FUND Wastewater Fund Revenue by Source Wastewater Fund Expenses by Cost Center 50%Wastewater Treatment (SBMWD) 4% Non Rate Revenue 34%System Charges11% 1% Other Income 67% Treatment Customer Service 19%Administration 7% 2% Debt Service 2% Capital Expenditures 3% Transmission & Distribution WastewaterTreatment(SNRC) FY 2021-22 PROPOSED WASTEWATER FUND BUDGET FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed REVENUES 4301 Late Payment Fee $ 44,837 $ 193,000 $ 72,636 $ 100,000 $ (93,000)-48% 4400 Wastewater Collection Charges 4,647,347 4,656,000 4,641,835 4,815,000 159,000 3% 4500 Wastewater Treatment Charges 8,496,012 8,586,000 8,524,162 8,708,000 122,000 1% 4605 Other Operating Charge 44,149 2,000 23,460 681,000 679,000 33950% 4701 Interest Income 48,161 30,000 16,135 28,000 (2,000)-7% TOTAL REVENUES $13,280,506 $ 13,467,000 $ 13,278,228 $14,332,000 $ 865,000 6% OPERATING EXPENSES TREATMENT 5101 Regular Labor $ - $ - $ - $ 563,000 $ 563,000 0% 5103 Overtime - - - 3,000 3,000 0% 5200 Benefits - - - 287,000 287,000 0% 6201 Materials & Supplies - - - 35,000 35,000 0% 6202 Tools - - - 12,000 12,000 0% 6203 Office Supplies - - - 10,000 10,000 0% 6204 Chemicals - - - 131,000 131,000 0% 6301 Contract Services - - - 367,000 367,000 0% 6303 Printing & Publishing - - - 1,000 1,000 0% 6304 Legal Services - - - 5,000 5,000 0% 6305 Treatment Services 8,496,012 8,586,000 8,524,162 7,844,000 (742,000)-9% 6307 Uniforms - - - 8,000 8,000 0% 6401 Utilities - - - 1,000 1,000 0% 6402 Telephone - - - 3,000 3,000 0% 6403 Electricity - - - 260,000 260,000 0% 6404 Fuel - - - 12,000 12,000 0% 6406 Postage - - - 1,000 1,000 0% 6501 Membership & Dues - - - 4,000 4,000 0% 6502 Professional Development - - - 5,000 5,000 0% 6504 Meetings - - - 2,000 2,000 0% 6505 Employee Recognition - - - 1,000 1,000 0% TREATMENT TOTAL $ 8,496,012 $ 8,586,000 $ 8,524,162 $ 9,555,000 $ 969,000 11% FISCAL YEAR BUDGET 2021-2022 | PAGE 116 FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed TRANSMISSION & DISTRIBUTION 5101 Regular Labor $ 303,374 $ 335,000 $ 339,688 $ 419,000 $ 84,000 25% 5103 Overtime 4,674 9,000 9,805 9,000 - 0% 5200 Benefits 154,259 176,000 166,304 209,000 33,000 19% 6201 Materials & Supplies 21,009 31,000 14,036 31,000 - 0% 6202 Tools 695 5,000 12,111 5,000 - 0% 6301 Contract Services 281,281 243,000 140,356 273,000 30,000 12% 6307 Uniforms 2,155 4,000 2,234 4,000 - 0% 6310 Street Services - - - - - 0% TRANSMISSION & DIST. TOTAL $ 767,447 $ 803,000 $ 684,534 $ 950,000 $ 147,000 18% CUSTOMER SERVICE 5101 Regular Labor $ 103,555 $ 178,500 $ 137,892 $ 195,900 $ 17,400 10% 5102 Temporary Labor 6,083 - - - - 0% 5103 Overtime 1,622 2,100 - 2,100 - 0% 5200 Benefits 64,095 47,700 89,108 59,400 11,700 25% 6201 Materials & Supplies 745 1,500 2,374 1,500 - 0% 6202 Tools - - - - - 0% 6203 Office Supplies 827 1,200 799 1,200 - 0% 6301 Contract Services 62,335 40,200 53,383 40,200 - 0% 6302 Banking Services 77,044 51,700 72,436 48,700 (3,000)-6% 6303 Printing & Publishing 1,789 3,000 1,593 3,000 - 0% 6304 Legal Services - 1,500 - 1,500 - 0% 6306 Rents & Leases 3,374 - - - - 0% 6307 Uniforms 561 1,200 1,431 1,200 - 0% 6308 Billing Services 17,211 15,600 16,660 18,000 2,400 15% 6309 Shut Off Notice Services - - - - - 0% 6402 Telephone 2,009 - 4,586 - - 0% 6406 Postage 35,478 45,900 41,000 45,900 - 0% 6501 Membership & Dues - 300 - 300 - 0% 6502 Professional Development 190 4,500 - 4,500 - 0% 6503 Education Assistance - - - - - 0% 6703 Cash Over/Short 2,175 300 - 300 - 0% 6704 Bad Debt Expense 1,564 3,900 - 900 (3,000)-77% CUSTOMER SERVICE TOTAL $ 380,657 $ 399,100 $ 421,262 $ 424,600 $ 25,500 6% EAST VALLEY WATER DISTRICT | PAGE 117 WASTEWATER FUND FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed ADMINISTRATION 5101 Regular Labor $ 1,072,024 $ 1,029,100 $ 1,051,563 $ 1,061,600 $ 32,500 3% 5102 Temporary Labor 202 - - - - 0% 5103 Overtime 10,520 17,700 8,454 17,700 - 0% 5104 Standby 7,206 2,000 6,701 2,000 - 0% 5200 Benefits 515,793 526,000 523,157 530,350 4,350 1% 6201 Materials & Supplies 75,883 65,500 61,637 78,150 12,650 19% 6202 Tools 5,068 3,100 1,757 3,100 - 0% 6203 Office Supplies 5,941 8,500 3,714 7,600 (900)-11% 6301 Contract Services 443,792 388,050 502,146 579,000 190,950 49% 6302 Banking Services 2,696 6,000 3,653 5,400 (600)-10% 6303 Printing & Publishing 31,668 44,600 56,618 51,200 6,600 15% 6304 Legal Services 43,555 54,000 32,298 48,000 (6,000)-11% 6306 Rents & Leases 5,353 3,750 5,116 5,000 1,250 33% 6307 Uniforms 4,343 5,850 3,370 5,850 - 0% 6311 Landscape Services 21,758 14,000 11,680 32,750 18,750 134% 6312 Janitorial Services 41,877 33,600 37,263 36,100 2,500 7% 6314 Litigation Services - 12,000 6,544 12,000 - 0% 6401 Utilities 10,372 3,500 8,653 3,500 - 0% 6402 Telephone 18,372 27,400 18,059 16,450 (10,950)-40% 6403 Electricity 24,250 30,000 27,961 27,500 (2,500)-8% 6404 Fuel 39,599 12,500 13,876 13,500 1,000 8% 6405 Permits 19,850 57,900 18,815 58,200 300 1% 6406 Postage 5,010 15,900 5,868 12,300 (3,600)-23% 6501 Memberships & Dues 28,778 32,600 42,308 35,300 2,700 8% 6502 Professional Development 20,502 46,350 6,349 37,650 (8,700)-19% 6503 Education Assistance 853 3,900 - 6,900 3,000 77% 6504 Meetings 4,953 11,600 1,837 6,600 (5,000)-43% 6505 Employee Recognition 7,715 8,100 2,899 11,100 3,000 37% 6701 General Insurance 88,153 19,700 122,880 98,000 78,300 397% 6702 Insurance Claims 3,191 3,000 22 3,000 - 0% 6702 Bad Debt Expense - - - 300 300 0% 6705 OPEB Retirees 92,716 49,700 45,924 59,300 9,600 19% ADMINISTRATION TOTAL $ 2,651,993 $ 2,535,900 $ 2,631,122 $ 2,865,400 $ 329,500 13% TOTAL OPERATING EXPENSES $ 12,296,109 $ 12,324,000 $ 12,261,080 $ 13,795,000 $ 1,471,000 12% FISCAL YEAR BUDGET 2021-2022 | PAGE 118 FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed OTHER USES 7101 Debt Principal $ 105,000 $ 110,000 $ 110,000 $ 170,000 $ 60,000 55% 7102 Debt Interest 185,465 203,000 158,476 100,000 (103,000)-51% 7500 Reserve Contribution 443,338 - (196,328) - - 0% 8101 Capital Outlay 64,667 435,000 550,000 50,000 (385,000)-89% 8999 Capital Improvement Program 185,927 395,000 395,000 217,000 (178,000)-45% OTHER USES TOTAL $ 984,397 $ 1,143,000 $ 1,017,148 $ 537,000 $ (606,000)-53% SUMMARY Total Revenue $ 13,280,506 $ 13,467,000 $ 13,278,228 $ 14,332,000 $ 865,000 6% Total Operating Expenses 12,296,109 12,324,000 12,261,080 13,795,000 1,471,000 12% Total Other Expenses 984,397 1,143,000 1,017,148 537,000 (606,000)-53% Transfer from Reserves - - - - - 0% TOTAL $13,280,506 $ 13,467,000 $ 13,278,228 $14,332,000 $ 865,000 6% NET $ - $ - $ - $ - $ - 0% EAST VALLEY WATER DISTRICT | PAGE 119 WASTEWATER FUND $2M $4M $6M $8M $10M $12M $14M $14,332,000 $13,795,000 $12,324,000$11,569,000$12,395,000$11,699,000 $10,164,000 $11,687,000 $11,944,000 $13,884,000 $13,467,000 $13,319,000 Wastewater Fund Revenues vs. Expenses FY 2016-17 Actual FY 2017-18 Actual FY 2018-19 Actual FY 2019-20 Projected FY 2020-21 Projected FY 2021-22 Proposed Operating Expenses Revenues FISCAL YEAR BUDGET 2021-2022 | PAGE 120 IntentionallyTHIS PAGE LEFT BLANK EAST VALLEY WATER DISTRICT | PAGE 121 CONSOLIDATED FINANCIAL SCHEDULES CO N S O L I D A T E D FI N A N C I A L S C H E D U L E S The District conducts an extensive process gathering input from internal staff and the community throughout the budget development and review process. FISCAL YEAR BUDGET 2021-2022 | PAGE 122 Consolidated Financial Summary Overview of revenues and other financing sources and expenditures. DISTRICT-WIDE SUMMARY EAST VALLEY WATER DISTRICT | PAGE 123 FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed REVENUES 4100 Water Sales $ 16,899,286 $ 16,868,000 $ 18,210,000 $ 17,288,000 $ 420,000 2% 4200 Meter Charges 9,025,766 9,020,000 9,071,000 9,280,000 260,000 3% 4301 Late Fee Payment 566,100 388,000 239,598 235,000 (153,000)-39% 4400 Wastewater Collection Charges 4,647,347 4,656,000 4,641,835 4,815,000 159,000 3% 4500 Wastewater Treatment Charges 8,496,012 8,586,000 8,524,162 8,708,000 122,000 1% 4605 Other Operating Charges 151,114 58,000 278,930 721,000 663,000 1143% 4701 Interest Income 524,661 255,000 49,753 207,000 (48,000)-19% 4704 Miscellaneous Revenue 34,394 34,000 67,741 50,000 16,000 47% TOTAL REVENUES $ 40,344,680 $ 39,865,000 $ 41,083,019 $ 41,304,000 $ 1,439,000 4% EXPENSES – OPERATING BY PROGRAM 1000 Governing Board $ 200,199 $ 257,000 $ 235,496 $ 244,000 $ (13,000)-5% 2000 General Administration 1,197,386 1,302,000 1,244,469 1,329,000 27,000 2% 2100 HR/Risk Management 1,135,217 1,325,000 1,137,994 1,672,000 347,000 26% 2200 Public Affairs 1,245,116 1,589,000 1,295,695 1,844,000 255,000 16% 2300 Conservation 390,599 624,000 287,561 614,000 (10,000)-2% 3000 Finance 1,191,230 1,272,000 1,267,267 1,271,000 (1,000)0% CONSOLIDATED FINANCIAL SCHEDULES FISCAL YEAR BUDGET 2021-2022 | PAGE 124 FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed 3200 Information Technology $ 764,586 $ 973,000 $ 813,361 $ 1,237,000 $ 264,000 27% 3300 Customer Service 1,450,324 1,507,000 1,329,544 1,447,000 (60,000)-4% 3400 Meter Services 270,964 290,000 286,064 321,000 31,000 11% 4000 Engineering 1,180,831 1,544,000 1,126,459 1,592,000 48,000 3% 5000 Water Production Admin 533,389 600,000 521,521 568,000 (32,000)-5% 5000-51 Source of Supply 2,718,145 2,834,000 2,922,037 2,861,000 27,000 1% 5000-52 Pumps & Boosters 417,021 611,000 739,994 659,000 48,000 8% 5000-54 Trans & Distribution 391,918 448,000 471,009 451,000 3,000 1% 5100 Water Treatment 816,777 905,000 952,159 900,000 (5,000)-1% 5200 Water Quality 463,689 480,000 425,318 521,000 41,000 9% 6000 Maintenance Admin 391,156 434,000 510,984 420,000 (14,000)-3% 6100 Water Maintenance 2,891,673 2,485,000 2,844,896 2,658,000 173,000 7% 6200 Wastewater Maintenance 9,263,459 9,389,000 684,536 950,000 (8,439,000)-90% 6300 Wastewater Treatment (SBMWD/SNRC) - - 8,524,162 9,555,000 9,555,000 0% 7000 Facilities Maintenance 1,081,687 1,022,000 1,253,957 1,216,000 194,000 19% 7100 Fleet Maintenance 595,924 500,000 679,224 563,000 63,000 13% SUBTOTAL OPERATING EXPENSES $ 28,591,290 $ 30,391,000 $ 29,553,707 $ 32,893,000 $ 2,502,000 8% EXPENSES – OTHER Debt Service $ 4,249,104 $ 4,379,000 $ 4,182,184 $ 3,352,000 $ (1,027,000)-23% Capital Outlay 995,634 1,630,000 1,871,000 1,130,000 (500,000)-31% Capital Improvement 4,118,690 3,465,000 3,993,000 3,929,000 464,000 13% Transfer to Reserves 2,389,962 - 1,483,128 - - 0% Transfer from Reserves - - - - - 0% SUBTOTAL OTHER EXPENSES $ 11,753,390 $ 9,474,000 $ 11,529,312 $ 8,411,000 $(1,063,000)-11% TOTAL $ 40,344,680 $ 39,865,000 $ 41,083,019 $ 41,304,000 $ 1,439,000 4% NET $ - $ - $ - $ - $ - - CONSOLIDATED FINANCIAL SCHEDULES EAST VALLEY WATER DISTRICT | PAGE 125 ITEMIZED OPERATING EXPENSE SUMMARY FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 6,819,784 $ 6,877,000 $ 6,076,532 $ 7,679,000 $ 802,000 12% 5102 Temporary Labor 20,951 - - - - - 5103 Overtime 391,234 388,000 403,000 390,000 2,000 1% 5104 Standby 39,570 35,000 40,000 35,000 - 0% 5200 Benefits 3,362,631 3,641,000 3,349,000 4,019,000 378,000 10% PERSONNEL TOTAL $ 10,634,170 $ 10,941,000 $ 9,868,532 $ 12,123,000 $ 1,182,000 11% WATER SUPPLY 6101 Purchased Water $ 704,460 $ 400,000 $ 31,000 $ 400,000 $ - 0% 6102 Replenishment 111,625 304,000 149,000 304,000 - 0% 6103 Water Assessment 16,811 122,000 93,000 64,000 (58,000)-48% WATER SUPPLY TOTAL $ 832,896 $ 826,000 $ 273,000 $ 768,000 $ (58,000)-7% OTHER OPERATING EXPENSES 6201 Materials & Supplies $ 664,055 $ 715,000 $ 978,000 $ 835,000 $ 120,000 17% 6202 Tools 62,289 54,000 51,000 66,000 12,000 22% 6203 Office Supplies 28,169 41,000 20,000 48,000 7,000 17% 6204 Chemicals 256,895 350,000 203,000 481,000 131,000 37% 6205 Conservation Rebates 144,259 145,000 48,000 124,000 (21,000)-14% 6301 Contract Services 2,665,509 3,017,000 2,715,000 4,069,000 1,052,000 35% 6302 Banking Services 265,800 259,000 222,000 247,000 (12,000)-5% 6303 Printing & Publishing 138,058 358,000 117,000 386,000 28,000 8% 6304 Legal Services 148,213 186,000 88,000 171,000 (15,000)-8% 6305 Treatment Services 8,496,012 8,586,000 7,715,000 7,844,000 (742,000)-9% 6306 Rents & Leases 29,090 15,000 19,000 20,000 5,000 33% 6307 Uniforms 67,078 90,000 52,000 103,000 13,000 14% 6308 Billing Services 57,369 52,000 54,000 60,000 8,000 15% 6309 Shut Off Notice Services 201,217 195,000 - 50,000 (145,000)-74% 6310 Street Services 522,959 325,000 481,000 525,000 200,000 62% 6311 Landscape Services 173,757 145,000 158,600 220,000 75,000 52% 6312 Janitorial Services 139,589 134,000 133,000 144,000 10,000 7% 6314 Litigation Services - 40,000 20,000 40,000 - 0% 6401 Utilities 38,214 24,000 44,000 25,000 1,000 4% 6402 Telephone 79,899 157,000 104,000 118,000 (39,000)-25% FISCAL YEAR BUDGET 2021-2022 | PAGE 126 FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed 6403 Electricity $ 1,669,011 $ 1,920,000 $ 2,201,168 $ 2,270,000 $ 350,000 18% 6404 Fuel 131,996 125,000 114,000 147,000 22,000 18% 6405 Permits 154,703 293,000 148,000 294,000 1,000 0% 6406 Postage 140,586 245,000 146,000 221,000 (24,000)-10% 6501 Memberships 98,897 126,000 128,000 169,000 43,000 34% 6502 Professional Development 77,387 194,000 30,000 172,000 (22,000)-11% 6503 Education Assistance 2,842 16,000 - 26,000 10,000 63% 6504 Meetings 18,364 45,000 3,000 31,000 (14,000)-31% 6505 Employee Recognition 25,716 27,000 9,000 38,000 11,000 41% 6701 General Insurance 293,844 399,000 410,000 660,000 261,000 65% 6702 Insurance Claims 10,636 10,000 - 10,000 - 0% 6703 Cash Over/Short 7,251 1,000 - 1,000 - 0% 6704 Bad Debt 5,213 16,000 11,000 6,000 (10,000)-63% 6705 OPEB Retirees 309,053 319,000 137,000 351,000 32,000 10% OTHER OPERATING EXPENSES $ 17,123,930 $18,624,000 $ 16,559,768 $ 19,972,000 $ 1,348,000 7% TOTAL OPERATING EXPENSES $ 28,590,996 $ 30,391,000 $ 26,701,300 $ 32,863,000 $ 2,472,000 8% and accounted for at the Program level. Operating expenses are identified EAST VALLEY WATER DISTRICT | PAGE 127 PROGRAM SUMMARIES PR O G R A M S U M M A R I E S Program-based budgeting allows for costs to be clearly identified while easily measuring benefits as outlined in the Key Performance Indicators and completion of Goals and Objectives. POSITION SUMMARY SCHEDULE PROGRAM DESCRIPTIONS PROGRAM SUMMARIES FISCAL YEAR BUDGET 2021-2022 | PAGE 128 Program Descriptions Comprehensive information for each functional program within the District provides a higher degree of operational detail. The District utilizes program-based budgeting. Requested funds are associated with the expected results and performance is measured by indicators and reviewed on a quarterly basis with the Governing Board. This results- oriented strategy provides the ability to monitor expenses related to a particular program or activity and track measurable benefits. Program-based budgeting results can be used in cost-benefit analysis, just as it would be in a business environment to determine the value of decisions and enhance transparency. Program Goals and Objectives have been designed to correlate directly with the District’s adopted Vision and Five-Year Work Plan, and with the District-wide (agency) Goals for the upcoming fiscal year. KPIs monitor progress towards meeting program objectives. Each KPI has a target that provides users of the budget the ability to assess the Program’s performance over time. Program-based budgeting also increases accountability and transparency as community members and Governing Board can more easily see where dollars are invested and monitor program effectiveness. Some KPIs are included to notate industry benchmarks to help staff understand the District’s performance in comparison to the water and wastewater industry. AWWA standards help improve both operational efficiency and managerial effectiveness. The FY 2021-22 Budget is organized into the following summary programs: • Governing Board • General Administration • Human Resources • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Maintenance • NEW Water Reclamation • Facilities Maintenance • Fleet Maintenance EAST VALLEY WATER DISTRICT | PAGE 129 PROGRAM SUMMARIES FISCAL YEAR BUDGET 2021-2022 | PAGE 130 POSITION SUMMARY SCHEDULE East Valley Water District continues to evaluate staffing needs to ensure all services are addressed by a high-quality workforce. This process is supported by the strategic direction and succession planning efforts previously approved by the Governing Board. The position changes for FY 2021-22 include nine Plant Operators, Technicians and Administrative staff for the new Sterling Natural Resource Center, and an additional Customer Service Representative. The table below summarizes the number of full-time personnel by Program. All authorized positions are funded in the proposed budget for FY 2021-22. Part-time positions are included in the program descriptions and not shown below. Full-Time Staffing Summary by Program Program FY 2019-20 Actual FY 2020-21 Actual FY 2021-22 Actual 2000 General Administration 3 3 3 2100 Human Resources 2 2 2 2200 Public Affairs 5 4 4 2300 Conservation 1 1 1 3000 Finance & Accounting 6 6 6 3200 Information Technology 3 3 3 3300 Customer Service 5 6 7 3400 Meter Services 3 3 3 4000 Engineering 6 5 5 5000 Water Production 7 7 7 5100 Water Treatment 2 2 2 5200 Water Quality 2 2 2 6100 Water Maintenance 15 15 15 6200 Wastewater Maintenance 4 4 4 6300 Water Reclamation 0 0 9 7000 Facilities Maintenance 2 2 2 7100 Fleet Maintenance 1 1 1 TOTAL 67 66 76 EAST VALLEY WATER DISTRICT | PAGE 131 PROGRAM SUMMARIES Total Authorized Positions continues to evaluate staffing needs to ensure all services are addressed by a high-quality workforce. East Valley Water District FY 2020-21 FY 2019-20 FY 2018-19 FY 2017-18 FY 2016-17 FY 2015-16 66 67 68 68 69 67 FY 2021-22 76 All authorized positions are approved by the Governing Board for employment by the end of the fiscal year. FISCAL YEAR BUDGET 2021-2022 | PAGE 132 IntentionallyTHIS PAGE LEFT BLANK EAST VALLEY WATER DISTRICT | PAGE 133 GO V E R N I N G BO A R D Governing Board HUMAN RESOURCES Governing Board GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE WATER RECLAMATION FACILITIES MAINTENANCE Program Personnel Governing Board Members 5 Elected Officials 5 Ratepayers/Community Members Governing Board Chairman Governing Board Vice Chairman Governing Board Members Program Structure The Governing Board is the District’s legislative body responsible for serving as the organizational policy makers. FISCAL YEAR BUDGET 2021-2022 | PAGE 134 FLEET MAINTENANCE Governing Board FUNCTION The Governing Board is the legislative body of the organization. Comprised of five members elected at-large to four-year staggered terms of office. Board members are responsible for providing leadership, direction and serving as the organizational policy makers. The Governing Board appoints the General Manager/CEO to carry out the day-to-day District operations and implementation of adopted policies. EAST VALLEY WATER DISTRICT | PAGE 135 GOALS OBJECTIVES #1 Provide Organizational Direction and Set Expectations through Policy Decisions Consistent with the Five-Year Work Plan 1. Evaluate COVID-19 short and long-term impacts that may need policy or board action for operational changes. 2. Conduct General Manager/CEO annual evaluation, including establishment of FY 2022-23 Goals. 3. Consider actions related to the NFWC. #2 Address Policy Decisions Related to the SNRC 1. Consider agenda items related to project completion and commencement of the SNRC. 2. Consider and approve operational and staffing plans related to SNRC business activities. 3. Participate in activities that encourage community engagement for the SNRC. #3 Update the District-Wide Succession Plan 1. Consider taking action on the District’s Succession Plan. 2. Establish an Ad-Hoc Committee to participate in the District’s Succession Planning process. 3. Consider agenda items related to the District’s staffing plan. PROGRAM SUMMARIES FY 2020-21 ACCOMPLISHMENTS Goal 01 Provide Organizational Direction and Set Expectations through Policy Decisions • Adopted and implemented protocols and polices related to COVID-19 pandemic. • Conducted General Manager/CEO Annual Evaluation and established FY 2020-21 goals. • Established Board leadership positions. Goal 02 Address Policy Related Decisions Related to the SNRC • Participated in activities that encouraged community engagement for the SNRC. • Approved agreement with Valley District for the regional recycled water pipeline and Weaver Recharge Basins. Goal 03 Make Financial Decisions that Result in Stability and Understanding Operational Complexities • Approved agenda items related to Community Facilities Districts. • Approved refunding of District revenue bonds resulting in $390,000 in annual savings. • Evaluated and considered agenda items related to water/wastewater rate studies. Goal 04 Conduct all Activities Required for the Governing Board Election • Coordinated with the San Bernardino County Registrar of Voters for the 2020 elections. • Updated and posted electoral information on the District’s website. • Updated the Candidate Orientation Program. GOVERNING BOARD Significant Changes Professional development is experiencing a temporary cost savings due to Board members attending leadership trainings virtually rather than in person. The District also conducted board meetings virtually due to COVID-19. Levels of Service The Governing Board has four KPI metrics that are associated with the District’s Goals and Objectives of: • Identify Opportunities to Optimize Natural Resources (I-A) • Maximize Internal Capabilities Through Ongoing Professional Development (I-B) • Provide Quality Information to Encourage Community Engagement (II-D) • Strengthen Regional, State and National Partnerships (I-C) FISCAL YEAR BUDGET 2021-2022 | PAGE 136 Program Budget Allocation $244,000 PROGRAM SUMMARIES EAST VALLEY WATER DISTRICT | PAGE 137 The program’s performance related to these metrics are included in the following table. Key Performance Indicators Changes Agency Goal Key Performance Indicator Target FY 2018-19 FY 2019-20 FY 2020-21 I-A Act on project related agenda items presented by staff 100%100%100%100% I-B Average number of professional development hours per Board Member 6 12 11 10 II-D Submit all documentation by deadlines pursuant to transparency policies 100%100%100%100% I-C Attend Regional and State meetings as representatives of EVWD 160 217 165 205 Program Budget Detail FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 76,146 $ 105,000 $ 88,200 $ 105,000 $ - 0% 5200 Benefits 83,833 85,000 81,827 88,000 3,000 4% OPERATING EXPENSES 6201 Materials & Supplies 1,684 1,000 261 2,000 1,000 100% 6301 Contract Services 17,500 10,000 63,063 18,000 8,000 80% 6307 Uniforms - 1,000 - 1,000 - 0% 6502 Professional Development 21,036 55,000 2,145 30,000 (25,000)-45% GOVERNING BOARD TOTAL $ 200,199 $ 257,000 $ 235,496 $ 244,000 $ (13,000)-5% FISCAL YEAR BUDGET 2021-2022 | PAGE 138 IntentionallyTHIS PAGE LEFT BLANK EAST VALLEY WATER DISTRICT | PAGE 139 General Administration GE N E R A L AD M I N I S T R A T I O N HUMAN RESOURCES PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE WATER RECLAMATION FACILITIES MAINTENANCE FISCAL YEAR BUDGET 2021-2022 | PAGE 140 FLEET MAINTENANCE GOVERNING BOARD General Administration General Administration is responsible for overseeing the day-to-day operations. Program Personnel General Manager/CEO 1 District Clerk 1 Sr. Administrative Assistant 1 Total Full-Time 3 Governing Board General Manager/CEO District Clerk Sr. Administrative Assistant Program Structure General Administration FUNCTION General Administration is responsible for ensuring the District’s business and daily activities are performed following Federal, State, and District board approved policies. The General Manager/CEO provides daily oversight for interagency relations for advancing the District’s initiatives. Additionally, the General Manager implement’s strategic planning for future operations and capital improvement funding requirements and resource allocation. Lastly, Administration is responsible for implementing the District’s Vision, maintaining official records, promoting public trust, and ensuring transparency compliance. EAST VALLEY WATER DISTRICT | PAGE 141 GOALS OBJECTIVES #1 Complete Consolidation/ Dissolution of NFWC 1. Continue to acquire remaining 33 shares of NFWC not owned by the District. 