HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 12/08/2021BOARD OF DIRECTORS
DECEMBER 8, 2021
East Valley Water District was formed in 1954 and provides water and wastewater services to
103,000 residents within the cities of San Bernardino and Highland, and portions of San
Bernardino County.
EVWD operates under the direction of a 5member elected Board.
GOVERNING BOARD MANAGEMENT
David E. Smith
Chairman of the Board
John Mura
General Manager/CEO
Phillip R. Goodrich
Vice Chairman
Brian Tompkins
Chief Financial Officer
Chris Carrillo
Governing Board Member
Jeff Noelte
Director of Engineering & Operations
Ronald L. Coats
Governing Board Member
Kelly Malloy
Director of Strategic Services
James Morales, Jr.
Governing Board Member
Kerrie Bryan
Director of Administrative Services
Justine Hendricksen
District Clerk
Patrick Milroy
Operations Manager
Rocky Welborn
Water Reclamation Manager
EVWD Regular Board Meeting & Public Hearing
December 08, 2021 5:30 PM
31111 Greenspot Road, Highland, CA 92346
Via Teleconference
In an effort to protect public health and pursuant to Resolution 2021.22, an active State of
Emergency still exists and continues to directly impact the ability of the members to meet
safely in person; therefore, there will be no physical location to attend this meeting in
person and it will be held via teleconference.
Members of the public are invited to make a public comment telephonically during the public
comment section of the meeting and after each agenda item. In addition, a public comment
card may be submitted prior to the start of the meeting, or a request may be submitted to
the District Clerk via email at administration@eastvalley.org.
Anyone wishing to join the meeting may do so using the following information:
DIAL: 12094255876 and enter CONFERENCE ID: 878 461 520#
You may also join by clicking HERE to join the meeting via Microsoft Teams.
PLEASE NOTE:
Materials related to an item on this agenda submitted to the Board after distribution of the
agenda packet are available for public inspection in the District’s office located at 31111
Greenspot Rd., Highland, during normal business hours. Also, such documents are available
on the District’s website at eastvalley.org and are subject to staff’s ability to post the
documents before the meeting.
Pursuant to Government Code Section 54954.2(a), any request for a disabilityrelated
modification or accommodation, including auxiliary aids or services, that is sought in order
to participate in the above agendized public meeting should be directed to the District Clerk
at (909) 8854900 at least 72 hours prior to said meeting.
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.
1.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.
a.Approval of Agenda
2.APPROVAL OF CONSENT CALENDAR
All matters listed under the Consent Calendar are considered by the Board of
Directors to be routine and will be enacted in one motion. There will be no
discussion of these items prior to the time the board considers the motion unless
members of the board, the administrative staff, or the public request specific items
to be discussed and/or removed from the Consent Calendar.
a.Approve the October 13, 2021 Regular Board Meeting Minutes
b.Approve the October 27, 2021 Regular Board Meeting Minutes
c.Approve Directors' Fees and Expenses for November 2021
d.October 2021 Disbursements: Accounts payable disbursements for the period
include check numbers 258451 through 258596, bank drafts, and ACH
payments in the amount of $2,807,904.68 and $595,677.09 for payroll
e.Financial Statements for October 2021
f.Investment Transaction Report for Month Ended October 31, 2021
g.Adopt Resolution 2021.23 Recognizing Dale Barlow's 25 Years of Service
h.Consider Adoption of Resolution 2021.26 Findings and Determinations
Regarding Teleconference Meetings
3.DISCUSSION AND POSSIBLE ACTION ITEMS
a.Consider Approval of Sterling Natural Resource Center Operations Support
Services Agreement
b.Consider Adoption of Resolution 2021.25 2021 Urban and Multibenefit
Drought Relief Grant Program Application
c.Formation of Community Facilities District (CFD) 20211 (Mediterra): Consider
Approval of Resolution 2021.24, CFD 20211 Resolution 2021.01, CFD 20211
Resolution 2021.02, and CFD 20211 Ordinance No. 1; Public Hearing
d.Consider Adoption of Ordinance No. 402 Establishing Compensation,
Benefits, and Authorizing Reimbursement of Expenses and Establishing
Training Requirements for the Board of Directors; Public Hearing
e.Consider Approval of Board Reorganization A. Elect official officers for the
positions of Board President and Vice President B. Appointment of General
Manager/CEO C. Set the time, day and place for holding meetings
4.REPORTS
a.Board of Directors’ Reports
b.General Manager/CEO Report
c.Legal Counsel Report
d.Board of Directors’ Comments
ADJOURN
BOARD OF DIRECTORSDECEMBER 8, 2021East Valley Water District was formed in 1954 and provides water and wastewater services to103,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5member elected Board.GOVERNING BOARD MANAGEMENTDavid E. SmithChairman of the Board John MuraGeneral Manager/CEOPhillip R. GoodrichVice Chairman Brian TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsRonald L. CoatsGoverning Board Member Kelly MalloyDirector of Strategic ServicesJames Morales, Jr.Governing Board Member Kerrie BryanDirector of Administrative ServicesJustine HendricksenDistrict ClerkPatrick Milroy
Operations Manager
Rocky Welborn
Water Reclamation Manager
EVWD Regular Board Meeting & Public Hearing
December 08, 2021 5:30 PM
31111 Greenspot Road, Highland, CA 92346
Via Teleconference
In an effort to protect public health and pursuant to Resolution 2021.22, an active State of
Emergency still exists and continues to directly impact the ability of the members to meet
safely in person; therefore, there will be no physical location to attend this meeting in
person and it will be held via teleconference.
Members of the public are invited to make a public comment telephonically during the public
comment section of the meeting and after each agenda item. In addition, a public comment
card may be submitted prior to the start of the meeting, or a request may be submitted to
the District Clerk via email at administration@eastvalley.org.
Anyone wishing to join the meeting may do so using the following information:
DIAL: 12094255876 and enter CONFERENCE ID: 878 461 520#
You may also join by clicking HERE to join the meeting via Microsoft Teams.
PLEASE NOTE:
Materials related to an item on this agenda submitted to the Board after distribution of the
agenda packet are available for public inspection in the District’s office located at 31111
Greenspot Rd., Highland, during normal business hours. Also, such documents are available
on the District’s website at eastvalley.org and are subject to staff’s ability to post the
documents before the meeting.
Pursuant to Government Code Section 54954.2(a), any request for a disabilityrelated
modification or accommodation, including auxiliary aids or services, that is sought in order
to participate in the above agendized public meeting should be directed to the District Clerk
at (909) 8854900 at least 72 hours prior to said meeting.
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.
1.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.
a.Approval of Agenda
2.APPROVAL OF CONSENT CALENDAR
All matters listed under the Consent Calendar are considered by the Board of
Directors to be routine and will be enacted in one motion. There will be no
discussion of these items prior to the time the board considers the motion unless
members of the board, the administrative staff, or the public request specific items
to be discussed and/or removed from the Consent Calendar.
a.Approve the October 13, 2021 Regular Board Meeting Minutes
b.Approve the October 27, 2021 Regular Board Meeting Minutes
c.Approve Directors' Fees and Expenses for November 2021
d.October 2021 Disbursements: Accounts payable disbursements for the period
include check numbers 258451 through 258596, bank drafts, and ACH
payments in the amount of $2,807,904.68 and $595,677.09 for payroll
e.Financial Statements for October 2021
f.Investment Transaction Report for Month Ended October 31, 2021
g.Adopt Resolution 2021.23 Recognizing Dale Barlow's 25 Years of Service
h.Consider Adoption of Resolution 2021.26 Findings and Determinations
Regarding Teleconference Meetings
3.DISCUSSION AND POSSIBLE ACTION ITEMS
a.Consider Approval of Sterling Natural Resource Center Operations Support
Services Agreement
b.Consider Adoption of Resolution 2021.25 2021 Urban and Multibenefit
Drought Relief Grant Program Application
c.Formation of Community Facilities District (CFD) 20211 (Mediterra): Consider
Approval of Resolution 2021.24, CFD 20211 Resolution 2021.01, CFD 20211
Resolution 2021.02, and CFD 20211 Ordinance No. 1; Public Hearing
d.Consider Adoption of Ordinance No. 402 Establishing Compensation,
Benefits, and Authorizing Reimbursement of Expenses and Establishing
Training Requirements for the Board of Directors; Public Hearing
e.Consider Approval of Board Reorganization A. Elect official officers for the
positions of Board President and Vice President B. Appointment of General
Manager/CEO C. Set the time, day and place for holding meetings
4.REPORTS
a.Board of Directors’ Reports
b.General Manager/CEO Report
c.Legal Counsel Report
d.Board of Directors’ Comments
ADJOURN
BOARD OF DIRECTORSDECEMBER 8, 2021East Valley Water District was formed in 1954 and provides water and wastewater services to103,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5member elected Board.GOVERNING BOARD MANAGEMENTDavid E. SmithChairman of the Board John MuraGeneral Manager/CEOPhillip R. GoodrichVice Chairman Brian TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsRonald L. CoatsGoverning Board Member Kelly MalloyDirector of Strategic ServicesJames Morales, Jr.Governing Board Member Kerrie BryanDirector of Administrative ServicesJustine HendricksenDistrict ClerkPatrick Milroy Operations ManagerRocky Welborn Water Reclamation ManagerEVWD Regular Board Meeting & Public HearingDecember 08, 2021 5:30 PM31111 Greenspot Road, Highland, CA 92346Via TeleconferenceIn an effort to protect public health and pursuant to Resolution 2021.22, an active State ofEmergency still exists and continues to directly impact the ability of the members to meetsafely in person; therefore, there will be no physical location to attend this meeting inperson and it will be held via teleconference.Members of the public are invited to make a public comment telephonically during the publiccomment section of the meeting and after each agenda item. In addition, a public commentcard may be submitted prior to the start of the meeting, or a request may be submitted tothe District Clerk via email at administration@eastvalley.org.Anyone wishing to join the meeting may do so using the following information:DIAL: 12094255876 and enter CONFERENCE ID: 878 461 520#You may also join by clicking HERE to join the meeting via Microsoft Teams.PLEASE NOTE:Materials related to an item on this agenda submitted to the Board after distribution of theagenda packet are available for public inspection in the District’s office located at 31111Greenspot Rd., Highland, during normal business hours. Also, such documents are availableon the District’s website at eastvalley.org and are subject to staff’s ability to post thedocuments before the meeting.Pursuant to Government Code Section 54954.2(a), any request for a disabilityrelatedmodification or accommodation, including auxiliary aids or services, that is sought in orderto participate in the above agendized public meeting should be directed to the District Clerkat (909) 8854900 at least 72 hours prior to said meeting.
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.
1.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.
a.Approval of Agenda
2.APPROVAL OF CONSENT CALENDAR
All matters listed under the Consent Calendar are considered by the Board of
Directors to be routine and will be enacted in one motion. There will be no
discussion of these items prior to the time the board considers the motion unless
members of the board, the administrative staff, or the public request specific items
to be discussed and/or removed from the Consent Calendar.
a.Approve the October 13, 2021 Regular Board Meeting Minutes
b.Approve the October 27, 2021 Regular Board Meeting Minutes
c.Approve Directors' Fees and Expenses for November 2021
d.October 2021 Disbursements: Accounts payable disbursements for the period
include check numbers 258451 through 258596, bank drafts, and ACH
payments in the amount of $2,807,904.68 and $595,677.09 for payroll
e.Financial Statements for October 2021
f.Investment Transaction Report for Month Ended October 31, 2021
g.Adopt Resolution 2021.23 Recognizing Dale Barlow's 25 Years of Service
h.Consider Adoption of Resolution 2021.26 Findings and Determinations
Regarding Teleconference Meetings
3.DISCUSSION AND POSSIBLE ACTION ITEMS
a.Consider Approval of Sterling Natural Resource Center Operations Support
Services Agreement
b.Consider Adoption of Resolution 2021.25 2021 Urban and Multibenefit
Drought Relief Grant Program Application
c.Formation of Community Facilities District (CFD) 20211 (Mediterra): Consider
Approval of Resolution 2021.24, CFD 20211 Resolution 2021.01, CFD 20211
Resolution 2021.02, and CFD 20211 Ordinance No. 1; Public Hearing
d.Consider Adoption of Ordinance No. 402 Establishing Compensation,
Benefits, and Authorizing Reimbursement of Expenses and Establishing
Training Requirements for the Board of Directors; Public Hearing
e.Consider Approval of Board Reorganization A. Elect official officers for the
positions of Board President and Vice President B. Appointment of General
Manager/CEO C. Set the time, day and place for holding meetings
4.REPORTS
a.Board of Directors’ Reports
b.General Manager/CEO Report
c.Legal Counsel Report
d.Board of Directors’ Comments
ADJOURN
BOARD OF DIRECTORSDECEMBER 8, 2021East Valley Water District was formed in 1954 and provides water and wastewater services to103,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5member elected Board.GOVERNING BOARD MANAGEMENTDavid E. SmithChairman of the Board John MuraGeneral Manager/CEOPhillip R. GoodrichVice Chairman Brian TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsRonald L. CoatsGoverning Board Member Kelly MalloyDirector of Strategic ServicesJames Morales, Jr.Governing Board Member Kerrie BryanDirector of Administrative ServicesJustine HendricksenDistrict ClerkPatrick Milroy Operations ManagerRocky Welborn Water Reclamation ManagerEVWD Regular Board Meeting & Public HearingDecember 08, 2021 5:30 PM31111 Greenspot Road, Highland, CA 92346Via TeleconferenceIn an effort to protect public health and pursuant to Resolution 2021.22, an active State ofEmergency still exists and continues to directly impact the ability of the members to meetsafely in person; therefore, there will be no physical location to attend this meeting inperson and it will be held via teleconference.Members of the public are invited to make a public comment telephonically during the publiccomment section of the meeting and after each agenda item. In addition, a public commentcard may be submitted prior to the start of the meeting, or a request may be submitted tothe District Clerk via email at administration@eastvalley.org.Anyone wishing to join the meeting may do so using the following information:DIAL: 12094255876 and enter CONFERENCE ID: 878 461 520#You may also join by clicking HERE to join the meeting via Microsoft Teams.PLEASE NOTE:Materials related to an item on this agenda submitted to the Board after distribution of theagenda packet are available for public inspection in the District’s office located at 31111Greenspot Rd., Highland, during normal business hours. Also, such documents are availableon the District’s website at eastvalley.org and are subject to staff’s ability to post thedocuments before the meeting.Pursuant to Government Code Section 54954.2(a), any request for a disabilityrelatedmodification or accommodation, including auxiliary aids or services, that is sought in orderto participate in the above agendized public meeting should be directed to the District Clerkat (909) 8854900 at least 72 hours prior to said meeting.In order to comply with legal requirements for posting of agenda, only those items filedwith the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesdaymeeting not requiring departmental investigation, will be considered by the Board ofDirectors.CALL TO ORDERPLEDGE OF ALLEGIANCEROLL CALL OF BOARD MEMBERSPUBLIC COMMENTSAny person wishing to speak to the Board of Directors is asked to complete a SpeakerCard and submit it to the District Clerk prior to the start of the meeting. Each speaker islimited to three (3) minutes, unless waived by the Chairman of the Board. Under the Stateof California Brown Act, the Board of Directors is prohibited from discussing or takingaction on any item not listed on the posted agenda. The matter will automatically bereferred to staff for an appropriate response or action and may appear on the agenda at afuture meeting.1.AGENDAThis 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 notappearing on the following agenda unless the Board of Directors makes adetermination that an emergency exists or that a need to take immediate action onthe item came to the attention of the District subsequent to the posting of theagenda.a.Approval of Agenda2.APPROVAL OF CONSENT CALENDARAll matters listed under the Consent Calendar are considered by the Board ofDirectors to be routine and will be enacted in one motion. There will be nodiscussion of these items prior to the time the board considers the motion unlessmembers of the board, the administrative staff, or the public request specific itemsto be discussed and/or removed from the Consent Calendar.a.Approve the October 13, 2021 Regular Board Meeting Minutesb.Approve the October 27, 2021 Regular Board Meeting Minutesc.Approve Directors' Fees and Expenses for November 2021d.October 2021 Disbursements: Accounts payable disbursements for the period
include check numbers 258451 through 258596, bank drafts, and ACH
payments in the amount of $2,807,904.68 and $595,677.09 for payroll
e.Financial Statements for October 2021
f.Investment Transaction Report for Month Ended October 31, 2021
g.Adopt Resolution 2021.23 Recognizing Dale Barlow's 25 Years of Service
h.Consider Adoption of Resolution 2021.26 Findings and Determinations
Regarding Teleconference Meetings
3.DISCUSSION AND POSSIBLE ACTION ITEMS
a.Consider Approval of Sterling Natural Resource Center Operations Support
Services Agreement
b.Consider Adoption of Resolution 2021.25 2021 Urban and Multibenefit
Drought Relief Grant Program Application
c.Formation of Community Facilities District (CFD) 20211 (Mediterra): Consider
Approval of Resolution 2021.24, CFD 20211 Resolution 2021.01, CFD 20211
Resolution 2021.02, and CFD 20211 Ordinance No. 1; Public Hearing
d.Consider Adoption of Ordinance No. 402 Establishing Compensation,
Benefits, and Authorizing Reimbursement of Expenses and Establishing
Training Requirements for the Board of Directors; Public Hearing
e.Consider Approval of Board Reorganization A. Elect official officers for the
positions of Board President and Vice President B. Appointment of General
Manager/CEO C. Set the time, day and place for holding meetings
4.REPORTS
a.Board of Directors’ Reports
b.General Manager/CEO Report
c.Legal Counsel Report
d.Board of Directors’ Comments
ADJOURN
Agenda Item
#2a
December 8, 20211
2
6
8
Meeting Date: December 8, 2021
Agenda Item #2a
Consent Item
Regular Board Meeting
TO: Governing Board Members
FROM: General Manager/CEO
SUBJECT: Approve the October 13, 2021 Regular Board Meeting Minutes
RECOMMENDATION
Staff recommends that the Board of Directors approve the October 13, 2021 regular
Board meeting minutes.
BACKGROUND / ANALYSIS
N/A
AGENCY GOALS AND OBJECTIVES
II - Maintain a Commitment To Sustainability, Transparency, and Accountability
A. Practice Transparent and Accountable Fiscal Management
D. Provide Quality Information to Encourage Community Engagement
REVIEW BY OTHERS
This agenda item has been reviewed by Administration.
FISCAL IMPACT
There is no fiscal impact associated with this agenda item.
Recommended by:
________________
John Mura
General Manager/CEO
Respectfully submitted:
________________
Justine Hendricksen
District Clerk
ATTACHMENTS
October 13, 2021 draft minutes
Regular Board Meeting
Via Teleconference
Meeting Date: October 13, 2021
CALL TO ORDER
The Chairman of the Board called the meeting to order at 4:31 p.m. Director Coats led
the flag salute.
ROLL CALL OF BOARD MEMBERS
PRESENT
Directors: Carrillo, Coats, Goodrich, Morales, Smith
ABSENT
Directors: 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;
Rocky Welborn, Water Reclamation Manager; William Ringland, Conservation/Public
Affairs Manager; Justine Hendricksen, District Clerk; Shayla Antrim, Sr. Administrative
LEGAL COUNSEL
Jean Cihigoyenetche
GUESTS
Members of the public
Draft pending approval
PUBLIC COMMENTS
Chairman Smith declared the public participation section of the meeting open at 4:32
p.m.
There being no written or verbal comments, the public participation section was closed.
1. APPROVAL OF AGENDA
a. Approval of Agenda
A motion was made by Director Morales, seconded by Vice Chairman Goodrich, that the
Board approve the agenda as submitted.
The motion carried by the following roll call vote:
Ayes: Morales, Coats, Goodrich, Morales, Smith
Noes: None
Absent: None
RECESS INTO CLOSED SESSION
The Board entered into Closed Session at 4:33 p.m. as provided in the Ralph M. Brown
Act Government Code Section 54956.8 to discuss the item listed on the agenda.
RECONVENE THE MEETING
The Board reconvened the meeting at 5:37 p.m.
PLEDGE OF ALLEGIANCE
Vice Chairman Goodrich led the flag salute.
ROLL CALL OF BOARD MEMBERS
Directors: Carrillo, Coats, Goodrich, Morales, Smith
ABSENT
Directors: None
2. ANNOUNCEMENT OF CLOSED SESSION ACTIONS
With respect to Item #2a: Legal Counsel stated that no reportable action was taken.
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.
3. APPROVAL OF CONSENT CALENDAR
a. Approve the August 25, 2021 Regular Board Meeting Minutes
b. Approve the September 8, 2021 Regular Board Meeting Minutes
c. Approve the Directors’ fees and expenses for September 2021
A motion was made by Director Coats, seconded by Vice Chairman Goodrich, that the
Board approve the Consent Calendar items as submitted.
The motion carried by the following roll call vote:
Ayes: Coats, Goodrich, Carrillo, Morales, Smith
Noes: None
Absent: None
4. DISCUSSION AND POSSIBLE ACTION ITEMS
a. Consider Community Facilities District (CFD) Petition and Adoption of
Resolutions 2021.14, 2021.15, and 2021.16 to Facilitate Establishment of
CFD No. 2021-01 for Mediterra
The Chief Financial Officer stated that in September 2020, $90,000 was deposited with
the District with intent to a file a petition with the Board to request the District’s help in
forming a Community Facilities District (CFD) for Mediterra. He stated that staff, District
consultants, and the owner and their consultants have been working together to
prepare documents that require Board action. He provided a brief explanation of each
resolution presented to the Board, described the areas of improvement, the process of
the issuance of bonds, and next steps in the development, including scheduling a public
hearing for December 8, 2021. He stated that the CFD will be cost neutral to the
District.
A motion was made by Director Coats, seconded by Vice Chairman Goodrich, that the
Board adopt Resolutions 2021.14, 2021.15 and 2021.16 to facilitate the establishment
of Community Facilities District No. 2021-01 for Mediterra as submitted.
The motion carried by the following roll call vote:
Ayes: Coats, Goodrich, Carrillo, Morales, Smith
Noes: None
Absent: None
b. Transfer of Unclaimed Funds into the District General Fund
A motion was made by Director Morales, seconded by Vice Chairman Goodrich, that the
Board authorize the Chief Financial Officer to perform procedures prescribed in the
Government Code and Civil Code of Procedure for the purpose of encumbering stale-
dated checks and keeping the related funds from escheating to the State as submitted.
The motion carried by the following roll call vote:
Ayes: Morales, Goodrich, Carrillo, Coats, Smith
Noes: None
Absent: None
c. Consider Adoption of Resolution 2021.18 – Imagine a Day Without Water
The Director of Strategic Services provided information to the Board regarding a
national event “Imagine a Day Without Water” to be held on October 21, 2021. She
stated that given current COVID-19 restrictions, the District plans to celebrate this day
with specific social media posts showcasing the dynamic process of providing safe
drinking water.
A motion was made by Vice Chairman Goodrich, seconded by Director Carrillo, that the
Board adopt Resolution 2021.18 recognizing the District’s participation in Imagine a Day
Without Water.
The motion carried by the following roll call vote:
Ayes: Goodrich, Carrillo, Coats, Goodrich, Morales, Smith
Noes: None
Absent: None
d. Consider Adoption of Resolution 2021.20 – Participation in the Great
California Shakeout
The Director of Strategic Services stated that the District participated in the annual
Great California Shakeout and reviewed the Districts emergency preparation procedures
and methods of community outreach for disaster preparedness.
A motion was made by Director Coats, seconded by Vice Chairman Goodrich, that the
Board adopt Resolution 2021.20 recognizing the District’s participation in the Great
California Shakeout.
The motion carried by the following roll call vote:
Ayes: Coats, Goodrich, Carrillo, Morales, Smith
Noes: None
Absent: None
e. Consider Adoption of Resolution 2021.19 – Findings and Determinations
Regarding Teleconference Meetings
The Director of Strategic Services provided information regarding legislative updates to
the Brown Act in regards to holding meetings via teleconference. She reviewed the
protocols of AB 361 and stated that given the on-going call to spread, there is a health
and safety need maintain virtual meetings as allowed by law for the next 30 days.
A motion was made by Vice Chairman Goodrich, seconded by Director Morales, that the
Board adopt Resolution 2021.19 as submitted.
The motion carried by the following roll call vote:
Ayes: Goodrich, Morales, Carrillo, Coats, Smith
Noes: None
Absent: None
f. Consider Board Meeting Cancellations
A motion was made by Director Carrillo, seconded by Vice Chairman Goodrich, that the
Board approve the cancellation of the November 24, 2021 and December 22, 2021
regular board meetings.
The motion carried by the following roll call vote:
Ayes: Carrillo, Goodrich, Coats, Morales, Smith
Noes: None
Absent: None
5. REPORTS
a. Board of Directors’ Reports
Director Carrillo reported on the following: September 23 he met with the General
Manager/CEO to discuss District business; October 6 he participated in the City of San
Bernardino City Council meeting; and October 12 the General Manager/CEO provided
him a District update and they reviewed the agenda.
Director Coats reported on the following: September 23 he met with the General
Manager/CEO to discuss District business and was provided a tour of the Sterling
Natural Resource Center to view construction progress; September 27 he participated in
the Engineering & Operations Committee meeting; October 5 he participated in the San
Bernardino Valley Municipal Water District Board meeting where they approved a
purchase of land in the City of Highland in the previous Harmony development area;
October 6 he participated in a meeting with the General Manager/CEO to discuss
District business; October 7 he participated in the San Bernardino Valley Municipal
Water District Resources Workshop meeting; October 11 he participated in the San
Bernardino Valley Municipal Water District Board meeting where they approved a
proposed water forum, replacing the Advisory Commission on Water Policy; October 11
he attended the Association San Bernardino County Special Districts meeting where
they discussed association business and the upcoming membership meeting; October
12 he met with the General Manager/CEO to discuss District business; and October 13
he participated in the San Bernardino Valley Water Conservation District Board meeting.
Director Morales reported on the following: October 6 he participated in the San
Bernardino RIX quarterly meeting; and October 12 he participated he participated in the
San Bernardino Board of Water Commissioners meeting where they discussed their
utility assistance program.
Vice Chairman Goodrich reported on the following: September 29 he participated in the
Succession Planning Ad-hoc Committee meeting; October 5 he participated in the
Finance & Human Resources Committee meeting; October 7 he met with the General
Manager/CEO to review the agenda; and October 12 he participated in a monthly
meeting with the General Manager/CEO to discuss District business.
Chairman Smith reported on the following: September 27 he participated in the
Engineering & Operations Committee meeting; September 29 he participated in the
Succession Planning Ad-hoc Committee meeting; October 7 he met with the General
Manager/CEO to review the agenda; October 8 he participated in the Inland Empire
Economic Partnership Leadership Academy meeting; and October 12 he participated in
a monthly meeting with the General Manager/CEO to discuss District business.
Information only.
b. General Manager/CEO Report
The General Manager/CEO stated that the State Water Resources Control Board
adopted the California Water and Wastewater Arrearage Payment Program. This
payment program will forgive customer arrearages that occurred during the COVID-19
pandemic. District staff are working to complete the funding application and will begin
notifying eligible customers once the State funding has been received.
The General Manager/CEO informed the Board that construction of the housing project,
across the street from the District Headquarters, will require Greenspot Road to be
closed to through traffic starting Monday, October 18 to Friday, November 5. The
District is currently in the process of notifying customers of this road closure, which will
restrict public access to the headquarters. Customer Service telephone lines will remain
open and customers can continue to pay their bill online, by mail, or using PayNearMe
at local 7-Eleven stores.
The General Manager/CEO provided information on upcoming events:
• October 14 the General Manager/CEO and staff will be providing a tour of the
Sterling Natural Resource Center to the Inland Empire Utilities Agency staff.
• The Legislative & Public Outreach Committee virtual meeting has been
rescheduled from October 14 to Monday, October 18, at 2:00 p.m.
• In observance of Veteran’s Day, the District’s office and customer service lines
will be closed on Thursday, November 11.
Information only.
c. Legal Counsel Report
No report at this time.
d. Board of Directors’ Comments
Director Coats commended staff on their continual great work and excellent customer
service.
Director Morales made a comment regarding Santa Anta Watershed Project Authority
(SAWPA) undergoing a four-year pilot study, reaching out to locals regarding a cloud
seeding pilot program.
Vice Chairman Goodrich praised staff for their work in preparing staff reports and Board
packets.
Chairman Smith thanked everyone for participating in this evening’s Board meeting.
ADJOURN
Chairman Smith adjourned the meeting at 6:21 p.m.
David E. Smith, Board President
John Mura, Secretary
Agenda Item #2b December 8, 20211
Meeting Date: December 8, 2021
Agenda Item #2b
Consent Item
Regular Board Meeting
TO: Governing Board Members
FROM: General Manager/CEO
SUBJECT: Approve the October 27, 2021 Regular Board Meeting Minutes
RECOMMENDATION
Staff recommends that the Board of Directors approve the October 27, 2021 regular
board meeting minutes.
BACKGROUND / ANALYSIS
N/A
AGENCY GOALS AND OBJECTIVES
II - Maintain a Commitment To Sustainability, Transparency, and Accountability
A. Practice Transparent and Accountable Fiscal Management
D. Provide Quality Information to Encourage Community Engagement
REVIEW BY OTHERS
This agenda item has been reviewed by Administration.
FISCAL IMPACT
There is no fiscal impact associated with this agenda item.
Recommended by:
________________
John Mura
General Manager/CEO
Respectfully submitted:
________________
Justine Hendricksen
District Clerk
ATTACHMENTS
Agenda Item #2b December 8, 20212
Meeting Date: December 8, 2021
Agenda Item #2b
Consent Item
October 27, 2021 draft minutes
Regular Board Meeting
Via Teleconference
Meeting Date: October 27, 2021
CALL TO ORDER
The Chairman of the Board called the meeting to order at 5:37 p.m.
PLEDGE OF ALLEGIANCE
Vice Chairman Goodrich led the flag salute.
ROLL CALL OF BOARD MEMBERS
PRESENT
Directors: Carrillo, Coats, Goodrich, Morales, Smith
ABSENT
Directors: None
STAFF
John Mura, General Manager/CEO; Jeff Noelte, Director of Engineering and Operations;
Kelly Malloy, Director of Strategic Services; Kerrie Bryan, Director of Administrative
Services; Justine Hendricksen, District Clerk; Shayla Antrim, Sr. Administrative
LEGAL COUNSEL
Jean Cihigoyenetche
GUESTS
Members of the public
Draft pending approval
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.
1. APPROVAL OF AGENDA
a. Approval of Agenda
A motion was made by Director Carrillo, seconded by Vice Chairman Goodrich, that the
Board approve the agenda as submitted.
The motion carried by the following roll call vote:
Ayes: Carrillo, Goodrich, Coats, Morales, Smith
Noes: None
Absent: None
2. APPROVAL OF CONSENT CALENDAR
a. Approve the September 22, 2021 Regular Board Meeting Minutes
b. Financial Statements for July 2021
c. Financial Statements for August 2021
d. September 2021 Disbursements: Accounts payable disbursements for the
period include check numbers 258288 through 258450, bank drafts, and ACH
payments in the amount of $12,341,537.02 and $389,514.08 for payroll
A motion was made by Director Coats, seconded by Vice Chairman Goodrich, that the
Board approve the Consent Calendar items as submitted.
The motion carried by the following roll call vote:
Ayes: Coats, Goodrich, Carrillo, Morales, Smith
Noes: None
Absent: None
3. INFORMATIONAL ITEMS
a. Legislative Update
The District’s lobbyists, Mrs. Pilar Oñate-Quintana, Mr. David Quintana, and Mr. Jarrell
Cook provided a legislative update to the Board. Items discussed included, but were not
limited to the following: a legislative session recap, District engagement, budget items
and executive orders relating to COVID-19, septic-to-sewer funding, drought declaration,
and vaccine mandates, and reviewed items on the District’s watchlist.
Information only.
b. Sterling Natural Resource Center Project Update
The Director of Strategic Services provided a presentation with updates on the
construction progress of the Sterling Natural Resource Center (SNRC). The presentation
included photos of the Treatment Plant, the Administration Building and a construction
flyover video. She stated that construction is 95% completed and that testing will be
performed before operations begin in 2022.
Information only.
4. DISCUSSION AND POSSIBLE ACTION ITEMS
a. Consider voting designee for the Association of California Water Agencies
(ACWA) elections
The General Manager/CEO reviewed the background of ACWA and voting rights as a
member of ACWA. He stated that Director Morales will be in attendance at the ACWA
Fall Conference and recommends he be designated as the voting representative and
Director Coats as the alternate voting delegate.
A motion was made by Director Morales, seconded by Vice Chairman Goodrich, that the
Board designate Director Morales as the voting designee and Director Coats as the
alternate voting designee from East Valley Water District for ACWA’s December 1, 2021
elections.
The motion carried by the following roll call vote:
Ayes: Morales, Goodrich, Carrillo, Coats, Smith
Noes: None
Absent: None
5. REPORTS
a. Board of Directors’ Reports
Vice Chairman Goodrich reported on the following: October 18 he participated in the
Legislative & Public Outreach Committee meeting; October 18 he attended the
Association of San Bernardino County Special Districts membership meeting; October 20
he attended the Highland Chamber of Commerce monthly meeting where he was
provided updates on the City of Highland; and October 21 he met with the General
Manager/CEO to review the agenda.
Director Morales reported on the following: October 14 he met with the General
Manager/CEO to discuss District business; October 19 he participated in the ACWA
Region 9 conference call to discuss educational program planning for the upcoming
conference; October 20 he attended the Highland Chamber of Commerce monthly
meeting; October 21 he discussed District business with the General Manager/CEO and
was provided a Sterling Natural Resource Center update; and October 26 he
participated in the San Bernardino Board of Water Commissioners meeting where they
discussed the general manager’s annual performance review and staff’s request to
adjust their new construction fees according to inflationary factors.
Director Carrillo reported on the following: October 26 he participated in the Inland
Action meeting where he was appointed to chair the judiciary committee to advocate
for Inland Empire judgeships and funding; and October 26 he discussed the agenda
with the General Manager/CEO.
Director Coats reported on the following: October 10 he participated in the California
Special Districts Association’s Professional Development and Member Services
Committee meetings where they discussed ongoing business; October 18 he
participated in the San Bernardino Valley Municipal Water District Board where they
discussed refreshing their brand; October 18 he attended the Association of San
Bernardino County Special Districts membership meeting where the topic was
redistricting; October 19 he participated in the San Bernardino Valley Municipal Water
District Board meeting; October 20 he attended the Highland Chamber of Commerce
monthly meeting; and October 25 he discussed District business with the General
Manager/CEO.
Chairman Smith reported on the following: October 18 he participated in the Legislative
& Public Outreach Committee meeting; and October 21 he met with the General
Manager/CEO to review the agenda.
b. General Manager/CEO Report
The General Manager/CEO reported on the following:
The proposed Greenspot Road closure has been adjusted to allow public access to
District headquarters. Individuals traveling along Greenspot Road can visit the
headquarters via a temporary road or by traveling to the back way, through Mentone.
Please follow posted construction signs and slow for the cone.
This month construction of the Sterling Natural Resource Center reached a new
milestone. East Valley Water District customers will receive a mailer with a construction
update and link to view a time-lapse video.
On October 19, the Governor officially declared California to be in a drought. The
Governor is asking all Californians to voluntarily reduce water consumption by 15%.
Customers are reminded to watch for excessive water runoff, use a broom to clean hard
surfaces, and to not water for 48 hours after measurable rainfall.
The General Manager/CEO informed the Board of upcoming events:
• In observance of Veterans Day, the District’s office and customer service lines
will be closed on Thursday, November 11.
• In observance of the Thanksgiving holiday, the District has canceled the
November 24th board meeting and the District’s office and customer service lines
will be closed Thursday, November 25 and Friday, November 26.
c. Legal Counsel Report
No report at this time.
d. Board of Directors’ Comments
Director Carrillo thanked staff and guest speakers for their presentations.
Director Morales thanked IT staff for updating his laptop; and he praised the Operations
Manager for providing a customer with a positive customer service experience.
Director Coats stated that he was appointed by California Special Districts Association to
serve on two committees for 2022: Elections and Bylaws.
Members of the Board provided positive comments on the IT Department’s test
phishing email program.
ADJOURN
Chairman Smith adjourned the meeting at 6:46 p.m.
David E. Smith, Board President
John Mura, Secretary
Agenda Item
#2c
December 8, 20211
2
5
7
Meeting Date: December 8, 2021
Agenda Item #2c
Consent Item
Regular Board Meeting with Closed Session
TO: Governing Board Members
FROM: General Manager/CEO
SUBJECT: Approve Directors' Fees and Expenses for November 2021
RECOMMENDATION
Staff recommends that the Board of Directors approve the Governing Board Members'
Fees and Expenses for November 2021.
BACKGROUND / ANALYSIS
The Board has instructed staff to list all director fees and expenses as a separate
agenda item to show full fiscal transparency. Only after Board review and approval will
the compensation and expenses be paid.
AGENCY GOALS AND OBJECTIVES
II - Maintain a Commitment To Sustainability, Transparency, and Accountability
A. Practice Transparent and Accountable Fiscal Management
REVIEW BY OTHERS
This agenda item has been reviewed by the Administration Department.
FISCAL IMPACT
The fiscal impact associated with this agenda item is $7,000.00 which is included in the
current fiscal budget.
Recommended by:
________________
John Mura
General Manager/CEO
Respectfully submitted:
________________
Justine Hendricksen
District Clerk
Agenda Item
#2c
December 8, 20212
2
5
7
Meeting Date: December 8, 2021
Agenda Item #2c
Consent Item
ATTACHMENTS
Director Expense Reports November 2021
Name: Month / Year:2021
Meeting
No.Stipend Written Oral
1 11 /03 175
2 11 /09 175
3 11 /10 175
4 11 /16 175
5 11 /19 175 3
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Meetings
0.56/mi
No.
1
2
3
4
5
6
7
8
9
10
Subtotal
TOTAL PAYMENT
Date of Approval
Chris Carrillo November /
0.00 X
( 5 )
Report Provided
Subtotal Meetings' Stipend
Mileage
Administration Signature
I certify that the above is correct and accurate to the best of my knowledge.
Chris Carrillo
Date Meeting / Event Description
Date
City of San Bernardino Council Meeting
Meeting with General Manager/CEO or Designee
Regular Board Meeting
$875.00
$875.00
$0.00
Reimbursement
Mileage
Miscellaneous Reimbursement Description
Inland Action
Meeting with General Manager/CEO or Designee
Expense Type
$0.00
DIRECTOR EXPENSE / REIMBURSEMENT
ACTIVITY SHEET
1
Name: Month / Year:2021
1
2
3
4
5
Event Description:Meeting with General Manager/CEO or Designee
Brief Description of Meeting/Event Value to EVWD
Phone call with CEO Mura to discuss district business.
Brief Description of Meeting/Event Value to EVWD
Attended regular board meeting.
Meeting Date:11 / 16 / 2021
Event Description:Inland Action
Brief Description of Meeting/Event Value to EVWD
Attend Inland Action meeting.
Meeting Date:11 / 19 / 2021
Meeting Date:11 / 9 / 2021
Event Description:Meeting with General Manager/CEO or Designee
Brief Description of Meeting/Event Value to EVWD
Meeting Date:11 / 10 / 2021
Event Description:Regular Board Meeting
Meeting with CEO Mura to review agenda for regular board meeting.
Chris Carrillo November /
As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s)
that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is
being approved.
Meeting Date:
Event Description:
Attended online City of San Bernardino city council meeting.
11 / 3 / 2021
City of San Bernardino Council Meeting
Brief Description of Meeting/Event Value to EVWD
DIRECTOR EXPENSE / REIMBURSEMENT
ACTIVITY SHEET
AB 1234 SUPPLEMENTAL REPORT FORM
2
Name: Month / Year:2021
Meeting
No.Stipend Written Oral
1 11 /01 175
2 11 /02 175
3 11 /04 0
4 11 /05 175
5 11 /08 175
6 11 /09 175
7 11 /10 175
8 11 /15 175
9 11 /16 0
10 11 /16 175
11 11 /18 175
12 11 /19 0
13 11 /22 175
14
15
16
17
18
19
20
Meetings
0.56/mi
No.
1
2
3
4
5
6
7
8
9
10
Subtotal
TOTAL PAYMENT
Date of Approval
$0.00
Mileage
Miscellaneous Reimbursement Description
San Bernardino Valley MWD
San Bernardino Valley MWD Policy Workshop
Meeting with General Manager/CEO or Designee
Engineering & Operations Committee Meeting
San Bernardino VWC District facilities tour
ASBCSD Board Meeting
Meeting with General Manager/CEO or Designee
Regular Board Meeting
ASBCSD
Expense Type
$1,750.00
$0.00
Reimbursement
Administration Signature
I certify that the above is correct and accurate to the best of my knowledge.
Ronald L. Coats
Date Meeting / Event Description
Date
SNRC Construction Site tour
San Bernardino Valley MWD
Meeting with General Manager/CEO or Designee
$1,750.00
Ronald L. Coats November /
0.00 X
( 10 )
Report Provided
Subtotal Meetings' Stipend
Mileage
Highland Chamber of Commerce Lunch
DIRECTOR EXPENSE / REIMBURSEMENT
ACTIVITY SHEET
1
Name: Month / Year:2021
1
2
3
4
5
Ronald L. Coats November /
As part of the District's commitment to transparency, please provide a brief description of any
meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's
Expense Sheet is being approved.
Meeting Date:
Event Description:
Had a tour of SNRC, with Jeff Nolte, to view construction progress
11 / 1 / 2021
SNRC Construction Site tour
Brief Description of Meeting/Event Value to EVWD
Meeting Date:11 / 2 / 2021
Event Description:San Bernardino Valley MWD
Brief Description of Meeting/Event Value to EVWD
Meeting Date:11 / 4 / 2021
Event Description:Meeting with General Manager/CEO or Designee
They voted to officially dissolve The Advisory Commission on Water Policy and Adopted the new Upper
Santa Ana River Water Forum. This forum will meet 5 times a year beginning in 2022. Meetings will
be held in February, April, June, September and November.
Brief Description of Meeting/Event Value to EVWD
Had a meeting with John Mura to discuss district business
Meeting Date:11 / 5 / 2021
Event Description:San Bernardino VWC District facilities tour
Brief Description of Meeting/Event Value to EVWD
Had a tour of their district's many facilities they use for water recharge to the Bunker Hill Basin
Meeting Date:11 / 8 / 2021
Event Description:ASBCSD Board Meeting
Brief Description of Meeting/Event Value to EVWD
Attended our monthly board meeting to discuss association business and our upcoming general
meeting on November 15th. This will be our last meeting of the board for the year.
DIRECTOR EXPENSE / REIMBURSEMENT
ACTIVITY SHEET
AB 1234 SUPPLEMENTAL REPORT FORM
2
Name: Month / Year:2021
6
7
8
9
10
Meeting Date:11 / 9 / 2021
Event Description:Meeting with General Manager/CEO or Designee
Brief Description of Meeting/Event Value to EVWD
Had a meeting with John Mura to discuss district business and tomorrow's agenda
Meeting Date:11 / 10 / 2021
Event Description:Regular Board Meeting
Brief Description of Meeting/Event Value to EVWD
See official board meeting minutes
Meeting Date:11 / 15 / 2021
Event Description:ASBCSD
Brief Description of Meeting/Event Value to EVWD
This was our general membership meeting and our guest speaker was Julio Morales, from Urban
Futures, whose talk was "7 Solutions for Addressing Your CalPERS Liability" and ways to pay down
your unfunded CalPERS liability quicker.
Meeting Date:11 / 16 / 2021
Event Description:Highland Chamber of Commerce Lunch
Brief Description of Meeting/Event Value to EVWD
Guest speaker was a representative from Lifestream Blood Bank speaking about the blood shortage,
not only locally but nationwide, and the need for anyone who is eligible to donate
Meeting Date:11 / 16 / 2021
Event Description:San Bernardino Valley MWD
Brief Description of Meeting/Event Value to EVWD
Passed a resolution applying for a $10 million grant to help pay for the Weaver Basins project. They
feel very confident they will received this grant. The approved a third amendment to the Sites
Reservoir project for $8,560,000. This payment will help complete all permitting and design efforts for
Sites Reservoir.