2. Develop NFWC agreement tracking procedure that includes an annual compliance review. 3. Coordinate with Finance and Operations to track activity of NFWC agreements and establish an alert in the District’s utility billing system. #2 Develop Document Management Process 1. Enhance the District’s electronic document repository by developing a naming convention for efficient document retrieval. 2. Identify and prioritize unscanned vital documents and incorporate them into the electronic document repository. 3. Coordinate and train District staff to ensure the document repository system is used consistently. #3 Implement Agenda Management Platform 1. Coordinate with Public Affairs to develop agenda, staff report, and minute templates. 2. Facilitate training sessions for staff, Community Advisory Commissioner’s, and the Governing Board 3. Complete parallel testing of new platform to ensure continuity in public noticing requirements. 4. Complete transition to new agenda management platform by December 2021. PROGRAM SUMMARIES FY 2020-21 ACCOMPLISHMENTS Goal 01 Complete Reaccreditation Process for Special District Leadership Foundation’s (SDLF) District Transparency Certificate of Excellence and District of Distinction Accreditation • Completed reaccreditation process and received SDLF District Transparency Certificate of Excellence and District of Distinction Certificate. Goal 02 Complete Consolidation/ Dissolution of NFWC • Increased the District’s stock ownership of the NFWC to 99.8%. • Held public hearing to initiate eminent domain proceedings to acquire remaining issued shares. Goal 03 Develop agenda policy and procedures to standardize business processes • Identified industry best practices to be included in the agenda policy handbook. • Prepared draft policy and distributed to staff for comments and suggestions. Other Accomplishments • Implemented protocols for holding virtual meetings due to COVID-19. • Conducted candidate orientations for 2020 Governing Board Elections. • Updated the District’s Conflict of Interest Code. • The Adopt-A-School program supported by the District’s Employee Events Association, increased donations which included gift cards, distance learning supplies, and other school requested items. GENERAL ADMINISTRATION Significant Changes None. Levels of Service The General Administration Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Practice Transparent and Accountable Fiscal Management (II-A) • Provide Quality Information to Encourage Community Engagement (II-D) • Dedicated Efforts Toward System Maintenance and modernization (IV-C) • Maximize Internal Capabilities through Ongoing Professional Development (I-B) FISCAL YEAR BUDGET 2021-2022 | PAGE 142 Program Budget Allocation $1,329,000 PROGRAM SUMMARIES EAST VALLEY WATER DISTRICT | PAGE 143 The program’s performance related to these metrics are included in the following table. Key Performance Indicators Changes Agency Goal Key Performance Indicator Target FY 2018-19 FY 2019-20 FY 2020-21 II-A Make administrative documents available online 50 61 55 51 II-D Publish Open Meeting/Public Notices on or before statutory requirement 100%100%100%100% IV-C Reduce number of boxes held in off-site storage 2,000 3,083 2,770 2,770* I-B Participate in Professional Development Opportunities 6 9 8 20 *Not able to reduce boxes due to COVID-19 restrictions. Program Budget Detail FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 549,112 $ 525,000 $ 571,248 $ 553,000 $ 28,000 5% 5103 Overtime 3,218 3,000 1,862 3,000 - 0% 5200 Benefits 294,560 332,000 343,209 339,000 7,000 2% OPERATING EXPENSES 6201 Materials & Supplies 3,477 2,000 679 2,000 - 0% 6203 Office Supplies 2,587 3,000 1,270 3,000 - 0% 6301 Contract Services 141,415 166,000 121,500 167,000 1,000 1% 6303 Printing & Publishing 1,239 1,000 1,070 1,000 - 0% 6304 Legal Services 106,048 100,000 66,464 90,000 (10,000)-10% 6307 Uniforms 174 1,000 346 1,000 - 0% 6314 Litigation Services - 40,000 21,815 40,000 - 0% 6402 Telephone 4,453 3,000 2,639 3,000 - 0% 6406 Postage 20 - 34 1,000 1,000 100% 6501 Memberships & Dues 79,855 91,000 108,583 95,000 4,000 4% 6502 Professional Development 10,934 20,000 1,447 16,000 (4,000)-20% 6503 Education Assistance - - - 15,000 15,000 100% 6504 Meetings - 15,000 2,303 - (15,000)-100% GENERAL ADMIN TOTAL $ 1,197,092 $ 1,302,000 $1,244,469 $ 1,329,000 $ 27,000 2% FISCAL YEAR BUDGET 2021-2022 | PAGE 144 IntentionallyTHIS PAGE LEFT BLANK EAST VALLEY WATER DISTRICT | PAGE 145 Human Resources HU M A N RE S O U R C E S GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE WATER RECLAMATION FACILITIES MAINTENANCE Program Personnel Director of Administrative Services 1 Human Resources Coordinator 1 Total Full-Time 2 General Manager/CEO Director of Administrative Services Human Resources Coordinator Program Structure Human Resources is responsible for personnel-related programs. FISCAL YEAR BUDGET 2021-2022 | PAGE 146 FLEET MAINTENANCE Human Resources GOVERNING BOARD Human Resources FUNCTION Human Resources is responsible for administering programs to attract and retain a diverse and qualified workforce. To remain an industry leader, the program analyzes the compensation and benefits packages against the market and implements new initiatives based upon market demands. Acknowledging the need to build a work-life balance to support a successful workforce, Human Resources creates programs focused on the health and wellness of all employees. Additionally, HR administers the Risk Management Program to mitigate personnel injuries, property damage and financial loss for the District. EAST VALLEY WATER DISTRICT | PAGE 147 GOALS OBJECTIVES #1 Implement Workforce Programs in Support of the SNRC 1. Develop and execute a marketing strategy to attract quality candidates to apply for SNRC employment opportunities. 2. Recruit and onboard new SNRC treatment plant staff. 3. Coordinate with Balfour Beatty and Engineering on treatment plant commissioning and training of treatment plant staff. #2 Promote a Positive Organizational Culture that Maintains a Supportive and Encouraging Work Environment 1. Update the District’s Succession Plan to identify organizational growth and provide training and development opportunities for staff. 2. Develop an action plan for the retirement of five leadership positions identified in the District’s succession plan and prepare for internal and/or external recruitments. 3. Engage staff in post-pandemic work scheduling discussions and create a policy that maintains District work expectations while allowing scheduling flexibility. #3 Promote Regional Involvement and Provide Workforce Experience and Educational Opportunities 1. Promote the Water and Resource Management Pathway’s value to local industry employers. 2. Develop and implement a paid internship program for local youth to encourage work experience opportunities and prepare a pipeline of talent for the water industry. 3. Create a marketing campaign to educate the community about SNRC volunteer opportunities. PROGRAM SUMMARIES Directly Supports a District-Wide G o a l Directly Support s a District-Wide Go a l FY 2020-21 ACCOMPLISHMENTS Goal 01 Initiate Programs in Support of the SNRC Workforce Needs • Created new job classifications and generated job descriptions and pay scales for the SNRC classifications. • Developed a marketing strategy to attract quality candidates to apply for SNRC employment opportunities. Goal 02 Promote a Positive Organizational Culture that Maintains a Supportive and Encouraging Work Environment • Identified staffing needs over the next three years including the addition of SNRC operations and administrative staff as well as preparing for approaching retirements of those in leadership roles. • Conducted a comprehensive compensation analysis and updated District salary schedule accordingly. Goal 03 Promote Regional Involvement and Provide Workforce Experience and Educational Opportunities • Elevated the Water and Resource Management Pathway Program by opening to all SBCUSD high school students and partnering with San Bernardino Valley College and Tomorrow’s Talent. • Partner with the Harbor Freight Fellowship Program to provide internship opportunities to Water and Resource Management Pathway students. Other Accomplishments • The District was recognized as the Top Workplace in the Inland Empire for the small employer category. This is the District’s 6th consecutive year being recognized as a Top Workplace. • Created and implemented COVID-19 related policies and procedures addressing individual responsibility, screening and testing for symptoms, cleaning and disinfecting, as well as managing adjusted staffing schedules. • Negotiated a 3-year MOU considering long-term financial commitments and employee morale. (Carryover from FY 2019-20; postponed due to COVID-19) HUMAN RESOURCES Significant Changes Meetings have decreased 40% due to the COVID-19 pandemic. Employee recognition increased 35% due to anticipated retirements. Contract services increased 10% for SNRC recruitment, Educational Partnership (Pathway Internship Program) and NEOGOV Onboarding Programs. FISCAL YEAR BUDGET 2021-2022 | PAGE 148 Program Budget Allocation $1,672,000 PROGRAM SUMMARIES EAST VALLEY WATER DISTRICT | PAGE 149 Levels of Service The Human Resources Program has five KPI metrics that are associated with the District’s Goals and Objectives of: • Encourage Performance Based Results through Staff Empowerment (I-D) • Provide Quality Information to Encourage Community Engagement (II-D) • Promote a Positive Organizational Culture (III-C) • Embrace an Environment of Active Learning and Knowledge Sharing (III-D) The program’s performance related to these metrics are included in the following table. Key Performance Indicators Changes Agency Goal Key Performance Indicator Target FY 2018-19 FY 2019-20 FY 2020-21 I-D Percentage of annual non-retirement employee turnover <7%3%3%3% I-D Annual performance appraisals completed in a timely manner 95%100%100%100% II-D Enrollment in District volunteer program 5 7 3 0* III-C Maintain high level of employee participation in annual employee engagement survey 90%96%95%100% III-D Utilization rate of District’s Employee Assistance Program >10%20%24%19% *Not able to complete due to COVID-19 restrictions. on the management and development of employees in an organization. Human Resources focuses FISCAL YEAR BUDGET 2021-2022 | PAGE 150 Program Budget Detail FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 256,268 $ 243,000 $ 265,294 $ 296,000 $ 53,000 22% 5102 Temporary Labor 674 - - - - 0% 5103 Overtime 1,477 3,000 551 3,000 - 0% 5200 Benefits 158,220 151,000 146,288 172,000 21,000 14% OPERATING EXPENSES 6201 Materials & Supplies 1,697 8,000 4,630 6,000 (2,000)-25% 6203 Office Supplies 830 2,000 1,250 1,000 (1,000)-50% 6301 Contract Services 50,748 125,000 125,369 100,000 (25,000)-20% 6303 Printing & Publishing 182 1,000 566 1,000 - 0% 6304 Legal Services 4,826 15,000 5,943 15,000 - 0% 6402 Telephone 553 - 877 - 6406 Postage 48 1,000 221 1,000 - 0% 6501 Memberships & Dues 4,540 5,000 12,593 5,000 - 0% 6502 Professional Development 11,056 11,000 223 11,000 - 0% 6504 Meetings 4,850 5,000 1,771 3,000 (2,000)-40% 6505 Employee Recognition 25,716 27,000 9,664 37,000 10,000 37% 6701 General Insurance 293,844 399,000 409,601 660,000 261,000 65% 6702 Insurance Claims 10,636 10,000 72 10,000 - 0% 6705 Retiree Benefits 309,052 319,000 153,081 351,000 32,000 10% HUMAN RESOURCES TOTAL $ 1,135,217 $ 1,325,000 $ 1,137,994 $ 1,672,000 $ 347,000 26% HUMAN RESOURCES CONT. EAST VALLEY WATER DISTRICT | PAGE 151 Public Affairs PU B L I C AF F A I R S GENERAL ADMINISTRATION CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE WATER RECLAMATION FACILITIES MAINTENANCE Program Personnel Director of Strategic Services 1 Conservation/Public Affairs Manager 1 Public Affairs Specialist 1 Public Affairs Coordinator 1 Total Full-Time 4 Part-Time Community Relations Representative 1 Total Part-Time 1 General Manager/CEO Director of Strategic Services Program Structure Public Affairs oversees internal and external communication programs. FISCAL YEAR BUDGET 2021-2022 | PAGE 152 FLEET MAINTENANCE GOVERNING BOARD Conservation/Public Affairs Manager Public Affairs Specialist Public Affairs Coordinator Community Relations Representative Public Affairs HUMAN RESOURCES Public Affairs FUNCTION Public Affairs oversees internal and external communication programs consistent with the District’s Vision and guiding principles. Through community and media relations, the Program provides effective and strategic communications to various stakeholders. The Program is also responsible for grant writing, emergency preparedness, and facility rental programs. EAST VALLEY WATER DISTRICT | PAGE 153 GOALS OBJECTIVES #1 Advance Construction of the SNRC and Prepare for Facility Operations 1. Develop and complete Administration Center Facility Use Plan including rentals, site safety considerations, and hosted events. 2. Coordinate with San Bernardino International Airport Authority to obtain approval for the updates to the Wildlife Management Plan and obtain approval for remaining non-wastewater treatment approvals. 3. Identify and engage community stakeholders around the SNRC to maximize participation for one public event to foster community involvement. #2 Utilize Communication Methods that Enhance the District’s Brand 1. Develop English and Spanish community outreach materials for customers impacted by District capital projects. 2. Highlight the District premier agency status with presentation and engagements with national and regional organizations including ACWA, CMUA, CSDA, CAPIO, and PRSA. 3. Develop internal and external educational material for the 2022 rate change. 4. Develop, implement, and measure digital outreach tools to increase customer engagement and the digital presence of the District. #3 Advance the District’s Emergency Preparedness Program 1. Hold bi-annual reviews of the Emergency Response and Hazard Mitigation Plans and ensure the SNRC is included. 2. Ensure compliance with State and local COVID-19 reporting requirements. 3. Conduct quarterly training events focused on emergency preparedness and Incident Command System (ICS) protocol, hold monthly Integrated Public Alert and Warning System (IPAWS) training for platform users. PROGRAM SUMMARIES Directly Support s a District-Wide G o a l FY 2020-21 ACCOMPLISHMENTS Goal 01 Advance Construction of the SNRC and Prepare for Facility Operations • Created outreach materials, social media content and community updates/ notifications to promote the construction status and future programs of the SNRC. • Coordinated with outside government agencies for necessary approvals and review of relevant subject matter relating to the SNRC. • Oversaw construction of the Administration Center and was within allocated scope of the Guaranteed Maximum Price (GMP). Goal 02 Utilize Communication Methods that Enhance the District’s Brand • Developed Proposition 218 notice and outreach campaign to inform customers of proposed rate changes. • Developed a campaign to educate customers on the value of reliable utility and water quality services provided by the District. • Created community notices for CIP programs impacting residents. Goal 03 Advance the District’s Emergency Preparedness Program to Effectively Respond in an Emergency • Established community alert program utilizing the FEMA IPAWS system. • Updated the District’s Hazard Mitigation Plan and received FEMA approval. • Completed the Vulnerability Assessment and EPA Risk and Resiliency Assessment. Other Accomplishments • Developed outreach material for the AMI project completion. • Developed script, filmed, and edited educational videos for the Pathways program. • Updated the District’s branding style guide to modernized stylistic approach and enhance branding efforts. PUBLIC AFFAIRS Significant Changes Additional contract services relating to the construction and preparation for operations of the SNRC have been incorporated in the Public Affairs budget. The COVID-19 health emergency limited the number of presentations completed due to the cancellation of events. FISCAL YEAR BUDGET 2021-2022 | PAGE 154 Program Budget Allocation $1,844,000 PROGRAM SUMMARIES EAST VALLEY WATER DISTRICT | PAGE 155 Levels of Service The Public Affairs Program has five KPI metrics that are associated with the District’s Goals and Objectives of: • Advance Emergency Preparedness Efforts (III-A) • Provide Quality Information to Encourage Community Engagement (II-D) • Strengthen Regional, State and National Partnerships (I-C) • Utilize Effective Communication Methods (II-B) The program’s performance related to these metrics are included in the following table. Key Performance Indicators Changes Agency Goal Key Performance Indicator Target FY 2018-19 FY 2019-20 FY 2020-21 III-A Update Emergency Response Plan 100%25%100%100% III-A Number of Emergency Response training hours per FTE 16 13 15 15 II-D Number of community event presentations 15 9 15 0 I-C Number of Community Advisory Commission meetings conducted 6 6 6 6 II-B Number of followers on social media 100 943 1,399 1,638 solid public relationships built on a foundation of trust.Public Affairs establishes FISCAL YEAR BUDGET 2021-2022 | PAGE 156 Program Budget Detail FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 506,865 $ 532,000 $ 502,939 $ 569,000 $ 37,000 7% 5102 Temporary Labor - - - - - 0% 5103 Overtime 4,057 17,000 10,137 17,000 - 0% 5200 Benefits 202,649 269,000 204,645 265,000 (4,000)-1% OPERATING EXPENSES 6201 Materials & Supplies 43,025 113,000 38,447 149,000 36,000 32% 6203 Office Supplies 2,557 3,000 899 2,000 (1,000)-33% 6301 Contract Services 352,363 329,000 393,452 508,000 179,000 54% 6303 Printing & Publishing 100,914 223,000 102,387 245,000 22,000 10% 6304 Legal Services 420 5,000 3,333 5,000 - 0% 6307 Uniforms 421 2,000 745 2,000 - 0% 6312 Janitorial Services - 2,000 - 2,000 - 0% 6402 Telephone 2,503 5,000 3,291 5,000 - 0% 6406 Postage 15,752 50,000 12,031 37,000 (13,000)-26% 6501 Memberships & Dues 3,061 6,000 21,469 9,000 3,000 50% 6502 Professional Development 2,088 15,000 1,920 16,000 1,000 7% 6503 Education Assistance 2,842 8,000 - 3,000 (5,000)-63% 6504 Meetings 5,599 10,000 - 10,000 - 0% PUBLIC AFFAIRS TOTAL $ 1,245,116 $ 1,589,000 $ 1,295,695 $ 1,844,000 $ 255,000 16% PUBLIC AFFAIRS CONT. EAST VALLEY WATER DISTRICT | PAGE 157 Conservation CO N S E R V A T I O N GENERAL ADMINISTRATION PUBLIC AFFAIRS FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE WATER RECLAMATION FACILITIES MAINTENANCE Program Personnel Conservation Coordinator 1 Total Full-Time 1 Program Structure Conservation encourages sustainable water use. FISCAL YEAR BUDGET 2021-2022 | PAGE 158 FLEET MAINTENANCE GOVERNING BOARD General Manager/CEO Director of Strategic Services Conservation/Public Affairs Manager Conservation Coordinator Conservation HUMAN RESOURCES Conservation FUNCTION Conservation is responsible for overseeing programs that facilitate and encourage sustainable water use throughout the District. Additionally, this program is responsible for communicating conservation benchmarks to various regulatory agencies, tracking and monitoring legislative affairs and advocating on behalf of the District’s legislative platform. EAST VALLEY WATER DISTRICT | PAGE 159 GOALS OBJECTIVES #1 Coordinate Necessary Program Working Groups to Complete Conservation Reports 1. Facilitate working group meetings for the purpose of tracking informational data requests for State mandated reports. 2. Complete and submit the District’s Drought Risk Assessment report to comply with the State’s new reporting requirements. #2 Evaluate Rebate Program Success and Implement Program Enhancements 1. Coordinate with the Information Technology to develop a geographical rebate tool for strategic outreach. 2. Develop and implement a community Parkway Turf Removal rebate program. 3. Leverage digital communication platforms to enhance Conservation educational efforts and produce three conservation videos. #3 Participate in the Legislative Process as it Relates to Changes in Conservation Regulations 1. Actively participate in the legislative and regulatory process, and update District stakeholders on relevant impacts to District’s conservation programs. 2. Continue monitoring legislation related to low-income rate assistance, non- payment disconnections, and bond funding and communicate changes affecting District operations. 3. Complete semi-annual updates on Conversation legislation to the Governing Board, and quarterly updates to the Legislative and Public Outreach Committee. PROGRAM SUMMARIES FY 2020-21 ACCOMPLISHMENTS Goal 01 Coordinate with District Programs to Complete Necessary Conservation Reporting • Completed the information gathering for the District’s Drought Risk Assessment. • Completed the Water Shortage Contingency Plan and Regional Urban Water Management Plan. • Submitted completed State monthly reports as required by the SWRCB. Goal 02 Evaluate Rebate Program Success and Implement Program Enhancements • Developed a Parkway Turf Replacement Pilot program to enhance the District’s offered rebates. • Hosted virtual Conservation workshop via Facebook Live and distributed water saving tips in English and Spanish. Goal 03 Engage in the Legislative Process as it Relates to Changes in Conservation Regulations • Actively participated in the regulatory and legislative process as new conservation guidelines were considered. • Created legislative tracking matrix to monitor changing legislation on affordable-rate regulations and impacts to District operations. • Provided quarterly updates to Legislative and Public Outreach Committee and semi-annual updates to the Governing Board. CONSERVATION Significant Changes The amount of educational materials distributed this year was less than the target. All outreach events planned during the spring were canceled due to the COVID-19 pandemic. The development of technical tools to track conservation participation or to minimize water losses will be carried over to next fiscal year due to COVID-19 impacts. An increase in contract services was made in the budget to cover the cost of a contractor to assist with the development and submittal of the Drought Risk Assessment which is due in July 2021. Due to the challenges in virtual learning, the District postponed the bi-annual conservation student poster contest. FISCAL YEAR BUDGET 2021-2022 | PAGE 160 Program Budget Allocation $584,000 PROGRAM SUMMARIES EAST VALLEY WATER DISTRICT | PAGE 161 Levels of Service The Conservation Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Identify Opportunities to Optimize Natural Resources (I-A) • Provide Quality Information to Encourage Community Engagement (II-D) • Pursue Alternative Funding Sources (II-C) The program’s performance related to these metrics are included in the following table. Key Performance Indicators Changes Agency Goal Key Performance Indicator Target FY 2018-19 FY 2019-20 FY 2020-21 I-A Meet SWRCB conservation goal Yes Yes Yes Yes I-A Maintain significant level of participation in annual conservation rebate programs 300 468 344 430 II-D Number of educational materials created 100 175 97 100 II-C External conservation funding received $25,000 $43,212 $34,000 $32,000 educate customers on how to use water efficiently.Conservation programs help FISCAL YEAR BUDGET 2021-2022 | PAGE 162 Program Budget Detail FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 142,411 $ 107,000 $ 123,828 $ 111,000 $ 4,000 4% 5102 Temporary Labor - - - - - 0% 5103 Overtime 1,196 7,000 97 7,000 - 0% 5200 Benefits 34,841 36,000 39,737 40,000 4,000 11% OPERATING EXPENSES 6201 Materials & Supplies 5,340 20,000 675 20,000 - 0% 6203 Office Supplies 559 2,000 191 2,000 - 0% 6205 Conservation Rebates 144,259 145,000 62,623 124,000 (21,000)-14% 6301 Contract Services 24,778 140,000 24,061 90,000 (50,000)-36% 6303 Printing & Publishing 26,534 116,000 30,224 121,000 5,000 4% 6304 Legal Services - 1,000 - 1,000 - 0% 6307 Uniforms 46 1,000 321 1,000 - 0% 6402 Telephone 1,441 2,000 1,532 2,000 - 0% 6406 Postage 5,626 37,000 - 24,000 (13,000)-35% 6501 Memberships & Dues 2,660 6,000 4,079 36,000 30,000 500% 6502 Professional Development 908 3,000 193 4,000 1,000 33% 6504 Meetings - 1,000 - 1,000 - 0% CONSERVATION TOTAL $ 390,599 $ 624,000 $ 287,561 $ 584,000 $ (40,000)-6% CONSERVATION CONT. EAST VALLEY WATER DISTRICT | PAGE 163 Finance & Accounting FI N A N C E & AC C O U N T I N G GENERAL ADMINISTRATION CONSERVATION INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE WATER RECLAMATION FACILITIES MAINTENANCE Program Personnel Chief Financial Officer 1 Business Services Manager 1 Accountant 1 Sr. Accounting Technician 1 Accounting Technician 1 Sr. Administrative Assistant 1 Total Full-Time 6 General Manager/CEO Chief Financial Officer Program Structure Finance and Accounting provides transparent and responsible oversight of District funds. FISCAL YEAR BUDGET 2021-2022 | PAGE 164 FLEET MAINTENANCE GOVERNING BOARD Accountant Sr. Accounting Technician Accounting Technician HUMAN RESOURCES Finance Manager Sr. Administrative Assistant Finance & Accounting PUBLIC AFFAIRS Finance & Accounting FUNCTION Finance and Accounting oversee the business operations of the District in order to provide accountability and adequate control over the use of District funds. Staff downloads meter read data, audits data, and submits data files to a third-party vendor for bill printing and mailing. Staff also maintains the financial systems and records in accordance with Generally Accepted Accounting Principles (GAAP) as well as applicable laws, regulations, and District policies. EAST VALLEY WATER DISTRICT | PAGE 165 GOALS OBJECTIVES #1 Financial Stability with Full Understanding of Operational Complexities 1. Assist Public Affairs with grant applications and financial reporting requirements to support District initiatives. 