Ronald L. Coats November /
As part of the District's commitment to transparency, please provide a brief description of any
meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's
Expense Sheet is being approved.
DIRECTOR EXPENSE / REIMBURSEMENT
ACTIVITY SHEET
AB 1234 SUPPLEMENTAL REPORT FORM
3
Name: Month / Year:2021
11
12
13
14
15
Meeting Date:11 / 18 / 2021
Event Description:San Bernardino Valley MWD Policy Workshop
Brief Description of Meeting/Event Value to EVWD
Valley board decided they needed more information before voting for the third amendment for
reimbursement to EVWD for construction of the regional recycled water facilities. A vote will be held
on this at a future board meeting.
Meeting Date:11 / 19 / 2021
Event Description:Meeting with General Manager/CEO or Designee
Brief Description of Meeting/Event Value to EVWD
Had a meeting with John Mura to discuss district business
Meeting Date:11 / 22 / 2021
Event Description:Engineering & Operations Committee Meeting
Brief Description of Meeting/Event Value to EVWD
We had updates on weir box repairs, North Fork pipe repairs, Plant 24 enhancements and a report on
Total Dissolved Solids.
Meeting Date:
Event Description:
Brief Description of Meeting/Event Value to EVWD
Meeting Date:
Event Description:
Brief Description of Meeting/Event Value to EVWD
Ronald L. Coats November /
As part of the District's commitment to transparency, please provide a brief description of any
meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's
Expense Sheet is being approved.
DIRECTOR EXPENSE / REIMBURSEMENT
ACTIVITY SHEET
AB 1234 SUPPLEMENTAL REPORT FORM
4
Name: Month / Year:2021
Meeting
No.Stipend Written Oral
1 11 /04 175
2 11 /08 175
3 11 /10 175
4 11 /15 175
5 11 /16 175
6 11 /23 175
7 11 /30 175
8
9
10
11
12
13
14
15
16
17
18
19
20
Meetings
0.56/mi
No.
1
2
3
4
5
6
7
8
9
10
Subtotal
TOTAL PAYMENT
Date of Approval
Phillip R. Goodrich November /
0.00 X
( 7 )
Report Provided
Subtotal Meetings' Stipend
Mileage
Administration Signature
I certify that the above is correct and accurate to the best of my knowledge.
Phillip R. Goodrich
Date Meeting / Event Description
Date
Agenda Review
Recycled Water Committee Meeting
Regular Board Meeting
$1,225.00
$1,225.00
$0.00
Reimbursement
Mileage
Miscellaneous Reimbursement Description
ASBCSD
Chamber of Commerce Event
Meeting with General Manager/CEO or Designee
Finance & Human Resources Committee Meeting
Expense Type
$0.00
DIRECTOR EXPENSE / REIMBURSEMENT
ACTIVITY SHEET
1
Name: Month / Year:2021
1
2
3
4
5
Event Description:Chamber of Commerce Event
Brief Description of Meeting/Event Value to EVWD
Attend Monthly Chamber meeting guest spoke of the Cities blood drive efforts
Brief Description of Meeting/Event Value to EVWD
Attend regular board meeting Ref. mins.
Meeting Date:11 / 15 / 2021
Event Description:ASBCSD
Brief Description of Meeting/Event Value to EVWD
Attend monthly Speacial Districts meeting hosted by Yucaipa valley water speaker topic was tatics for
dealing with benefit unpaid liabilities
Meeting Date:11 / 16 / 2021
Meeting Date:11 / 8 / 2021
Event Description:Recycled Water Committee Meeting
Brief Description of Meeting/Event Value to EVWD
Meeting Date:11 / 10 / 2021
Event Description:Regular Board Meeting
Meet with partner agencies to discuss current regional water recycling efforts
Phillip R. Goodrich November /
As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s)
that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is
being approved.
Meeting Date:
Event Description:
Meet with CEO for review of current agenda
11 / 4 / 2021
Agenda Review
Brief Description of Meeting/Event Value to EVWD
DIRECTOR EXPENSE / REIMBURSEMENT
ACTIVITY SHEET
AB 1234 SUPPLEMENTAL REPORT FORM
2
Name: Month / Year:2021
6
7
8
9
10
Phillip R. Goodrich November /
As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s)
that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is
being approved.
Meeting Date:
Event Description:
Brief Description of Meeting/Event Value to EVWD
Event Description:
Brief Description of Meeting/Event Value to EVWD
Meeting Date:
Event Description:
Brief Description of Meeting/Event Value to EVWD
Meet with Dir. Of Eng. For tour and updates of SNRC construction
Meeting Date:11 / 30 / 2021
Event Description:Finance & Human Resources Committee Meeting
Brief Description of Meeting/Event Value to EVWD
Attend Fin. And HR committee meeting for dept. updates
Meeting Date:
Meeting Date:11 / 23 / 2021
Event Description:Meeting with General Manager/CEO or Designee
Brief Description of Meeting/Event Value to EVWD
DIRECTOR EXPENSE / REIMBURSEMENT
ACTIVITY SHEET
AB 1234 SUPPLEMENTAL REPORT FORM
3
Name: Month / Year:2021
Meeting
No.Stipend Written Oral
1 11 /02 0
2 11 /04 175
3 11 /05 175
4 11 /08 0
5 11 /09 175
6 11 /10 175
7 11 /12 175
8 11 /16 0
9 11 /17 175
10 11 /18 175
11 11 /19 0
12 11 /19 175
13 11 /23 175
14 11 /23 0
15 11 /30 175
16
17
18
19
20
Meetings
0.56/mi
No.
1
2
3
4
5
6
7
8
9
10
Subtotal
TOTAL PAYMENT
Date of Approval
James Morales, Jr.November /
0.00 X
( 10 )
Report Provided
Subtotal Meetings' Stipend
Mileage
ACWA Event
LAFCO
Administration Signature
I certify that the above is correct and accurate to the best of my knowledge.
James Morales, Jr.
Date Meeting / Event Description
Finance & Human Resources Committee Meeting
Date
ACWA Event
ACWA Event
San Bernardino VWC District
$1,750.00
$1,750.00
$0.00
Reimbursement
Mileage
Miscellaneous Reimbursement Description
Meeting with General Manager/CEO or Designee
ACWA Event
ACWA Event
San Bernardino Board of Water Commissioners
ACWA Event
San Bernardino Board of Water Commissioners
Regular Board Meeting
East Valley Association of Realtors
ACWA Event
Expense Type
$0.00
DIRECTOR EXPENSE / REIMBURSEMENT
ACTIVITY SHEET
1
Name: Month / Year:2021
1
2
3
4
5
Event Description:San Bernardino Board of Water Commissioners
Brief Description of Meeting/Event Value to EVWD
Board report assignment. Water capacity charge BAI.
Brief Description of Meeting/Event Value to EVWD
Site viewing of public infrastructure.
Meeting Date:11 / 8 / 2021
Event Description:ACWA Event
Brief Description of Meeting/Event Value to EVWD
No charge, more than 10 meetings in reporting period. Region 9 Agenda planning.
Meeting Date:11 / 9 / 2021
Meeting Date:11 / 4 / 2021
Event Description:ACWA Event
Brief Description of Meeting/Event Value to EVWD
Meeting Date:11 / 5 / 2021
Event Description:San Bernardino VWC District
Region 9 Rules Work Group.
James Morales, Jr.November /
As part of the District's commitment to transparency, please provide a brief description of any
meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's
Expense Sheet is being approved.
Meeting Date:
Event Description:
No charge, more than 10 meetings in the period. Region 9 board meeting planning.
11 / 2 / 2021
ACWA Event
Brief Description of Meeting/Event Value to EVWD
DIRECTOR EXPENSE / REIMBURSEMENT
ACTIVITY SHEET
AB 1234 SUPPLEMENTAL REPORT FORM
2
Name: Month / Year:2021
6
7
8
9
10
James Morales, Jr.November /
As part of the District's commitment to transparency, please provide a brief description of any
meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's
Expense Sheet is being approved.
Board report assignment. Fiscal review, monitoring and service review updates.
Meeting Date:11 / 18 / 2021
Event Description:Meeting with General Manager/CEO or Designee
Brief Description of Meeting/Event Value to EVWD
SNRC and District updates.
Event Description:ACWA Event
Brief Description of Meeting/Event Value to EVWD
No charge, more than 10 meetings in reporting period. Region 9 Legislative agenda conference call.
Meeting Date:11 / 17 / 2021
Event Description:LAFCO
Brief Description of Meeting/Event Value to EVWD
Please refer to public agenda.
Meeting Date:11 / 12 / 2021
Event Description:East Valley Association of Realtors
Brief Description of Meeting/Event Value to EVWD
Board report assignment. SNRC and distirct update. Legislative and drought update.
Meeting Date:11 / 16 / 2021
Meeting Date:11 / 10 / 2021
Event Description:Regular Board Meeting
Brief Description of Meeting/Event Value to EVWD
DIRECTOR EXPENSE / REIMBURSEMENT
ACTIVITY SHEET
AB 1234 SUPPLEMENTAL REPORT FORM
3
Name: Month / Year:2021
11
12
13
14
15
James Morales, Jr.November /
As part of the District's commitment to transparency, please provide a brief description of any
meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's
Expense Sheet is being approved.
Please refer to public agenda.
Event Description:ACWA Event
Brief Description of Meeting/Event Value to EVWD
Region 9 conference program work group.
Meeting Date:11 / 30 / 2021
Event Description:Finance & Human Resources Committee Meeting
Brief Description of Meeting/Event Value to EVWD
Regular board meeting.
Meeting Date:11 / 23 / 2021
Event Description:San Bernardino Board of Water Commissioners
Brief Description of Meeting/Event Value to EVWD
No charge, more than 10 meetings in reporting period. Board report assignment. Conservation report.
Meeting Date:11 / 23 / 2021
Event Description:ACWA Event
Brief Description of Meeting/Event Value to EVWD
No charge, more than 10 meetings in reporting period. Executive board meeting.
Meeting Date:11 / 19 / 2021
Event Description:ACWA Event
Brief Description of Meeting/Event Value to EVWD
Meeting Date:11 / 19 / 2021
DIRECTOR EXPENSE / REIMBURSEMENT
ACTIVITY SHEET
AB 1234 SUPPLEMENTAL REPORT FORM
4
Agenda Item #2d December 8, 20211
2
6
9
Meeting Date: December 8, 2021
Agenda Item #2d
Consent Item
Regular Board Meeting
TO: Governing Board Members
FROM: General Manager/CEO
SUBJECT: October 2021 Disbursements: Accounts payable disbursements for the
period include check numbers 258451 through 258596, bank drafts, and ACH payments
in the amount of $2,807,904.68 and $595,677.09 for payroll
RECOMMENDATION
Staff recommends that the Board of Directors (Board) review and approve the District’s
expense disbursements for the period October 1, 2021 through October 31, 2021 in the
amount of $3,403,581.77.
BACKGROUND / ANALYSIS
In the continued effort to be fiscally transparent, the payment register for supplies,
materials, services, and payroll for October 2021 is attached for review and approval.
This process provides the Board and the public an opportunity to review the expenses
of the District. Accounts Payable is processed weekly, while payroll is processed bi-
weekly. Information to justify each expenditure is available through the Finance
Department.
Accounts payable disbursements for the period include check numbers 258451 through
258596, bank drafts, and ACH Payments in the amount of $2,807,904.68 and
$595,677.09, for payroll. Significant expenses greater than or equal to $50,000 are
further explained below:
PA YMENT #VENDOR DESCRIPTION A MOUNT
258466 S AN BERNARDINO MUNICIPAL
WATER DEPART MENT
WAS TEWATER TREAT MENT FOR AUGUS T
2021 708,885.20$
258468 S OUTHERN CALIFORNIA EDIS ON
COMPANY
ELECTRICITY COS T S FOR JULY - AUGUS T
2021 93,079.69$
10009833 LEGEND PUMP AND WELL
S ERVICES
PLANT 143 WELL AND PLANT 40 BOOS TER
REPAIRS 66,339.00$
258588 S AN BERNARDINO MUNICIPAL
WATER DEPART MENT
WAS TEWATER TREAT MENT FOR
S EPTEMBER 2021 691,052.23$
Agenda Item #2d December 8, 20212
2
6
9
Meeting Date: December 8, 2021
Agenda Item #2d
Consent Item
AGENCY GOALS AND OBJECTIVES
II - Maintain a Commitment To Sustainability, Transparency, and Accountability
A. Practice Transparent and Accountable Fiscal Management
REVIEW BY OTHERS
This agenda item has been reviewed by the Finance Department.
FISCAL IMPACT
This item is funded in the current fiscal year budget.
Recommended by:
________________
John Mura
General Manager/CEO
Respectfully submitted:
________________
Brian Tompkins
Chief Financial Officer
ATTACHMENTS
October 2021 Payment Register
PAYMENT REGISTER
OCTOBER 1, 2021 - OCTOBER 31, 2021
PAYMENT
DATE NUMBER VENDOR NAME AMOUNT
10/7/2021 258451 CITY OF HIGHLAND 3,300.00
10/7/2021 258452
ADCOMP SYSTEMS, INC 100.00
10/7/2021 258453 BOYD GROUP US INC 9,637.16
10/7/2021 258454
BURRTEC WASTE/ 5455 Industrial pkwy 440.28
10/7/2021 258455 CHEM-TECH INTERNATIONAL INC 32,553.78
10/7/2021 258456
CULLIGAN OF ONTARIO 139.10
10/7/2021 258457 EXPERIAN 281.08
10/7/2021 258458
FIRST CHOICE SERVICES 1,034.86
10/7/2021 258459 HARPER & ASSOCIATES ENGINEERING, INC 8,220.00
10/7/2021 258460
INLAND WATER WORKS SUPPLY CO 5,232.30
10/7/2021 258461 K & L HARDWARE 39.62
10/7/2021 258462
KOPPEL & GRUBER PUBLIC FINANCE 4,610.00
10/7/2021 258463 MORTON SALT, INC.3,163.35
10/7/2021 258464
SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 15,195.79
10/7/2021 258465 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 16,153.74
10/7/2021 258466
SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 708,885.20
10/7/2021 258467 SO CAL GAS 54.06
10/7/2021 258468
SOUTHERN CALIFORNIA EDISON COMPANY 93,079.69
10/7/2021 258469
SOUTHERN CALIFORNIA EMERGENCY MEDICINE / COLTON /
REDLANDS 645.00
10/7/2021 258470 US AIR CONDITIONING DISTRIBUTORS, LLC 491.57
10/13/2021 258471
ACI PAYMENTS INC.121.83
10/13/2021 258472 ROMADA INC 83.76
10/13/2021 258473
WLODZIMIER MENDEL 100.00
10/13/2021 258474 SB 24713 6TH LLC 1,760.86
10/13/2021 258475
TK CONSTRUCTION INC.1,800.00
10/13/2021 258476 ECCLESIA CHRISTIAN 134.64
10/13/2021 258477
EDWARD GONZALES Jr.38.34
10/13/2021 258478 CHRISTIAN ROSALES 297.00
10/13/2021 258479
DAISY NAVA 100.00
10/13/2021 258480 FLORIN ARDELEAN 100.00
10/13/2021 258481
GARY AVETA 200.00
10/13/2021 258482 JEFFREY REYES 150.00
10/13/2021 258483
JOHN MEURER 200.00
10/13/2021 258484 NANCY HUNT 200.00
10/13/2021 258485
NATHANIEL OKANDEY 150.00
10/13/2021 258486 RANDALL S. EMON 100.00
10/13/2021 258487
SCOTT COLLINSWORTH 189.10
10/13/2021 258488 TERRY WESTERHOF 347.62
10/13/2021 258489
TUYEN MAI 159.90
10/13/2021 258490 ZIKANG ZHOU 100.00
10/13/2021 258512
ACS SUPPORT 26.00
10/13/2021 258513
ALBERT A. WEBB ASSOCIATES 26,740.00
10/13/2021 258514 AMERICAN FIDELITY ASSURANCE COMPANY 2,546.86
PAYMENT REGISTER
OCTOBER 1, 2021 - OCTOBER 31, 2021 Page 1 of 6
PAYMENT
DATE NUMBER VENDOR NAME AMOUNT
10/13/2021 258515 AMERICAN FIDELITY ASSURANCE COMPANY (FSA)1,164.98
10/13/2021 258516
AUTO UPHOLSTERY INC.616.50
10/13/2021 258517 BURRTEC WASTE/ E. 111 MILL ST 311.76
10/13/2021 258518 COUNTY OF SAN BERNARDINO/TAX COLLECTOR 898.79
10/13/2021 258519
EVERSOFT, INC 229.32
10/13/2021 258520 EYE MED VISION CARE 1,466.84
10/13/2021 258521
FLEET MANAGEMENT DEPARTMENT 1,546.97
10/13/2021 258522 FRANCHISE TAX BOARD 100.00
10/13/2021 258523
FRANCHISE TAX BOARD 75.00
10/13/2021 258524 HATFIELD BUICK 103.04
10/13/2021 258525
HILTON'S FLOWERS 129.30
10/13/2021 258526 IEEP FOUNDATION, INLAND EMPIRE ECONOMIC PARTNERSHIP 2,000.00
10/13/2021 258527
ORANGE COAST TITLE COMPANY 600.00
10/13/2021 258528 SOUTHERN CALIFORNIA EDISON COMPANY 25.38
10/13/2021 258529
UNIFIRST CORPORATION 575.26
10/13/2021 258530 UNITED OF OMAHA LIFE INSURANCE COMPANY 6,040.01
10/13/2021 258531
US BANK CORPORATE TRUST SERVICES 6,000.00
10/13/2021 258532 WATER SYSTEMS CONSULTING, INC 15,222.50
10/14/2021 258533
MAGDALENA ORTEGA URRUTIA 84.20
10/14/2021 258534 CLAUDIA AGURCIA 260.79
10/14/2021 258535
XUAN NGUYEN 76.14
10/21/2021 258536
ALTERNATIVE HOSE INC 77.96
10/21/2021 258537 BURRTEC WASTE/ E. 111 MILL ST 1,486.95
10/21/2021 258538 CHEM-TECH INTERNATIONAL INC 6,198.69
10/21/2021 258539
COUNTY OF SAN BERNARDINO, DEPT OF PUBLIC WORKS 1,988.00
10/21/2021 258540 DENTAL HEALTH SERVICES 189.40
10/21/2021 258541
DIB'S SAFE & LOCK SERVICE 106.25
10/21/2021 258542 DONEGAN TREE SERVICE 600.00
10/21/2021 258543
EUCLID MANAGERS, INSURANCE SERVICES INC.504.00
10/21/2021 258544 FIRST CHOICE SERVICES 150.87
10/21/2021 258545
GEOSCIENCE SUPPORT SERVICES, ICN 5,238.75
10/21/2021 258546 HONEYWELL BUILDING SOLUTIONS 18,651.10
10/21/2021 258547
INLAND DESERT SECURITY & COMMUNICATIONS, INC 669.20
10/21/2021 258548 INLAND WATER WORKS SUPPLY CO 32,844.84
10/21/2021 258549
K & L HARDWARE 10.33
10/21/2021 258550 LOWE'S 447.30
10/21/2021 258551
PACIFIC HYDROTECH CORPORATION 26,545.50
10/21/2021 258552 SO CAL GAS 16.27
10/21/2021 258553
SOUTHERN CALIFORNIA EDISON COMPANY 18,953.20
10/21/2021 258554 SWRCB 92.50
10/21/2021 258555
UNIFIRST CORPORATION 530.40
10/21/2021 258556 UNITED SITE SERVICES OF CALIFORNIA, INC 714.68
10/21/2021 258557
US BANCORP SERVICE CENTER 19,465.65
10/21/2021 258561
VERIZON 1,169.60
10/21/2021 258562 ORANGE COAST TITLE COMPANY 700.00
10/28/2021 258563 LETICIA OTEY 400.00
10/28/2021 258564
LYNN C WILSON 404.19