2. In coordination with Customer Service develop a NFWC agreement tracking system to protect the District’s water and financial position. #2 Fully Understand the Cost Associated with the SNRC Operations 1. Develop a comprehensive salaries and benefits analysis based on recommendations provided by a third-party consultant. 2. Coordinate with Engineering and wastewater treatment stakeholders to develop a District-wide comprehensive financial plan for fund allocation alignment with the SNRC operations. #3 Link Fixed Asset Information in Tyler Accounting System to Digitized Maps in Geographical Information System (GIS) Program 1. In coordination with Information Technology, implement a geographical map of FY 2021-22 capital improvement projects. 2. Evaluate the current method of projects linking in Tyler and develop a standard operating procedure manual. PROGRAM SUMMARIES Directly Support s a District-Wide Go a l Directly Support s a District-Wide G o a l FY 2020-21 ACCOMPLISHMENTS Goal 01 Maintain Financial Stability with Full Understanding of Operational Complexities • Finalized the Bond restructuring and achieved $390,000 annually. • Prepared analysis for the Water and Wastewater Rate Study and Proposition 218 public hearing. Goal 02 Fully Understand the Cost Associated with the SNRC Operations • Prepared and completed SRF claims within 14 days to protect the District’s liquidity during construction. • Participated in SNRC meeting to ensure construction billing aligned with funding. Goal 03 Link Fixed Asset Information in Tyler Accounting System to Digitized Maps in GIS Program • Held meeting with Engineering staff and consultant to develop and utilize the GIS to improve accounting records. Other Accomplishments • Received awards from both the GFOA and the CSMFO for the District’s FY 2020-21 Budget. • Issued and received GFOA Awards for Outstanding Achievement for the District’s June 2020 Comprehensive Annual Financial Report (CAFR) and Popular Annual Financial Report (PAFR). FINANCE & ACCOUNTING Significant Changes Analyzed and reported on the financial impact caused by the COVID-19 pandemic with a focus on past due utility accounts. Levels of Service The Finance & Accounting Program has six KPI metrics that are associated with the District’s Goals and Objectives of: • Practice Transparent and Accountable Fiscal Management (II-A) FISCAL YEAR BUDGET 2021-2022 | PAGE 166 Program Budget Allocation $1,156,000 PROGRAM SUMMARIES EAST VALLEY WATER DISTRICT | PAGE 167 The program’s performance related to these metrics are included in the following table. Key Performance Indicators Changes Agency Goal Key Performance Indicator Target FY 2018-19 FY 2019-20 FY 2020-21 II-A Days to prepare and present CAFR after fiscal year end 135 days 102 102 102 II-A Enhance District bond rating through strong reserves and fiscal policies AA AA-AA-AA- II-A Number of fiscal policies updated / enhanced and reviewed with the Board 4 3 3 3 II-A Provide program managers monthly budget variance reports 12 12 12 12 II-A Consecutive years Certificate of Achievement for Excellence in Financial Reporting received for CAFR 9 7 8 9 II-A Consecutive years Certificate of Achievement for Excellence in Financial Reporting received for PAFR 4 2 3 4 manage, plan and direct financial resources.Finance and Accounting FISCAL YEAR BUDGET 2021-2022 | PAGE 168 Program Budget Detail FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 735,679 $ 716,000 $ 780,792 $ 742,000 $ 26,000 -10% 5102 Temporary Labor - - - - - 0% 5103 Overtime 5,538 13,000 8,415 13,000 - 0% 5200 Benefits 358,783 385,000 390,606 375,000 (10,000)-6% OPERATING EXPENSES 6203 Office Supplies 8,233 11,000 8,626 11,000 - 0% 6301 Contract Services 37,136 67,000 43,332 65,000 (2,000)-3% 6302 Banking Services 8,987 20,000 12,062 18,000 (2,000)-10% 6303 Printing & Publishing 2,479 1,000 595 1,000 - 0% 6304 Legal Services 17,600 20,000 12,320 10,000 (10,000)-50% 6307 Uniforms 1,499 2,000 335 2,000 - 0% 6402 Telephone 1,616 3,000 2,478 3,000 - 0% 6406 Postage 881 1,000 1,236 1,000 - 0% 6501 Memberships & Dues 3,839 4,000 3,104 5,000 1,000 25% 6502 Professional Development 5,882 19,000 3,272 15,000 (4,000)-21% 6503 Education Assistance - 5,000 - 5,000 - 0% 6504 Meetings 2,263 4,000 94 4,000 - 0% 6704 Bad Debt 815 1,000 - 1,000 -0% FINANCE & ACCT. TOTAL $ 1,191,230 $ 1,272,000 $ 1,267,267 $ 1,271,000 $ (1,000)0% FINANCE & ACCOUNTING CONT. EAST VALLEY WATER DISTRICT | PAGE 169 Information Technology IN F O R M A T I O N TE C H N O L O G Y HUMAN RESOURCES GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE WATER RECLAMATION FACILITIES MAINTENANCE Program Personnel Information Technology Manager 1 Network Administrator 1 Information Systems Technician 1 Total Full-Time 3 General Manager/CEO Chief Financial Officer Information Technology Manager Program Structure IT is responsible for District technology and software programs. FISCAL YEAR BUDGET 2021-2022 | PAGE 170 FLEET MAINTENANCE Information Technology Network Administrator Information Systems Technician GOVERNING BOARD Information Technology FUNCTION The Information Technology (IT) Program oversees the District’s technology infrastructure to support essential business and operational functions. The functions utilize industry specific software programs required to meet agency needs. The Program implements routine cybersecurity training campaigns to mitigate financial and data loss. In addition to software management the Program proactively schedules hardware replacements from the point of procurement to installation. Lastly, the Program coordinates and implements agency-wide technology by facilitating vendor access and support for technology focused projects. EAST VALLEY WATER DISTRICT | PAGE 171 GOALS OBJECTIVES #1 Ensure Reliability of Technology Infrastructure for Primary Business and Operation requirements 1. Install and configure Network Infrastructure and Technology to establish operating and business functions at SNRC. 2. Complete transition of direct fiber connection for headquarters (HQ) and SNRC to mitigate business disruption. 3. Upgrade End-of-Life CISCO servers to strengthen network infrastructure. 4. Coordinate the installation of Modern SCADA radios with Operations and contractor to increase communication reliability. #2 Improve Systems and Cybersecurity Measures for Response Functions 1. Continue monthly email phishing campaign to reduce click rate and educate staff on security risk. 2. Develop an inventory of new and existing information technology systems and cross-train IT staff on standard operating procedures. 3. Identify and create a business continuity plan to respond to emergencies efficiently. #3 Analyze Current Systems to Enhance Reporting and Automate Processes 1. Enhance Microsoft Business Intelligence reporting capabilities to address Conservation and Human Resource’s reporting requirements. 2. Complete a comprehensive Cityworks and GIS infrastructure assessment with Engineering to align with the organization’s needs recommended through the IT strategic plan. 3. Assist Operations and Maintenance on identifying requirement for an asset management system. PROGRAM SUMMARIES Directly Supports a District-Wide G o a l FY 2020-21 ACCOMPLISHMENTS Goal 01 Fortify IT Infrastructure for Reliability and Expanded Services for HQ, the SNRC and Plant 134 • Upgraded VMWare licenses to expand Network Infrastructure for the SNRC and Headquarters. • Expanded hardware needs for office and Field staff through mobile devices and laptops. Goal 02 Proactively Improve Systems and Cybersecurity Measures for Internal and Emergency Response Functions • Engaged staff with monthly phishing emails to improve cybersecurity to mitigate security risks. • Assessed and enhanced remote capabilities for staff and Emergency Operations Center (EOC) operations. • Implemented imaging software to allow image and recovery of computer systems to minimize downtime. Other Accomplishments • Fully transitioned staff for remote work through COVID-19 Pandemic. • Implemented New Deployment Software for existing and new hardware. • Provided additional staff with mobile devices for field use. • Assisted Administration with implementation of PrimeGov - New Agenda Management Software. INFORMATION TECHNOLOGY Significant Changes Funding to contract services increased due to SNRC services (support expansion, Spectrum fiber). IT Services were established to support remote working capabilities and implement VPN enhancements for new remote environment. Levels of Service The Information Technology Program has six KPI metrics that are associated with the District’s Goals and Objectives of: • Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) • Strive to Provide World Class Customer Relations (III-B) FISCAL YEAR BUDGET 2021-2022 | PAGE 172 Program Budget Allocation $1,237,000 PROGRAM SUMMARIES EAST VALLEY WATER DISTRICT | PAGE 173 The program’s performance related to these metrics are included in the following table. Key Performance Indicators Changes Agency Goal Key Performance Indicator Target FY 2018-19 FY 2019-20 FY 2020-21 IV-A Elevate Cybersecurity awareness by sending out test ‘phishing’ emails 800 844 862 1,019 IV-A Maximize system availability 99%99%99%99% IV-A Cybersecurity awareness results for phishing email click rate <7%5%7.4%6% IV-A Complete disaster recovery drill (system restoration, power outages, emergency notifications) 2 1 1 2 III-B Receive ‘Excellent’ scores on IT satisfaction surveys submitted by staff >95%88%98%96% III-B Minimize resolution time for help desk issues submitted by staff 24 Hrs.23.3 16.4 24 Program Budget Detail FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 262,147 $ 338,000 $ 305,550 $ 366,000 $ 28,000 8% 5102 Temporary Labor - - - - - 0% 5103 Overtime - - - - - 0% 5200 Benefits 78,865 120,000 104,849 199,000 79,000 66% OPERATING EXPENSES 6201 Materials & Supplies 53,723 42,000 54,376 45,000 3,000 7% 6203 Office Supplies 56 1,000 188 1,000 - 0% 6301 Contract Services 359,485 449,000 331,041 606,000 157,000 35% 6307 Uniforms 872 1,000 436 1,000 - 0% 6402 Telephone 5,769 6,000 10,666 7,000 1,000 17% 6501 Memberships & Dues 2,554 1,000 720 1,000 - 0% 6502 Professional Development 393 14,000 5,535 10,000 (4,000)-29% 6503 Education Assistance - - - - - 0% 6504 Meetings 722 1,000 - 1,000 - 0% IT TOTAL $ 764,586 $ 973,000 $ 813,361 $1,237,000 $ 264,000 27% FISCAL YEAR BUDGET 2021-2022 | PAGE 174 IntentionallyTHIS PAGE LEFT BLANK EAST VALLEY WATER DISTRICT | PAGE 175 Customer Service CU S T O M E R SE R V I C E GENERAL ADMINISTRATION CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE WATER RECLAMATION FACILITIES MAINTENANCE Program Personnel Sr. Customer Service Rep 1 Customer Service Rep III 1 Customer Service Rep II 3 Customer Service Rep I 2 Total Full-Time 7 General Manager/CEO Chief Financial Officer Program Structure Customer Service provides customers with world class community relations. FISCAL YEAR BUDGET 2021-2022 | PAGE 176 FLEET MAINTENANCE GOVERNING BOARD Sr. Customer Service Representative Customer Service Representative III Customer Service Representative II Customer Service Representative I HUMAN RESOURCES Finance Manager PUBLIC AFFAIRS Customer Service Customer Service FUNCTION Customer Service provides the community with prompt, courteous, and world class customer relations. As the primary contact point with residents, this program explores opportunities to provide thorough/accurate responses to billing inquiries; provide convenient locations and methods for payment; and to resolve customer concerns about service delivery by requesting assistance from field personnel, and then following up with customers regarding the resolution to their concern. EAST VALLEY WATER DISTRICT | PAGE 177 GOALS OBJECTIVES #1 Develop Strategies to Address Organizational Service Needs 1. Work with Field and IT in Re-Evaluation of Cityworks and attend product demonstrations for alternate work order system if scheduled. 2. Develop SNRC action plan and prepare justification for additional full-time employee if necessary. 3. Work with IT to activate autopay with credit card while remaining Payment Card Industry (PCI) compliant. 4. Work with Business Services Manager to update physical/digital access where needed. #2 Modify Processes to Comply with Changes in Legislation While Maintaining Financial Stability 1. Meet quarterly with Public Affairs for updates on proposed/ pending legislation. 2. Address and implement lock-off procedures to ensure customers are educated and noticed in accordance with the lifting of emergency orders. #3 Fully Understand and Utilize Smart Meter Capabilities 1. Coordinate training session on how to analyze Neptune reports to target and communicate with high consumption customers. 2. Coordinate with Public Affairs to increase the use of AMI data to support conservation efforts. 3. Review routes and billing dates for possible changes to accommodate timing of bills to customers on fixed incomes. PROGRAM SUMMARIES Directly Supports a District-Wide G o a l FY 2020-21 ACCOMPLISHMENTS Goal 01 Develop Strategies to Address Organizational Service Needs • Provided customer service insight for re-evaluation of the work order system. • Worked with Facilities maintenance to address COIVD-19 concerns and addressed safety issues for opening the doors to the public. Goal 02 Modify Processes to Comply with Changes in Legislation while Maintaining Financial Stability • Met with Public Affairs to discuss COVID-19 related topics impacting District customers and the Program. Other Accomplishments • Successfully transitioned to working from home during an emergency. • Resolved ongoing issues with automated phone check payments. CUSTOMER SERVICE Significant Changes Due to the Emergency Order in place, the District has not been able to disconnect customers for nonpayment. Developed a tracking system for delinquent accounts due to the COVID-19 pandemic. Levels of Service The Customer Service Program has six KPI metrics that are associated with the District’s Goals and Objectives of: • Strive to Provide World Class Customer Relations (III-B) • Maximize internal Capabilities through Ongoing Professional Development (I-B) • Dedicate Efforts Toward System Maintenance and Modernization (IV-C) FISCAL YEAR BUDGET 2021-2022 | PAGE 178 Program Budget Allocation $1,562,000 PROGRAM SUMMARIES EAST VALLEY WATER DISTRICT | PAGE 179 The program’s performance related to these metrics are included in the following table. Key Performance Indicators Changes Agency Goal Key Performance Indicator Target FY 2018-19 FY 2019-20 FY 2020-21 III-B Reduce number of customers disconnected for non-payment each year 1,800 1,000 930 0 III-B Encourage completion of Customer Satisfaction Surveys to better understand customer concerns 120 75 65 54 III-B Number of customer payments received through convenient off-site locations 10,000 6,652 5,000 5,346 I-B Number of customer service training hours per employee 16 14 11 13 IV-C Customers enrolled in paperless billing 2,000 2,259 1,998 2,049 IV-C Customers enrolled in the Pre-Authorized Payment Plan (auto-debit)2,000 2,233 2,528 2,762 across all programs within the District. Customer Service spans FISCAL YEAR BUDGET 2021-2022 | PAGE 180 Program Budget Detail FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 345,183 $ 415,000 $ 385,782 $ 473,000 $ 58,000 38% 5102 Temporary Labor 20,278 - - - - 0% 5103 Overtime 5,405 7,000 1,354 7,000 - 0% 5200 Benefits 213,650 242,000 265,727 281,000 39,000 23% OPERATING EXPENSES 6201 Materials & Supplies 2,484 5,000 7,914 5,000 - 0% 6203 Office Supplies 2,757 4,000 2,664 4,000 - 0% 6301 Contract Services 187,762 134,000 185,443 134,000 - 0% 6302 Banking Services 256,814 239,000 241,454 229,000 (10,000)-4% 6303 Printing & Publishing 5,964 10,000 5,311 10,000 - 0% 6304 Legal Services - 5,000 - 5,000 - 0% 6306 Rents & Leases 11,248 - - - - 0% 6307 Uniforms 1,869 4,000 4,638 4,000 - 0% 6308 Billing Services 57,369 52,000 55,534 60,000 8,000 15% 6309 Shut Off Notice Services 201,217 195,000 110 50,000 (145,000)-74% 6402 Telephone 6,698 8,000 15,288 8,000 - 0% 6406 Postage 118,260 153,000 136,760 153,000 - 0% 6501 Memberships & Dues - 1,000 - 1,000 - 0% 6502 Professional Development 634 15,000 - 15,000 - 0% 6503 Education Assistance - - - - - 0% 6504 Meetings 1,082 2,000 - 2,000 - 0% 6703 Cash Over/Short 6,436 1,000 (30) 1,000 - 0% 6704 Bad Debt 5,214 15,000 $21,595 5,000 (10,000)-67% CUSTOMER SERVICE TOTAL $ 1,450,324 $ 1,507,000 $ 1,329,544 $ 1,447,000 $ (60,000) -4% CUSTOMER SERVICE CONT. EAST VALLEY WATER DISTRICT | PAGE 181 Meter Services ME T E R SE R V I C E S GENERAL ADMINISTRATION CONSERVATION INFORMATION TECHNOLOGY CUSTOMER SERVICE ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE WATER RECLAMATION FACILITIES MAINTENANCE Program Personnel Meter Reader II 1 Meter Reader I 2 Total Full-Time 3 General Manager/CEO Director of Engineering & Operations Program Structure Meter Services is responsible for maintaining the District's smart meter network, on-site customer meter-related requests and customer service assistance. FISCAL YEAR BUDGET 2021-2022 | PAGE 182 FLEET MAINTENANCE GOVERNING BOARD Meter Reader II Meter Reader I HUMAN RESOURCES Water Maintenance Supervisor Operations Manager PUBLIC AFFAIRS Meter Services FINANCE & ACCOUNTING Meter Services FUNCTION The Meter Service program maintains a network of approximately 23,000 AMI meters. The AMI meter program provides the District and its customers with near real-time consumption information. The Program conducts routine maintenance, testing and replacement of meters to ensure billing is accurate. EAST VALLEY WATER DISTRICT | PAGE 183 GOALS OBJECTIVES #1 Implement Inspection Program for AMI Meters 1. Train meter service workers how to use the R-900 Belt Clip Transceiver to diagnose issues with problem AMI meters. 2. Identify needed vault lid replacements – create prioritized replacement schedule. 3. Visually inspect all meter boxes in routes where read problems are occurring. #2 Work with Engineering to Address Coverage Issues with AMI Network 1. Install data collectors in northwest and eastern sections of the District’s service area. 2. Confirm MIU (meter interface unit) and meter numbers where reads cannot be collected. #3 Continue Meter Testing Programs in Compliance with State Water Audits Best Practices 1. Conduct an audit of 10% of large meters for accuracy to ensure compliance with AWWA standards. PROGRAM SUMMARIES FY 2020-21 ACCOMPLISHMENTS Goal 01 Develop Inspection Program for Facilities in AMI Areas that Are No Longer Read Manually • Conducted large meter testing to ensure accuracy meets AWWA standards for 10% of meters 3-inches and greater. • Started first year of AMI meter box inspections, making sure the first round of AMI meters installed are still at District standards. Goal 02 Collect Information on Remaining Manual-Read Meters to Facilitate Early Completion of AMI Implementation Project • Supported and assisted with the fifth and final year of the AMI project. METER SERVICES Significant Changes One staff member to move from Meter Services to Water Maintenance. Levels of Service The Meter Services Program has three KPI metrics that are associated with the District’s Goals and Objectives of: • Identify Opportunities to Optimize Natural Resources (I-A) • Strive to Provide World Class Customer Relations (III-B) • Dedicate Efforts towards System Maintenance and Modernization (IV-C) FISCAL YEAR BUDGET 2021-2022 | PAGE 184 Program Budget Allocation $321,000 PROGRAM SUMMARIES EAST VALLEY WATER DISTRICT | PAGE 185 The program’s performance related to these metrics are included in the following table. Key Performance Indicators Changes Agency Goal Key Performance Indicator Target FY 2018-19 FY 2019-20 FY 2020-21 I-A Number of large meters tested for accuracy 11 11 11 11 III-B Respond to customer requests for assistance within two hours 100%100%100%100% IV-C Number of employees trained on the AMI project 4 3 3 3 Program Budget Detail FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 189,524 $ 197,000 $ 198,765 $ 204,000 $ 7,000 4% 5103 Overtime 1,543 6,000 746 6,000 - 0% 5200 Benefits 71,296 72,000 81,128 96,000 24,000 33% OPERATING EXPENSES 6201 Materials & Supplies 537 2,000 - 2,000 - 0% 6202 Tools 1,752 3,000 950 3,000 - 0% 6301 Contract Services 3,010 5,000 - 5,000 - 0% 6307 Uniforms 2,056 3,000 2,593 3,000 - 0% 6402 Telephone 1,246 2,000 1,882 2,000 - 0% 6502 Professional Development - - - - - 0% METER SERVICES TOTAL $ 270,964 $ 290,000 $ 286,064 $ 321,000 $ 31,000 11% FISCAL YEAR BUDGET 2021-2022 | PAGE 186 IntentionallyTHIS PAGE LEFT BLANK EAST VALLEY WATER DISTRICT | PAGE 187 Engineering EN G I N E E R I N G GENERAL ADMINISTRATION PUBLIC AFFAIRS FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE WATER RECLAMATION FACILITIES MAINTENANCE Program Personnel Director of Engineering and Operations 1 Sr. Engineer 3 Associate Engineer 1 Total Full-Time 5 Program Structure Engineering implements infrastructure projects needed to provide safe and reliable services. FISCAL YEAR BUDGET 2021-2022 | PAGE 188 FLEET MAINTENANCE GOVERNING BOARD General Manager/CEO Director of Engineering & Operations Sr. Engineer Associate Engineer HUMAN RESOURCES Engineering CONSERVATION Engineering FUNCTION The Engineering Program responsibilities include infrastructure planning, maintaining a safe and reliable water supply, and ensuring compliance with Federal and State regulations. This Program oversees wastewater collection and treatment capital projects. Engineering coordinates and supports new development within the District’s service area by streamlining plan checking and inspection efforts. EAST VALLEY WATER DISTRICT | PAGE 189 GOALS OBJECTIVES #1 Develop and Implement the District’s Capital Improvement Program to Address Rehabilitation and Maintenance Needs While Also Preparing for New Development 1. Complete construction work for rehabilitation of reservoir at Plant 108. 2. Facilitate completion of design for main replacement projects identified in CIP for FY 2021-22. 3. Support the development of CFD for the Mediterra development. 4. Facilitate expansion of water storage capacity to support the Highland Hills and Mediterra developments. #2 Develop Plans to Optimize District Utilization of Local and Imported Surface Water 1. Finalize pre-design report for the Water Treatment Plant at the east- end of the District’s service area. 2. Coordinate and manage the construction of the process improvements related to GAC at Plant 134. 3. Initiate groundwater master planning efforts to consider short-term and long-term actions related to groundwater production capacity. #3 Support the Steps Necessary for Advancement of the SNRC 1. Lead planning efforts for the facility start-up activity. 2. Design and construct the emergency storage basin at the Weaver Basins site. 3. Continue working with regulatory agencies to receive needed approvals and permits. PROGRAM SUMMARIES Directly Support s a District-Wide G o a l Directly Support s a District-Wide G o a l Directly Support s a District-Wide G o a l FY 2020-21 ACCOMPLISHMENTS Goal 01 Develop and Implement the District’s Capital Improvement Program to Address Rehabilitation and Maintenance Needs While Also Preparing for New Development • Issued the design and construction contracts for the rehabilitation of reservoir at Plant 108. • Completed the design for rehabilitation of Plant 101. • Completed the design and construction of the Elm Street water main replacement. • Supported the development of the Community Facilities District (CFD) for the Highland Hills development. • Managed the AMI Project through its completion. Goal 02 Develop Plans to Optimize District Utilization of Local and Imported Surface Water • Made substantial progress toward completing the pre-design report for the Water Treatment Plant at the east end of the District’s service area. • Initiated a design-build contract for a Granular Activated Carbon (GAC) system at Plant 134 to address disinfection by-product control. • Completed installation of metering facilities and reporting tools to document NFWC going to surface spreading. Goal 03 Support the Steps Necessary for Advancement of the SNRC • Led development of facility start-up plans. • Ensured prompt decision making to support construction efforts. • Continued work to receive needed approvals and permits. ENGINEERING Significant Changes None. Levels of Service The Engineering Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Develop Projects and Programs to Ensure Safe and Reliable Services (IV-A) • Dedicate Efforts towards System Maintenance and Modernization (IV-C) • Strive to Provide World Class Customer Relations (III-B) FISCAL YEAR BUDGET 2021-2022 | PAGE 190 Program Budget Allocation $1,592,000 PROGRAM SUMMARIES EAST VALLEY WATER DISTRICT | PAGE 191 The program’s performance related to these metrics are included in the following table. Key Performance Indicators Changes Agency Goal Key Performance Indicator Target FY 2018-19 FY 2019-20 FY 2020-21 IV-A Initiate fully funded projects included in the current year CIP 100%90%90%90% IV-C Complete current year updates to GIS base maps 100%100%100%100% III-B Complete development infrastructure plan reviews in < 14 days 100%100%100%100% III-B Issue development impact fee costs estimates in < 2 days 100%100%100%100% Program Budget Detail FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 719,365 $ 735,000 $ 678,611 $ 666,000 $ (69,000)-9% 5102 Temporary Labor - - - - - 0% 5103 Overtime 917 3,000 - 3,000 - 0% 5200 Benefits 277,668 263,000 310,422 186,000 (77,000)-29% OPERATING EXPENSES 6201 Materials & Supplies 4,645 9,000 671 9,000 - 0% 6202 Tools - 7,000 2,239 7,000 - 0% 6203 Office Supplies 3,285 7,000 207 6,000 (1,000)-14% 6301 Contract Services 79,721 240,000 28,526 441,000 201,000 84% 6303 Printing & Publishing 747 6,000 - 6,000 - 0% 6304 Legal Services 16,290 40,000 17,737 40,000 - 0% 6307 Uniforms 2,851 3,000 1,868 3,000 - 0% 6402 Telephone 2,185 2,000 4,310 2,000 - 0% 6405 Permits 66,166 193,000 80,143 194,000 1,000 1% 6406 Postage - 1,000 - 1,000 - 0% 6501 Memberships & Dues 1,220 4,000 419 5,000 1,000 25% 6502 Professional Development 5,316 28,000 923 20,000 (8,000)-29% 6504 Meetings 455 3,000 383 3,000 - 0% ENGINEERING TOTAL $ 1,180,831 $ 1,544,000 $ 1,126,459 $ 1,592,000 $ 48,000 3% FISCAL YEAR BUDGET 2021-2022 | PAGE 192 IntentionallyTHIS PAGE LEFT BLANK EAST VALLEY WATER DISTRICT | PAGE 193 Water Production WA T E R PR O D U C T I O N GENERAL ADMINISTRATION CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE WATER RECLAMATION FACILITIES MAINTENANCE Program Personnel Operations Manager 1 Sr. Water Production Operator 1 Water Production Operator III 3 Water Production Operator II 1 Administrative Assistant 1 Total Full-Time 7 Water Production is responsible for monitoring and operating the entire water system. FISCAL YEAR BUDGET 2021-2022 | PAGE 194 FLEET MAINTENANCE GOVERNING BOARD HUMAN RESOURCES Director of Engineering & Operations Operations Manager Sr. Water Production Operator Program Structure Water Production Operator III Water Production Operator II Water Production Supervisor Administrative Assistant Water Production PUBLIC AFFAIRS General Manager/CEO Water Production FUNCTION Water Production is responsible for the daily monitoring and operations of the entire water production system to ensure preventative maintenance of all pumps, motors, wells, boosters, reservoirs, pressure regulating valves (PRVs), hydro- pneumatic plants, and the SCADA system. This Program is responsible for the delivery of NFWC. EAST VALLEY WATER DISTRICT | PAGE 195 GOALS OBJECTIVES #1 Implement a Plan to Identify and Enhance the Water Sources Requirements Due to the SNRC Discharge Location 1. Coordinate with contractor to rehabilitate Wells 11, 125, and 142 to accommodate water loss source water. 2. Identify and prioritize making Well 120 operational with electrical, SCADA, and required permitting. 3. Upgrade and rehabilitate Plant 40 boosters 1 through 4. 4. Support efforts with consulting firm to locate future well sites. #2 Support Engineering and Contractor Assigned to Plant 56 Tank/Reservoir Rehabilitation Projects 1. Develop a pumping plan to have Plant 56 out of service for rehabilitation. 2. Identify and isolate all valves required to drain and rehabilitate tank. 3. After construction fill, sample and bring the tank back online. #3 Enhance the SCADA System to Achieve Water Productions Requirements 1. Identify SCADA system limitations or configuration changes needed for water production due to SNRC’s source water reduction. 2. Hire consultant and support the SCADA masterplan and work with IT to identify scope of work and complete phase three to upgrade SCADA radios. #4 Rehabilitate Plant Site Equipment to Ensure Water Production and Mitigate Production Inefficiencies 1. Coordinate with Water Maintenance to repair and replace booster pumps, pipes, and critical valves at Plants 33 and 131. 2. Replace meter at Plants 33 and 108 and complete six Cla-Val repairs and maintenance. PROGRAM SUMMARIES Directly Supports a District-Wide G o a l Directly Support s a District-Wide G o a l FY 2020-21 ACCOMPLISHMENTS Goal 01 Support the Engineering and Contractor Assigned to Plant 108 Tank/Reservoir Rehabilitation Project • Developed Plant 108 shut down plan in preparation for tank rehabilitation. Goal 02 Implement Improvements to Enhance the SCADA System • Continued to work with contractor and IT to improve SCADA and radio communications at multiple plants. Goal 03 Transition the NFWC and Bear Valley Mutual Water Company Shareholders from the North Fork Canal/Pipeline to Alternative Metered Connections • Assisted with the purchase of NFWC shares. Goal 04 Bring Plant 120 Online to Produce 600-800 Gallons per Minute • Began preparation to bring Plant 120 online. Other Accomplishments • Rehabilitated 2 wells and 5 booster pumps. • Completed the rebuild of a well, four booster pumps, and tank 39-1 interior coating for Plant 39. • Completed Cla-Val pressure regulating valve maintenance and inspections. • Completed tank rehabilitation prioritization report. • Completed annual pump testing with SCE. WATER PRODUCTION FISCAL YEAR BUDGET 2021-2022 | PAGE 196 PROGRAM SUMMARIES EAST VALLEY WATER DISTRICT | PAGE 197 Significant Changes Groundwater production locations will need to be modified in preparation for the SNRC groundwater recharge requirements. Levels of Service The Water Production Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Develop Projects and Programs to Ensure Safe and Reliable Services (IV-A) • Dedicate Effort towards System Maintenance and Modernization (IV-C) • Enable Fact-Based Decision Making through State-of-the-Art Data Management (IV-D) The program’s performance related to these metrics are included in the following table. Key Performance Indicators Changes Agency Goal Key Performance Indicator Target FY 2018-19 FY 2019-20 FY 2020-21 IV-A Perform upgrades to SCADA radios as recommended by consultant 10/Yr N/A N/A 6 IV-C Perform or schedule repairs recommended by reservoir inspection report 1/Yr N/A 1 1 IV-D Implement available SCADA software updates 100%100%100%100% IV-A Perform repairs recommended from the electrical inspection report 100%100%100%100% Program Budget Detail Administration FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 234,249 $ 248,000 $ 234,076 $ 251,000 $ 3,000 1% 5103 Overtime 25 1,000 205 1,000 - 0% 5104 Standby 15,550 15,000 16,377 15,000 - 0% 5200 Benefits 163,226 191,000 156,657 150,000 (41,000)-21% Program Budget Allocation $4,539,000 FISCAL YEAR BUDGET 2021-2022 | PAGE 198 FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed OPERATING EXPENSES 6201 Materials & Supplies $ 1,475 $ - 1,536 $ - $ - 0% 6202 Tools 7,378 6,000 2,567 6,000 - 0% 6203 Office Supplies 5,051 4,000 6,205 4,000 - 0% 6301 Contract Services 74,833 101,000 78,805 101,000 - 0% 6304 Legal Services 3,030 - - - - 0% 6307 Uniforms 12,834 10,000 8,677 15,000 5,000 50% 6402 Telephone 7,444 14,000 10,655 14,000 - 0% 6405 Permits - - - - - 0% 6501 Memberships & Dues 310 3,000 467 3,000 - 0% 6502 Professional Development 7,331 6,000 4,865 7,000 1,000 17% 6503 Education Assistance - - - - - 0% 6504 Meetings 653 1,000 429 1,000 - 0% ADMINISTRATION TOTAL $ 533,389 $ 600,000 $ 521,521 $ 568,000 $ (32,000)-5% Source of Supply/Wells FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 322,074 $ 203,000 $ 295,500 $ 195,000 $ (8,000)-4% 5103 Overtime 19,195 7,000 30,019 7,000 - 0% 5200 Benefits 117,710 103,000 127,812 96,000 (7,000)-7% OPERATING EXPENSES 6101 Purchased Water 704,460 400,000 31,295 400,000 - 0% 6102 Groundwater Replenishment 111,625 304,000 138,757 304,000 - 0% 6103 Water Assessment 16,811 122,000 92,598 64,000 (58,000)-48% 6201 Materials & Supplies 36,196 45,000 41,761 45,000 - 0% 6204 Chemicals 94,902 150,000 85,054 150,000 - 0% 6301 Contract Services 98,951 150,000 225,639 150,000 - 0% 6402 Telephone - - - - - 0% 6403 Electricity 1,125,816 1,250,000 1,778,757 1,350,000 100,000 8% 6405 Permits 70,405 100,000 74,845 100,000 - 0% SOURCE OF SUPPLY/WELLS TOTAL $ 2,718,145 $ 2,834,000 $2,922,037 $ 2,861,000 $ 27,000 1% WATER PRODUCTION CONT. PROGRAM SUMMARIES Boosting and Pumping FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 14,842 $ 74,000 $ - $ 103,000 $ 29,000 39% 5103 Overtime 6,568 4,000 12,651 4,000 - 0% 5200 Benefits 31,258 38,000 25,670 57,000 19,000 50% OPERATING EXPENSES 6201 Materials & Supplies 10,327 20,000 4,752 20,000 - 0% 6301 Contract Services 4,375 75,000 175,356 75,000 - 0% 6403 Electricity 349,651 400,000 521,565 400,000 - 0% BOOSTING & PUMPING TOTAL $ 417,021 $ 611,000 $ 739,994 $ 659,000 $ 48,000 8% Transmission And Distribution FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 159,916 $ 198,000 $ 195,404 $ 183,000 $ (15,000)-8% 5103 Overtime 9,202 10,000 13,222 10,000 - 0% 5200 Benefits 97,311 120,000 102,469 103,000 (17,000)-14% OPERATING EXPENSES 6201 Materials & Supplies 65,436 25,000 56,153 60,000 35,000 140% 6204 Chemicals 23,300 50,000 30,081 50,000 - 0% 6301 Contract Services 36,753 45,000 73,680 45,000 - 0% TRANSMISSION & DISTRIBUTION TOTAL $ 391,918 $ 448,000 $ 471,009 $ 451,000 $ 3,000 1% TOTAL WATER PRODUCTION $4,060,473 $4,493,000 $4,654,561 $4,539,000 $ 46,000 1% in managing the overall water distribution system.Water Production specializes EAST VALLEY WATER DISTRICT | PAGE 199 FISCAL YEAR BUDGET 2021-2022 | PAGE 200 IntentionallyTHIS PAGE LEFT BLANK EAST VALLEY WATER DISTRICT | PAGE 201 Water Treatment WA T E R TR E A T M E N T GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE WATER RECLAMATION FACILITIES MAINTENANCE Program Personnel Water Production Supervisor 1 Sr. Treatment Plant Operator 1 Total Full-Time 2 Operations Manager Water Production Supervisor Program Structure Water Treatment is responsible for treating the three sources of supply. FISCAL YEAR BUDGET 2021-2022 | PAGE 202 FLEET MAINTENANCE GOVERNING BOARD Sr. Treatment Plant Operator Water Treatment HUMAN RESOURCES Director of Engineering & Operations General Manager/CEO Water Treatment FUNCTION Water Treatment is responsible for management of three different sources of supply used by the District. The three sources are surface water, groundwater, and State Water Project imported water. The District operates Plant 134, Surface Water Treatment Plant, which can treat two water sources Santa Ana River water and imported water from the State Water Project. Staff also operates two unique groundwater treatment facilities: Plant 28 uses GAC and Plant 39 is a blending facility. EAST VALLEY WATER DISTRICT | PAGE 203 GOALS OBJECTIVES #1 Support Construction of GAC Facilities and Sludge Removal Projects 1. Coordinate with Finance for completing GAC SRF funding or alternate funding sources. 2. Develop a construction timeline aligning funding with project expenditures. 3. Implement Prefiltration to increase water production. #2 Complete Plant 134 Membrane Replacements Using a 5-Phase Replacement 1. Identify the modules to be replaced in Phase 5. 2. Procure the needed membrane modules from the manufacturer in accordance with the District’s purchasing policy. 3. Coordinate and schedule the in-house installation of the new membranes. #3 Evaluate and Rehabilitate Existing Clean-in-Place Equipment at Plant 134 and Hire a Tank Diving Firm to Evaluate Plant 134 Tank Repair Recommendations 1. Evaluate and determine which pumps need replacement versus maintenance and repair. 2. Hire tank diving firm and evaluate recommendations. 3. Modernize and automate the uses of clean-in-place equipment. 4. Purchase necessary parts and materials to complete clean-in-place equipment project. PROGRAM SUMMARIES Directly Support s a District-Wide Go a l Directly Support s a District-Wide G o a l FY 2020-21 ACCOMPLISHMENTS Goal 01 Support Anticipated Design Build Efforts at Plant 134 for Capital Projects Per SWRCB Recommendations • Began working with a consultant to implement GAC installation per SWRCB recommendations. Goal 02 Complete Plant 134 Membrane Replacements Using a 5-Phase Replacement Plan • Received and installed the new membrane filters at Plant 134. Goal 03 Replace All Five Chlorine Generation Cells at Plant 134 • All five chlorine generation cells were replaced at Plant 134. Other Accomplishments • Increased two employees’ level of Treatment Certifications. • Assisted contractor and Facilities with Plant 134 office remodel. • Worked with Engineering and consultant planning for GAC installation. • Assisted contractor with Plant 134 office remodel. WATER TREATMENT Significant Changes None. Levels of Service The Water Treatment Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) • Dedicate Effort towards System Maintenance and Modernization (IV-C) • Maximize Staff Capabilities through Ongoing Professional Development (I-B) FISCAL YEAR BUDGET 2021-2022 | PAGE 204 Program Budget Allocation $900,000 PROGRAM SUMMARIES EAST VALLEY WATER DISTRICT | PAGE 205 The program’s performance related to these metrics are included in the following table. Key Performance Indicators Changes Agency Goal Key Performance Indicator Target FY 2018-19 FY 2019-20 FY 2020-21 IV-A Meet all regulatory requirements 100%100%100%100% IV-A Maximize utilization of plant capacity through minimization of downtime and monitoring of raw water 7.5 MGD 4.0 3.5 3.5 IV-C Percentage of plant equipment and motors on preventative maintenance schedules 100%100%100%100% I-B Number of Production staff with T-4 certification or higher 4 3 5 5 Program Budget Detail FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 251,332 $ 252,000 $ 252,054 $ 243,000 $ (9,000)-4% 5103 Overtime 48,655 39,000 47,555 39,000 - 0% 5200 Benefits 147,321 150,000 146,222 147,000 (3,000)-2% OPERATING EXPENSES 6201 Materials & Supplies 18,168 15,000 84,607 20,000 5,000 33% 6204 Chemicals 138,693 150,000 125,206 150,000 - 0% 6301 Contract Services 96,550 147,000 152,005 147,000 - 0% 6307 Uniforms 1,518 2,000 1,235 2,000 - 0% 6402 Telephone 1,830 - 2,687 2,000 2,000 100% 6403 Electricity 112,710 150,000 140,588 150,000 - 0% 6405 Permits - - - - - 0% WATER TREATMENT TOTAL $ 816,777 $ 905,000 $ 952,159 $ 900,000 $ (5,000)-1% FISCAL YEAR BUDGET 2021-2022 | PAGE 206 IntentionallyTHIS PAGE LEFT BLANK EAST VALLEY WATER DISTRICT | PAGE 207 Water Quality WA T E R QU A L I T Y GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER MAINTENANCE WASTEWATER MAINTENANCE WATER RECLAMATION FACILITIES MAINTENANCE Program Personnel Water Quality Coordinator 1 Water Quality Technician 1 Total Full-Time 2 Operations Manager Water Production Supervisor Program Structure Water Quality complies with all required drinking water regulations. FISCAL YEAR BUDGET 2021-2022 | PAGE 208 FLEET MAINTENANCE GOVERNING BOARD Water Quality Coordinator HUMAN RESOURCES Water Quality Technician Water Quality WATER TREATMENT Director of Engineering & Operations General Manager/CEO Water Quality FUNCTION Water Quality is responsible for ensuring District compliance with State and Federal Drinking Water Regulations. This program manages Backflow Prevention, Water Sampling, and the Fire Hydrant Flushing Programs. Water Quality is also assisting in the development and launch of the Fats, Oils and Grease (FOG) program for SNRC pre-treatment. GOALS OBJECTIVES #1 Evaluate Water Quality Regulations and Improve Process Efficiencies to Enhance Water Quality Compliance 1. Develop sampling programs to maximize treatment process efficiencies. 2. Provide special source water sampling data to support preliminary East-End Treatment Plant Design. 3. Contract for installation of tank mixing equipment in District reservoirs at Plants 56 and 59. 4. Complete Tri-Annual Lead and Copper sampling in accordance with the EPA’s Revised Lead and Copper Rule. 5. Complete and submit the Santa Ana River Sanitary Watershed Survey. #2 Repair/Replace Outdated and Unsafe Fire Service Connections 1. Identify outdated/unsafe Fire Service Connections for potential rehabilitation. 2. Partner with Field Services to replace failed devices and abandon unsafe vaults were possible. #3 Assist in Launching FOG Program Transition and Software Procurement 1. Work with Engineering and Information Technology for software implementation. 2. Assist with program transition and compliance. PROGRAM SUMMARIES Directly Support s a District-Wide G o a l EAST VALLEY WATER DISTRICT | PAGE 209 FY 2020-21 ACCOMPLISHMENTS Goal 01 Evaluate Water Quality Regulations and Improve Process Efficiencies to Enhance Water Quality Regulations and Improve Process Efficiencies to Enhance Water Quality Compliance • Installed two tank mixers at Plant 129. • Completed initial sampling for Perfluoroalkyl and polyfluoroalkyl substances (PFAS)/Perfluorooctanoic Acid (PFOA) as required by State regulations. • Evaluated GAC system design for Plant 134 and provided recommendations. Goal 02 Implement In-House Environmental Controls and Compliance Program • Increased customer participation in the backflow testing program by an additional 5%. • Evaluated various FOG based program software for program transition. Other Accomplishments • One employee received their Cross-Connection Control Specialist certification. • Completed Tri-Annual Haz-Mat inspections at all sites with San Bernardino County Fire. • Assumed Fire Flow testing responsibilities. • Kicked off Santa Ana River Watershed Sanitary Survey, required every five years. • Participated in the Districts success of Water/Wastewater career pathway program. • Provided annual water quality data for Consumer Confidence Report (CCR) reported to SWRCB. WATER QUALITY Significant Changes Increased Contract Services to comply with Lead and Copper expanded sampling. Increased Contract Services for fire service backflow replacement. Levels of Service The Water Quality Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) • Strive to Provide World Class Customer Relations (III-B) • Maximize Staff Capabilities through Ongoing Professional Development (I-B) FISCAL YEAR BUDGET 2021-2022 | PAGE 210 Program Budget Allocation $521,000 PROGRAM SUMMARIES EAST VALLEY WATER DISTRICT | PAGE 211 The program’s performance related to these metrics are included in the following table. Key Performance Indicators Changes Agency Goal Key Performance Indicator Target FY 2018-19 FY 2019-20 FY 2020-21 IV-A Conduct all water quality sampling required by SWRCB and EPA 100%100%100%100% IV-A Promote Customer Participation in District’s Backflow Testing Program 5%/Yr 10%8%5% III-B Response time to water quality complaints by customers (avg)2.0 Hrs 1.5 1.5 1.5 I-B Number of Water Quality program staff with D-4 certification or higher 2 2 2 2 Program Budget Detail FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 89,311 $ 92,000 $ 96,713 $ 108,000 $ 16,000 17% 5103 Overtime 1,092 6,000 937 6,000 - 0% 5200 Benefits 43,826 45,000 59,484 50,000 5,000 11% SOURCE OF SUPPLY/WELLS OPERATING EXPENSES 6201 Materials & Supplies 13,303 13,000 14,828 13,000 - 0% 6301 Contract Services 138,445 115,000 41,666 102,000 (13,000)-11% 6307 Uniforms 1,349 4,000 1,681 4,000 - 0% 6504 Meetings 443 1,000 - 1,000 - 0% TRANSMISSION AND DISTRIBUTION PERSONNEL EXPENSES 5101 Regular Labor 105,892 92,000 96,713 108,000 16,000 17% 5103 Overtime 1,031 7,000 937 6,000 (1,000)-14% 5200 Benefits 38,172 45,000 70,135 50,000 5,000 11% TRANSMISSION AND DISTRIBUTION OPERATING EXPENSES 6201 Materials & Supplies - - 147 - - 0% 6202 Tools 1,999 5,000 1,771 5,000 - 0% 6301 Contract Services 28,651 48,000 39,719 61,000 13,000 27% 6406 Postage - 2,000 - 2,000 - 0% 6502 Professional Development 175 2,000 587 2,000 - 0% 6503 Education Assistance - 3,000 - 3,000 - 0% WATER QUALITY TOTAL $ 463,689 $ 480,000 $ 425,318 $ 521,000 $ 41,000 9% FISCAL YEAR BUDGET 2021-2022 | PAGE 212 IntentionallyTHIS PAGE LEFT BLANK EAST VALLEY WATER DISTRICT | PAGE 213 Water Maintenance WA T E R MA I N T E N A N C E GENERAL ADMINISTRATION CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER TREATMENT WATER QUALITY WASTEWATER MAINTENANCE WATER RECLAMATION FACILITIES MAINTENANCE Program Personnel Field Service Supervisor 1 Sr. Field Service Worker 2 Field Service Worker III 5 Field Service Worker II 2 Field Service Worker I 4 Storekeeper/Buyer 1 Total Full-Time 15 Water Maintenance maintains the District’s water transmission and distribution system. FISCAL YEAR BUDGET 2021-2022 | PAGE 214 FLEET MAINTENANCE GOVERNING BOARD HUMAN RESOURCES Operations Manager Sr. Field Service Worker Program Structure Field Service Worker III Field Service Worker II Storekeeper/Buyer PUBLIC AFFAIRS Field Service Worker I Water Maintenance WATER PRODUCTION Director of Engineering & Operations General Manager/CEO Field Service Supervisor Water Maintenance FUNCTION The Water Maintenance Program is responsible for the repair and replacement of the District’s 300 miles of water pipeline. Water Maintenance coordinates with Engineering and Water Production to install water service lines, fire hydrants, meters, valves, and all related equipment. The crew members remain on standby during non-business hours to respond to customer afterhours requests and emergencies. EAST VALLEY WATER DISTRICT | PAGE 215 GOALS OBJECTIVES #1 Prioritize Preventative Maintenance Schedules to Ensure Equipment Readiness for Emergency Response 1. Continue planned exercise program between Boulder Avenue on the east, and Central Avenue on the west. 2. Coordinate with Production to perform inspection of critical valves at Plants 33 and 131. 