10/28/2021 258565 SB 24713 6TH, LLC 1,982.07
10/28/2021 258566
SB 24713 6TH LLC 42.64
10/28/2021 258567 MIKE S JURE 117.29
10/28/2021 258568
ELFEGO ZARAGOZA ANGULO 99.50
10/28/2021 258569 CARL E ANDREWS 887.43
PAYMENT REGISTER
OCTOBER 1, 2021 - OCTOBER 31, 2021 Page 2 of 6
PAYMENT
DATE NUMBER VENDOR NAME AMOUNT
10/28/2021 258570 SORIANO'S & SON INC.137.46
10/28/2021 258571 HGH CENTER PLAZA LLC 25.74
10/28/2021 258572
HGH CENTER PLAZA LLC 67.14
10/28/2021 258573 HGH CENTER PLAZA LLC 61.65
10/28/2021 258574
ACS SUPPORT 26.00
10/28/2021 258575
ADCOMP SYSTEMS, INC 319.29
10/28/2021 258576 AT&T 1,781.34
10/28/2021 258577 COLONIAL LIFE, PREMIUM 547.00
10/28/2021 258578
FIRST CHOICE SERVICES 179.90
10/28/2021 258579 FRANCHISE TAX BOARD 75.00
10/28/2021 258580
FRANCHISE TAX BOARD 55.97
10/28/2021 258581 HIGHLAND COMMUNITY NEWS/PUBLISHING INC 1,275.50
10/28/2021 258582
INLAND WATER WORKS SUPPLY CO 7,241.11
10/28/2021 258583 K & L HARDWARE 87.62
10/28/2021 258584
LOGICALIS, INC 6,754.31
10/28/2021 258585 METLIFE SMALL BUSINESS CENTER (Dental)9,677.64
10/28/2021 258586
METROPOLITAN LIFE INS CO 93.30
10/28/2021 258587 SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT 909.00
10/28/2021 258588
SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 691,052.23
10/28/2021 258589 SERGIO D. FIERRO 1,500.00
10/28/2021 258590
SOUTHERN CALIFORNIA EDISON COMPANY 22,667.05
10/28/2021 258591 SPECTRUM 960.00
10/28/2021 258593
SWRCB 2,035.00
10/28/2021 258594 UNIFIRST CORPORATION 531.67
10/28/2021 258595
VALLEY OFFICE EQUIPMENT 2.91
10/28/2021 258596 WATER SYSTEMS CONSULTING, INC 22,857.26
BANK DRAFTS
10/1/2021 DFT0004353 CA SDI Tax 2,187.70
10/1/2021 DFT0004354 CALPERS/ DEFERRED COMPENSATION 22,644.17
10/1/2021 DFT0004355
Federal Payroll Tax 33,498.27
10/1/2021 DFT0004356 Medicare 8,510.31
10/1/2021 DFT0004357
State Payroll Tax 13,503.75
10/1/2021 DFT0004358 STATE DISBURSEMENT UNIT 934.00
10/1/2021 DFT0004359
CALPERS/ RETIREMENT 49,208.15
10/4/2021 DFT0004361 GLOBAL PAYMENTS 13,020.44
10/4/2021 DFT0004362
MERCHANT BANKCD 435.40
10/4/2021 DFT0004363 CALPERS/ MEDICAL 99,985.35
10/6/2021 DFT0004364
PayNearMe, Inc.143.28
10/13/2021 DFT0004372 FORTE, ACH DIRECT INC, ACH FEES 3,947.90
10/13/2021 DFT0004373
PayNearMe, Inc.195.02
10/14/2021 DFT0004366 CALPERS/ DEFERRED COMPENSATION 22,469.51
10/14/2021 DFT0004367
CALPERS/ RETIREMENT 49,208.15
10/14/2021 DFT0004371 STATE DISBURSEMENT UNIT 934.00
10/15/2021 DFT0004365
CA SDI Tax 2,113.20
10/15/2021 DFT0004368 Federal Payroll Tax 33,310.11
10/15/2021 DFT0004369
Medicare 8,773.88
10/15/2021 DFT0004370 State Payroll Tax 13,412.87
10/20/2021 DFT0004374
PayNearMe, Inc.189.05
10/22/2021 DFT0004375 CBB 982.65
10/27/2021 DFT0004377
CALPERS/ DEFERRED COMPENSATION 22,113.91
10/27/2021 DFT0004378 CALPERS/ RETIREMENT 49,208.15
PAYMENT REGISTER
OCTOBER 1, 2021 - OCTOBER 31, 2021 Page 3 of 6
PAYMENT
DATE NUMBER VENDOR NAME AMOUNT
10/27/2021 DFT0004383 PayNearMe, Inc.155.22
10/27/2021 DFT0004384 STATE DISBURSEMENT UNIT 934.00
10/29/2021 DFT0004376
CA SDI Tax 2,253.95
10/29/2021 DFT0004379 Federal Payroll Tax 34,642.33
10/29/2021 DFT0004380
Medicare 8,917.44
10/29/2021 DFT0004381 Social Security 861.88
10/29/2021 DFT0004382
State Payroll Tax 13,983.86
10/29/2021 DFT0004385 PayNearMe, Inc.33.83
ACH PAYMENTS
10/7/2021 10009734
ALLEN WILLIAMS 702.57
10/7/2021 10009735 AMAZON CAPITAL SERVICES, INC 3,888.87
10/7/2021 10009736 AMERICAN RENTALS, INC 365.85
10/7/2021 10009737
ANTHESIS 9,608.63
10/7/2021 10009738 BARRY'S SECURITY SERVICES, INC 5,076.53
10/7/2021 10009739 CAROL CALES 660.58
10/7/2021 10009740
CLARK PEST CONTROL 166.00
10/7/2021 10009741 CLEARFLY COMMUNATIONS 970.54
10/7/2021 10009742
CORE & MAIN LP 23,614.46
10/7/2021 10009743 COUNTY OF SAN BERNARDINO, RECORDER- CLERK 340.00
10/7/2021 10009744
DALE BRENDT MARSDEN, dba TOMORROW'S TALENT, LLC 2,500.00
10/7/2021 10009745 DANGELO CO INC 1,807.61
10/7/2021 10009746
DANIEL DAVIS 627.72
10/7/2021 10009747 DAVID HERNANDEZ 437.37
10/7/2021 10009748
ED KING 105.00
10/7/2021 10009749 ELISEO OCHOA 667.32
10/7/2021 10009750
FERGUSON ENTERPRISES, INC.18,153.44
10/7/2021 10009751 FLEETWASH, INC 305.00
10/7/2021 10009752
GARY STURDIVAN 467.47
10/7/2021 10009753 GENESIS INDUSTRIAL SUPPLY, INC 454.72
10/7/2021 10009754
GOLDEN STATE LABOR COMPLIANCE, LLC 4,750.00
10/7/2021 10009755 GORDON GRANT 649.92
10/7/2021 10009756
HARRINGTON INDUSTRIAL PLASTIC 10,989.05
10/7/2021 10009757 MANAGED HEALTH NETWORK 221.76
10/7/2021 10009758
MARTHA T DURAN 800.00
10/7/2021 10009759 MCMASTER-CARR 91.09
10/7/2021 10009760
MICAH KENNEDY 105.00
10/7/2021 10009761 MICHAEL HENDERSON 695.41
10/7/2021 10009762
MOBILE OCCUPATIONAL SERVICES, INC 320.00
10/7/2021 10009763 MSC INDUSTRIAL SUPPLY CO/ SID TOOL CO, INC 627.28
10/7/2021 10009764
REBECCA KASTEN 577.89
10/7/2021 10009765 SCN, SECURITY COMMUNICATION NETWORK, INC 105.00
10/7/2021 10009766
SSCI, INC. DBA-SAFETY COMPLIANCE COMPANY 200.00
10/7/2021 10009767 STAPLES BUSINESS ADVANTAGE 79.28
10/7/2021 10009768
UNDERGROUND SERVICE ALERT 292.15
10/7/2021 10009769
VERIZON WIRELESS 7,011.75
10/7/2021 10009771 VISTA PAINTS 494.36
10/13/2021 10009772
ACWA, ASSOC OF CALIF WATER AGENCIES 26,800.00
10/13/2021 10009773 AMAZON CAPITAL SERVICES, INC 273.15
10/13/2021 10009775
ANTHONY'S IRRIGATION 11,955.00
10/13/2021 10009776 APPLIED MAINTENANCE SUPPLIES & SOLUTIONS 41.66
10/13/2021 10009777
ASBCSD 60.00
PAYMENT REGISTER
OCTOBER 1, 2021 - OCTOBER 31, 2021 Page 4 of 6
PAYMENT
DATE NUMBER VENDOR NAME AMOUNT
10/13/2021 10009778 BARRY'S SECURITY SERVICES, INC 5,064.53
10/13/2021 10009779 BOOT BARN, INC 1,862.01
10/13/2021 10009780
BURGESS MOVING & STORAGE 1,233.30
10/13/2021 10009781 CINTAS CORPORATION (FIRST AID)545.29
10/13/2021 10009782
COAST FITNESS REPAIR SHOP 250.00
10/13/2021 10009783 CORELOGIC SOLUTIONS, LLC 369.51
10/13/2021 10009784
EVWD EMPLOYEES EVENTS ASSOC 315.50
10/13/2021 10009785 EXCEL LANDSCAPE, INC 133.83
10/13/2021 10009786
FLEETWASH, INC 425.00
10/13/2021 10009787 FMB TRUCK OUTFITTERS, INC 932.04
10/13/2021 10009788
FRONTIER COMMUNICATIONS 50.05
10/13/2021 10009789 J COMM, INC.6,000.79
10/13/2021 10009790
JC LAW FIRM 24,210.00
10/13/2021 10009791 JOSE MILLAN 140.00
10/13/2021 10009792
LODO MASSAGE, LLC 960.00
10/13/2021 10009793 MANAGED MOBILE, INC.2,980.57
10/13/2021 10009794
MCMASTER-CARR 125.68
10/13/2021 10009795 MIKE J. ROQUET CONSTRUCTION INC 3,310.00
10/13/2021 10009796
MINUTEMAN PRESS OF RANCHO CUCAMONGA 5,480.48
10/13/2021 10009797 ORION SYSTEMS INTEGRATORS LLC 2,000.00
10/13/2021 10009798
PARKHOUSE TIRE, INC 3,368.49
10/13/2021 10009799 PLUS 1 PERFORMANCE 1,002.34
10/13/2021 10009800
POWERSTRIDE BATTERY CO.340.92
10/13/2021 10009801 QUADIENT, INC 407.62
10/13/2021 10009802
RESOLUTE 4,200.00
10/13/2021 10009803 SG CREATIVE, LLC 3,400.00
10/13/2021 10009804
SHRED-IT US JV LLC 360.60
10/13/2021 10009805 STAPLES BUSINESS ADVANTAGE 210.58
10/13/2021 10009806
SULZER ELECTRO-MECHANICIAL SERVICES (US) INC.11,138.63
10/13/2021 10009807 SUPERIOR AUTOMOTIVE WAREHOUSE, INC.93.68
10/13/2021 10009808
TYLER TECHNOLOGIES, INC 866.64
10/13/2021 10009809 ULTIMATE TOWING & RECOVERY 75.00
10/13/2021 10009810
VALERO FLEET, WEX BANK 13,776.99
10/13/2021 10009811
VULCAN MATERIALS CO/ CALMAT CO 688.70
10/13/2021 10009812 WATEREUSE ASSOCIATION 4,042.50
10/13/2021 10009813 WESTBROOK FENCE, INC 3,350.00
10/21/2021 10009814
AMAZON CAPITAL SERVICES, INC 853.55
10/21/2021 10009815
ANTHONY POOL SERVICE, JAMES ANTHONY LOGSDON 1,435.00
10/21/2021 10009816 APPLIED MAINTENANCE SUPPLIES & SOLUTIONS 100.66
10/21/2021 10009817 BARRY'S SECURITY SERVICES, INC 5,132.83
10/21/2021 10009818
BOOT BARN, INC 171.26
10/21/2021 10009819 CALIFORNIA SPECIAL DISTRICTS 8,195.00
10/21/2021 10009820
CINTAS CORPORATION (FIRST AID)186.30
10/21/2021 10009821 CLARK PEST CONTROL 118.00
10/21/2021 10009822
CLINICAL LAB OF S B 4,856.00
10/21/2021 10009823 DANGELO CO INC 435.30
10/21/2021 10009824
DARIO FREGOSO 150.00
10/21/2021 10009825 EXCEL LANDSCAPE, INC 1,321.85
10/21/2021 10009826
FIELDMAN, ROLAPP & ASSOCIATES, Inc.5,113.90
10/21/2021 10009827 FRONTIER COMMUNICATIONS 1,031.13
10/21/2021 10009828
GENESIS INDUSTRIAL SUPPLY, INC 921.14
10/21/2021 10009829 HACH COMPANY 296.86
PAYMENT REGISTER
OCTOBER 1, 2021 - OCTOBER 31, 2021 Page 5 of 6
PAYMENT
DATE NUMBER VENDOR NAME AMOUNT
10/21/2021 10009830 INFOSEND, INC 300.00
10/21/2021 10009831 JEREMY SUBRIAR 60.00
10/21/2021 10009832
JONATHAN FLORES 200.00
10/21/2021 10009833 LEGEND PUMP AND WELL SERVICES 66,339.00
10/21/2021 10009834
LESLIE'S POOL SUPPLIES, INC.109.66
10/21/2021 10009835 MCMASTER-CARR 370.06
10/21/2021 10009836
MOBILE OCCUPATIONAL SERVICES, INC 100.00
10/21/2021 10009837 MUSICK, PEELER & GARRETT LLP 1,147.50
10/21/2021 10009838
PATTON'S SALES CORP 712.01
10/21/2021 10009839 PLUMBERS DEPOT INC.2,014.24
10/21/2021 10009840
QUINN COMPANY 2,213.33
10/21/2021 10009841 SUPERIOR AUTOMOTIVE WAREHOUSE, INC.37.17
10/21/2021 10009842
TESCO CONTROLS, INC.1,449.61
10/21/2021 10009843 TYLER TECHNOLOGIES, INC 2,728.69
10/21/2021 10009844
VULCAN MATERIALS CO/ CALMAT CO 683.10
10/28/2021 10009845 AMAZON CAPITAL SERVICES, INC 2,228.40
10/28/2021 10009847 AMERICAN RENTALS, INC 73.58
10/28/2021 10009848
APPLIED MAINTENANCE SUPPLIES & SOLUTIONS 1,164.28
10/28/2021 10009849 B&A BLAIS & ASSOCIATES INC 2,125.00
10/28/2021 10009850 BARRY'S SECURITY SERVICES, INC 10,425.75
10/28/2021 10009851
CLARK PEST CONTROL 146.00
10/28/2021 10009852 CLA-VAL CO 1,809.23
10/28/2021 10009853
COMPUTERIZED EMBROIDERY COMPANY, INC 247.19
10/28/2021 10009854 CORE & MAIN LP 4,904.27
10/28/2021 10009855
DANGELO CO INC 9,471.23
10/28/2021 10009856 EVWD EMPLOYEES EVENTS ASSOC 370.50
10/28/2021 10009857
FERGUSON ENTERPRISES, INC.188.93
10/28/2021 10009858 FRONTIER COMMUNICATIONS 818.37
10/28/2021 10009859
HUB SUPPLY CONSTRUCTION SUPPLY, LTD/WHITE CAP LP 701.28
10/28/2021 10009860 J COMM, INC.3,350.00
10/28/2021 10009861
JEFF NOLTE 110.00
10/28/2021 10009862 JOSE MILLAN 3,050.00
10/28/2021 10009863
LEGEND PUMP AND WELL SERVICES 3,168.00
10/28/2021 10009864 MANAGED MOBILE, INC.2,349.10
10/28/2021 10009865
MCMASTER-CARR 256.34
10/28/2021 10009866 MOBILE OCCUPATIONAL SERVICES, INC 48.00
10/28/2021 10009867
NATIONAL CONSTRUCTION RENTALS 168.49
10/28/2021 10009868 PLUS 1 PERFORMANCE 364.73
10/28/2021 10009869
RAYMOND ROYBAL 150.00
10/28/2021 10009870 SCN, SECURITY COMMUNICATION NETWORK, INC 285.00
10/28/2021 10009871
STAPLES BUSINESS ADVANTAGE 62.45
10/28/2021 10009872 SUPERIOR AUTOMOTIVE WAREHOUSE, INC.117.72
10/28/2021 10009873
TROY ALARM, INC.264.00
10/28/2021 10009874 TYLER TECHNOLOGIES, INC 474.10
10/28/2021 10009875
VULCAN MATERIALS CO/ CALMAT CO 671.60
10/28/2021 10009876 WAXIE SANITARY SUPPLY 1,265.64
10/28/2021 10009877
WESTBROOK FENCE, INC 5,175.00
TOTAL 2,807,904.68$
PAYMENT REGISTER
OCTOBER 1, 2021 - OCTOBER 31, 2021 Page 6 of 6
Agenda Item #2e December 8, 20211
2
7
2
Meeting Date: December 8, 2021
Agenda Item #2e
Consent Item
Regular Board Meeting
TO: Governing Board Members
FROM: General Manager/CEO
SUBJECT: Financial Statements for October 2021
RECOMMENDATION
Staff recommends that the Board of Directors (Board) accept and file the attached
financial statements as of, and for the period ended, October 31, 2021.
BACKGROUND / ANALYSIS
Included herewith for the Board’s review is a summary of East Valley Water District’s
financial results, as of October 31, 2021.
AGENCY GOALS AND OBJECTIVES
II - Maintain a Commitment To Sustainability, Transparency, and Accountability
A. Practice Transparent and Accountable Fiscal Management
REVIEW BY OTHERS
This agenda item has been reviewed by the Finance Department.
FISCAL IMPACT
There is no fiscal impact associated with this agenda item.
Recommended by:
________________
John Mura
General Manager/CEO
Respectfully submitted:
________________
Brian Tompkins
Chief Financial Officer
Agenda Item #2e December 8, 20212
2
7
2
Meeting Date: December 8, 2021
Agenda Item #2e
Consent Item
ATTACHMENTS
1. October 2021 Financial Statement Monthly Review
2. October 2021 Financial Statements
FINANCIAL STATEMENTS MONTHLY REVIEW
MONTH ENDING OCTOBER 31, 2021
page | 1
The following is a highlight summary of the District’s financial results as of October 31,
2021. Please note all values presented are in millions (unless otherwise noted).
Statement of Net Position
Total assets at October 31, 2021 are $358.63 million.
CL ASSIFICATIO N WATER WASTEWATER DIS TRICT TOTAL
Cash and I nv estm ents $ 15.05 $ 5.96 $ 21.01
Utility Plant, Net 103.49 18.21 121.70
Other Assets 45.31 170.61 215.92
Current Liabilities 10.22 14.13 24.35
Long T erm Liabilities 48.37 141.89 190.26
Beginning Net Position 100.85 38.28 139.13
Change in Equity 4.41 0.47 4.88
TOTAL N ET POSITION $ 105.26 $ 3 8.7 5 $ 1 44.0 1
Cash and Investments are $21.01 million for the month of October, an increase of $4.49
million from the prior month. In October, the District did not pay an invoice for SNRC
construction costs. The Water Fund’s Due from Other Governments includes Claim 23 for
construction costs incurred for the SNRC bringing the ending balance to $18.83 million.
FINANCIAL STATEMENTS MONTHLY REVIEW
MONTH ENDING OCTOBER 31, 2021
page | 2
$0
$5
$10
$15
$20
$25
$30
Millions
CASH & IN VESTMENTS
Re stric ted Unres tricte d
Comparing current assets to current liabilities, the District has a current ratio at October
31, 2021 of 1.72 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 October 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 OCTOBER 31, 2021
page | 3
Total Revenues & Expenses through October 31, 2021 are summarized below (in
millions):
Column1 WATER WAS TEWATER DIS TRICT TOTAL
Revenue $ 11.49 $ 4.86 $ 16.35
Ex pense 7.09 4.38 11.47
Water Sales for the month ending October 31, 2021 were $2.24M; $618K over staff
projections for the month and $900K over projections year-to-date.
$-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
Millions
WATER SALES BY T IER
Tier 1 Tier 2 Tier 3 FY 20 21-22 P ro je ction
FINANCIAL STATEMENTS MONTHLY REVIEW
MONTH ENDING OCTOBER 31, 2021
page | 4
Water Sales by Customer Class
The table below shows the District’s water sales for the month of October 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 CLAS S ACTUAL PRO J ECTION $ VARIANCE %
VARIAN CE
Residential 1,303,360$ 923,000$ 380,360$ 41%
M ulti-Family 413,959 332,000 81,959 25%
Comm ercial 185,025 132,000 53,025 40%
Irrigation 337,891 235,000 102,891 44%
TO TAL $2,240 ,235 $ 1,622,000 $ 618,235 38%
The following table displays customer class by tier for the month of October 2021:
CUSTOMER CL AS S TIER ACTUAL PROJ ECTIO N $ VARIANCE % VARIAN CE
Residential T ier 1 413,966$ 328,000$ 85,966$ 26%
Residential T ier 2 535,530 358,000 177,530 50%
Residential T ier 3 353,864 237,000 116,864 49%
Multi-Family T ier 1 175,126 140,000 35,126 25%
Multi-Family T ier 2 106,253 106,000 253 0%
Multi-Family T ier 3 132,580 86,000 46,580 54%
Comm ercial T ier 1 100,033 86,000 14,033 16%
Comm ercial T ier 2 12,763 9,000 3,763 42%
Comm ercial T ier 3 72,229 37,000 35,229 95%
Irrigation T ier 2 157,416 128,000 29,416 23%
Irrigation T ier 3 180,475 107,000 73,475 69%
TOTAL $ 2 ,24 0,2 35 $ 1,622 ,00 0 $ 618,235 38%
Legend
- Positive Change in Actuals
- Neutral Change in Actuals
- Negative Change in Actuals
FINANCIAL STATEMENTS MONTHLY REVIEW
MONTH ENDING OCTOBER 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 October 2020. As noted in the graph,
Water Revenue experienced a decrease over last year. Water consumption decreased
85.16 million gallons (113K HCF) compared to October of 2020.
$-
$2.0
$4.0
$6.0
$8.0
$1 0.0
$1 2.0
$1 4.0
1 0/31/2 020 10/31/2021
Millions
CO MPARATIVE MO NTHLY WATER REVENUE
(WATER SALES & METER CHARGES)
Me ter Tier 1 Tier 2 Tier 3
To t al -$11,493,791 Tot al -$11,193,126
Administration,
[VALUE]
Source of Supply,
[VALUE]
Pumps & Boosters,
[VALUE]
Treatment,
[VALUE]
T & D, [VALUE]
Customer Service,
[VALUE]
FY2014-15
Administration,
[VALUE]
Source of Supply,
[VALUE]
Pumps &
Boosters,
[VALUE]
Treatment,
[VALUE]
T & D, [VALUE]
Customer Service,
[VALUE]
FY2015-16
FINANCIAL STATEMENTS MONTHLY REVIEW
MONTH ENDING OCTOBER 31, 2021
page | 6
Water Fund Activities by Cost Center
The graph below provides a year-to-date comparison of the Water Fund operating cost
centers for FY 2020-21 and FY 2021-22.
FINANCIAL STATEMENTS MONTHLY REVIEW
MONTH ENDING OCTOBER 31, 2021
page | 7
Wastewater Fund Activities by Cost Center
The graph below provides a year-to-date comparison of the Wastewater Fund operating
cost centers for FY 2020-21 and FY 2021-22.