3. Inspect, maintain, and replace (as needed) 3,000 hydrants on a three- year cycle. #2 Complete Evaluation of Existing Technology/ Software and Requisition Upgrades/Replacements if Necessary 1. Identify weaknesses of existing software programs. 2. Conduct needs-assessment. 3. Work with IT to hold product demonstrations. #3 Develop a Replacement Program for Inground Fire Services to N-Shaped Aboveground Devices 1. Coordinate with the Water Quality Program on developing a replacement schedule and identify three fire services per year. 2. Procure the N-shaped devices and install the three identified for replacement. 3. Install service line and meter for three NFWC shareholders and abandonment of existing weirs. PROGRAM SUMMARIES FY 2020-21 ACCOMPLISHMENTS Goal 01 Prioritize Preventative Maintenance Schedules to Ensure Equipment Readiness for Emergency Response • Replaced booster pump piping at Plant 39. • Replaced booster pump piping at Plant 24. Goal 02 Complete Two In-House Water Main Replacements • Completed in-house water main replacements on Barton Road and 28th Street; installed approximately 1,500 linear feet of new water main and 37 new services. Goal 03 Complete Evaluation of Existing Technology/Software and Requisition Upgrades/ Replacements if Necessary • Reviewed existing technology and provided feedback to IT services. Other Accomplishments • Completed year three of leak survey and collected data that feeds into the water audit. • Repaired 285 water leaks. • Installed three new water services for North Fork ditch and added meters. • One employee received their Distribution III Certification. • Six employees received their Class A Driver’s License. • Over 1,600 AMI meters replaced by in-house staff within the last five years. • Installed three new water services for the SNRC. WATER MAINTENANCE FISCAL YEAR BUDGET 2021-2022 | PAGE 216 Significant Changes Due to COVID-19 Water Distribution Certification testing is conducted online. The District lowered the number of gate valves excised to 600 due to the emergency staffing reduction.Program Budget Allocation $3,078,000 PROGRAM SUMMARIES EAST VALLEY WATER DISTRICT | PAGE 217 Levels of Service The Water Maintenance Program has six KPI metrics that are associated with the District’s Goals and Objectives of: • Maximize Internal Capabilities through Ongoing Professional Development (I-B) • Advance Emergency Preparedness Efforts (III-A) • Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) • Dedicate Effort towards System Maintenance and Modernization (IV-C) The program’s performance related to these metrics are included in the following table. Key Performance Indicators Changes Agency Goal Key Performance Indicator Target FY 2018-19 FY 2019-20 FY 2020-21 I-B Number of Water Maintenance staff with D-3 certification or higher 5 6 5 5 III-A Annual equipment and safety training hours per staff member 16 16 16 16 IV-A Number of gate valves exercised 1,200 1,400 0 570 IV-C Respond to, and assess, customer leak concerns within reasonable time frame 98%95%100%100% IV-C Number of main leaks repaired <70 85 78 78 IV-C Estimate of water losses from main leaks (MG)<10 MG 1 MG 0.54 MG 0.54 MG Program Budget Detail Field Maintenance FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 196,488 $ 200,000 $ 204,161 $ 200,000 $ - 0% 5103 Overtime 967 2,000 - 2,000 - 0% 5104 Standby 24,020 20,000 27,759 20,000 - 0% 5200 Benefits 120,430 144,000 210,602 129,000 (15,000)-10% FISCAL YEAR BUDGET 2021-2022 | PAGE 218 FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed OPERATING EXPENSES 6203 Office Supplies $ 1,794 $ 3,000 $ 124 $ 3,000 $ - 0% 6303 Printing & Publishing - - - - - 0% 6307 Uniforms 1,874 1,000 2,342 1,000 - 0% 6402 Telephone 25,046 41,000 33,056 41,000 - 0% 6501 Memberships & Dues 858 2,000 256 2,000 - 0% 6502 Professional Development 17,056 19,000 18,389 19,000 - 0% 6503 Education Assistance - - - - - 0% 6504 Meetings 2,623 2,000 1,824 3,000 1,000 50% ADMINISTRATION TOTAL $ 391,156 $ 434,000 $ 498,513 $ 420,000 $ (14,000)-3% Water Maintenance FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 1,089,769 $ 1,012,000 $ 1,016,562 $ 957,000 $ (55,000)-5% 5103 Overtime 257,580 219,000 305,002 219,000 - 0% 5200 Benefits 530,450 516,000 428,418 544,000 28,000 5% OPERATING EXPENSES 6201 Materials & Supplies 225,412 280,000 525,753 280,000 - 0% 6202 Tools 33,572 21,000 29,106 21,000 - 0% 6301 Contract Services 183,025 72,000 100,268 72,000 - 0% 6307 Uniforms 30,774 40,000 25,442 40,000 - 0% 6310 Street Services 522,959 325,000 403,776 525,000 200,000 62% 6405 Permits 18,132 - 23,040 - - 0% TRANSMISSION & DISTRIBUTION TOTAL $ 2,891,673 $ 2,485,000 $ 2,857,367 $ 2,658,000 $ 173,000 7% TOTAL WATER MAINTENANCE $ 3,282,829 $ 2,919,000 $3,355,880 $ 3,078,000 $ 159,000 5% WATER MAINTENANCE CONT. EAST VALLEY WATER DISTRICT | PAGE 219 Wastewater Maintenance WA S T E W A T E R MA I N T E N A N C E GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER MAINTENANCE WATER RECLAMATION FACILITIES MAINTENANCE Program Personnel Field Service Worker III 2 Field Service Worker II 2 Total Full-Time 4 Operations Manager Field Service Supervisor Program Structure Wastewater Maintenance maintains the District’s wastewater conveyance system. FISCAL YEAR BUDGET 2021-2022 | PAGE 220 FLEET MAINTENANCE GOVERNING BOARD Field Service Worker III HUMAN RESOURCES Field Service Worker II WATER TREATMENT Wastewater Maintenance WATER QUALITY Director of Engineering & Operations General Manager/CEO Wastewater Maintenance FUNCTION The Program’s purpose is prevention of wastewater spillage and leaks. This is accomplished by routine inspections, cleaning, repairs, and replacements of the District’s 220 miles of collection pipelines. The District collection system has been engineered to use best practice gravity flow conveyance prior to treatment. California public health code mandates the District, and agencies alike, responsible inspection of wastewater collection systems. The pipeline inspection program uses a sewer inspection camera and closed- circuit television (CCTV) technology. The videoing software allows the operator to document pipeline condition attributes and location data for maintenance or replacement consideration. Along with videoing the collection pipeline, the Program conducts a weekly sewer cleaning program using specialized equipment. The jetting program ensures the whole system is cleaned within 24 months, and high maintenance areas are cleaned more regularly. EAST VALLEY WATER DISTRICT | PAGE 221 GOALS OBJECTIVES #1 Continue Wastewater Collection System Maintenance and Management 1. Video inspect and assess all District mains between the northern and southern District boundaries, and between Del Rosa and Victoria. Approximately 150 miles. 2. Clean a minimum of 110 miles of wastewater main. #2 Develop and Implement Operating Procedures for Enhanced Monitoring of High-Flow Sewer Mains 1. Create a flow sensor procedure manual and train wastewater operators on the using and maintaining the equipment. 2. Work with FOG consultant for compliance and administration of the FOG program. Staff will report high maintenance areas within the collection system to contracted FOG inspector. #3 Cross-Train Staff on Enhanced Functions of New Wastewater Inspection Equipment 1. Create a procedure manual on the using and maintain the CCTV truck and equipment. 2. Cross-train all water and wastewater field-crew members on the use and operation of the new CCTV truck. PROGRAM SUMMARIES Directly Supports a District-Wide G o a l FY 2020-21 ACCOMPLISHMENTS Goal 01 Continue Wastewater Collection System Maintenance and Management • Updated Sanitary Sewer Management Plan (SSMP). • Cleaned 125 miles of sewer main and video inspected 52 miles of sewer main. • Worked with contractor on numerous main and lateral repairs. Goal 02 Implement Procedures to Enhance Monitoring of High-Flow Sewer Mains • Purchased sewer overflow alarms to install on sewer high flow manholes. Goal 03 Update Staff Training to Include Enhanced Functions of New Equipment • Provided staff training for new sewer equipment and jetting trailer. Other Accomplishments • Started maintaining the East Trunk Sewer Pipeline, formerly owned by the SBMWD. WASTEWATER MAINTENANCE Significant Changes The District purchased a new CCTV truck for wastewater pipeline inspections. Wastewater treatment contract services have been relocated to the new Water Reclamation Program. Levels of Service The Wastewater Maintenance Program has five KPI metrics that are associated with the District’s Goals and Objectives of: • Maximize Internal Capabilities through Ongoing Professional Development (I-B) • Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) • Dedicate Effort towards System Maintenance and Modernization (IV-C) FISCAL YEAR BUDGET 2021-2022 | PAGE 222 Program Budget Allocation $950,000 PROGRAM SUMMARIES EAST VALLEY WATER DISTRICT | PAGE 223 The program’s performance related to these metrics are included in the following table. Key Performance Indicators Changes Agency Goal Key Performance Indicator Target FY 2018-19 FY 2019-20 FY 2020-21 I-B Number of staff holding CWEA certifications 4 5 6 6 IV-A Miles of wastewater mains inspected by video 55 74 65 52 IV-A Category 1 Sanitary System Overflows reportable to SWRCB 0 0 0 0 IV-C Miles of wastewater mains jetted / cleaned 110 177 125 93 IV-C Spot repairs identified and completed 100%100%100%100% Program Budget Detail FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 303,374 $ 335,000 $ 339,689 $ 419,000 $ 84,000 25% 5103 Overtime 4,674 9,000 9,805 9,000 - 0% 5200 Benefits 154,259 176,000 166,304 209,000 33,000 19% OPERATING EXPENSES 6201 Materials & Supplies 21,009 31,000 2,234 31,000 - 0% 6202 Tools 695 5,000 14,000 5,000 - 0% 6301 Contract Services 281,281 243,000 115,000 273,000 30,000 12% 6305 Treatment Services 8,496,012 8,586,000 7,715,000 - (8,586,000)-100% 6307 Uniforms 2,155 4,000 2,000 4,000 - 0% WASTEWATER MAINTENANCE TOTAL $ 9,263,459 $ 9,389,000 $ 684,536 $ 950,000 $ (8,439,000)-90% FISCAL YEAR BUDGET 2021-2022 | PAGE 224 IntentionallyTHIS PAGE LEFT BLANK EAST VALLEY WATER DISTRICT | PAGE 225 Water Reclamation WA T E R RE C L A M A T I O N GENERAL ADMINISTRATION CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER TREATMENT WATER QUALITY WASTEWATER MAINTENANCE FACILITIES MAINTENANCE Program Personnel Water Reclamation Manager 1 Sr. Wastewater Treatment Plant Operator 1 Wastewater Treatment Plant Operator I-III 4 Wastewater Treatment Plant Mechanic I-II 1 Elecrical & Instrumentation Controls Technician 1 Administrative Analyst 1 GIS Technician 1 Information Technology Analyst 1 Total Full-Time 11 Recycled water provides a new drought-proof supply for groundwater replenishment. FISCAL YEAR BUDGET 2021-2022 | PAGE 226 FLEET MAINTENANCE GOVERNING BOARD HUMAN RESOURCES Water Reclamation Manager Program Structure PUBLIC AFFAIRS WATER PRODUCTION Water Reclamation WATER MAINTENANCE Director of Engineering & Operations General Manager/CEO Administrative Analyst Electrical & Instrumentation Controls Technician Sr. Wastewater Treatment Plant Operator Wastewater Treatment Plant Operator Wastewater Treatment Plant Mechanic Water Reclamation FUNCTION The Water Reclamation Program is responsible for treating and disinfecting 8.0 million gallons of wastewater per day (MGD). Reclamation of wastewater generated by District customers will transition from a service contracted with the SBMWD, to in-house operations at the newly completed SNRC during FY 2021-22. The SNRC operations include anaerobic digestion for energy generation in order to offset the cost of power needed to operate the plant. EAST VALLEY WATER DISTRICT | PAGE 227 GOALS OBJECTIVES #1 Complete Staffing and Staff Training for New Wastewater Treatment Operations 1. Hire staff in accordance with staffing plan finalized by Human Resources. 2. Ensure new employees are trained on automation and control. #2 Finalize Vendor Selection, Contracts and Other Agreements Needed to Operate the SNRC 1. Complete list of all vendors and contractors needed to support SNRC operations and maintenance. 2. Enter into agreements for services with all vendors identified above. 3. Establish contract for food waste for increased energy generation used by the Digesters. #3 Commence Operations at the SNRC 1. Participate in negotiations for the financial transition away from the SBMWD. 2. Complete phased approach to diverting wastewater to the SNRC over a three-month period. PROGRAM SUMMARIES Directly Supports a District-Wide G o a l Directly Supports a District-Wide G o a l Directly Supports a District-Wide G o a l FY 2020-21 ACCOMPLISHMENTS Goal 01 Revise Budgeting to Account for Operational Needs of New Water Reclamation Program for FY 2021-22 • Completed Cost of Service Analysis to establish rates for Wastewater Treatment. • Budgeted for equipment and other capital items not covered by Contractor or other District programs. Goal 02 Identify Operational Changes Needed to Accommodate Planned Development within the District • Initiated development of required documentation in preparation for the in- house FOG Program. • Sent out letters to FOG generating businesses/customers. WATER RECLAMATION Significant Changes District will transition from contracting with the SBMWD for wastewater treatment, to in-house treatment by commencing operations at the SNRC. Between eight and ten employees will be added to operate the SNRC. Levels of Service The Water Reclamation Program has five KPI metrics that are associated with the District’s Goals and Objectives of: • Maximize Internal Capabilities through Ongoing Professional Development (I-B) • Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) • Dedicate Effort towards System Maintenance and Modernization (IV-C) FISCAL YEAR BUDGET 2021-2022 | PAGE 228 Program Budget Allocation $9,555,000 PROGRAM SUMMARIES EAST VALLEY WATER DISTRICT | PAGE 229 The program’s performance related to these metrics are included in the following table. Key Performance Indicators Changes Agency Goal Key Performance Indicator Target FY 2018-19 FY 2019-20 FY 2020-21 I-B Number of staff holding CWEA certifications 6 N/A N/A5 2 IV-A Exceed NPDES Requirements (85%) for Removal of BOD and TSS at the SNRC 95%N/A N/A N/A IV-A Deliver recycled water to SBVMWD for groundwater recharge 98%N/A N/A N/A IV-C Tipping Fees collected from outside haulers $3.2M N/A N/A N/A IV-C Complaints about noise / odor / congestion by surrounding neighbors 0 N/A N/A 5 Program Budget Detail FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ - $ - $ - $ 563,000 $ 563,000 100% 5103 Overtime - - - 3,000 3,000 100% 5200 Benefits - - - 287,000 287,000 100% OPERATING EXPENSES 6201 Materials & Supplies - - - 35,000 - - 6202 Tools - - - 12,000 - - 6203 Office Supplies - - - 10,000 - - 6204 Chemicals - - - 131,000 - - 6301 Contract Services - - - 367,000 - - 6303 Printing & Publishing - - - 1,000 - - 6304 Legal Services - - - 5,000 - - 6305 Treatment Services - - 8,524,162 7,844,000 - - 6307 Uniforms - - - 8,000 - - 6401 Utilities - - - 1,000 - - 6402 Telephone - - - 3,000 - - 6403 Electricity - - - 260,000 - - 6404 Fuel - - - 12,000 - - 6406 Postage - - - 1,000 - - 6501 Membership & Dues - - - 4,000 - - 6502 Professional Development - - - 5,000 - - 6504 Meetings - - - 2,000 - - 6505 Employee Recognition - - - 1,000 - - WATER RECLAMATION TOTAL $ - $ - $ 8,524,162 $ 9,555,000 $ - - FISCAL YEAR BUDGET 2021-2022 | PAGE 230 IntentionallyTHIS PAGE LEFT BLANK EAST VALLEY WATER DISTRICT | PAGE 231 Facilities Maintenance FA C I L I T I E S MA I N T E N A N C E GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER MAINTENANCE WATER RECLAMATION Program Personnel Facilities Maintenance Coordinator 1 Facilities Maintenance Worker 1 Total Full-Time 2 Operations Manager Water Production Supervisor Program Structure Facilities Maintenance repairs and maintains all district facilities. FISCAL YEAR BUDGET 2021-2022 | PAGE 232 FLEET MAINTENANCE GOVERNING BOARD Facilities Maintenance Coordinator HUMAN RESOURCES Facilities Maintenance Worker WATER TREATMENT WATER QUALITY Facilities Maintenance WASTEWATER MAINTENANCE Director of Engineering & Operations General Manager/CEO Facilities Maintenance FUNCTION Facilities Maintenance is responsible for the maintenance of all District facilities. The District has several locations throughout the 30.1 square mile service area for operating the utility systems. The Program’s oversight includes administration buildings, water facilities, District-owned vacant properties, and easements. The purpose of the program is to mitigate expenses by maintaining a complex facilities management system to achieve Program goals. EAST VALLEY WATER DISTRICT | PAGE 233 GOALS OBJECTIVES #1 Complete Long-Term Site Improvements at Plant 134 1. Continue security system and digital access improvements at Plant 134 and coordinate with Information Technology for technical support. 2. Coordinate with Engineering and Water Treatment to evaluate current pavement to accommodate the new GAC operation (Slurry Seal). 3. Upgrade access road’s fencing to eliminate unauthorized foot traffic inside the District property line. #2 Continue Phased Upgrades and Rehabilitation of District Facilities 1. Develop a comprehensive site improvement project list. 2. Coordinate with contractor for painting existing building at Plant 33. 3. Research the most cost-efficient way to insulate Plant 59 Building. 4. Develop a funding plan with Finance for fence and gate improvements at Plant 39. 5. Upgrade and install HVAC systems and seal old penetration points from swamp coolers at plants. 6. Continue the energy efficiency program for scheduled production sites needing upgrades. #3 Evaluate the Current Facilities Maintenance Tracking Software 1. Gain access to and use the database developed by a consultant to determine if the software meets the program’s requirements. 2. Coordinate and host an Asset Management Software meeting to identify District needs and evaluate existing software solution and create an action plan. 3. Work with IT and other Program stakeholders in selecting an asset management program that suits maintenance program needs. 4. Complete incorporating facilities data into selected Facilities Maintenance Program. 5. Implement a consistent tracking program and help provide training to staff. PROGRAM SUMMARIES Continued on next page FACILITIES MAINTENANCE FISCAL YEAR BUDGET 2021-2022 | PAGE 234 GOALS OBJECTIVES #4 Ensure Funding Requirements for Facility Contract Services for SNRC Meeting Program Expenditures 1. Work with Finance on the costs of yearly contracts for SNRC to help with budgeting in the future and to determine what is needed to run the facility efficiently. 2. Develop a needs assessment and timeline for the SNRC facility contract services. 3. Promote and host two pre-bid contractors’ event at the SNRC, one for landscaping and HVAC maintenance. 4. Coordinate with Finance for funding requirements. 5. Work with Engineering to determine number of porter teams [Anthesis] needed at the SNRC. FY 2020-21 ACCOMPLISHMENTS Goal 01 Complete Long-Term Site Improvements for Plant 134 • Worked with contractor for Plant 134 office and lab remodel. Goal 02 Complete Systematic Upgrades and Rehabilitation of District Facilities • Completed security fencing around Plants 141 and 34. • Finished lighting upgrades at the District headquarters. • Resurfaced parking lots at the headquarters facility. • Installed emergency exit gate and sidewalk from patio area to the front parking lot. • Upgraded plants in the District’s Demonstration Garden and around the outside of the headquarters facility. • Installed new HVAC units and upgraded to LED lighting at Plants 56, 59, 129 and 142. • Installed new driveway paving at Plant 34. • Removed swamp cooling units from facilities with upgraded HVAC systems. Goal 03 Develop a Facilities Maintenance Program to Track and Anticipate Future Costs Associated with All District Facilities • Implemented City Works for current tracking purposes. • Began working with IT to identify a more viable asset management tracking software. Other Accomplishments • Coordinated lunch deliveries at Highland Senior Center during the COVID-19 pandemic. • Identified and implemented building safety measures in response to the COVID-19 pandemic. Directly Supports a District-Wide G o a l PROGRAM SUMMARIES EAST VALLEY WATER DISTRICT | PAGE 235 Significant Changes SNRC related contract service increase. Additional financial resources required to respond to supplies for the COVID-19 pandemic. Levels of Service The Facilities Maintenance Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Dedicate Efforts Toward System Maintenance and Modernization (IV-C) • Identify Opportunities to Optimize Natural Resources (I-A) The program’s performance related to these metrics are included in the following table. Key Performance Indicators Changes Agency Goal Key Performance Indicator Target FY 2018-19 FY 2019-20 FY 2020-21 IV-C Close all service work orders timely <30 Days <30 Days <30 Days <30 Days IV-C Reduce the number of reworks on service work orders <10%N/A N/A N/A IV-C Ensure preventative maintenance is completed on time 100%100%100%100% I-A Reduce energy consumption for each facility site (air conditioning and lighting)>20%30%60%60% Program Budget Allocation $1,216,000 FISCAL YEAR BUDGET 2021-2022 | PAGE 236 Program Budget Detail FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 170,376 $ 168,000 $ 175,248 $ 174,000 $ 6,000 4% 5103 Overtime 17,326 22,000 7,430 22,000 - 0% 5200 Benefits 96,777 102,000 99,201 102,000 - 0% ADMINISTRATION OPERATING EXPENSES 6201 Materials & Supplies 79,239 40,000 42,205 47,000 7,000 18% 6202 Tools 525 2,000 1,954 2,000 - 0% 6301 Contract Services 123,056 37,000 306,080 183,000 146,000 395% 6306 Rents & Leases 17,843 15,000 20,464 20,000 5,000 33% 6307 Uniforms 4,752 1,000 7,684 11,000 10,000 1000% 6311 Landscape Services 119,847 56,000 47,523 131,000 75,000 134% 6312 Janitorial Services 139,588 132,000 149,653 142,000 10,000 8% 6313 Facilities Repair - - - - - 0% 6401 Utilities 38,214 24,000 49,109 14,000 (10,000)-42% 6402 Telephone 18,763 70,000 52,135 25,000 (45,000)-64% 6403 Electricity 80,835 120,000 123,211 110,000 (10,000)-8% 6403 Professional Development 46 1,000 - 1,000 - 0% SOURCE OF SUPPLY/WELLS OPERATING EXPENSES 6201 Materials & Supplies 3,103 3,000 67 3,000 - 0% 6301 Contract Services 70,851 11,000 18,386 11,000 - 0% 6311 Landscape Services - 40,000 77,064 40,000 - 0% PUMPS AND BOOSTERS OPERATING EXPENSES 6201 Materials & Supplies 2,083 3,000 125 3,000 - 0% 6301 Contract Services 8,630 6,000 1,622 6,000 - 0% 6311 Landscape Services 29,812 35,000 31,375 35,000 - 0% TREATMENT OPERATING EXPENSES 6201 Materials & Supplies 4,055 8,000 2,444 8,000 - 0% 6301 Contract Services 30,604 102,000 8,727 102,000 - 0% 6311 Landscape Services 24,097 14,000 30,002 14,000 - 0% 6401 Utilities 1,265 10,000 2,248 10,000 - 0% FACILITIES MAINTENANCE TOTAL $ 1,081,687 $ 1,022,000 $1,253,957 $ 1,216,000 $ 194,000 19% FACILITIES MAINTENANCE CONT. EAST VALLEY WATER DISTRICT | PAGE 237 Fleet Maintenance FL E E T MA I N T E N A N C E GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER MAINTENANCE WATER RECLAMATION Program Personnel Equipment Mechanic III 1 Total Full-Time 1 Operations Manager Field Service Supervisor Program Structure Fleet Maintenance is responsible for care of the District’s vehicles and heavy equipment. FISCAL YEAR BUDGET 2021-2022 | PAGE 238 GOVERNING BOARD HUMAN RESOURCES WATER TREATMENT WATER QUALITY WASTEWATER MAINTENANCE Equipment Mechanic III Fleet Maintenance FACILITIES MAINTENANCE Director of Engineering & Operations General Manager/CEO Fleet Maintenance FUNCTION Fleet Maintenance is responsible for the preventative maintenance program for all District vehicles and heavy equipment. This includes the procurement of fleet items and maintain compliance with State and Federal air quality rules and regulations. This program includes the partnership with local charitable organizations in need of a vehicle to help continue their mission. The District fleet is comprised of light and heavy-duty utility trucks for water and wastewater crew members to maintain District infrastructure. The heavy equipment category of the fleet includes large specialized equipment for routine maintenance and inspection of the water distribution or wastewater collection systems. EAST VALLEY WATER DISTRICT | PAGE 239 GOALS OBJECTIVES #1 Continue to Implement the Air Quality Management Program 1. Continue quarterly inspections with air quality consultant for Air Quality Management District (AQMD) and California Air Resources Board (CARB). 2. Schedule semi-annual field-crew site training for vehicles and equipment. 3. Transmit emissions data to the Bureau of Automotive Repair (BAR) using new Network Fleet devices. #2 Enhance Vendor- Managed Fleet Maintenance Program 1. Schedule software demo meeting with vendor for reporting capabilities. 2. Develop a pre-approved safety repairs and replacement list to mitigate delays. 3. Contract with vendor to provide detailing for specialized equipment. PROGRAM SUMMARIES FY 2020-21 ACCOMPLISHMENTS Goal 01 Ensure Air Quality and Highway Safety Regulations are Current • Completed annual smog check report to BAR. Goal 02 Enhance Vendor-Managed Fleet Maintenance Program • Renewed three-year contract with San Bernardino County allowing the District to access County fueling sites during emergencies. Other Accomplishments • Donated three trucks to non-profit organizations. • Purchased a new backhoe to support Water Maintenance activity. • Ordered six new trucks. FLEET MAINTENANCE Significant Changes Increased contract services for maintaining specialized equipment. Levels of Service The Fleet Maintenance Program has three KPI metrics that are associated with the District’s Goals and Objectives of: • Develop Projects and Programs to Ensure Safe and Reliable Services (IV-A) • Dedicate Efforts toward System Maintenance and Modernization (IV-C) FISCAL YEAR BUDGET 2021-2022 | PAGE 240 Program Budget Allocation $563,000 PROGRAM SUMMARIES EAST VALLEY WATER DISTRICT | PAGE 241 The program’s performance related to these metrics are included in the following table. Key Performance Indicators Changes Agency Goal Key Performance Indicator Target FY 2018-19 FY 2019-20 FY 2020-21 IV-A Ensure vehicles and equipment are evaluated and replaced on schedule 80% of Net Asset Value 100%100%100% IV-C Percent of vehicles pass annual D.O.T. inspection 100%100%100%100% IV-A Number of vehicle/equipment units replaced 4 4 4 4 Program Budget Detail FY 2019-20 Actuals FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Proposed Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 96,909 $ 90,000 $ 90,813 $ 91,000 $ 1,000 1% 5103 Overtime 1,567 3,000 3,066 3,000 - 0% 5200 Benefits 47,524 61,000 49,580 53,000 (8,000)-13% OPERATING EXPENSES 6201 Materials & Supplies 67,930 30,000 125,256 30,000 - 0% 6202 Tools 16,368 5,000 7,762 5,000 - 0% 6203 Office Supplies 460 1,000 90 1,000 - 0% 6301 Contract Services 232,178 180,000 261,016 240,000 60,000 33% 6307 Uniforms 639 - 619 - - 0% 6402 Telephone 353 1,000 2,259 1,000 - 0% 6404 Fuel 131,996 125,000 138,763 135,000 10,000 8% 6501 Memberships & Dues - 3,000 - 3,000 - 0% 6502 Professional Development - 1,000 - 1,000 - 0% FLEET MAINTENANCE TOTAL $ 595,924 $ 500,000 $ 679,224 $ 563,000 $ 63,000 13% FISCAL YEAR BUDGET 2021-2022 | PAGE 242 IntentionallyTHIS PAGE LEFT BLANK EAST VALLEY WATER DISTRICT | PAGE 243 CAPITAL BUDGET CA P I T A L B U D G E T The District's long-term planning efforts have always included consideration of the age, condition, and efficiency of infrastructure used to deliver services to its customers. CAPITAL IMPROVEMENT PROJECTS CAPITAL BUDGET OVERVIEW INFRASTRUCTURE ACCOMPLISHMENTS FISCAL YEAR BUDGET 2021-2022 | PAGE 244 Capital Budget East Valley Water District includes two types of capital expenditures in its Capital Budget. The two types of capital expenditures categories are within, 1) routine purchases and replacement of assets, referred to as Capital Outlay, and 2) non-routine construction project expenditures that are part of the District’s Capital Improvement Program. The District’s FY 2021-22 Capital Budget contains $48,536,000 in total capital expenditures. Of this amount, $1,130,000 are Capital Outlay, which typically include requests to replace vehicles, computer and office equipment, and to conduct infrastructure planning and rate studies. The remaining proposed capital expenditures of $47,356,000 are current year (Year 1) costs pertaining to projects shown in the District’s Capital Improvement Program, presented in greater detail in the remainder of this section. As the District prepares to commence operations at the new SNRC water reclamation plant in May 2022, care has been taken to not overextend financial and human resources by committing to starting a long list of projects, important as they are, in the upcoming fiscal year. Projects with external funding or regulatory requirements, or that are ‘shovel ready’, are moving forward, but the successful startup of the SNRC is a top priority. A summary of the proposed FY 2021-22 Capital Budget is shown below. CAPITAL OUTLAY The District defines Capital Outlay expenditures as an individually significant acquisition of capital assets (not involving construction) that have expected useful lives of more than two years and have a cost of $5,000 or more. This threshold is applied at the individual asset level. EAST VALLEY WATER DISTRICT | PAGE 245 Capital Budget Summary Capital Outlay (Routine) Capital Improvement Program Computer Hardware / Software $ 160,000 Plant 134 Process Improvements $ 2,000,000 Storage Tank Mixers 40,000 Storage Tank/Reservoir Rehabilitation 990,000 SCADA Master Plan / Radio Upgrades 150,000 Plant 101 - Rehabilitation Hydro System 300,000 Service Trucks, Crew Truck 90,000 General Facilities Rehabilitation/ Relocation 312,000 SNRC Equipment 500,000 Well & Booster Improvements 50,000 Spectrum Fiberoptic Build (SNRC/HQ/PL 134) 190,000 Wastewater Main Rehabilitations 150,000 SNRC Water Recycling Plant 43,553,764 TOTAL CAPITAL OUTLAY $ 1,130,000 TOTAL CIP EXPENDITURES $ 47,355,764 CAPITAL BUDGET FISCAL YEAR BUDGET 2021-2022 | PAGE 246 Each year as part of the budget process the District’s Program Managers and Supervisors compile and submit a list of Capital Outlay requests for consideration. The requests are reviewed and prioritized by the Finance Program based on the assessment of need, and the amount of funding available. Funding for Capital Outlay is paid out of the operating revenue from the fund (water or wastewater) that will benefit from use of the capital item. Items that benefit both the Water and Wastewater Funds are allocated accordingly. CAPITAL IMPROVEMENT PROGRAM (CIP) The District’s Capital Improvement Program (CIP) is a five-year planning schedule with the first year (Year 1) adopted as part of the Capital Budget for the upcoming fiscal year. A project included in the District’s CIP is an individually significant construction project with a cost of more than $25,000, and either creates a new capital asset, improves an existing asset (increases its service capacity, etc.), or significantly extends an asset’s expected useful life. The Engineering Program is responsible for maintaining the District’s Capital Improvement Program and consults various sources for project planning. The primary sources for these planning efforts are the District’s Water Master Plan and Wastewater Collection System Master Plan — both were updated during FY 2018-19. The Master Plans identify the infrastructure improvements needed to serve a growing population. In addition, each project being considered must meet one or more of the following criteria: FY 2020-21 Capital Outlay Water Wastewater Total FUNDED BY OPERATING REVENUE SNRC SNRC Equipment (Forklift, Golf Cart, CS Free-Standing Safe, etc.)$ 450,000 $ 50,000 $ 500,000 Software Spectrum Fiberoptic Build (SNRC/HQ/PL 134) 190,000 - 190,000 Hardware Replacements (PCs,Laptops, Desktop Phones, SNRC) 35,000 - 35,000 CISCO End-of-Life Replacements 105,000 - 105,000 Web Conferencing District including SNRC (Webcams, TVs) 20,000 - 20,000 Facilities Tank Mixers 40,000 - 40,000 SCADA SCADA Master Plan 150,000 - 150,000 Fleet Light Duty Trucks (2) - SNRC 90,000 - 90,000 TOTAL CAPITAL OUTLAY $ 1,080,000 $ 50,000 $ 1,130,000 • Preservation of public health and water quality. • Improvements required as a result of local, State or Federal legislation/mandates. • Reduction of current maintenance expenditures and avoidance of costly future rehabilitation. • Preservation of existing facilities/infrastructure. • Positive impacts on customers. • External funding (grant/debt proceeds) has been secured for specific project. CAPITAL BUDGET EAST VALLEY WATER DISTRICT | PAGE 247 For FY 2021-22, the District has proposed the use of operating revenue, reserves, and a loan from the California Department of Water Resources to fund current year phases of Capital Improvement Program projects for $58,508,000– total project costs for the projects in process are approximately $83.9 million over the next five years. Projects funded for the current year include: • Plant 134 Process Improvements and Membrane Replacement – There are three ongoing projects at the District’s Surface Water Treatment Plant. The first is the installation of GAC filtration as a solution to source water quality issues. The second is to enhance/increase capacity to the sludge removal process so the plant can begin to operate at or near its full capacity of 8 million gallons per day. The final is to continue the process of replacing treatment modules a full train at a time; there are five trains, and the District has recently replaced the modules in four of the five. The current year budget includes $2,000,000 to move into the construction phase of the GAC project, to be paid with State Revolving Fund grants or loans, when approved. • Storage Tank Rehabilitation – This includes an engineering seismic study to propose tank upgrades that will mitigate damage incurred in the event of an earthquake, and the systematic rehabilitation of existing tanks (Plant 108) in order to ensure their dependability and years of future service. Current year costs are $990,000 to be paid out of water operating revenue and a grant toward the seismic study. • Plant 101 – The District has received grant funding to install an emergency generator as backup power for a hydropneumatic tank that serves residents living at an elevation where water cannot be delivered by gravity. Once the generator is installed, rehabilitation of the tank and boosters at the Plant can proceed. Current year costs include $300,000 to be funded by the grant. • Wastewater Main Replacements – The District has scheduled the rehabilitation of a sewer main pipeline, rated as high priority due to the number of structural defects noted during video logging of the pipeline. Planned expenditures during FY 2021-22 on this main are $150,000 to be funded by wastewater operating revenue. • General Facilities Rehabilitation/Relocation – These line items involve various projects such as security upgrades and improving the aesthetics of buildings at plant sites; it also provides a budget for relocating facilities in conjunction with City street or storm drain improvement projects. Planned expenditures for FY 2021-22 are $362,000 to be funded by water operating revenue. • SNRC Water Recycling Facility – This project will capture and treat all District wastewater flows, recycle the water, and release at an elevation high enough to recharge the Bunker Hill Groundwater Basin, rather than releasing treated water into the Santa Ana River for use downstream. Planned expenditures in FY 2021-22 are $43,554,000, of which $39,494,000 will be funded by State Revolving Fund low interest loans, $1,493,000 by grant, and $2,567,000 by water and wastewater operating revenues. The following pages include the District’s current Capital Improvement Program, a summary of project funding, and detailed descriptions of each project. Impact of Capital Improvement Program Project Investments on Operating Budgets The capital projects described in this section will have varying impacts on future operating expenses, both in increased costs and cost savings. The SNRC will have both operational costs and new revenue streams. Proposed treatment processes at the Districts Surface Water Treatment Plant (Plant 134) will allow the District to run the plant at higher capacity and more fully utilize hydroelectric generation equipment and offset power costs. FISCAL YEAR BUDGET 2021-2022 | PAGE 248 The SNRC will result in a major shift of costs, from contracted treatment services to costs associated with owning and operating a District facility such as labor, materials, contract services, and other operating costs. At the same time, the inclusion of solid waste digesters at the facility will allow the District to tap into other revenue streams such as solid waste carrier tipping fees and recycled water revenue. Not included here, but discussed in the Debt section of this document, is a significant increase in debt service related to the SNRC. The following schedule provides an estimate of the effect of capital expenditures on future operations: Capital Expenditure Impact Overview Annual Impact on Operations Nature of Impact Plant 134 Treatment Modifications $ 30,000 Increased Power Costs Plant 134 Treatment Modifications 50,000 Increased Filter Media Cost SNRC Water Recycling Plant (5,080,000) New Revenue Sources (Tipping Fees, Power Sales, Recycled Water) SNRC Water Recycling Plant (8,650,000) Decrease Contracted Treatment SNRC Water Recycling Plant 1,200,000 Increased Labor Costs SNRC Water Recycling Plant 1,010,000 Increased Materials & Consumables SNRC Water Recycling Plant 2,450,000 Increased Contract Services SNRC Water Recycling Plant 520,000 Increased Other Costs TOTAL CIP EXPENDITURES $ (8,470,000) CIP Five-Year Program Schedule (FY 2022-26) Year 1 FY 2021-22 Year 2 FY 2022-23 Year 3 FY 2023-24 Year 4 FY 2024-25 Year 5 FY 2025-26 5-Year Project Total GENERAL Habitat Conservation Plan $- $- $- $- $- $- AMI Meter Replacement Program - 200,000 200,000 200,000 200,000 800,000 GENERAL SUBTOTAL $ - $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 800,000 WATER Canal Zone Storage Reservoir (Pending Highland Hills and Mediterra) $ - $ - $ 1,100,000 $ 1,100,000 $ 1,100,000 $ 3,300,000 Transmission Main Plant 134 to Canal Zone - - - 500,000 500,000 Plant 134 Process Improvements (THMS and Sludge Management) 2,000,000 1,500,000 - - 3,500,000 CAPITAL BUDGET EAST VALLEY WATER DISTRICT | PAGE 249 Year 1 FY 2021-22 Year 2 FY 2022-23 Year 3 FY 2023-24 Year 4 FY 2024-25 Year 5 FY 2025-26 5-Year Project Total Tank/Reservoir Rehabilitation $ 825,000 $ 650,000 $ 900,000 $ 650,000 $ 650,000 $ 3,675,000 Engineering Seismic Study for Reservoirs 165,000 - - - - 165,000 Plant 101 - Rehabilitate Hydro System/Install Generator 300,000 - - - - 1,180,000 East End Surface Water Treatment Plant - 3,000,000 6,000,000 6,000,000 3,000,000 18,000,000 Water Mains Dwight & Glasgow - 800,000 800,000 - - 1,600,000 Water Mains Fisher & Stratford - - - 920,000 - 920,000 Water Mains 14th, Seine, Messina - - - - 1,800,000 1,800,000 Facility Relocations 100,000 100,000 100,000 100,000 - 400,000 Facility Relocation Baseline Bridge Water Main - 730,000 - - - 730,000 Facility Rehabilitations 212,000 75,000 75,000 75,000 75,000 512,000 SNRC - Holding Basin, Landscape/Hardscape 7,500,000 - - - - 7,500,000 Well & Booster Improvements/ Rehabilitations 50,000 50,000 50,000 50,000 50,000 250,000 WATER SUBTOTAL $ 11,152,000 $6,905,000 $9,025,000 9,395,000 $6,675,000 $44,032,000 WASTEWATER Wastewater Main Rehab 11th St $ 150,000 $ 650,000 $ 700,000 $ 750,000 $ 750,000 $ 3,000,000 Wastewater Main Rehab - - - - - - SNRC Compliance, Mgt 60,000 - - - 60,000 SNRC 34,494,000 - - - 34,494,000 SNRC Landscaping 1,500,000 - - - - 1,500,000 SNRC Del Rosa Drive Trunk Wastewater - - - - - WASTEWATER SUBTOTAL $ 36,204,000 $ 650,000 $ 700,000 $ 750,000 $ 750,000 $ 39,054,000 TOTAL $ 47,356,000 $ 8,635,000 $ 9,925,000 $ 10,345,000 $ 7,625,000 $ 83,886,000 FISCAL YEAR BUDGET 2021-2022 | PAGE 250 CIP Five-Year Funding Schedule (FY 2022-26) Year 1 FY 2021-22 Year 2 FY 2022-23 Year 3 FY 2023-24 Year 4 FY 2024-25 Year 5 FY 2025-26 5-Year Project Total Water Operating Revenue $ 3,712,000 $ 3,485,000 $ 3,225,000 $ 3,595,000 $ 3,875,000 $ 17,892,000 Water Replacement Reserve - - - - - - Water Capacity Fees - - - - - - Water Revenue Bonds/SRF 7,000,000 4,500,000 6,000,000 6,000,000 3,000,000 26,500,000 Wastewater Operating Revenue 217,000 650,000 700,000 750,000 750,000 3,067,000 Wastewater Replacement Reserve - . - - - - Wastewater Capacity Fees - - - - - - Wastewater Revenue Bonds - - - - - - Grants / Loans 36,427,000 - - - - 36,427,000 TOTAL $ 47,356,000 $ 8,635,000 $ 9,925,000 $ 10,345,000 $ 7,625,000 $ 83,886,000 CIP Five-Year Funding Schedule (FY 2022-26) Water Fund Operating Revenue Wastewater Fund Operating Revenue Grants/ Loans Other Fund Project Total WATER Plant 134 - Process Improvements (THMS and Sludge Management)$ - $ - $ 2,000,000 $ 2,000,000 Tank/Reservoir Rehabilitation Plant 108 and Seismic Study 850,000 - 140,000 990,000 Plant 101 - Rehabilitate Hydro System/Install Generator - - 300,000 300,000 Facility Relocations 100,000 - - 100,000 Facility Rehabilitations - Plant 39 212,000 - - 212,000 SNRC - Holding Basin, Landscaping, and Compliance Management 2,500,000 - 5,000,000 7,500,000 Well & Booster Improvements/Rehabilitations 50,000 - - 50,000 WATER SUBTOTAL $ 3,712,000 $ - $ 7,440,000 $ 11,152,000 WASTEWATER Wastewater Main Rehab - 11th St $ - $ 150,000 $ - $ 150,000 SNRC - Construction - - 35,987,000 35,987,000 SNRC - Holding Basin, Landscaping, and Compliance Management - 67,000 - 67,000 WASTEWATER SUBTOTAL $ - $ 217,000 $ 35,987,000 $ 36,204,000 TOTAL $ 3,712,000 $ 217,000 $ 43,427,000 $ 47,356,000 EAST VALLEY WATER DISTRICT | PAGE 251 Capital Improvement Projects CI P P R O J E C T S FISCAL YEAR BUDGET 2021-2022 | PAGE 252 Projects included in the CIP are individually significant construction projects with a cost of more than $25,000, and either creates a new capital asset, improves an existing asset (increases it's service capacity, etc.), or significantly extends an asset’s expected useful life. PLANT 101 HYDRO TANK REHABILITATION FACILITY RELOCATIONS FACILITY REHABILITATIONS WELL & BOOSTER IMPROVEMENTS/REHABILITATIONS WASTEWATER MAIN 11TH STREET REHABILITATION STERLING NATURAL RESOURCE CENTER PLANT 134 PROCESS IMPROVEMENTS TANK/RESERVOIR REHABILITATION PLANT 108 AND SEISMIC STUDY EAST END SURFACE WATER TREATMENT PLANT Project Description Plant 134 is currently the District’s only Surface Water Treatment Plant and is the primary source for delivering water to three of the District’s higher elevation pressure zones. The organic content of source water treated at Plant 134 (i.e., water from the Santa Ana River and State Water Project) varies due to seasonal and other effects. When the organic content in the water is high, it interacts with chlorine added during treatment processes, and the by-product Trihalomethane (THM) can reach unacceptable levels leading to water quality concerns. The District has determined that filtration utilizing GAC will remove organics and mitigate the possibility of high THM levels, accordingly, the District has entered into a design-build contract for the installation of GAC at Plant 134 and the estimated cost of the GAC system is $3.7 million. During the same period, the District will explore methods for disposal of higher levels of sludge removed from surface water, which has increased due to the conversion to membrane filtration and the expansion of Plant 134 capacity from 4 to 8 million gallons per day. The estimated cost to increase sludge management capacity is $800,000. Process Improvements (THMs and Sludge Management)Plant 134 PROJECT TYPE Water LOCATION Treatment Plant 134 Highland PROJECT MANAGER Operations TOTAL PROJECT COST $4,500,000 PRIOR YEARS BUDGET $300,000 CAPITAL REQUESTS New Project Start Date: July 2019 // Estimated Completion: June 2022 Additional Staff Salaries N/A Debt Service This District has applied for a 0% loan from the State Water Resources Control Board State Revolving Fund to finance the GAC filtration system. Annual debt service on the estimated project cost of $3.7 million would be $124,000. Maintenance The installation of GAC filters would increase maintenance costs by approximately $50,000 annually for replacement of filter media. Utilities An additional treatment process will increase power costs by approximately $30,000 annually. Operating Budget Impact EAST VALLEY WATER DISTRICT | PAGE 253 CAPITAL BUDGET PLANT 134 PROCESS IMPROVEMENTS (THMS AND SLUDGE MANAGEMENT) FISCAL YEAR BUDGET 2021-2022 | PAGE 254 Project Cost Year 1 FY 2021-22 Year 2 FY 2022-23 Year 3 FY 2023-24 Year 4 FY 2024-25 Year 5 FY 2025-26 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 2,000,000 1,500,000 - - - 3,500,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal)- - - - - - ANNUAL TOTAL $ 2,000,000 $ 1,500,000 $ - $ - $ - $ 3,500,000 Project Funding Year 1 FY 2021-22 Year 2 FY 2022-23 Year 3 FY 2023-24 Year 4 FY 2024-25 Year 5 FY 2025-26 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Replacement Reserve - - - - - - Grants/Loans 2,000,000 1,500,000 - - - 3,500,000 Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 2,000,000 $ 1,500,000 $ - $ - $ - $ 3,500,000 Benefits to the Community Maintain the quality and safety of water provided to the community. Allows EVWD to continue to meet local, State, and Federal water quality requirements. Enhance the surface water treatment process. Project Description The District has completed a comprehensive, multi-year water tank inspection program and received an engineering report identifying and prioritizing tank rehabilitation projects. Many of the projects present significant challenges where there is no redundant storage capacity, limiting projects to certain times of year when demand for water is low, and requiring alternate methods for distributions of water to