WATER WASTEWATER DISTRICT TOTAL
Assets:
Current Assets:
01 Cash and Cash Equivalents 4,540,829.57$ -$ 4,540,829.57$
02 Investments 2,417,572.36 1,361,154.14 3,778,726.50
03 Accounts Receivable, Net 6,897,002.31 339,941.15 7,236,943.46
04 -Interest Receivable - 3,377.19 3,377.19
14*05 Other Receivables 770,093.40 - 770,093.40
07 Due from Sewer Fund 5,906,619.87 - 5,906,619.87
06 Due from Other Governments 11,354,856.01 7,477,236.99 18,832,093.00
08 Inventory 561,173.31 6,721.16 567,894.47
09 Prepaid Expenses 313,149.32 55,806.64 368,955.96
32,761,296.15 9,244,237.27 42,005,533.42
Non-Current Assets:
10 Restricted Cash and Cash Equivalents 8,089,278.50 4,597,930.37 12,687,208.87
11 Capital Assets not being Depreciated 16,047,847.79 161,564,494.67 177,612,342.46
13 Capital Assets, Net 103,491,039.88 18,214,035.68 121,705,075.56
127,628,166.17 184,376,460.72 312,004,626.89
Total Assets:160,389,462.32 193,620,697.99 354,010,160.31
Deferred Outflow Of Resources
24*Deferred Charge on Refunding 644,319.05 302,123.06 946,442.11
25 Deferred Outflows - Pensions 2,812,884.34 857,570.73 3,670,455.07
163,846,665.71 194,780,391.78 358,627,057.49
Current Liabilities:
22 Accounts Payable and Accrued Expenses 5,888,425.20 27,441.76 5,915,866.96
29 Due to Water Fund - 5,906,619.87 5,906,619.87
23 Accrued Payroll and Benefits 4,200.87 - 4,200.87
15 Customer Service Deposits 1,311,687.29 - 1,311,687.29
16 Construction Advances and Retentions 140,958.60 7,941,689.06 8,082,647.66
17 Accrued Interest Payable 270,191.47 25,124.88 295,316.35
18 Current Portion of Compensated Absences 494,407.20 135,849.80 630,257.00
19 Current Portion of Long-Term Debt 2,113,921.97 96,250.00 2,210,171.97
10,223,792.60 14,132,975.37 24,356,767.97
Non-Current Liabilities:
20 Compensated Absences, less current portion 354,617.20 84,320.99 438,938.19
28 Net Pension Liability 9,421,282.28 2,892,011.95 12,313,294.23
21 Long Term Debt, Less Current Portion 38,320,169.37 138,859,666.10 177,179,835.47
27 Other Liabilities 1,173.64 - 1,173.64
Deferred Inflows Of Resources
26 Deferred Inflows - Pensions 273,164.94 57,715.59 330,880.53
48,370,407.43 141,893,714.63 190,264,122.06
58,594,200.03 156,026,690.00 214,620,890.03
31 Equity 100,846,616.21 38,278,814.83 139,125,431.04
100,846,616.21 38,278,814.83 139,125,431.04
Tot Total Revenue 11,492,198.26 4,855,559.57 16,347,757.83
Tot Total Expense 7,086,348.79 4,380,672.62 11,467,021.41
4,405,849.47 474,886.95 4,880,736.42
105,252,465.68 38,753,701.78 144,006,167.46
163,846,665.71$ 194,780,391.78$ 358,627,057.49$ Total Liabilities, Equity and Current Surplus (Deficit):
Total Total Beginning Equity:
Equity:
Revenues Over/Under Expenses
Total Current Liabilities:
Total Non-Current and Deferred Inflows of Resources:
Total Liabilities and Deferred Inflows of Resources:
Unaudited
As of October 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 2,240,234.06$ 8,157,262.58$ 17,488,000.00$ -$ -$ -$ 17,488,000.00$ 9,330,737.42$
42 Meter Charges 759,402.84 3,035,876.72 9,280,000.00 - - - 9,280,000.00 6,244,123.28
43 Penalties 17,722.43 75,443.51 134,000.00 6,937.86 30,842.29 130,000.00 264,000.00 157,714.20
44 Wastewater System Charges - - - 417,906.55 1,613,005.14 4,815,000.00 4,815,000.00 3,201,994.86
45 Wastewater Treatment Charges - - - 838,087.18 3,063,685.86 8,708,000.00 8,708,000.00 5,644,314.14
46 Other Operating Revenue 8,173.08 213,810.78 56,000.00 - 148,026.28 649,000.00 705,000.00 343,162.94
47 Non Operating Revenue 2,867.79 9,804.67 214,000.00 - - 30,000.00 244,000.00 234,195.33
48 Gain or Loss on Disposition - - - - - - - -
56 Benefits - - - - - - - -
68 Depreciation - - - - - - - -
Revenue Total: 3,028,400.20 11,492,198.26 27,172,000.00 1,262,931.59 4,855,559.57 14,332,000.00 41,504,000.00 25,156,242.17
- - - - -
Expense by Category
51 Labor 618,329.60 1,690,266.49 5,440,500.00 173,571.67 449,240.84 2,239,500.00 7,680,000.00 5,540,492.67
56 Benefits 176,065.52 1,521,103.49 2,934,350.00 46,252.59 423,921.89 1,086,650.00 4,021,000.00 2,075,974.62
63 Contract Services 246,870.72 1,104,392.26 4,689,100.00 873,781.22 3,250,295.55 9,389,900.00 14,079,000.00 9,524,312.19
65 Professional Development 35,629.76 79,241.36 321,650.00 14,908.60 30,327.00 102,350.00 424,000.00 314,431.64
53 Overtime 55,655.75 144,530.16 356,100.00 1,695.65 4,766.98 30,900.00 387,000.00 237,702.86
62 Materials and Supplies 142,145.28 657,712.32 1,268,450.00 13,862.62 38,060.73 315,550.00 1,584,000.00 888,226.95
64 Utilities 161,542.09 732,640.54 2,620,650.00 4,181.39 24,062.33 177,350.00 2,798,000.00 2,041,297.13
52 Temporary Labor - - - - - - - -
67 Other 8,299.67 638,348.11 866,200.00 2,038.30 159,165.54 161,800.00 1,028,000.00 230,486.35
54 Standby 3,792.00 10,968.87 33,000.00 348.00 831.76 2,000.00 35,000.00 23,199.37
61 Water Supply - 491,554.00 768,000.00 - - - 768,000.00 276,446.00
71 -Debt Service - 15,591.19 3,082,000.00 - - 270,000.00 3,352,000.00 3,336,408.81
81 -Capital Improvement 95,131.41 99,876.29 3,712,000.00 23,455.00 290,531.21 217,000.00 3,929,000.00 3,538,592.50
82 -Capital Outlay 6,378.81 50,860.81 1,080,000.00 - - 50,000.00 1,130,000.00 1,079,139.19
83 -Accounting Income Add back (101,510.22) (150,737.10) - (23,455.00) (290,531.21) - - 441,268.31
Expense Total: 1,448,330.39 7,086,348.79 27,172,000.00 1,130,640.04 4,380,672.62 14,043,000.00 41,215,000.00 29,547,978.59
Total Surplus (Deficit):1,580,069.81$ 4,405,849.47$ -$ 132,291.55$ 474,886.95$ -$ -$ -$
Unaudited
Revenue and Expense Budget-to-Actual by Category
Month Ended October 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 2,240,234.06$ 8,157,262.58$ 17,488,000.00$ -$ -$ -$ 17,488,000.00$ 9,330,737.42$
42 Meter Charges 759,402.84 3,035,876.72 9,280,000.00 - - - 9,280,000.00 6,244,123.28
43 Penalties 17,722.43 75,443.51 134,000.00 6,937.86 30,842.29 130,000.00 264,000.00 157,714.20
44 Wastewater System Charges - - - 417,906.55 1,613,005.14 4,815,000.00 4,815,000.00 3,201,994.86
45 Wastewater Treatment Charges - - - 838,087.18 3,063,685.86 8,708,000.00 8,708,000.00 5,644,314.14
46 Other Operating Revenue 8,173.08 213,810.78 56,000.00 - 148,026.28 649,000.00 705,000.00 343,162.94
47 Non Operating Revenue 2,867.79 9,804.67 214,000.00 - - 30,000.00 244,000.00 234,195.33
Revenue Total: 3,028,400.20 11,492,198.26 27,172,000.00 1,262,931.59 4,855,559.57 14,332,000.00 41,504,000.00 25,156,242.17
- - - - -
Progra 1000 - Board of Directors 12,149.60 49,606.27 170,800.00 4,799.97 20,852.86 73,200.00 244,000.00 173,540.87
Progra 2000 - General Administration 106,516.48 345,132.78 931,500.00 43,441.38 138,255.71 397,500.00 1,329,000.00 845,611.51
Progra 2100 - Human Resources 47,726.01 790,310.98 1,322,400.00 11,409.89 203,557.39 349,600.00 1,672,000.00 678,131.63
Progra 2200 - Public Affairs 61,122.65 215,422.96 1,340,900.00 36,564.06 138,381.51 503,100.00 1,844,000.00 1,490,195.53
Progra 2300 - Conservation 34,878.52 105,869.13 614,000.00 - - - 614,000.00 508,130.87
Progra 3000 - Finance 82,037.08 347,428.27 890,250.00 35,121.17 144,681.74 380,750.00 1,271,000.00 778,889.99
Progra 3200 - Information Technology 38,827.61 189,464.85 895,900.00 26,320.26 105,367.07 341,100.00 1,237,000.00 942,168.08
Progra 3300 - Customer Service 56,245.52 313,092.87 1,022,400.00 32,059.27 153,233.69 424,600.00 1,447,000.00 980,673.44
Progra 3400 - Meter Service 23,263.30 88,770.12 321,000.00 - 107.17 - 321,000.00 232,122.71
Progra 4000 - Engineering 67,734.57 301,651.18 1,114,400.00 28,286.95 120,366.28 477,600.00 1,592,000.00 1,169,982.54
Progra 5000 - Water Production 359,471.67 1,965,293.06 4,539,000.00 - - - 4,539,000.00 2,573,706.94
Progra 5100 - Water Treatment 105,194.33 379,424.22 900,000.00 - - - 900,000.00 520,575.78
Progra 5200 - Water Quality 34,309.11 186,086.82 521,000.00 - - - 521,000.00 334,913.18
Progra 6000 - Field Maintenance Administration 31,804.54 219,200.02 378,000.00 3,613.40 14,886.31 42,000.00 420,000.00 185,913.67
Progra 6100 - Water Maintenance 253,516.44 1,041,473.63 2,808,000.00 - - - 2,658,000.00 1,616,526.37
Progra 6200 - Wastewater Maintenance - - - 890,259.76 3,260,614.62 10,216,000.00 10,216,000.00 6,955,385.38
Progra 7000 - Facilities Maintenance 83,774.06 324,559.43 971,750.00 11,775.60 53,274.97 244,250.00 1,216,000.00 838,165.60
Progra 7100 - Fleet Maintenance 49,758.90 207,971.01 506,700.00 6,988.33 27,093.30 56,300.00 563,000.00 327,935.69
Progra 8000 - Capital - 15,591.19 7,874,000.00 - - 537,000.00 8,411,000.00 8,395,408.81
Total Surplus (Deficit):1,580,069.81$ 4,405,849.47$ -$ 132,291.55$ 474,886.95$ -$ -$ -$
Revenue and Expense Budget-to-Actual by Program
Month Ended October 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 2,240,234.06$ 8,157,262.58$ 17,288,000.00$ -$ -$ -$ 17,288,000.00$ 9,130,737.42$
42 Meter Charges 759,402.84 3,035,876.72 9,280,000.00 - - - 9,280,000.00 6,244,123.28
43 Penalties 17,722.43 75,443.51 134,000.00 6,937.86 30,842.29 130,000.00 264,000.00 157,714.20
44 Wastewater System Charges - - - 417,906.55 1,613,005.14 4,815,000.00 4,815,000.00 3,201,994.86
45 Wastewater Treatment Charges - - - 838,087.18 3,063,685.86 8,708,000.00 8,708,000.00 5,644,314.14
46 Other Operating Revenue 8,173.08 213,810.78 56,000.00 - 148,026.28 649,000.00 705,000.00 343,162.94
47 Non Operating Revenue 2,867.79 9,804.67 214,000.00 - - 30,000.00 244,000.00 234,195.33
48 Gain or Loss on Disposition - - - - - - - -
56 Benefits - - - - - - - -
68 Depreciation - - - - - - - -
Revenue Total: 3,028,400.20 11,492,198.26 26,972,000.00 1,262,931.59 4,855,559.57 14,332,000.00 41,304,000.00 24,956,242.17
Program: 1000 - Board of Directors - - -
51 Labor 4,900.00$ 20,457.50$ 73,500.00$ 2,100.00$ 8,767.50$ 31,500.00$ 105,000.00$ 75,775.00$
56 Benefits 3,849.59 20,631.04 61,600.00 1,649.84 8,841.92 26,400.00 88,000.00 58,527.04
62 Materials and Supplies - 105.00 1,400.00 - 45.00 600.00 2,000.00 1,850.00
63 Contract Services - 63.42 13,300.00 - 27.18 5,700.00 19,000.00 18,909.40
65 Professional Development 3,400.01 8,349.31 21,000.00 1,050.13 3,171.26 9,000.00 30,000.00 18,479.43
Program: 1000 - Board of Directors Total: 12,149.60 49,606.27 170,800.00 4,799.97 20,852.86 73,200.00 244,000.00 173,540.87
Program: 2000 - General Administration - - -
51 Labor 40,638.46 112,301.27 387,100.00 17,416.51 45,284.13 165,900.00 553,000.00 395,414.60
53 Overtime 244.82 518.08 2,100.00 104.92 205.29 900.00 3,000.00 2,276.63
56 Benefits 18,160.56 127,972.88 237,300.00 5,574.54 48,048.91 101,700.00 339,000.00 162,978.21
62 Materials and Supplies 351.84 701.03 3,500.00 150.78 300.43 1,500.00 5,000.00 3,998.54
63 Contract Services 16,117.80 52,293.10 209,300.00 6,907.63 22,411.33 89,700.00 299,000.00 224,295.57
64 Utilities 149.33 523.05 2,800.00 64.00 224.17 1,200.00 4,000.00 3,252.78
65 Professional Development 30,853.67 50,823.37 89,400.00 13,223.00 21,781.45 36,600.00 126,000.00 53,395.18
Program: 2000 - General Administration Total: 106,516.48 345,132.78 931,500.00 43,441.38 138,255.71 397,500.00 1,329,000.00 845,611.51
Program: 2100 - Human Resources - - - -
51 Labor 25,434.86 59,607.08 207,200.00 6,358.74 13,752.50 88,800.00 296,000.00 222,640.42
52 Temporary Labor - - - - - - - -
53 Overtime 135.21 135.21 2,100.00 33.80 33.80 900.00 3,000.00 2,830.99
56 Benefits 6,718.24 62,635.63 120,400.00 1,679.52 23,490.46 51,600.00 172,000.00 85,873.91
62 Materials and Supplies - - 4,900.00 - - 2,100.00 7,000.00 7,000.00
63 Contract Services 7,240.29 19,249.23 87,200.00 1,280.56 4,164.03 28,800.00 116,000.00 92,586.74
64 Utilities 44.28 132.80 700.00 18.97 56.91 300.00 1,000.00 810.29
65 Professional Development - 11,903.07 39,200.00 - 2,897.64 16,800.00 56,000.00 41,199.29
67 Other 8,153.13 636,647.96 860,700.00 2,038.30 159,162.05 160,300.00 1,021,000.00 225,189.99
Program: 2100 - Human Resources Total: 47,726.01 790,310.98 1,322,400.00 11,409.89 203,557.39 349,600.00 1,672,000.00 678,131.63
Month Ended October 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 October 31, 2021
Unaudited
Program Expense Detail Budget-to-Actual
WATER WASTEWATER DISTRICT WIDE
Program: 2200 - Public Affairs - - - -
51 Labor 42,668.36 117,185.22 398,400.00 17,205.24 44,626.05 170,600.00 569,000.00 407,188.73
52 Temporary Labor - - - - - - - -
53 Overtime - 70.99 11,900.00 - 30.42 5,100.00 17,000.00 16,898.59
56 Benefits 9,353.97 63,974.03 185,500.00 3,828.71 48,063.48 79,500.00 265,000.00 152,962.49
62 Materials and Supplies 217.15 4,249.17 105,700.00 4,822.37 7,171.92 45,300.00 151,000.00 139,578.91
63 Contract Services 9,076.44 29,292.34 583,400.00 10,715.77 37,704.79 178,600.00 762,000.00 695,002.87
64 Utilities 136.29 716.21 29,400.00 133.21 812.70 12,600.00 42,000.00 40,471.09
65 Professional Development (329.56) (65.00) 26,600.00 (141.24) (27.85) 11,400.00 38,000.00 38,092.85
Program: 2200 - Public Affairs Total: 61,122.65 215,422.96 1,340,900.00 36,564.06 138,381.51 503,100.00 1,844,000.00 1,490,195.53
Program: 2300 - Conservation - - - -
51 Labor 15,282.24 41,994.22 111,000.00 - - - 111,000.00 69,005.78
52 Temporary Labor - - - - - - - -
53 Overtime - - 7,000.00 - - - 7,000.00 7,000.00
56 Benefits 3,595.66 12,124.51 40,000.00 - - - 40,000.00 27,875.49
62 Materials and Supplies 14,250.96 35,490.62 176,000.00 - - - 176,000.00 140,509.38
63 Contract Services 2,084.14 16,261.00 213,000.00 - - - 213,000.00 196,739.00
64 Utilities 50.52 141.07 26,000.00 - - - 26,000.00 25,858.93
65 Professional Development (385.00) (142.29) 41,000.00 - - - 41,000.00 41,142.29
Program: 2300 - Conservation Total: 34,878.52 105,869.13 614,000.00 - - - 614,000.00 508,130.87
Program: 3000 - Finance - - - -
51 Labor 60,597.18 166,319.14 519,400.00 25,938.04 67,198.14 222,600.00 742,000.00 508,482.72
52 Temporary Labor - - - - - - - -
53 Overtime 572.84 2,563.00 9,100.00 245.51 1,014.67 3,900.00 13,000.00 9,422.33
56 Benefits 16,082.98 157,967.88 263,050.00 6,887.29 67,668.95 111,950.00 375,000.00 149,363.17
62 Materials and Supplies - 784.84 7,700.00 - 336.36 3,300.00 11,000.00 9,878.80
63 Contract Services 4,200.00 15,070.60 67,200.00 1,800.00 6,439.53 28,800.00 96,000.00 74,489.87
64 Utilities 130.94 628.44 2,800.00 56.12 269.34 1,200.00 4,000.00 3,102.22
65 Professional Development 453.14 4,094.37 20,300.00 194.21 1,754.75 8,700.00 29,000.00 23,150.88
67 Other - - 700.00 - - 300.00 1,000.00 1,000.00
Program: 3000 - Finance Total: 82,037.08 347,428.27 890,250.00 35,121.17 144,681.74 380,750.00 1,271,000.00 778,889.99
Program: 3200 - Information Technology - - - -
51 Labor 21,180.50 57,917.83 256,200.00 16,893.10 43,724.43 109,800.00 366,000.00 264,357.74
52 Temporary Labor - - - - - - - -
53 Overtime - - - - - - - -
56 Benefits 4,579.52 30,786.68 139,300.00 3,826.76 18,459.64 59,700.00 199,000.00 149,753.68
62 Materials and Supplies 4,764.21 14,401.50 32,200.00 2,041.80 6,172.06 13,800.00 46,000.00 25,426.44
63 Contract Services 6,315.93 82,732.93 454,900.00 2,706.83 35,456.98 152,100.00 607,000.00 488,810.09
64 Utilities 884.95 2,156.61 4,900.00 379.27 924.26 2,100.00 7,000.00 3,919.13
65 Professional Development 1,102.50 1,469.30 8,400.00 472.50 629.70 3,600.00 12,000.00 9,901.00
Program: 3200 - Information Technology Total: 38,827.61 189,464.85 895,900.00 26,320.26 105,367.07 341,100.00 1,237,000.00 942,168.08
Page 5 of 8
AMENDED AMENDED AMENDED REMAINING
MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET
Month Ended October 31, 2021
Unaudited
Program Expense Detail Budget-to-Actual
WATER WASTEWATER DISTRICT WIDE
Program: 3300 - Customer Service - - - -
51 Labor 28,325.07 77,495.58 277,100.00 18,102.93 46,985.47 195,900.00 473,000.00 348,518.95
52 Temporary Labor - - - - - - - -
53 Overtime 1,475.95 3,408.95 4,900.00 973.61 2,422.33 2,100.00 7,000.00 1,168.72
56 Benefits 9,533.33 104,586.54 221,600.00 5,797.89 49,864.53 59,400.00 281,000.00 126,548.93
62 Materials and Supplies 191.48 975.19 6,300.00 82.07 417.95 2,700.00 9,000.00 7,606.86
63 Contract Services 15,937.61 107,798.53 379,400.00 6,830.39 46,199.38 112,600.00 492,000.00 338,002.09
64 Utilities 635.54 17,127.93 115,100.00 272.38 7,340.54 45,900.00 161,000.00 136,531.53
65 Professional Development - - 13,200.00 - - 4,800.00 18,000.00 18,000.00
67 Other 146.54 1,700.15 4,800.00 - 3.49 1,200.00 6,000.00 4,296.36
Program: 3300 - Customer Service Total: 56,245.52 313,092.87 1,022,400.00 32,059.27 153,233.69 424,600.00 1,447,000.00 980,673.44
Program: 3400 - Meter Service - - - -
51 Labor 16,890.39 46,603.75 204,000.00 - - - 204,000.00 157,396.25
53 Overtime 426.36 506.30 6,000.00 - - - 6,000.00 5,493.70
56 Benefits 5,692.75 38,760.11 96,000.00 - 15.93 - 96,000.00 57,223.96
62 Materials and Supplies 73.64 1,981.58 5,000.00 - 61.42 - 5,000.00 2,957.00
63 Contract Services 73.98 474.30 8,000.00 - 29.82 - 8,000.00 7,495.88
64 Utilities 106.18 444.08 2,000.00 - - - 2,000.00 1,555.92
65 Professional Development - - - - - - - -
Program: 3400 - Meter Service Total: 23,263.30 88,770.12 321,000.00 - 107.17 - 321,000.00 232,122.71
Program: 4000 - Engineering - - - -
51 Labor 53,884.86 147,020.59 466,200.00 23,093.54 58,761.46 199,800.00 666,000.00 460,217.95
52 Temporary Labor - - - - - - - -
53 Overtime - - 2,100.00 - - 900.00 3,000.00 3,000.00
56 Benefits 9,868.17 130,905.05 130,200.00 4,229.04 55,995.35 55,800.00 186,000.00 (900.40)
62 Materials and Supplies - - 15,400.00 - - 6,600.00 22,000.00 22,000.00
63 Contract Services 1,186.50 9,703.47 343,000.00 508.50 2,537.03 147,000.00 490,000.00 477,759.50
64 Utilities 2,795.04 12,453.07 137,900.00 345.87 2,962.44 59,100.00 197,000.00 181,584.49
65 Professional Development - 1,569.00 19,600.00 110.00 110.00 8,400.00 28,000.00 26,321.00
Program: 4000 - Engineering Total: 67,734.57 301,651.18 1,114,400.00 28,286.95 120,366.28 477,600.00 1,592,000.00 1,169,982.54
Program: 5000 - Water Production - - - -
51 Labor 85,600.25 234,112.86 732,000.00 - - - 732,000.00 497,887.14
53 Overtime 8,677.95 21,313.57 22,000.00 - - - 22,000.00 686.43
54 Standby 1,700.00 4,609.47 15,000.00 - - - 15,000.00 10,390.53
56 Benefits 22,535.46 249,357.69 406,000.00 - - - 406,000.00 156,642.31
61 Water Supply - 491,554.00 768,000.00 - - - 768,000.00 276,446.00
62 Materials and Supplies 18,906.90 86,479.07 335,000.00 - - - 335,000.00 248,520.93
63 Contract Services 106,613.00 340,282.66 386,000.00 - - - 386,000.00 45,717.34
64 Utilities 114,903.11 536,668.74 1,864,000.00 - - - 1,864,000.00 1,327,331.26
65 Professional Development 535.00 915.00 11,000.00 - - - 11,000.00 10,085.00
Program: 5000 - Water Production Total: 359,471.67 1,965,293.06 4,539,000.00 - - - 4,539,000.00 2,573,706.94
Page 6 of 8
AMENDED AMENDED AMENDED REMAINING
MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET
Month Ended October 31, 2021
Unaudited
Program Expense Detail Budget-to-Actual
WATER WASTEWATER DISTRICT WIDE
Program: 5100 - Water Treatment - - - -
51 Labor 29,776.80 84,007.23 243,000.00 - - - 243,000.00 158,992.77
53 Overtime 5,713.80 14,376.18 39,000.00 - - - 39,000.00 24,623.82
56 Benefits 8,443.03 86,026.84 147,000.00 - - - 147,000.00 60,973.16
62 Materials and Supplies 41,853.83 89,863.91 170,000.00 - - - 170,000.00 80,136.09
63 Contract Services 295.80 24,100.30 149,000.00 - - - 149,000.00 124,899.70
64 Utilities 19,111.07 81,049.76 152,000.00 - - - 152,000.00 70,950.24
Program: 5100 - Water Treatment Total: 105,194.33 379,424.22 900,000.00 - - - 900,000.00 520,575.78
Program: 5200 - Water Quality - - - -
51 Labor 22,531.21 61,629.36 216,000.00 - - - 216,000.00 154,370.64
53 Overtime - - 12,000.00 - - - 12,000.00 12,000.00
56 Benefits 5,095.94 89,531.90 100,000.00 - - - 100,000.00 10,468.10
62 Materials and Supplies 1,667.43 10,274.84 18,000.00 - - - 18,000.00 7,725.16
63 Contract Services 5,014.53 24,470.92 167,000.00 - - - 167,000.00 142,529.08
64 Utilities - - 2,000.00 - - - 2,000.00 2,000.00
65 Professional Development - 179.80 6,000.00 - - - 6,000.00 5,820.20
Program: 5200 - Water Quality Total: 34,309.11 186,086.82 521,000.00 - - - 521,000.00 334,913.18
Program: 6000 - Field Maintenance Administration - - - -
51 Labor 20,708.97 56,693.49 180,000.00 2,281.54 5,899.08 20,000.00 200,000.00 137,407.43
52 Temporary Labor - - - - - - - -
53 Overtime - - 1,800.00 - - 200.00 2,000.00 2,000.00
54 Standby 2,092.00 6,359.40 18,000.00 348.00 831.76 2,000.00 20,000.00 12,808.84
56 Benefits 6,341.69 147,891.42 116,100.00 688.09 7,244.29 12,900.00 129,000.00 (26,135.71)
62 Materials and Supplies 33.66 255.27 2,700.00 3.74 28.36 300.00 3,000.00 2,716.37
63 Contract Services 97.60 477.31 900.00 10.85 53.03 100.00 1,000.00 469.66
64 Utilities 2,530.62 7,377.70 36,900.00 281.18 819.74 4,100.00 41,000.00 32,802.56
65 Professional Development - 145.43 21,600.00 - 10.05 2,400.00 24,000.00 23,844.52
Program: 6000 - Field Maintenance Administration Total: 31,804.54 219,200.02 378,000.00 3,613.40 14,886.31 42,000.00 420,000.00 185,913.67
Program: 6100 - Water Maintenance - - - -
51 Labor 124,601.73 337,729.09 957,000.00 - - - 957,000.00 619,270.91
53 Overtime 37,057.61 98,795.06 219,000.00 - - - 219,000.00 120,204.94
56 Benefits 38,725.94 133,605.88 544,000.00 - - - 544,000.00 410,394.12
62 Materials and Supplies 50,431.89 348,958.91 301,000.00 - - - 301,000.00 (47,958.91)
63 Contract Services 2,699.27 122,384.69 637,000.00 - - - 637,000.00 514,615.31
64 Utilities - - - - - - - -
Program: 6100 - Water Maintenance Total: 253,516.44 1,041,473.63 2,658,000.00 - - - 2,658,000.00 1,616,526.37
Program: 6200 - Wastewater Maintenance - - - -
51 Labor - - - 38,788.15 100,340.91 982,000.00 982,000.00 881,659.09
53 Overtime - - - - 361.35 12,000.00 12,000.00 11,638.65
56 Benefits - - - 10,440.28 80,094.10 496,000.00 496,000.00 415,905.90
62 Materials and Supplies - - - 2,014.24 6,801.90 224,000.00 224,000.00 217,198.10
Wastewater Treatment - - - 838,087.18 3,063,685.86 7,610,000.00 7,610,000.00 4,546,314.14
63 Contract Services - - - 929.91 9,330.50 892,000.00 892,000.00 882,669.50
Program: 6200 - Wastewater Maintenance Total: - - - 890,259.76 3,260,614.62 10,216,000.00 10,216,000.00 6,955,385.38
Page 7 of 8
AMENDED AMENDED AMENDED REMAINING
MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET
Month Ended October 31, 2021
Unaudited
Program Expense Detail Budget-to-Actual
WATER WASTEWATER DISTRICT WIDE
Program: 7000 - Facilities Maintenance - - - -
51 Labor 16,410.00 44,809.55 130,500.00 4,405.14 11,347.38 43,500.00 174,000.00 117,843.07
53 Overtime 1,486.42 2,894.60 16,500.00 371.61 723.65 5,500.00 22,000.00 18,381.75
56 Benefits 5,140.75 35,904.57 76,500.00 1,371.00 12,957.07 25,500.00 102,000.00 53,138.36
62 Materials and Supplies 4,131.26 14,635.77 51,250.00 793.45 3,253.38 11,750.00 63,000.00 45,110.85
63 Contract Services 50,368.96 194,615.85 574,500.00 3,740.41 18,954.82 120,500.00 695,000.00 481,429.33
64 Utilities 6,236.67 31,699.09 121,750.00 1,093.99 6,038.67 37,250.00 159,000.00 121,262.24
65 Professional Development - - 750.00 - - 250.00 1,000.00 1,000.00
Program: 7000 - Facilities Maintenance Total: 83,774.06 324,559.43 971,750.00 11,775.60 53,274.97 244,250.00 1,216,000.00 838,165.60
- -
Program: 7100 - Fleet Maintenance - - - -
51 Labor 8,898.72 24,382.73 81,900.00 988.74 2,553.79 9,100.00 91,000.00 64,063.48
53 Overtime - 83.43 2,700.00 - 9.27 300.00 3,000.00 2,907.30
56 Benefits 2,212.73 28,305.63 47,700.00 245.83 3,143.46 5,300.00 53,000.00 21,550.91
62 Materials and Supplies 5,271.03 48,555.62 32,400.00 3,954.17 13,471.95 3,600.00 36,000.00 (26,027.57)
63 Contract Services 19,548.87 65,121.61 216,000.00 263.19 3,301.27 24,000.00 240,000.00 171,577.12
64 Utilities 13,827.55 41,521.99 122,400.00 1,536.40 4,613.56 13,600.00 136,000.00 89,864.45
65 Professional Development - - 3,600.00 - - 400.00 4,000.00 4,000.00
Program: 7100 - Fleet Maintenance Total: 49,758.90 207,971.01 506,700.00 6,988.33 27,093.30 56,300.00 563,000.00 327,935.69
- -
Program: 8000 - Capital - - -
71 -Debt Service - 15,591.19 3,082,000.00 - - 270,000.00 3,352,000.00 3,336,408.81
81 -Capital Improvement 95,131.41 99,876.29 3,712,000.00 23,455.00 290,531.21 217,000.00 3,929,000.00 3,538,592.50
82 -Capital Outlay 6,378.81 50,860.81 1,080,000.00 - - 50,000.00 1,130,000.00 1,079,139.19
83 -Accounting Income Add back (101,510.22) (150,737.10) - (23,455.00) (290,531.21) - - 441,268.31
Program: 8000 - Capital Total: - 15,591.19 7,874,000.00 - - 537,000.00 8,411,000.00 8,395,408.81
Total Surplus (Deficit):1,580,069.81$ 4,405,849.47$ -$ 132,291.55$ 474,886.95$ -$ -$ -$
Page 8 of 8
Agenda Item #2f December 8, 20211
2
6
7
Meeting Date: December 8, 2021
Agenda Item #2f
Consent Item
Regular Board Meeting
TO: Governing Board Members
FROM: General Manager/CEO
SUBJECT: Investment Transaction Report for Month Ended October 31, 2021
RECOMMENDATION
Staff recommends that the Board of Directors (Board) approve the attached Investment
Transaction Report for the month ended October 31, 2021.
BACKGROUND / ANALYSIS
California Government Code §53607 requires the CFO/Treasurer of a public agency to
submit a monthly investment transaction report to the Board when the Board has
delegated to the CFO/Treasurer the authority to invest, reinvest, sell, or exchange
securities held in the Agency’s investment portfolio.
During October the District had $6.07 million in funds invested with LAIF, and $5.9
million invested with Citizens Business Bank Wealth Management (CBB). Interest earned
for the quarter ended September 30th was deposited into LAIF in October; there were
no other deposits into, or withdrawals from LAIF during the month.
No securities held by CBB matured during October, but the investment manager did add
a US Treasury Note and four federally backed agency bonds to the District portfolio.
Attached hereto, for the Board’s review, is the October LAIF Statement and a summary
of investment activity in the CBB account for the month ended October 31, 2021.
AGENCY GOALS AND OBJECTIVES
II - Maintain a Commitment To Sustainability, Transparency, and Accountability
A. Practice Transparent and Accountable Fiscal Management
REVIEW BY OTHERS
This agenda item has been reviewed by the Finance Department.
Agenda Item #2f December 8, 20212
2
6
7
Meeting Date: December 8, 2021
Agenda Item #2f
Consent Item
FISCAL IMPACT
There is no fiscal impact associated with this agenda item.
Recommended by:
________________
John Mura
General Manager/CEO
Respectfully submitted:
________________
Brian Tompkins
Chief Financial Officer
ATTACHMENTS
1. Investment Transaction Report for Month Ended October 31, 2021
2. LAIF Statement for October 2021
EAST VALLEY WATER DISTRICT
Investment Transaction Report
for Month Ended October 31, 2021
Activity (Book Value)
Market
Purch Units /Maturity Amort Cost Adjusted Cost Matured /Adjusted Cost Value
Date Issuer CUSIP Yield Face Value Date 10/1/2021 Adjustment 10/1/2021 Purchases Called 10/31/2021 10/31/2021 Water Sewer
11/4/2016 US Treasury Note 912828T67 1.250%500,000 10/31/21 499,765.63 499,765.63 499,765.63 500,000.00 500,000.00
5/31/2017 US Treasury Note 912828XR6 1.750%300,000 05/31/22 299,765.63 299,765.63 299,765.63 302,883.00 302,883.00 -
3/31/2021 US Treasury Note 9128CBT7 0.750%500,000 03/31/26 495,703.13 495,703.13 495,703.13 491,975.00 491,975.00 -
10/19/2021 US Treasury Note 91282CAZ4 0.375%500,000 11/30/25 --487,031.25 487,031.25 486,230.00 486,230.00
5/10/2018 FHLB 3130AEBM1 2.750%100,000 06/10/22 99,892.00 99,892.00 99,892.00 101,608.00 101,608.00 -
1/21/2020 Tenn Valley Authority 880591ER9 2.875%300,000 09/15/24 313,664.61 313,664.61 313,664.61 318,708.00 318,708.00 -
5/29/2020 US Treasury Note 912828ZP8 0.125%300,000 05/15/23 299,203.13 299,203.13 299,203.13 298,827.00 298,827.00 -
7/30/2020 Federal Home Loan Bank 3130AJUN7 0.550%250,000 07/30/24 249,937.50 249,937.50 249,937.50 250,005.00 250,005.00 -
8/6/2020 Freddie Mac 3134GWMY9 0.625%100,000 08/19/25 100,000.00 100,000.00 100,000.00 98,586.00 98,586.00 -
9/30/2021 Freddie Mac 3030APAZ8 1.030%200,000 09/30/26 200,000.00 200,000.00 200,000.00 198,100.00 198,100.00
3/30/2021 Federal Home Loan Bank 3130ALUF9 1.000%300,000 03/30/26 300,000.00 300,000.00 300,000.00 298,014.00 298,014.00 -
3/30/2021 Federal Home Loan Bank 3130ALPB4 0.800%300,000 05/30/25 300,000.00 300,000.00 300,000.00 300,021.00 300,021.00 -
3/30/2021 Federal Home Loan Bank 3130ALU93 0.750%200,000 06/30/25 200,000.00 200,000.00 200,000.00 198,768.00 198,768.00 -
9/20/2021 Federal Home Loan Bank 3130AKL79 0.250%115,000 12/28/23 114,902.25 114,902.25 114,902.25 114,530.80 114,530.80
9/30/2021 Federal Home Loan Bank 3130AP6M2 1.020%400,000 09/30/26 400,000.00 400,000.00 400,000.00 395,716.00 395,716.00
10/18/2021 Federal Home Loan Bank 3130AKC95 0.550%200,000 10/29/25 --196,566.63 196,566.63 196,534.00 196,534.00
10/26/2021 Federal Home Loan Bank 3130APJ55 1.250%300,000 10/26/26 --299,997.00 299,997.00 299,133.00 299,133.00
10/27/2021 Federal Home Loan Bank 3130AJK242 0.480%100,000 09/01/23 --100,020.00 100,020.00 99,993.00 99,993.00
10/28/2021 Federal Home Loan Bank 3130APLB9 0.850%100,000 10/28/24 --100,000.00 100,000.00 99,908.00 99,908.00
5,065,000.00 3,872,833.88 -3,872,833.88 1,183,614.88 -5,056,448.76 5,049,539.80 4,549,539.80 500,000.00
Attachment A
Agenda Item
#2d
December 8, 20211
2
6
0
Meeting Date: December 8, 2021
Agenda Item #2g
Consent Item
Regular Board Meeting
TO: Governing Board Members
FROM: General Manager/CEO
SUBJECT: Adopt Resolution 2021.23 - Recognizing Dale Barlow's 25 Years of Service
RECOMMENDATION
Staff recommends that the Board of Directors adopt Resolution 2021.23, recognizing
Dale Barlow's 25 Years of Service with the District.
AGENCY GOALS AND OBJECTIVES
I - Implement Effective Solutions Through Visionary Leadership
D. Encourage Performance Based Results through Staff Empowerment
III - Deliver Public Service With Purpose While Embracing Continuous Growth
B. Strive to Provide World Class Customer Relations
C. Promote a Positive Organizational Culture
REVIEW BY OTHERS
This agenda item has been reviewed by Administration and Human Resources.
FISCAL IMPACT
There is no fiscal impact associated with this agenda item.
Recommended by:
________________
John Mura
General Manager/CEO
Respectfully submitted:
________________
Justine Hendricksen
District Clerk
ATTACHMENTS
Resolution 2021.23
RESOLUTION 2021.23
A RESOLUTION OF THE
BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT
IN RECOGNITION OF
DALE BARLOW’S TWENTY-FIVE YEARS OF SERVICE
BE IT HEREBY RESOLVED, by the Board of Directors of the East Valley Water District as
follows:
WHEREAS, DALE BARLOW has been employed by the East Valley Water District since
September 16, 1996, and
WHEREAS, DALE BARLOW has in those twenty-five years, performed in an outstanding
and honorable capacity in the positions of Water Service Worker I, Equipment Operator I, Equipment
Operator II, Water Service Worker III and Facilities Maintenance Coordinator, and
WHEREAS, DALE BARLOW has been dedicated and conscientious, and has displayed a
high sense of duty, sincere interest and personal competence in the performance of his duties which have
been for the benefit of all staff members and customers of the East Valley Water District, and
WHEREAS, DALE BARLOW has served the District for twenty-five years, through his
untiring efforts, personal growth, and cooperation with staff and customers, contributed greatly to the
successful operation of the East Valley Water District.
NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of the East Valley
Water District, and each of them on behalf of the Board, staff and citizens of the District, hereby express
to DALE BARLOW their sincere appreciation for his twenty-five years of dedicated service.
BE IT FURTHER RESOLVED, that this Resolution be placed in the minutes of the East
Valley Water District and the original of this Resolution be signed by all members of the Board of
Directors and presented to DALE BARLOW, after being suitably framed.
DATED: December 8, 2021
________________________________ ________________________________
DAVID E. SMITH PHILLIP R. GOODRICH
President Vice President
________________________________ ________________________________
CHRISTOPHER CARRILLO RONALD L. COATS
Director Director
________________________________ Attest: ________________________________
JAMES MORALES JR. JOHN MURA
Director General Manager/CEO/Board Secretary
Agenda Item
#2e
December 8, 20211
2
4
4
Meeting Date: December 8, 2021
Agenda Item #2h
Consent Item
Regular Board Meeting
TO: Governing Board Members
FROM: General Manager/CEO
SUBJECT: Consider Adoption of Resolution 2021.26 - Findings and Determinations
Regarding Teleconference Meetings
RECOMMENDATION
Staff recommends that the Board of Directors consider adoption of Resolution 2021.26,
Findings and Determinations Regarding Teleconference Meetings.
BACKGROUND / ANALYSIS
Since March 2020, the COVID-19 pandemic has required new levels of flexibility and
adaptability. The District continues to adjust operations to incorporate additional safety
procedures and social distancing practices consistent with local health official guidance.
In 2020, the District declared a local state of emergency, due to the COVID-19
pandemic and the impacts that it had on the ability to safely serve the
public. Maintaining the health and safety of staff and the public while continuing to
provide world class services remains a top priority.
State and federal officials have called for individuals to stay at home whenever possible
to slow the spread of COVID-19. As part of this effort the State of California included
the declaration of a statewide emergency and the issuance of an executive order to
suspend portions of the Ralph M. Brown Act location noticing requirements, easing the
ability for public agencies to hold virtual, or teleconference, meetings. This adjustment
allows for continued public engagement in the policy making process, while allowing for
social distancing. Since executive orders are only valid for a maximum of 180 days, this
process was only allowed temporarily.
The advancement of hosting platforms for virtual meetings that are easily accessible to
the public have greatly improved over the last year. Given the broad range of
emergencies that can occur in California, the maintenance of government transparency
through virtual meetings has emerged as a long-term response measure. AB 361
codified the ability for government agencies to hold virtual meetings in the event of a
declared emergency in order to continue conducting official business. The allowance of
teleconference meeting in place of an “in-person” setting applies in emergencies like
public health that require social distancing, earthquake, wildfire, and other natural or
manmade emergencies. When an agency needs to implement teleconference meetings,
they Governing Board must adopt a Resolution of Findings and Determinations.
Agenda Item
#2e
December 8, 20212
2
4
4
Meeting Date: December 8, 2021
Agenda Item #2e
Consent Item
Given the on-going call to slow the spread of COVID-19, there is a health and safety
needs to maintain virtual meetings as allowed by law for the next 30 days. If a need
exists beyond that point in time a new resolution would be presented to the Governing
Board for consideration for each 30-day period after that. Notice of meetings and
posted agendas would continue to contain information which allow members of the
public to access the meeting and address the Board of Directors and offer public
comment including an opportunity for all persons to attend via a call-in option or an
internet-based service option. Staff is requesting that the Board adopt a Resolution of
Findings and Determinations to utilize the protocols allowed by AB 361.
AGENCY GOALS AND OBJECTIVES
II - Maintain a Commitment To Sustainability, Transparency, and Accountability
D. Provide Quality Information to Encourage Community Engagement
REVIEW BY OTHERS
his agenda item has been reviewed by Public Affairs, Administration and legal counsel.
FISCAL IMPACT
There is no fiscal impact associated with this agenda item.