sections of the affected service area. In December 2020, the District awarded a contract to Crosno Construction for the rehabilitation of the tank at Plant 108, a 2 MG reservoir serving the District’s Foothill zone. It was originally anticipated that the rehabilitation of the tank would occur during the winter of 2021, but the extent of structural work inside the tank caused the District to postpone the project until FY 2021-22 so the tank could be taken offline during the low-demand period of November through April. Cost for rehabilitation work on Plant 108 is estimated at $825,000. In addition, the District has received a grant from the California Governor’s Office of Emergency Services (Cal OES) to conduct an engineering study on District reservoirs, the purpose of which is to present recommendations for reservoir upgrades that will mitigate damage in the event of an earthquake. The cost of the study is $165,000, of which $140,000 will be grant funded. Plant 108 and Seismic StudyTank/Reservoir Rehabilitation PROJECT TYPE Water Replacement / Rehabilitation Project LOCATION Highland PROJECT MANAGER Engineering TOTAL PROJECT COST $990,000 PRIOR YEARS BUDGET N/A CAPITAL REQUESTS New Project Start Date: November 2021 // Estimated Completion: March 2022 Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A Operating Budget Impact EAST VALLEY WATER DISTRICT | PAGE 255 CAPITAL BUDGET TANK/RESERVOIR REHABILITATION PLANT 108 AND SEISMIC STUDY FISCAL YEAR BUDGET 2021-2022 | PAGE 256 Project Cost Year 1 FY 2021-22 Year 2 FY 2022-23 Year 3 FY 2023-24 Year 4 FY 2024-25 Year 5 FY 2025-26 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ 165,000 $ 50,000 $ 60,000 $ 15,000 $ - $ 290,000 Land and Land Preparation - - - - - - Construction (Contract) 815,000 590,000 830,000 630,000 - 2,865,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials 10,000 10,000 10,000 5,000 - 35,000 EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 990,000 $ 650,000 $ 900,000 $ 650,000 $ - $ 3,190,000 Project Funding Year 1 FY 2021-22 Year 2 FY 2022-23 Year 3 FY 2023-24 Year 4 FY 2024-25 Year 5 FY 2025-26 5-Year Project Total FINANCING SOURCES Operating Revenue $ 850,000 $ 650,000 $ 900,000 $ 650,000 $ - $ 3,050,000 Replacement Reserve - - - - - - Grants/Loans 140,000 - - - - 140,000 Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 990,000 $ 650,000 $ 900,000 $ 650,000 $ - $ 3,190,000 Benefits to the Community Help prolong the tank’s life to continue serving the community. Install anti-corrosion system and make repairs to maintain tank reliability. Identify and assess structural concerns to protect the Plant during an earthquake. Project Description The Hydropneumatic tank (hydro) at Plant 101 boosts water to 35 homes that are situated at elevations above the plant site, and therefore cannot be gravity fed by the plant’s 1.4 million gallon reservoir; the Hydro tank is the only means of serving these customers. An inspection of Plant 101 revealed that the Hydro Tank and booster pumps need to be replaced, and that an onsite generator should be installed to provide backup power in the event of an emergency. The District recently secured a $300,000 grant for the purchase of the generator. The grant has a limited period of availability, so installation of the on-site generator has become the priority for FY 2021-22. The replacement of the tank will occur in the following year. Hydro Tank RehabilitationPlant 101 PROJECT TYPE Water LOCATION Highland PROJECT MANAGER Engineering TOTAL PROJECT COST $1,180,000 PRIOR YEARS BUDGET N/A CAPITAL REQUESTS New Project Start Date: July 2021 // Estimated Completion: June 2023 Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A Operating Budget Impact EAST VALLEY WATER DISTRICT | PAGE 257 CAPITAL BUDGET PLANT 101 HYDRO TANK REHABILITATION FISCAL YEAR BUDGET 2021-2022 | PAGE 258 Project Cost Year 1 FY 2021-22 Year 2 FY 2022-23 Year 3 FY 2023-24 Year 4 FY 2024-25 Year 5 FY 2025-26 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 300,000 880,000 - - - 1,180,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 300,000 $ 880,000 $ - $ - $ - $ 1,180,000 Project Funding Year 1 FY 2021-22 Year 2 FY 2022-23 Year 3 FY 2023-24 Year 4 FY 2024-25 Year 5 FY 2025-26 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ 880,000 $ - $ - $ - $ 880,000 Replacement Reserve - - - - - - Grants/Loans 300,000 - - - - 300,000 Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 300,000 $ 880,000 $ - $ - $ - $ 1,180,000 Benefits to the Community Enhance plant operations to maintain service reliability. Installation of a backup generator will help maintain service during an emergency. Allows EVWD to continue to meet local, State, and Federal system requirements. Project Description The District’s service area covers all of the City of Highland, parts of the City of San Bernardino and parts of San Bernardino County. When these agencies plan and construct improvements within their jurisdiction, there are occasionally alignment or location conflicts with existing District facilities. When this occurs, the District is frequently obliged to relocate its facilities. This project budget serves to fund relocation costs as they arise. Facility Relocations PROJECT TYPE Replacement Water Distribution System LOCATION District-wide PROJECT MANAGER Engineering TOTAL PROJECT COST $100,000 for FY 2021-22 Budgeted Annually PRIOR YEARS BUDGET N/A CAPITAL REQUESTS Annual Budget Request Start Date: July 2021 // Estimated Completion: June 2022 Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A Operating Budget Impact EAST VALLEY WATER DISTRICT | PAGE 259 CAPITAL BUDGET FACILITY RELOCATIONS FISCAL YEAR BUDGET 2021-2022 | PAGE 260 Project Cost Year 1 FY 2021-22 Year 2 FY 2022-23 Year 3 FY 2023-24 Year 4 FY 2024-25 Year 5 FY 2025-26 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 50,000 Land and Land Preparation - - - - - - Construction (Contract) 85,000 85,000 85,000 85,000 85,000 425,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor 5,000 5,000 5,000 5,000 5,000 25,000 Other (Legal) - - - - - - ANNUAL TOTAL $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 Project Funding Year 1 FY 2021-22 Year 2 FY 2022-23 Year 3 FY 2023-24 Year 4 FY 2024-25 Year 5 FY 2025-26 5-Year Project Total FINANCING SOURCES Operating Revenue $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 Replacement Reserve - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 Benefits to the Community Relocate system facilities to maintain service reliability. Work with local agencies to ensure a smooth transition with minimal service interruptions. Extend the useful life of the distribution system. Project Description This project involves scheduled capital improvements to District facilities that can be performed within a single fiscal year. Improvements planned for FY 2021-22 include upgrades to wrought iron security fencing at the District’s Plant 39. Facility Rehabilitations PROJECT TYPE Water LOCATION Date Street, East of Arden Avenue San Bernardino PROJECT MANAGER Operations TOTAL PROJECT COST $212,000 for FY 2021-22 Budgeted Annually PRIOR YEARS BUDGET $245,000 for FY 2020-21. Completed security fencing and repairs to access road at Plant 34. CAPITAL REQUESTS Annual Budget Request Start Date: July 2021 // Estimated Completion: June 2022 Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A Operating Budget Impact EAST VALLEY WATER DISTRICT | PAGE 261 CAPITAL BUDGET Mirada Street 29th Street Bl y t h e A v e n u e Va l a r i a D r i v e Ar d e n A v e n u e Fairview School Date Street FACILITY REHABILITATIONS FISCAL YEAR BUDGET 2021-2022 | PAGE 262 Project Cost Year 1 FY 2021-22 Year 2 FY 2022-23 Year 3 FY 2023-24 Year 4 FY 2024-25 Year 5 FY 2025-26 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 212,000 75,000 75,000 75,000 75,000 512,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 212,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 512,000 Project Funding Year 1 FY 2021-22 Year 2 FY 2022-23 Year 3 FY 2023-24 Year 4 FY 2024-25 Year 5 FY 2025-26 5-Year Project Total FINANCING SOURCES Operating Revenue $ 212,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 512,000 Replacement Reserve - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 212,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 512,000 Benefits to the Community Enhance the security of water facilitates. Prevent unauthorized access. Extend the useful life of water facilities. Project Description The District has approximately 65 booster pumps, and 16 wells in the water distribution system. In order to ensure that these facilities operate properly and provide reliable service, this budget item will provide funding to rehabilitate existing booster pumps and wells prior to failure or major reductions in performance. This pro-active approach will reduce the cost of repairs done in an emergency or reactive mode. PROJECT TYPE Water LOCATION TBD PROJECT MANAGER Operations TOTAL PROJECT COST $50,000 for FY 2021-22 Budgeted Annually PRIOR YEARS BUDGET $50,000 for FY 2020-21 CAPITAL REQUESTS Annual Budget Request Start Date: July 2021 // Estimated Completion: June 2022 Additional Staff Salaries N/A Debt Service N/A Maintenance Maintenance costs will be reduced by allowing work to be scheduled in proactive mode rather than emergency reactive modes, which can incur overtime charges in addition to the cost of the repairs. Utilities Improving pump and well performance through scheduled repairs and rehabilitation will result in improved efficiency and lower energy costs. Operating Budget Impact EAST VALLEY WATER DISTRICT | PAGE 263 CAPITAL BUDGET Improvements/RehabilitationsWell & Booster WELL & BOOSTER IMPROVEMENTS/ REHABILITATIONS FISCAL YEAR BUDGET 2021-2022 | PAGE 264 Project Cost Year 1 FY 2021-22 Year 2 FY 2022-23 Year 3 FY 2023-24 Year 4 FY 2024-25 Year 5 FY 2025-26 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 25,000 Land and Land Preparation - - - - - - Construction (Contract) 40,000 40,000 40,000 40,000 40,000 200,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor 5,000 5,000 5,000 5,000 5,000 25,000 Other (Legal) - - - - - - ANNUAL TOTAL $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 Project Funding Year 1 FY 2021-22 Year 2 FY 2022-23 Year 3 FY 2023-24 Year 4 FY 2024-25 Year 5 FY 2025-26 5-Year Project Total FINANCING SOURCES Operating Revenue $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 Replacement Reserve - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 Benefits to the Community Enhance service reliability to the community. Extend the useful life of the water distribution system. Allows EVWD to continue to meet the community’s water needs. Project Description The District’s CCTV inspections set out to regularly inspect the condition of wastewater pipelines in an effort to proactively replace weakened sections. Recent observations have identified a segment of 6-inch diameter sewer main with cracks in the vitrified clay pipe. This 390 linear foot segment must be replaced and is located on 11th Street. PROJECT TYPE Replacement - Wastewater LOCATION 11th Street (East of Cole Avenue, West of Palm Avenue), Highland PROJECT MANAGER Engineering TOTAL PROJECT COST $150,000 PRIOR YEARS BUDGET None CAPITAL REQUESTS New Project Start Date: July 2021 // Estimated Completion: June 2022 Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A Operating Budget Impact EAST VALLEY WATER DISTRICT | PAGE 265 CAPITAL BUDGET 11th Street RehabilitationWastewater Main 11th Street Pa l m A v e n u e Co l e A v e n u e Baseline Street WASTEWATER MAIN 11TH STREET REHABILITATION FISCAL YEAR BUDGET 2021-2022 | PAGE 266 Project Cost Year 1 FY 2021-22 Year 2 FY 2022-23 Year 3 FY 2023-24 Year 4 FY 2024-25 Year 5 FY 2025-26 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 140,000 350,000 350,000 350,000 350,000 1,540,000 Project Mgmt/Inspection 7,500 - - - - 7,500 Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor 2,500 - - - - 2,500 Other (Legal) - - - - - - ANNUAL TOTAL $ 150,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 1,550,000 Project Funding Year 1 FY 2021-22 Year 2 FY 2022-23 Year 3 FY 2023-24 Year 4 FY 2024-25 Year 5 FY 2025-26 5-Year Project Total FINANCING SOURCES Operating Revenue $ 150,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 1,550,000 Replacement Reserve - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 150,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 1,550,000 Benefits to the Community Enhance wastewater service reliability to the community. Replaces sewer main to prevent a future break. Protects community health and safety of the community. Project Description The District is building a wastewater reclamation facility known as the SNRC. The plant will have the capability to treat all wastewater flows currently generated by District customers. The facility will allow the District to treat wastewater to a point that it can be recharged back into the groundwater basin and reused for domestic purposes. Initially the facility will treat approximately 6 million gallons per day and will be expandable to be able to treat ultimate build out of approximately 10 million gallons per day. Plant construction is being funded by grants and low interest State Revolving Fund (SRF) loans from the State Water Resources Control Board. Through June 2021, the District has issued contracts totaling $182.9 million and incurred approximately $142.2 million of those contract costs. During FY 2020-21 the District identified a more effective location for discharge of recycled water. This shift resulted in additional costs for construction of the recycled water pipeline and for the construction of an emergency storage basin in case of an SNRC shut down. Costs for the recycled water pipeline and recharge basins will be included within the reimbursement agreement with Valley District. The emergency storage basin, with an approximate cost of $6 million, will be paid with additional SRF loan funding. Sterling Natural Resource CenterSNRC PROJECT TYPE New Wastewater Recycling Plant LOCATION 25318 and 25376 5th Street, Highland PROJECT MANAGER Engineering TOTAL PROJECT COST $182,917,000 PRIOR YEARS BUDGET $148,425,000 CAPITAL REQUESTS Previously Programmed Project Start Date: January 2014 // Estimated Completion: May 2022 Additional Staff Salaries $1,800,000 Debt Service $6,820,000 annually on 1.8% interest, State Revolving Fund loan Maintenance $3,220,000 (estimated) for contract services and supplies. Contracted wastewater treatment currently paid to a third-party agency of $8,600,000 annually, would be eliminated Utilities Anaerobic digesters at the plant will convert wastewater solids, along with high grade food waste offloaded by waste haulers, to produce enough energy to power SNRC operation. Operating Budget Impact EAST VALLEY WATER DISTRICT | PAGE 267 CAPITAL BUDGET STERLING NATURAL RESOURCE CENTER FISCAL YEAR BUDGET 2021-2022 | PAGE 268 Project Cost Year 1 FY 2021-22 Year 2 FY 2022-23 Year 3 FY 2023-24 Year 4 FY 2024-25 Year 5 FY 2025-26 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - - $ - Land and Land Preparation 9,000,000 - - - - 9,000,000 Construction (Contract) 34,494,000 - - - - 34,494,000 Project Mgmt/Inspection 60,000 - - - - 60,000 Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $43,554,000 $ - $ - $ - $ - $43,554,000 Project Funding Year 1 FY 2021-22 Year 2 FY 2022-23 Year 3 FY 2023-24 Year 4 FY 2024-25 Year 5 FY 2025-26 5-Year Project Total FINANCING SOURCES Operating Revenue $ 2,567,000 $ - $ - $ - $ - $ 2,567,000 Replacement Reserve - - - - - Grants/Loans 40,987,000 - - - - 40,987,000 Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $43,554,000 $ - $ - $ - $ - $ 43,554,000 Benefits to the Community Water treated at the SNRC will recharge the local Bunker Hill Groundwater Basin. Picnic area, demonstration garden, walking paths, workshop space, and special events area. Hands-on training and career experiences in wastewater treatment available to students and residents. Project Description The District’s current Surface Water Treatment Plant (Plant 134) is located on the northern area, and at about mid-point east to west, within the District’s service area. Source water for Plant 134 is a pressurized water line for the State Water Project and gravity-fed intake from the Santa Ana River on the east end of the District. Rights to Santa Ana River water were obtained through the purchase of shares in the NFWC. The NFWC was established in 1885 to provide water for citrus farmers, whose groves once covered the entire eastern half of the District. Two circumstances now make continued operations of the NFWC pipeline less than optimal. First, almost all of the citrus groves have been replaced by homes, and treated water is now pumped uphill to serve those homes from Plant 134. Second, the District State Water Project turnout at Plant 134 is capable of supplying enough water for the Plant to run at full capacity. For these reasons the District is exploring alternative methods for supplying customers in the eastern end of the District. A new Surface Water Treatment Plant at the east end of the service area, near the intake for Santa Ana River water, was determined to be a viable option by an independent feasibility study. The purpose of this project is to complete a preliminary design report for an East End Surface Water Treatment Plant, and develop construction estimates for the facility. The District will pursue low-cost financing for the plant through Clean Water State Revolving Fund grants and loans. Treatment PlantEast End Surface Water PROJECT TYPE Water LOCATION Santa Ana River Intake PROJECT MANAGER Engineering TOTAL PROJECT COST $18,200,000 PRIOR YEARS BUDGET $25,000 CAPITAL REQUESTS N/A Funding for the East End Surface Water Treatment Plant is currently not allocated within the FY 2021-22 Capital Expenditures. Should funding be made available through external grants or funding sources, the project timeline will shift and allow East Valley Water District to advance the construction schedule. EAST VALLEY WATER DISTRICT | PAGE 269 CAPITAL BUDGET Additional Staff Salaries N/A Debt Service This District will apply for a low interest loan from the State Water Resources Control Board State Revolving Fund. Annual debt service on the estimated project cost of $18.2 million would be approximately $840,000. Operating Budget Impact EAST END SURFACE WATER TREATMENT PLANT FISCAL YEAR BUDGET 2021-2022 | PAGE 270 Maintenance The annual operating costs, including funding of replacement reserves such as treatment membranes, would be approximately $1 million. Utilities An additional treatment process will increase power costs by approximately $30,000 annually. Benefits to the Community Maintain the quality and safety of water provided to the community. Allows EVWD to continue to meet local, State, and Federal water quality requirements. Enhance the surface water treatment process. EAST VALLEY WATER DISTRICT | PAGE 271 Infrastructure Accomplishments IN F R A S T R U C T U R E AC C O M P L I S H M E N T S The budget reflects the District's commitment to allocating resources to meet the needs of its stakeholders. FISCAL YEAR BUDGET 2021-2022 | PAGE 272 EAST VALLEY WATER DISTRICT | PAGE 273 Infrastructure Accomplishments Infrastructure improvements represent a significant investment in maintaining a reliable system for the community served by East Valley Water District. Several Capital Improvement Projects were completed under budget in FY 2020-21 that focused on system improvements for both water and wastewater systems. CAPITAL BUDGET FY 2020-21 Accomplishments Elm Street Water Main Replacement • Project Budget: $450,000 • Actual Cost: $418,049 • Completed: April 2021 AMI Meter Replacement Final Phase • Project Budget: $1,850,000 • Actual Cost: $1,921,604 • Completed: May 2021 Plant 134, HQ Boardroom, and CS Remodel • Project Budget: $550,000 • Actual Cost: $485,000 • Completed: March 2021 Lillian Lane Wastewater Main Rehabilitation • Project Budget: $200,000 • Actual Cost: $289,876 • Completed: June 2021 The District completed the process of upgrading customers’ existing water meter to an AMI device, with more than 20,000 new meters installed during this six-year project. FISCAL YEAR BUDGET 2021-2022 | PAGE 274 IntentionallyTHIS PAGE LEFT BLANK EAST VALLEY WATER DISTRICT | PAGE 275 GLOSSARY GL O S S A R Y The budget is formally reviewed each quarter, allowing for an opportunity to take formal budget adjustments to the Governing Board for consideration. ACRONYMS DEFINITIONS FISCAL YEAR BUDGET 2021-2022 | PAGE 276 CHART OF ACCOUNTS Definitions Technical terms found in the budget document. EAST VALLEY WATER DISTRICT | PAGE 277 A • Acre Foot: A water measurement equal to 325,851 gallons. - pg. 73 • Advanced Metering Infrastructure: The technology of collecting meter reads via a network. - pg. 12 • Air Quality Management District or South Coast Air Quality Management District: The air pollution agency responsible for regulating stationary sources of air pollution in the South Coast Air Basin, in Southern California. - pg. 239 • American Water Works Association: Established in 1881 and is the largest nonprofit, scientific, and educational association dedicated to managing and treating water. - pg. 35 C • California Public Employees’ Retirement System: An agency in the California executive branch that manages pension and health benefits for more than 1.6 million California public employees, retirees, and their families. - pg. 56 • California Special Districts Association: A 501c(6) not-for-profit association that promotes good governance and improved core local services through professional development, advocacy, and other services for independent special districts. - pg. 12 • Capital Outlay and Construction Costs: Capitalized and expenses over the useful life of the asset on a Generally Accepted Accounting Principle basis; shown as a current expenditure on a budget basis. - pg. 56 • Cityworks: This platform is designed to help local governments and utilities manage public assets and their associated data, work activities, and business processes. - pg. 171 • Closed Circuit TV: The use of video cameras to transmit a signal to a limited set of monitors. - pg. 221 • Compensated Absence: An expense that reflects the change in related accrued liabilities during the accounting period on the Generally Accepted Accounting Principle basis, but for budget purposes, expense includes anticipated leave time to be used and/or cashed by employees during the fiscal year. - pg. 56 • Comprehensive Annual Financial Report : A set of U.S. government financial statements comprising of the financial report of a state, municipal, or other governmental entity that complies with the accounting requirements promulgated by the Governmental Accounting Standards Board. - pg. 166 • Cool-Season Turfgrass: Grass species which require 80% replenishment of evapotranspiration. Species do not go dormant during winter months and include tall fescue, ryegrass, bentgrass, and Kentucky bluegrass. - pg. 100 D • Depreciation: Recorded annually to expense the cost of a capital asset over its useful life on a General Accepted Accounting Principle basis but is not contemplated on the budget basis. - pg. 50 E • Enterprise Fund: Revenues and expenditures of services are separated into separate funds with its own financial statements. - pg. 06 GLOSSARY FISCAL YEAR BUDGET 2021-2022 | PAGE 278 F • Federal Emergency Management Agency: A Federal agency whose mission is to support citizens and first responders in their efforts to improve capabilities to prepare for, respond to, and recover from emergencies and hazards. - pg. 154 • Fees: Charges for service that are based upon the cost of providing the service. - pg. 47 • Fiscal Year: The time frame in which the budget applies. This period is from July 1 through June 30. - pg. 03 • Full-Time Employee: A measure of effective authorized positions, indicating the percentage of time a position or group of positions is funded. It is calculated by equating 2,080 hours of work per year with the full-time equivalent of one position. - pg. 71 • Fund: An independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities, which are segregated for the purpose of carrying on specific activities or attaining certain objectives. - pg. 06 • Fund Equity: The excess of an entity’s assets over its liabilities; a negative Fund Equity is sometimes called a deficit. - pg. 84 G  • Generally Accepted Accounting Principles: Uniform minimum standards of, and guidelines for external financial accounting and reporting. They govern the form and content of the basic financial statements of an entity. Generally Accepted Accounting Principles (GAAP) encompasses the conventions, rules and procedures necessary to define accepted accounting practices at a particular time. They include not only broad guidelines of general application, but also detailed practices and procedures. The primary authoritative statements on the application of GAAP to state and local governments are Government Accounting Standards Board pronouncements. GAAP provides a standard by which to measure financial presentations. - pg. 56 • Geographic Information System: An organized collection of computer hardware, software and geographic data designed to efficiently capture, store, update, manipulate, analyze, and display all forms of geographically referenced information. - pg. 165 • Governmental Accounting Standards Board: A private, non-governmental organization who is the source of generally accepted accounting principles used by State and Local governments in the U.S. - pg. 56 • Governmental Accounting Standards Board 68: A state or local government employer will report the Net Pension Liability associated with its defined benefit pension plan(s) that is administered through a trust or equivalent arrangement. - pg. 56 • Government Finance Officers Association: Represents public finance officials throughout the United States and Canada. - pg. 12 • Granular Activated Carbon: A highly porous adsorbent material used during the water treatment process. It is used to remove tetrachloroethylene, also known as perchloroethylene (PCE). - pg. 190 • Groundwater: Water that occurs below the surface of Earth. - pg. 20 H • Hundred Cubic Feet: Water billing measurement equal to 748 gallons. - pg. 62 I • Interest Payments: Related to financing for the cost of a capital asset during construction are capitalized on the Generally Accepted Accounting Principle basis but are reported as a current expense on a budget basis. - pg. 56 K • Key Performance Indicator: Monitors progress towards meeting program objectives. - pg. 09 GLOSSARY EAST VALLEY WATER DISTRICT | PAGE 279 L • Linear Feet: A 12-inch measurement of length. - pg. 216 • Local Agency Investment Fund: A program administered by the California State Treasurers office to give local agencies and special districts the opportunity to participate in a major portfolio using the investment expertise of the Treasurer’s Office Investment staff. - pg. 80 N • North Fork Water Company: A mutual water company that secures surface water from the Santa Ana River and other available sources for delivery to its shareholders. - pg. 11 P • Payment Card Industry: Data security requirements for any organization that accepts credit card payments. - pg. 177 • Pension Expense: Budgeted based on employer contribution rates assigned by the California Public Employees’ Retirement System. For financial statement reportion, pension expense is recorded based on the change to the net pension liability in accordance with Governmental Accounting Standards Board Statement No. 68. - pg. 56 • Principal Payments: Payments on long-term debt are applied to reduce the outstanding liability on a Generally Accepted Accounting Principle basis; shown as a current expenditure on a budget basis. - pg. 56 • Purchased Water: Imported water purchased from the California State Water Project. - pg. 73 R • Revenue: Income generated by assessments, investments, connection fees, stand-by fees, and user charges. - pg. 03 • Reserve: An account set aside to meet unexpected costs. - pg. 06 S • San Bernardino Valley Municipal Water District: Formed in 1954 as a regional agency to plan a long-range water supply for the San Bernardino Valley. - pg. 20 • Section Sign (§): Typographical glyph for referencing numbered sections of a document. - pg. 48 • Single-Family Residential: A stand-alone residential building. - pg. 62 • Sterling Natural Resource Center: The District is planning and constructing a water recycling center called the Sterling Natural Resource Center. - pg. 03 • Supervisory Control and Data Acquisition: Generally refers to an industrial computer system that monitors and controls a process. - pg. 30 • Surface Water: Found in large bodies like the oceans or lakes or which flows overland in streams. - pg. 11 T • Total Trihalomethanes: A disinfectant by product when chlorine used to treat water reacts with organic materials in the water. - pg. 10 • Tyler Accounting System: The District’s enterprise resource planning software that integrates across all business processes and activities. - pg. 165 V • VMware: A software company that provides cloud computing and virtualization software and services. - pg. 172 W • Wastewater Collection Sytem Master Plan: Outlines existing deficiencies and facility requirements to meet increasing demands. It provides a general assessment to creat a comprehensive CIP for the wastewater collection system. - pg. 10 • Water Master Plan: Provides information on proposed CIP for the water system, including phasing of the necessary projects and capital requirements taking existing deficiencies and facility requirements to meet both current and future demand in consideration. - pg. 10 FISCAL YEAR BUDGET 2021-2022 | PAGE 280 IntentionallyTHIS PAGE LEFT BLANK EAST VALLEY WATER DISTRICT | PAGE 281 Acronyms AC R O N Y M S The District is committed to sound stewardship and transparent operations, through its presentation of the capital and operating budget to the community. FISCAL YEAR BUDGET 2021-2022 | PAGE 282 Acronyms Technical acronyms found in the budget document. EAST VALLEY WATER DISTRICT | PAGE 283 A • ACWA: Association of California Water Agencies - pg. 153 • AF: Acre Foot - pg. 73 • AMI: Advanced Metering Infrastructure - pg. 9 • AQMD or SCAQMD: Air Quality Management District or South Coast Air Quality Management District - pg. 239 • AWWA: American Water Works Association - pg. 35 B • BAR: Bureau of Automotive Repair - pg. 239 • BOD: Biochemical Oxygen Demand - pg. 229 C • CAFR: Comprehensive Annual Financial Report - pg. 166 • CalFire: California Department of Forestry and Fire and Protection - pg. 23 • CalPERS: California Public Employees’ Retirement System - pg. 56 • Cal OES: California Governor’s Office of Emergency Services - pg. 255 • CAPIO: California Public Information Officials - pg. 153 • CARB: California Air Resources Board - pg. 239 • CCR: Consumer Confidence Report - pg. 210 • CCTV: Closed-Circuit Television - pg. 239 • CEO: Chief Executive Officer - pg. 05 • CFD: Community Facilities District - pg. 12 • CGC: California Government Code - pg. 47 • CIP: Capital Improvement Program - pg. 10 • CISCO: Computer Information System Company - pg. 171 • CMUA: California Municipal Utilities Assocation - pg. 153 • COLA: Cost of Living Adjustment - pg. 71 • CSDA: California Special Districts Association - pg. 12 • CSMFO: California Society of Municipal Officers - pg. 12 • CWEA: California Water Environment Association - pg. 223 D • DWR: Department of Water Resources - pg. 82 E • EOC: Emergency Operations Center - pg. 172 • EPA: Environmental Protection Agency - pg. 154 • EVWD: East Valley Water District - pg. 03 F • FEMA: Federal Emergency Management Agency - pg. 154 • FY: Fiscal Year - pg. 03 • FOG: Fats, Oils, and Grease - pg. 209 G  • GAC: Granular Activated Carbon - pg. 190 • GASB: Governmental Accounting Standards Board - pg. 56 • GAAP: Generally Accepted Accounting Principles - pg. 56 • GC: San Bernardino Basin Area Groundwater Council - pg. 73 • GIS: Geographic Information System - pg. 165 • GFOA: The Government Finance Officers Association - pg. 12 • GMP: Guranteed Maximum Price - pg. 154 GLOSSARY FISCAL YEAR BUDGET 2021-2022 | PAGE 284 H • HCF: Hundred Cubic Feet - pg. 62 • HQ: Headquarters - pg. 171 • HVAC: Heating, Ventilation, and Air Conditioning - pg. 233 I • ICS: Incident Command System - pg. 153 • IPAWS: Integrated Public Alert and Warning System - pg. 153 K • KPI: Key Performance Indicator - pg. 09 L • LAIF: Local Agency Investment Fund - pg. 80 M • MG: Million Gallon - pg. 30 • MGD: Million Gallons Per Day - pg. 30 • MOU: Memorandum of Understanding - pg. 71 N • NFWC: North Fork Water Company - pg. 11 • NPDES: National Pollutant Discharge Elimination System - pg. 229 P • PAFR: Popular Annual Financial Report - pg. 166 • PCI: Payment Card Industry - pg. 177 • PFAS: Polyfluoroalkyl Substances - pg. 210 • PFOA: Perfluorooctanoic Acid or Perfluorooctanoate - pg. 210 • PRSA: Public Relations Society of America - pg. 153 • PRV: Pressure Regulating Valve - pg. 30 R • RUSD: Redlands Unified School District - pg. 22 S • SAR: Santa Ana River - pg. 20 • SBCUSD: San Bernardino City Unified School District - pg. 22 • SCADA: Supervisory Control and Data Acquisition - pg. 30 • SCE: Southern California Edison - pg. 75 • SFR: Single-Family Residential - pg. 62 • SNRC: Sterling Natural Resource Center - pg. 03 • SWP: State Water Project - pg. 80 • SWRCB: State Water Resources Control Board - pg. 79 T • TSS: Total Suspended Solids - pg. 229 • TTHM/THM: Total Trihalomethanes - pg. 10 • Tyler Accounting System: - pg. 165 EAST VALLEY WATER DISTRICT | PAGE 285 Chart of Accounts CH A R T O F AC C O U N T S The District actively enhances communication methods to reach a variety of stakeholders. FISCAL YEAR BUDGET 2021-2022 | PAGE 286 Chart of Accounts A complete listing of every account used in the accounting system. In order to maintain consistency across programs and ease the ability to compare expenses, each program budget detail has allocated District resources within a specific list of revenue and expense accounts. This budget includes specific accounts that will be used throughout the current fiscal year. Below is a listing of the District’s Chart of Accounts with a brief description of each account. EAST VALLEY WATER DISTRICT | PAGE 287 • 5101 - Regular Labor: Regular salaries and wages for permanent full-time and part-time employees • 5102 - Temporary Labor: Costs for labor not permanently employed by the District • 5103 - Overtime: Employees that work more than their regular 40 hours per week • 5104 - Standby: Employees that are on call for emergencies during non-business hours, weekends, and holidays • 5200 - Benefits: Medical, dental, vision, retirement, and related benefits offered by the District • 6101 - Purchased Water: Cost to purchase imported water • 6102 - Groundwater Replenishment: Cost to pump groundwater from the basin • 6103 - Water Assessment: Cost of water shares directly related to North Fork Water Company • 6201 - Materials & Supplies: Items used in daily operations, repair, and maintenance • 6202 - Tools: Items used to perform repair and maintenance activities • 6203 - Office Supplies: Items such as pens, paper, and other related desk accessories • 6204 - Chemicals: Used for the treatment of water and cleaning equipment and tools • 6205 - Conservation Rebates: Costs to reimburse customers for eligible conservation efforts • 6301 - Contract Services: Services rendered by consultants and contractors; software subscriptions and licensing • 6302 - Banking Services: Service fees charged by financial institutions, merchant banks, and payment processors • 6303 - Printing & Publishing: Costs for printing and producing District publications • 6304 - Legal Services: Costs for legal advice, consultation, contract review, and litigation • 6305 - Treatment Services: Outside treatment services for wastewater • 6306 - Rents & Leases: Rental and lease costs for buildings and equipment that are not owned by the District • 6307 - Uniforms: Costs for the purchase, rental and laundering of uniforms, and other sundries for employees • 6308 - Billing Services: Costs associated with printing and mailing customer utility bills • 6309 - Shut Off Notice Services: Costs associated with the printing and delivery of 48 Hour Notices; these costs are charged back to customers through a fee • 6310 - Street Services: Costs associated with street restoration after District performs repairs and maintenance to existing infrastructure • 6311 - Landscape Services: Costs to maintain landscape, sprinklers, and weed abatement throughout the District • 6312 - Janitorial Services: Costs to clean and maintain District facilities • 6313 - Facilities Repair: Tracking of minor repairs for District facilities • 6314 - Litigation Expense: Costs associated with legal proceedings, legal action, lawsuits, legal disputes, or legal cases. • 6401 - Utilities: Cable, gas, and other utilities not including telephone and electricity • 6402 - Telephone: Land lines, cellular phones, and internet services GLOSSARY FISCAL YEAR BUDGET 2021-2022 | PAGE 288 • 6403 - Electricity: Electricity usage costs • 6404 - Fuel: Fuel costs for vehicles and generators • 6405 - Permits: Permit costs required by Federal, State, and local regulatory agencies • 6406 - Postage: Costs for mailing bills, publications, and special deliveries • 6501 - Memberships & Dues: Subscriptions (not including software) and memberships for associations and special groups; award applications • 6502 - Professional Development: Seminars, conferences, and travel costs for employee development • 6503 - Education Assistance: Tuition reimbursement for employees who attend school for a degree or certificate • 6504 - Meetings: Costs such as meals, parking, and registration that are not related to professional development • 6505 - Employee Recognition: Employee recognition costs to recognize excellent performance throughout the year • 6701 - General Insurance: General liability insurance for the District’s facilities and infrastructure development • 6702 - Insurance Claims: Cost of insurance claims paid during the fiscal year • 6703 - Cash Over/Short: Accounts for customer payment processing discrepancies • 6704 - Bad Debt: Account used to write off uncollectible customer unpaid water or wastewater charges • 6705 - Retiree Benefits: Other post-employment benefits reimbursed to District retirees 31111 Greenspot Road Highland, California 92346 DISTRICT HEADQUARTERS District Board Meetings Second and Fourth Wednesday of Each Month at 5:30pm District Headquarters Board Room 31111 Greenspot Road Highland, CA 92346 Virtual Board Meetings (Temporary COVID Measure) Second and fourth Wednesday To attend online or telephonically visit www.eastvalley.org/AgendaCenter for details and login information. @eastvalleywater www.eastvalley.org East Valley Water District Resolution 2021.10 Page 1 of 2 RESOLUTION 2021.10 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT APPROVING THE OPERATING AND CAPITAL BUDGETS FOR FISCAL YEAR 2021-22 WHEREAS, East Valley Water District (“District”) is a county water district organized and operating pursuant to California Water Code Section 30000 et seq.; and WHEREAS, the Board of Directors has reviewed and considered the Budget as presented for fiscal year 2021-22, hereinafter referred to as the “Budget;” and WHERES, the Budget provides a comprehensive plan of financial operations for the District including an estimate of revenues and the anticipated requirements for expenditures, appropriations, and reserves for the forthcoming fiscal year; and WHEREAS, the Budget establishes the basis for incurring liability and making expenditures on behalf of the District; and NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the East Valley Water District as follows: Section 1. The Budget, and each and every part thereof, is hereby approved and adopted for the fiscal year 2021-22; and Section 2. The provisions of this Resolution shall take effect on July 1, 2021. ADOPTED this 23rd day of June 2021. Ayes: Noes: Abstain: Absent: David E. Smith Board President East Valley Water District Resolution 2021.10 Page 2 of 2 ATTEST: _____________________________ John Mura Secretary, Board of Directors June 23, 2021 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2021.10 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held June 23, 2021. _____________________________ John Mura Secretary, Board of Directors B O AR D AGE N D A S TAF F R E P ORT Agenda Item #6. Meeting Date: June 23, 2021 Dis c ussion Item To: G o verning Board Memb ers F rom: G eneral Manager/C EO Subject: C ons id er Approval o f S terling Natural R es o urc e C enter P rojec t Enhancements R E C O MME N D AT IO N: S taff rec ommend s that the Bo ard o f Direc to rs autho rize the additional projec t c o s ts and G eneral Manager/C EO to iss ue No tic es to P ro ceed fo r S terling Natural R es o urce C enter p ro ject enhanc ements . B AC KGR O UN D / AN ALYS IS : T he S terling Natural R es o urc e C enter (S NR C ) will be a s tate-o f-the-art fac ility in Highland , C alifo rnia, that will p ro vide a sus tainab le new water sup p ly to b o o s t the regio n's water ind ep end enc e. C ap ab le of treating up to 8 millio n gallo ns a day, the S NR C will rec harge the loc al Bunker Hill G ro und water Basin and create new o p p o rtunities for the s urro und ing c o mmunity. T he Dis tric t s elected the P ro gressive Design Build p roc urement metho d for this p rojec t, whic h has s erved as insulation from cos t increas es experienc ed by many new cons truc tion effo rts. T he method also allows fo r the o p p o rtunity to incorporate ad d itio nal elements into the p ro ject within the existing s ched ule by ad d ing to the ap p ro ved bud get. After c o untles s ho urs of analyzing o p p o rtunities, staff has id entified imp o rtant enhancements includ ing: C AE AT FA S ales Tax Exclus ion: T he Dis tric t rec eived a s ales tax exc lusion fro m the C alifornia Alternative Energy and Advanc ed Trans portatio n F inanc ing Autho rity (C AEAT FA). T his program allo ws sales taxes o n eligible items to b e p aid b y the p ro gram, rather than the p ro jec t resulting in s ignific ant s avings . S ince sales tax is d ep endent on the c os t o f the goo d s , this projec t savings will be c alc ulated o nc e p urc has es are complete. T his p ro gram ap p lies to Balfour Beatty and their s ubc o ntrac tors/vendors wo rking o n the S NR C . P artic ip ating in this s ales tax exc lus io n will res ult in ap p ro ximately $3.5 - 4.5 million in s avings credited to the District at projec t close-out. Urb an G reening G rant: Ens uring that the S terling Natural R es o urc e C enter is a c o mmunity resourc e has b een a p rio rity s inc e the p ro jec t’s inceptio n. In 2019, the Dis tric t rec eived an Urb an G reening G rant in the amo unt of $1.4 millio n. T his enhanced the o riginal landsc ap ing s cope alo ng with o ther imp ro vements agreed upon by the p ro ject team to c reate a welc o ming enviro nment fo r the c o mmunity. T he wes t side o f the prop erty has b een d es igned to ho s t c ommunity events, s erve as a demons tration gard en, and offer a loc atio n fo r spec ial events . T he addition of $1.4 millio n in s ite enhancements will be reimburs ed b y the Urb an G reening grant. S o uthern C alifornia Edison High Vo ltage P ower: G enerating elec tric ity o n s ite is a key component to making every s o urc e a resource. With the size o f the pro ject and available energy connec tion to the S o uthern C alifo rnia Ed is o n p o wer grid, the s ite req uired a critic al red es ign. T his s ignific ant c hange to c o nnect to S C E’s high voltage lines res ulted in ad d itio nal connectio n and equip ment costs in the amount of $2,204,000. T his additional projec t cost will b e funded b y District res erves. Emergenc y S torage Bas in: As a was tewater treatment fac ility that will need to operate 24/7 o nc e o p erations , lo ng-term reliab ility and red und ancy are c ritic al. T he Dis tric t has id entified an o p portunity to cons truct an emergenc y s torage locatio n at the s ame s ite at the Weaver R ec harge Basins . By s iting the recharge b asins and the emergenc y s torage to gether the Distric t and S an Bernardino Valley Munic ip al Water Dis tric t (Valley Dis tric t) c an b enefit from econo mies of s c ale and shared design costs . T his enhancement will provid e a s afe lo catio n in the unlikely event of a comp licatio n with the treatment p ro ces s . Bas in d es ign and c o ns tructio n will c o s t up to $5 millio n and will be ad ded to the Dis tric t’s S tate R evolving F und loan. R egional R ecycled Water P ipeline and Weaver R echarge Bas ins : Wo rking c o llab o ratively, the District is collaborating with Valley Dis trict for the design and cons truc tion of the regio nal rec yc led water p ip eline and Weaver Basins . T hese elements will initially pro vide a locatio n fo r the S NR C to rep lenish the loc al groundwater, fo llo wed by other rec yc led water fac ilities , inc luding the S an Bernardino Water Department’s C lean Water F acto ry. Working in line with the reimbursement agreement appro ved by the G o verning Bo ard s of both the Dis tric t and Valley Dis tric t, Balfour Beatty are actively working to aband o n an existing well, cond uc t enviro nmental s urveys , continue des ign work, and p rep are fo r c onstruc tion. T his wo rk is es timated to b y ap p ro ximately $38 millio n and will be reimb urs ed by Valley Dis tric t. Del R o s a and 5th S treet S ignal R elo c ation: Team S terling continues to progress with design of the o ff-s ite imp ro vements for the p ro jec t, inc lud ing the s ignal reloc ation at 5th S treet and Del R o s a Avenue. In 2020, the Dis tric t and the C ity of Highland agreed to widen the inters ec tion and relo c ate the s ignal as p art o f the S NR C imp ro vements , with the und ers tanding that the C ity of Highland will reimburse the Dis tric t fo r thos e c o s ts. T his enhanc ement s up p o rts the long-term traffic circ ulation ob jectives of the area while minimizing the inc onveniences o f c onstruc tion on the c o mmunity. T he s ignal wo rk is in the b id ding process for this effort, and is es timated to b e $500,000, which will b e reimbursed to the Dis tric t b y the C ity of Highland . T he S terling Natural R es o urc e C enter c o ntinues to pro vide o p p o rtunities fo r the District to wo rk c ollab o ratively with lo cal agenc ies and utility p rovid ers to better serve the community. C ons is tent with the Dis trict’s Vis io n, this p ro ject s upports the idea o f providing world c las s pub lic service. AG E N C Y G O ALS AN D OB J E C T IVE S : G oal and O b jectives I - Implement Effec tive S o lutio ns T hrough Visionary Leadership a) Identify O pportunities to O p timize Natural R esourc es c ) S trengthen R egio nal, S tate and National P artners hips R E VIE W B Y O T HE R S : T his agenda item has been reviewed by the F inanc e Dep artment. F IS C AL IMPAC T R ecommended b y: Jo hn Mura G eneral Manager/C EO R espec tfully sub mitted: Kelly Malloy Direc tor o f S trategic S ervic es F IS C AL IMPAC T $9 million in p ro jec t c os ts have b een inc luded in the F Y 2020-21 b udget. Expens es that are reimburs ab le have no t b een includ ed in the projec t c o s t, as they will no t have a permanent imp ac t o n the Dis tric t’s annual financ es .