Recommended by:
________________
John Mura
General Manager/CEO
Respectfully submitted:
________________
Justine Hendricksen
District Clerk
ATTACHMENTS
Resolution 2021.26
East Valley Water District
Resolution 2021.26
Page 1 of 3
RESOLUTION NO. 2021.26
A RESOLUTION OF THE BOARD OF DIRECTORS
OF THE EAST VALLEY WATER DISTRICT
MAKING CERTAIN FINDINGS AND DETERMINATIONS
REGARDING SPECIAL RULES FOR
CONDUCTING MEETINGS THROUGH TELECONFERENCE
WHEREAS, East Valley Water District (“EVWD”) is a county water district
established pursuant to Section 30000 et seq. of the California Water Code; and
WHEREAS, all meetings of the Board of Directors of EVWD are conducted in
open and public settings in compliance with the Ralph M. Brown Act (Brown Act) so that
any member of the public may attend, participate and watch the District’s Board of
Directors conduct their business; and
WHEREAS, on March 24, 2020, the Governor declared a state of emergency
pursuant to Government Code 8625 due to the COVID-19 pandemic and has
recommended, together with local officials, measures for social distancing to assist in
abating the spread of COVID-19; and
WHEREAS, on March 12, 2020, the Governor issued Executive Order N-29-20
which, among other things, suspended certain Brown Act rules governing the use of
teleconferencing of local agency board meetings; and
WHEREAS, on September 20, 2021, the Governor issued Executive Order N-15-
21 which, extended certain Brown Act rules governing the use of teleconferencing of local
agency board meetings and to clarify the transition from the Executive Order to the rules
adopted in AB 361; and
WHEREAS, Executive Order N-15-21 expired on October 1, 2021; and
WHEREAS, the California legislature has enacted, and the Governor has signed
into law, AB 361 amending portions of Government Code 54953, allowing for the
continued use of teleconferencing for local agency board meetings while suspending the
conditions and restrictions of Government Code 54953(b)(3) if the legislative body of the
local agency makes certain findings;
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the East
Valley Water District hereby make the following findings and determinations:
East Valley Water District
Resolution 2021.26
Page 2 of 3
SECTION 1. The Governor has proclaimed a state of emergency on March
24, 2020 which continues.
SECTION 2. The Governor and local officials have promoted the use of social
distancing as a method to abate the spread of COVID-19 within the community. The Board
of Directors finds that conducting in person meetings of the EVWD Board of Directors
would be inimical to social distancing and would present imminent risks to the health or
safety of the attendees and conducting meetings by teleconference would diminish that
risk.
SECTION 3. The Board of Directors will continue to conduct Board meetings
by teleconference in compliance with Government Code 54953(e) until such time as the
Governor has terminated the state of emergency and the risk to health and safety of meeting
attendees is sufficiently diminished or as otherwise required by law. Notice of meetings
and posted agendas will contain information which allow members of the public to access
the meeting and address the Board of Directors and offer public comment including an
opportunity for all persons to attend via a call-in option or an internet-based service option.
SECTION 4. This Resolution shall take effect immediately upon its
adoption and shall be effective for 30 days or until such time as the Board of Directors
adopts a subsequent resolution in accordance with Government Code 54953(e)(3) to extend
the time during which meetings of the Board of Directors may be conducted by
teleconference without compliance with Government Code 54953(3)(b).
ADOPTED this 8th day of December 2021.
ROLL CALL:
Ayes:
Noes:
Absent:
Abstain:
______________________________
David E. Smith,
Board President
East Valley Water District
Resolution 2021.26
Page 3 of 3
ATTEST:
John Mura,
Secretary, Board of Directors
December 8, 2021
I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution
2021.26 adopted by the Board of Directors of East Valley Water District at its Regular
Meeting held December 8, 2021.
John Mura,
Secretary, Board of Directors
Agenda Item
#3a
December 8, 20211
2
5
6
Meeting Date: December 8, 2021
Agenda Item #3a
Discussion Item
Regular Board Meeting
TO: Governing Board Members
FROM: General Manager/CEO
SUBJECT: Consider Approval of Sterling Natural Resource Center Operations Support
Services Agreement
RECOMMENDATION
Staff recommends that the Board of Directors authorize the General Manager/CEO to
execute a Professional Services Agreement for Sterling Natural Resource Center (SNRC)
Operational Support Services with Anaergia Technologies, LLC. for an estimated annual
cost of $2,240,312.33 for 5-years with two optional 2-year extensions.
BACKGROUND / ANALYSIS
In preparation for the Operations of the SNRC, staff solicited a proposal from Anaergia
Technologies to provide operational support of the SNRC related to the solids processes
and importing of high strength organics. Anaergia operates a similar facility in Rialto
and has the ability to leverage existing contracts and supply chains to obtain bulk
pricing for many of the organic materials needed for energy generation.
Anaergia is an industry leader in renewable energy from solid waste treatment and
EVWD has partnered with Anaergia to build the solids treatment systems at the SNRC.
Staff negotiated with Anaergia to develop an operations support agreement to provide
all consumables (chemicals, gas treatment media, etc.), maintenance services, and
sourcing of high strength organic materials for delivery to the facility.
The agreement is comprised of:
Pass through costs for consumables and services that will be passed directly
through to the District at no markup;
Maintenance service fees that are aggregated and charged per operating hour of
the equipment;
Service management fee to cover administrative costs related to the services
performed as part of the agreement;
Feed stock management fee that is scalable to encourage Anaergia to procure
and deliver enough high strength organics to produce 3.0 megawatt of power.
Due to the recently observed market volatility, adjustments in high strength waste
generators production capacity, and unknowns regarding sludge quality, guaranteed
pricing was not pursued in these negotiations. Instead, estimated pricing is included in
Agenda Item
#3a
December 8, 20212
2
5
6
Meeting Date: December 8, 2021
Agenda Item #3a
Discussion Item
the proposed agreement. The estimated pricing includes a 20% contingency for direct
pass-through costs and service fees to account for future market increases. As the
SNRC starts operations and testing can be performed, staff intends to request
guaranteed long-term pricing in future agreements.
AGENCY GOALS AND OBJECTIVES
I - Implement Effective Solutions Through Visionary Leadership
A. Identify Opportunities to Optimize Natural Resources
C. Strengthen Regional, State and National Partnerships
IV - Promote Planning, Maintenance and Preservation of District Resources
A. Develop Projects and Programs to Ensure Safe and Reliable Services
B. Enhance Planning Efforts that Respond to Future Demands
C. Dedicate Efforts Toward System Maintenance and Modernization
REVIEW BY OTHERS
This agenda item has been reviewed by the executive management team.
FISCAL IMPACT
This item is funded in the current and planned future fiscal year budgets.
Recommended by:
________________
John Mura
General Manager/CEO
Respectfully submitted:
________________
Jeff Noelte
Director of Engineering and Operations
ATTACHMENTS
Agreement 2021.14
Agreement for Services
03/16
1
EVWD
Anaergia SNRC Support Services Contract
December 2021
AGREEMENT NO 2021.14
EAST VALLEY WATER DISTRICT
AND
ANAERGIA TECHNOLOGIES, LLC
FOR
FOR PROFESSIONAL SERVICES
AND OPERATIONAL SUPPORT
THIS AGREEMENT is made this 8th day of December 2021, by and between the EAST
VALLEY WATER DISTRICT, a County Water District organized and operating pursuant to
California Water Code Section 30000 et seq. (hereinafter referred to as the “DISTRICT”), and
Anaergia Technologies, LLC, a limited liability company (hereinafter referred to as
“CONSULTANT”).
RECITALS
WHEREAS, Consultant retains specialized skill, knowledge and expertise in the field of
organics and food waste diversion and the operation of anaerobic co-digestion and District
retains no such skill, knowledge and expertise nor experience in operating anaerobic digesters;
and
WHEREAS, the DISTRICT desires to contract with CONSULTANT to provide
professional support services for the Sterling Natural Resources Center Operational Support
(hereinafter referred to as “Project”); and
WHEREAS, CONSULTANT is willing to contract with the DISTRICT to provide such
services; and
WHEREAS, CONSULTANT holds itself as duly licensed, qualified, and capable of
performing said services; and
Agreement for Services
03/16
2
EVWD
Anaergia SNRC Support Services Contract
December 2021
WHEREAS, this Agreement establishes the terms and conditions for the DISTRICT to
retain CONSULTANT to provide the services described herein for the Project.
COVENANTS
NOW, THEREFORE, in consideration of the faithful performance of the terms and
conditions set forth herein, the parties hereto agree as follows:
ARTICLE I
ENGAGEMENT OF CONSULTANT
AND AUTHORIZATION TO PROCEED
1.1 ENGAGEMENT: The DISTRICT hereby engages CONSULTANT, and
CONSULTANT hereby accepts the engagement, to perform certain specialized and professional
services described in Section 2.1 of this Agreement for the term set forth in Section 6.7 of this
Agreement.
1.2 AUTHORIZATION TO PROCEED: Authorization for CONSULTANT to
proceed with all or a portion of the work described in Section 2.1 of this Agreement will be granted
in writing by the DISTRICT as soon as both parties sign the Agreement and all applicable
insurance and other security documents required pursuant to Section 6.3 of this Agreement are
received and approved by the DISTRICT. CONSULTANT shall not proceed with said work until
so authorized by the DISTRICT, and shall promptly commence work upon receipt of the Notice
to Proceed.
1.3 NO EMPLOYEE RELATIONSHIP: CONSULTANT shall perform the services
provided for herein as an independent contractor, and not as an employee of the DISTRICT.
CONSULTANT is not to be considered an agent or employee of the DISTRICT for any purpose,
and shall not be entitled to participate in any pension plans, insurance coverage, bonus, stock, or
similar benefits that the DISTRICT provides for its employees. CONSULTANT shall indemnify
the DISTRICT for any tax, retirement contribution, social security, overtime payment, or workers’
compensation payment which the DISTRICT may be required to make on behalf of
CONSULTANT or any employee of CONSULTANT for work performed under this Agreement.
Agreement for Services
03/16
3
EVWD
Anaergia SNRC Support Services Contract
December 2021
ARTICLE II
SERVICES OF CONSULTANT
2.1 SCOPE OF SERVICES: The scope of professional services to be performed by
the CONSULTANT under this Agreement relate specifically to organics and food waste diversion
and are described in the Scope of Work attached hereto as Exhibit A and incorporated herein by
this reference (“Scope of Work”), and shall, where not specifically addressed, include all related
services ordinarily provided by the CONSULTANT under same or similar circumstances and/or
otherwise necessary to satisfy the requirements of Section 3.3 of this Agreement. In case of
conflict between the terms of this Agreement and the provisions of the Scope of Work, this
Agreement shall govern.
2.2 DEPARTMENT OF INDUSTRIAL RELATIONS COMPLIANCE: This project
is subject to compliance monitoring and enforcement by the Department of Industrial Relations.
A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject
to the requirements of Section 4104 of the California Public Contract Code, or engage in the
performance of any contract for public work, as defined by the California Labor Code, unless
currently registered and qualified to perform public work pursuant to Section 1725.5 of the
California Labor Code.
2.3 PREVAILING WAGES: In accordance with the provisions of the California Labor
Code, CONSULTANT shall secure the payment of compensation to employees. To the extent
required by the California Labor Code, CONSULTANT shall pay not less than the prevailing rate
of per diem wages as determined by the Director, Department of Industrial Relations, and State of
California. Copies of such prevailing rate of per diem wages are on file at the DISTRICT’s office,
which copies will be made available to any interested party upon request. CONSULTANT shall
post a copy of such determination at each job site. If applicable, CONSULTANT shall forfeit to
the DISTRICT the amount of the penalty set forth in Labor Code Section 1777.7(b), or any
subsequent amendments thereto, for each calendar day, or portion thereof, for each worker paid
less than the specified prevailing rates for such work or craft in which such worker is employed,
whether paid by CONSULTANT or by any subcontractor.
2.4 HOURS AND WORKING CONDITIONS: The DISTRICT is a public entity in
the State of California and is subject to the provisions of the Government Code and the Labor Code
Agreement for Services
03/16
4
EVWD
Anaergia SNRC Support Services Contract
December 2021
of the State. It is stipulated and agreed that all provisions of law applicable to public contracts are
a part of this Agreement to the same extent as though set forth herein and will be complied with
by CONSULTANT. CONSULTANT shall comply with all applicable provisions of the California
Labor Code relating to working hours and the employment of apprentices on public works projects.
CONSULTANT shall, as a penalty to the DISTRICT, forfeit $25.00 for each worker employed in
the execution of this Agreement by CONSULTANT or by any subcontractor, for each calendar
day during which such worker is required or permitted to work more than 8 hours in any one
calendar day and 40 hours in any one calendar week, unless such worker received compensation
for all hours worked in excess of 8 hours at not less than 1½ times the basic rate of pay.
ARTICLE III
RESPONSIBILITIES OF THE DISTRICT AND OF CONSULTANT
3.1 DUTIES OF THE DISTRICT: The DISTRICT, without cost to CONSULTANT,
will provide all pertinent information necessary for CONSULTANT’s performance of its
obligations under this Agreement that is reasonably available to the DISTRICT unless otherwise
specified in the Scope of Work, in which case the CONSULTANT is to acquire such information.
The DISTRICT does not guarantee or ensure the accuracy of any reports, information, and/or data
so provided. To the extent that any reports, information, and/or other data so provided was
supplied to the DISTRICT by persons who are not employees of the DISTRICT, any liability
resulting from inaccuracies and/or omissions contained in said information shall be limited to
liability on behalf of the party who prepared the information for the DISTRICT.
3.2 REPRESENTATIVE OF DISTRICT: The DISTRICT will designate Water
Reclamation Manager as the person to act as the DISTRICT’s representative with respect to the
work to be performed under this Agreement. Such person will have complete authority to transmit
instructions, receive information, and interpret and define the DISTRICT’s policies and decisions
pertinent to the work. In the event the DISTRICT wishes to make a change in the DISTRICT’s
representative, the DISTRICT shall notify the CONSULTANT of the change in writing.
3.3 DUTIES OF CONSULTANT: CONSULTANT shall perform the Project work in
such a manner as to fully comply with applicable professional standards of care, including
professional quality, technical accuracy, timely completion, and other services furnished and/or
work undertaken by CONSULTANT pursuant to this Agreement. The CONSULTANT shall have
Agreement for Services
03/16
5
EVWD
Anaergia SNRC Support Services Contract
December 2021
control over the means and methods of the work and cause all work and deliverables to conform
to all applicable federal, state, and local laws and regulations.
3.4 APPROVAL OF WORK: The DISTRICT’s approval of work or materials
furnished hereunder shall not in any way relieve CONSULTANT of responsibility for the technical
adequacy of its work. Neither the DISTRICT’s review, approval or acceptance of nor payment
for any of the services shall be construed to operate as a waiver of any rights under this Agreement
or of any cause of action arising out of the performance of this Agreement. Where approval by
the DISTRICT is indicated in this Agreement, it is understood to be conceptual approval only and
does not relieve the CONSULTANT of responsibility for complying with all laws, codes, industry
standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance
with industry standards, or the willful misconduct of the CONSULTANT or its subcontractors.
CONSULTANT’s obligation to defend, indemnify, and hold harmless the DISTRICT, and its
directors, officers, employees and agents as set forth in Section 6.9 of this Agreement also applies
to the actions or omissions of the CONSULTANT or its subcontractors as set forth above in this
paragraph.
ARTICLE IV
PAYMENTS TO CONSULTANT
4.1 PAYMENT: The DISTRICT will pay CONSULTANT for work performed under
this Agreement, which work can be verified by the DISTRICT, on the basis of the following:
CONSULTANT shall exercise its good faith best efforts to facilitate a full and clear definition of
the scope of all assigned work so that the amount set forth in Section 4.3 of this Agreement will
cover all tasks necessary to complete the work. The amount set forth in Section 4.3 of this
Agreement is the maximum compensation to which CONSULTANT may be entitled for the
performance of services to complete the work for the Project, unless the Scope of Work or time to
complete the work is changed by the DISTRICT in writing in advance of the work to be performed
thereunder. Adjustments in the total payment amount shall only be allowed pursuant to Section
6.4 of this Agreement. In no event shall CONSULTANT be entitled to compensation greater than
the amount set forth in Section 4.3 of this Agreement where changes in the Scope of Work or the
time for performance are necessitated by the negligence of CONSULTANT or any subcontractor
performing work on the Project.
Agreement for Services
03/16
6
EVWD
Anaergia SNRC Support Services Contract
December 2021
4.2 PAYMENT TO CONSULTANT: Payment will be made by the DISTRICT within
thirty (30) calendar days after receipt of an invoice from CONSULTANT, provided that all
invoices are complete and product and services are determined to be of sufficient quality by the
DISTRICT and in accordance with this Agreement. CONSULTANT shall invoice DISTRICT
monthly for services performed under this Agreement. In the event that a payment dispute arises
between the parties, CONSULTANT shall provide to the DISTRICT full and complete access to
CONSULTANT’s labor cost records and other direct cost data, and copies thereof if requested by
the DISTRICT.
4.3 ESTIMATED CHARGES: The total estimated charges for all work under this
Agreement are $2,240,312.33 and such amount is the anticipated annual costs as described in
Exhibit B. The total estimated charges stated herein constitute the total amount agreed to, any
additional costs in excess of the total estimated charges (i.e. increased costs for assumed pass
through consumables) will be presented to the District’s Representative for approval before
increased charges for consumables are rendered.
4.4 COST FOR REWORK: CONSULTANT shall, at no cost to the DISTRICT,
prepare any necessary rework occasioned by CONSULTANT’s negligent act or omission or
otherwise due substantially to CONSULTANT’s fault within ninety (90) days of the District
becoming aware of the act or omission.
ARTICLE V
COMPLETION SCHEDULE
5.1 TASK SCHEDULE: The work is anticipated to be completed in accordance with
the schedule contained in the Scope of Work.
5.2 TIME OF ESSENCE: CONSULTANT shall perform all services required by this
Agreement in a prompt, timely, and professional manner in accordance with the above schedule.
Time is of the essence in this Agreement.
ARTICLE VI
GENERAL PROVISIONS
Agreement for Services
03/16
7
EVWD
Anaergia SNRC Support Services Contract
December 2021
6.1 COMPLIANCE WITH FEDERAL, STATE, AND LOCAL LAWS:
CONSULTANT shall at all times observe all applicable provisions of Federal, State, and Local
laws and regulations including, but not limited to, those related to Equal Opportunity Employment.
6.2 SUBCONTRACTORS AND OUTSIDE CONSULTANTS: No subcontract shall
be awarded by CONSULTANT if not identified as a subcontractor via a notice to the DISTRICT
and approved by the DISTRICT to provide desired services. CONSULTANT shall be responsible
for payment to subcontractors used by them to perform the services under this Agreement. If
CONSULTANT subcontracts any of the work to be performed, CONSULTANT shall be as fully
responsible to the DISTRICT for the performance of the work, including errors and omissions of
CONSULTANT’s subcontractors and of the persons employed by the subcontractor, as
CONSULTANT is for the acts and omissions of persons directly employed by the
CONSULTANT. Nothing contained in this Agreement shall create any contractual relationship
between any subcontractor of CONSULTANT and the DISTRICT. CONSULTANT shall bind
every subcontractor and every subcontractor of a subcontractor to the terms of this Agreement that
are required by applicable law.
6.3 INSURANCE: CONSULTANT shall secure and maintain in full force and effect,
until the satisfactory completion and acceptance of the Project by DISTRICT, such insurance as
will protect it and the DISTRICT in such a manner and in such amounts as set forth below. The
premiums for said insurance coverage shall be paid by the CONSULTANT. The failure to comply
with these insurance requirements may constitute a material breach of this Agreement, at the sole
discretion of the DISTRICT.
(a) Certificates of Insurance: Prior to commencing services under this Agreement, and
in any event no later than ten (10) calendar days after execution of this Agreement,
CONSULTANT shall furnish DISTRICT with Certificates of Insurance and
endorsements verifying the insurance coverage required by this Agreement is in
full force and effect. The DISTRICT reserves the right to require complete and
accurate copies of all insurance policies required under this Agreement.
(b) Required Provisions: The insurance policies required by this Agreement shall
include the following provisions or have them incorporated by endorsement(s):
(1) Primary Coverage: The insurance policies provided by CONSULTANT
shall be primary insurance and any self-insured retention and/or insurance
carried by or available to the DISTRICT or its employees shall be excess
and non-contributory coverage so that any self-insured retention and/or
Agreement for Services
03/16
8
EVWD
Anaergia SNRC Support Services Contract
December 2021
insurance carried by or available to the DISTRICT shall not contribute to
any loss or expense under CONSULTANT’s insurance.
(2) Additional Insured: The policies of insurance provided by
CONSULTANT, except Workers’ Compensation and Professional
Liability, shall include as additional insureds: the DISTRICT, its directors,
officers, employees, and agents when acting in their capacity as such in
conjunction with the performance of this Agreement. Such policies shall
contain a “severability of interests” provision, also known as “Cross
liability” or “separation of insured”.
(3) Cancellation: Each certificate of insurance and insurance policy shall
provide that the policy may not be non-renewed, canceled (for reasons other
than non-payment of premium) or materially changed without first giving
thirty (30) days advance written notice to the DISTRICT, or ten (10) days
advance written notice in the event of cancellation due to non-payment of
premium.
(4) Waiver of Subrogation: The insurance policies provided by
CONSULTANT shall contain a waiver of subrogation against DISTRICT,
its directors, officers, employees and agents for any claims arising out of
the services performed under this Agreement by CONSULTANT.
(5) Claim Reporting: CONSULTANT shall not fail to comply with the claim
reporting provisions or cause any breach of a policy condition or warranty
of the insurance policies required by this Agreement that would affect the
coverage afforded under the policies to the DISTRICT.
(6) Deductible/Retention: If the insurance policies provided by
CONSULTANT contain deductibles or self-insured retentions, any such
deductible or self-insured retention shall not be applicable with respect to
the coverage provided to DISTRICT under such policies. CONSULTANT
shall be solely responsible for any such deductible or self-insured retention
and the DISTRICT, in its sole discretion, may require CONSULTANT to
secure the payment of any such deductible or self-insured retention by a
surety bond or an irrevocable and unconditional letter of credit.
(7) Consultant’s Subcontractors: CONSULTANT shall furnish separate
certificates of insurance and policy endorsements for each subcontractor
Agreement for Services
03/16
9
EVWD
Anaergia SNRC Support Services Contract
December 2021
verifying that the insurance for each subcontractor complies with
reasonably similar insurance requirements applicable to CONSULTANT
under this Agreement.
(c) Insurance Company Requirements: CONSULTANT shall provide insurance
coverage through insurers that have at least an “A” Financial Strength Rating and
a “VII” Financial Size Category in accordance with the current ratings by the A.
M. Best Company, Inc. as published in Best’s Key Rating Guide or on said
company’s web site. In addition, any and all insurers must be admitted and
authorized to conduct business in the State of California and be a participant in the
California Insurance Guaranty Association, as evidenced by a listing in the
appropriate publication of the California Department of Insurance.
(d) Policy Requirements: The insurance required under this Agreement shall meet or
exceed the minimum requirements as set forth below:
(1) Workers’ Compensation: CONSULTANT shall maintain Workers’
Compensation insurance as required by law in the State of California to
cover CONSULTANT’s obligations as imposed by federal and state law
having jurisdiction over CONSULTANT’s employees and Employers’
Liability insurance, including disease coverage, of not less than $1,000,000.
(2) General Liability: CONSULTANT shall maintain Comprehensive General
Liability insurance with a combined single limit of not less than $2,000,000
per occurrence or claim and $2,000,000 aggregate. The policy shall include,
but not be limited to, coverage for bodily injury, property damage, personal
injury, products, completed operations and blanket contractual to cover, but
not be limited to, the liability assumed under the indemnification provisions
of this Agreement. In the event the Comprehensive General Liability
insurance policy is written on a “claims made” basis, coverage shall extend
for two years after the satisfactory completion and acceptance of the Project
by DISTRICT.
(3) Automobile Liability: CONSULTANT shall maintain Commercial
Automobile Liability insurance with a combined single limit for bodily
injury and property damage of not less than $1,000,000 each occurrence for
any owned, hired, or non-owned vehicles.
(4) Professional Liability: CONSULTANT shall maintain Professional
Agreement for Services
03/16
10
EVWD
Anaergia SNRC Support Services Contract
December 2021
Liability insurance covering errors and omissions arising out of the services
performed by the CONSULTANT or any person employed by him, with a
limit of not less than $1,000,000 per occurrence or claim and $1,000,000
aggregate. In the event the insurance policy is written on a “Claims made”
basis, coverage shall extend for two years after the satisfactory completion
and acceptance of the Project by DISTRICT.
6.4 CHANGES IN SCOPE OR TIME: If the DISTRICT requests a change in the
Scope of Work or time of completion by either adding to or deleting from the original scope or
time of completion, an equitable adjustment shall be made and this Agreement shall be modified
in writing accordingly. CONSULTANT must assert any claim for adjustment under this clause in
writing within thirty (30) calendar days from the date of receipt from CONSULTANT of the
notification of change unless the DISTRICT grants a further period of time before the date of final
payment under this Agreement.
6.5 NOTICES: All notices to either party by the other shall be made in writing and
delivered or mailed to such party at their respective addresses as follows, or to other such address
as either party may designate, and said notices shall be deemed to have been made when delivered
or, if mailed, five (5) days after mailing.
To DISTRICT: East Valley Water District
31111 Greenspot Road
Highland, CA 92346
Attn: Water Reclamation Manager
Email: Rwelborn@eastvalley.org
To CONSULTANT: Anaergia Technologies, LLC
705 Palomar Airport Road, Suite 200
Carlsbad, CA 92011
Attn: Jeremy Metts
Email: Jeremy.metts@anaergia.com
6.6 CONSULTANT’S ASSIGNED PERSONNEL: CONSULTANT designates
Jeremy Metts to have immediate responsibility for the performance of the work and for all matters
relating to performance under this Agreement. Substitution of any assigned personnel shall require
Agreement for Services
03/16
11
EVWD
Anaergia SNRC Support Services Contract
December 2021
the prior written approval of the DISTRICT. If the DISTRICT determines that a proposed
substitution is not acceptable, then, at the request of the DISTRICT, CONSULTANT shall
substitute with a person acceptable to the DISTRICT.
6.7 TERM AND TERMINATION:
(a) The initial term of this Agreement is for five (5) years from CONSULTANT’s
receipt of the Notice to Proceed from DISTRICT. At the end of the initial term, the
term may be extended for two additional increments of two (2) years each upon
mutual written consent.
(b) If the engagement of CONSULTANT is not extended by the mutual written consent
of the DISTRICT and CONSULTANT, then the term of this Agreement shall
expire five (5) years from CONSULTANT’s receipt of the Notice to Proceed from
DISTRICT.
(c) Either party may terminate its obligations under this Agreement upon ninety (90)
calendar days written notice only in the event of substantial failure by the other
party to perform in accordance with the terms of this Agreement through no fault
of the non-defaulting party and the defaulting party has failed to cure or make
substantial progress towards curing within thirty (30) days of written notice of such
default, provided that such cure period may be extended for a reasonable period in
the event that the default cannot be cured within the initial thirty (30) day period
and the defaulting party has diligently pursued cure of the default throughout the
initial thirty (30) day period.
(1) Substantial failure shall include not being able to provide sufficient food
waste material to produce up to 3.0 megawatt of power on a monthly
average considering market availability, after an acceptable stabilization
period and excluding maintenance activities.
(d) In the event of termination of this Agreement or abandonment of any portion of the
Project, the DISTRICT shall be immediately given title to all original documents
developed for the Project, and the sole right and remedy of CONSULTANT shall
be to receive payment for all amounts due and not previously paid to
CONSULTANT for services completed or in progress in accordance with the
Agreement prior to such date of termination, including reasonable and documented
demobilization costs. If termination occurs prior to completion of any task for
which payment has not been made, the fee for services performed during such task
Agreement for Services
03/16
12
EVWD
Anaergia SNRC Support Services Contract
December 2021
shall be based on an amount mutually agreed to by the DISTRICT and
CONSULTANT. Such payments available to the CONSULTANT under this
paragraph shall not include costs related to lost profit associated with the expected
completion of the work or other such payments relating to the benefit of this
Agreement.
6.8 ATTORNEYS’ FEES: In the event that either the DISTRICT or CONSULTANT
brings an action or proceeding for damages for an alleged breach of any provision of this
Agreement, to interpret this Agreement, or to determine the rights of and duties of either party in
relation thereto, the prevailing party shall be entitled to recover as part of such action or proceeding
all litigation, arbitration, mediation and collection expenses, including witness fees, court costs,
and reasonable attorneys’ fees. Such fees shall be determined by the court in such litigation or in
a separate action brought for that purpose. Mediation will be attempted if both parties mutually
agree before, during, or after any such action or proceeding has begun.
6.9 INDEMNITY:
(a) CONSULTANT shall defend, indemnify and hold DISTRICT, including its
directors, officers, employees and agents, harmless from and against any and all
third party claims, demands, causes of action, suits, debts, obligations, liabilities,
losses, damages, costs, expenses, attorney’s fees, awards, fines, settlements,
judgments or losses for tangible property damage, intellectual property
infringement, and personal injury or death to the extent of the negligence or willful
misconduct of CONSULTANT or any of CONSULTANT’s subcontractors,
including their respective directors, officers, employees, agents and assigns, arising
from or related to work performed by Consultant or its subcontractors under this
Agreement. excepting only such matters arising from the sole negligence or willful
misconduct of the DISTRICT.
(b) In the case of an intellectual property infringement claim, CONSULTANT shall
have the right, in order to avoid such claims or actions, to substitute at its expense
non-infringing equipment, materials or processes, or to modify at its expense such
infringing equipment, materials, and processes so they become non-infringing,
provided that such substituted and modified equipment, materials, and processes
shall meet all the requirements and be subject to all the provisions of this
Agreement.
Agreement for Services
03/16
13
EVWD
Anaergia SNRC Support Services Contract
December 2021
(c) DISTRICT shall indemnify and hold harmless CONSULTANT and its affiliates,
and their respective officers, directors, employees, agents and representatives from
and against any and all third party claims, demands, causes of action, suits, debts,
obligations, liabilities, losses, damages, costs, expenses, attorney’s fees, awards,
fines, settlements, judgments or losses sustained or suffered in connection with
injury or death to third parties or loss of or damage to tangible property of third
parties, to the extent caused by (i) DISTRICT’s negligence, willful misconduct or
violation of any applicable law.
(d) It is the intent of the parties to this Agreement that the defense, indemnity, and hold
harmless obligation of CONSULTANT under this Agreement shall be as broad and
inclusive as may be allowed under California Civil Code §§ 2778 through 2784.5,
or other similar state or federal law.
6.10 SAFETY: CONSULTANT shall perform the work in full compliance with
applicable State and Federal safety requirements including, but not limited to, Occupational Safety
and Health Administration requirements.
(a) CONSULTANT shall take reasonable precautions for the safety of, and prevention
of damage to, property on or adjacent to the Project site, and for the safety of, and
prevention of injury to, persons, including DISTRICT’s employees,
CONSULTANT’s employees, and third persons. CONSULTANT shall comply
with the insurance requirements set forth in Section 6.3 of this Agreement.
(b) CONSULTANT shall also furnish the DISTRICT with a copy of any injury
prevention program established for the CONSULTANT’s employees pursuant to
Labor Code Section 6401.7, including any necessary documentation regarding
implementation of the program. CONSULTANT hereby certifies that its
employees have been trained in the program, and procedures are in place to train
employees whenever new substances, processes, procedures, or equipment are
introduced. CONSULTANT shall demonstrate compliance with Labor Code
Section 6401.7 by maintaining a copy of its Injury and Illness Prevention Plan at
the Project site and making it available to the DISTRICT, if applicable.
6.11 EXAMINATION OF RECORDS: All original drawings, specifications, reports,
calculations, and other documents or electronic data developed by CONSULTANT for the Project
shall be furnished to and become the property of the DISTRICT. CONSULTANT agrees that the
DISTRICT will reasonably have access to and the right to examine any directly pertinent books,
Agreement for Services
03/16
14
EVWD
Anaergia SNRC Support Services Contract
December 2021
documents, papers, and records of any and all of the transactions relating to this Agreement
following the receipt of a 10-working day notice.
6.12 OWNERSHIP OF SOFTWARE:
(a) Subject to payment of all compensation due under this Agreement and all other
terms and conditions herein, CONSULTANT hereby grants DISTRICT a
nonexclusive, transferable, royalty-free license to use the software furnished to
DISTRICT by CONSULTANT under this Agreement. The license granted herein
shall authorize DISTRICT to:
(1) Install the software on computer systems owned, leased or otherwise
controlled by DISTRICT;
(2) Utilize the software for its internal data-processing purposes; and
(3) Copy the software and distribute as desired to exercise the rights granted
herein.
(b) CONSULTANT retains its entire right, title and interest in the software developed
under this Agreement. DISTRICT acknowledges that CONSULTANT owns or
holds a license to use and sublicense various pre-existing development tools,
routines, subroutines and other programs, data and materials that CONSULTANT
may include in the software developed under this Agreement. This material shall
be referred to hereafter as “Background Technology.”
(c) DISTRICT agrees that CONSULTANT shall retain any and all rights
CONSULTANT may have in the Background Technology. CONSULTANT grants
DISTRICT an unrestricted, nonexclusive, perpetual, fully paid-up worldwide
license to use the Background Technology in the software developed and delivered
to DISTRICT under this Agreement, and all updates and revisions thereto.
However, DISTRICT shall make no other commercial use of the Background
Technology without CONSULTANT’s written consent.
6.13 INTEGRATION AND AMENDMENT: This Agreement contains the entire
understanding between the DISTRICT and CONSULTANT as to those matters contained herein.
No other representations, covenants, undertakings or other prior or contemporaneous agreements,
oral or written, respecting those matters, which are not specifically incorporated herein, may be
deemed in any way to exist or to bind any of the parties hereto. Each party acknowledges that it
has not executed this Agreement in reliance on any promise, representation or warranty not set
forth herein. This Agreement may not be amended except by a writing signed by all parties hereto.
Agreement for Services
03/16
15
EVWD
Anaergia SNRC Support Services Contract
December 2021
6.14 ASSIGNMENT: Neither party shall assign or transfer its interest in this Agreement
without written consent of the other party. All terms, conditions, and provisions of this Agreement
shall inure to and shall bind each of the parties hereto, and each of their respective heirs, executors,
administrators, successors, and assigns.
6.15 GOVERNING LAW: This Agreement shall be construed as if it was jointly
prepared by both parties hereto, and any uncertainty or ambiguity contained herein shall not be
interpreted against the party drafting same. This Agreement shall be enforced and governed by
the laws of the State of California. If any action is brought to interpret or enforce any term of this
Agreement, the action shall be brought in a state court situated in the County of San Bernardino,
State of California, or in a federal court with in rem jurisdiction over the Project.
6.16 HEADINGS: Article and Section headings in this Agreement are for convenience
only and are not intended to be used in interpreting or construing the terms, covenants, and
conditions of this Agreement.
6.17 PARTIAL INVALIDITY: If any term, covenant, condition, or provision of this
Agreement is found by a court of competent jurisdiction to be invalid, void, or unenforceable, the
remainder of the provisions hereof shall remain in full force and effect, and shall in no way be
affected, impaired, or invalidated thereby.
6.18 EFFECT OF WAIVER: Any failure by either party to enforce any provision of
this Agreement, or any waiver thereof, shall not constitute a waiver of its right to enforce
subsequent violations of the same or any other terms or conditions herein.
6.19 AUTHORITY: The individuals executing this Agreement represent and warrant
that they have the legal capacity and authority to sign this Agreement on behalf of and to so bind
their respective legal entities.
6.20 SURVIVAL: Notwithstanding any provisions to the contrary, the sections that
contemplate performance after the expiration, cancellation, or termination of this Agreement
(whether express or implied), shall survive any expiration, cancellation, or termination of this
Agreement.
6.21 LIMITATION OF LIABILITY: CONSULTANT shall not be liable to DISTRICT
for any consequential, incidental, or punitive damages, or indirect costs, expenses or liabilities or
otherwise. The total aggregate liability of CONSULTANT for losses associated with project
performance to DISTRICT shall be limited to one-hundred percent (100%) of the annual amount
of funds actually paid to CONSULTANT under this Agreement
Agreement for Services
03/16
16
EVWD
Anaergia SNRC Support Services Contract
December 2021
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first written above.
CONSULTANT DISTRICT
By:_____________________________ By:_____________________________
John Mura, General Manager
Anaergia Technologies, LLC East Valley Water District
(Print Name and Title)
Agreement for Services
03/16
17
EVWD
Anaergia SNRC Support Services Contract
December 2021
EXHIBIT A
SCOPE OF WORK
1. Pass Through Costs.
a. Leverage existing relationships and expertise in Anaerobic Digestion System Technology
to manage and procure the delivery of chemicals, reagents, consumables, oils, lubricants,
and calibration gases for the Project.
b. Leverage existing relationships and expertise in Anaerobic Digestion System Technology
to manage and procure the delivery, installation and disposal of media for gas treatment.
c. Leverage Consultant purchasing with the Rialto Bioenergy Facility to provide bulk
purchasing cost savings to District.
d. Consumables Management (Chemicals and Media):
i. Consultant will identify facility needs based on past experience and system
expertise and will provide required consumables.
ii. Consultant will coordinate with District staff for delivery to reduce cost to
District.
e. The annual permit fee to SCAQMD is not included. At any time the District may elect to
procure all or partial consumables from other venders at no penalty.
f. Leverage existing relationships and expertise in Anaerobic Digestion System Technology
and associated compliance to manage and procure RATA, CGA, Source Testing, CEMS
service, and third-party services for the Project.
2. Service Management Fee.
a. Consultant’s fee for this specialized support will be billed at a fixed rate..
b. The District shall: perform laboratory testing necessary for operations of the facility;
provide Operational Data from plant instrumentation and SCADA; and provide
Laboratory Data Reports.
3. Gas Treatment & CHP Service Fee. Cost per operating hour per CHP.
4. Gas Treatment & CHP Service. Up to 20 hours a week to perform the following:
a. Specialized maintenance for the emissions monitoring and compliance with SCAQMD
rules regarding calibration and maintenance for the CEMS unit.
b. Consultant will utilize CHP expertise to Inspect CHP operation and trends, piston wear,
spark plugs, and other components.
c. Operational maintenance and weekly preventive maintenance (PMs) on the CHP
equipment. Trained personnel onsite weekly to accomplish these tasks, which include:
i. Checking all biogas treatment systems for proper function and performing
weekly and quarterly PMs.
ii. Oil sampling for the CHP and other system.
iii. Quarterly and annual CEMS and SCR testing.
iv. Inspect/check/replace all filters on CHP/compressors/AC units/biogas lines etc.
v. Check proper function of all valves and instruments in the system.
vi. Instrumentation field calibrations and check.
d. Management of the spare parts suppliers and any subcontracts required for the
maintenance of the CHP.
e. Manage equipment warranties for the first 2 years of operation.
5. Feedstock & Ammonia Sulfate Sale.
Agreement for Services
03/16
18
EVWD
Anaergia SNRC Support Services Contract
December 2021
a. Use market expertise to manage procurement of feedstock, including delivery
coordination with the District, but not including unloading. Anaergia will provide best
efforts to procure enough feedstock to produce 3 MW of power from the CHPs.
b. Use market expertise to manage the sales of Ammonia Sulfate and coordinate hauler
pickup with the District.
c. Consultant will contract directly for feed stock agreement and manage invoicing and
payments. Consultant will provide the District 80% of revenues from payments received.
6. Support Fee. The following are optional services:
a. Any specialized site service or engineering costs outside of the scope described above
billed at the rates set forth in Exhibit C, including but not limited to any emergency (a
sudden or unexpected situation requiring immediate action to prevent or mitigate the loss
or impairment of life, health, property, or essential public services) maintenance will be
billed at the standard billing rates, attached as Exhibit C.
b. Provide the District with access to Consultant process know how for maximizing
throughput while maintaining digester health.
c. Perform regular site visits to meet with District staff to monitor operations and provide
any training, as necessary.
d. Review Operational Logs and Laboratory Data and provide recommendations for process
improvements.
e. Review food waste data and propose liquid waste feed rates to the digesters.
f. Review Equipment PM records and operational data to evaluate the need for any
predictive maintenance measures to be implemented.
g. Summarize expected outputs vs actual output for digester gas production and solids
destruction.
h. Perform initial inspection of feedstock materials for approval.
i. Evaluate new feedstock suppliers and establish acceptance criteria to avoid receipt of
unacceptable wastes.
j. Provide monthly report documenting actual biogas production vs expected biogas
production.
Agreement for Services
03/16
19
EVWD
Anaergia SNRC Support Services Contract
December 2021
EXHIBIT B
ANTICIPATED ANNUAL COSTS
Budget Estimate Budget Description
Pass Thru Costs $1,414,487.53 Pass thru actual costs and manage with
Service Management Fee below
Service Management Fee (1) $200,000.00 Refer to scope of work
Gas Treatment & CHP Service
Fee (2) $407,424.80
2 CHP running 8060 hours/year x 2
engines @ $12.64/hour
Note: this does not include E60 and
E70 (minor and major overhauls)
Gas Treatment & CHP Service
(2) $218,400.00 Labor and Truck at Service Rates
Feedstock
To be
determined
Marketing and sourcing feedstock,
monitoring quality, managing
suppliers/invoicing, charging 20% on
tip fee.
Support Fees (optional)
To be
determined Refer to Rates in Exhibit C
Total $2,240,312.33 Notes: (1) After the first year this item will be indexed to the ENR CCI index: (2) The amounts
above are anticipated to have an annual escalation of approximately 5%.
Agreement for Services
03/16
20
EVWD
Anaergia SNRC Support Services Contract
December 2021
EXHIBIT C
CONSULTANT’S RATES
These rates are valid through December 31, 2021. Rates for subsequent years will be disclosed to
DISTRICT prior to becoming effective. Overtime rates may apply in accordance with applicable
laws.
POSITION RATE
Applications Engineer $150.00
Sr. Applications Engineer $185.00
Process Engineer $150.00
Sr. Process Engineer $185.00
Project Engineer $150.00
Sr. Project Engineer $185.00
Project Designer $115.00
Sr. Project Designer $150.00
Project Manager $190.00
Sr. Project Manager $225.00
Construction Manager $190.00
Sr. Construction Manager $225.00
Control Systems Engineer $175.00
Sr. Control Systems Engineer $210.00
Commissioning Engineer $175.00
Sr. Commissioning Engineer $210.00
Service Technician $155.00
Chief Operator $165.00
Director $300.00
Agenda Item
#3b
December 8, 20211
2
5
5
Meeting Date: December 8, 2021
Agenda Item #3b
Consent Item
Regular Board Meeting
TO: Governing Board Members
FROM: General Manager/CEO
SUBJECT: Consider Adoption of Resolution 2021.25 - 2021 Urban and Multibenefit
Drought Relief Grant Program Application
RECOMMENDATION
Staff recommends that the Board of Directors adopt Resolution 2021.25 and authorize
the General Manager/CEO to file an application for funding from the Department of
Water Resources for the Groundwater Supply Resiliency – New Well Construction
Project.
BACKGROUND / ANALYSIS
The District maintains an active Grant Strategy, to evaluate and pursue potential
funding sources. This collaborative process maintains consistency in project priorities as
included in various planning documents. Most recently, the 2021 Urban and Multibenefit
Drought Relief Grant Program presented an opportunity to assist with funding critical
infrastructure.
As identified in the 2019 Water System Master Plan, the District has a need for
increased water supply capabilities due to wells being taking offline over the past 10
years for water quality considerations. This need identified in the Master Plan assumes
meeting the Maximum Day Demand with the largest water source (Plant 134) out of
service. In addition to the resiliency shortage identified in the Master Plan, an additional
four wells are expected to be taken out of service to comply with regulations due to
their proximity to recycled water recharge at Weaver Basins, following the
commissioning of the SNRC.
Staff has identified the 2021 Urban and Multibenefit Drought Relief Grant Program as a
potential funding source to evaluate, design and construct new production wells to
enhance the District’s water supply. Staff has developed and submitted an application
for grant funding for $16.25 million to the Department of Water Resources on
November 19, 2021. A requirement of the application is that the Board of Directors
authorize a designee to file an application and, if selected, negotiate and sign the
funding agreement along with other administrative tasks throughout the term of the
grant agreement.
The condensed application period did not allow for this item to be presented to the
Board before submission, but the program does allow for the Resolution to the be
Agenda Item
#3b
December 8, 20212
2
5
5
Meeting Date: December 8, 2021
Agenda Item #3b
Consent Item
submitted afterward.
AGENCY GOALS AND OBJECTIVES
I - Implement Effective Solutions Through Visionary Leadership
A. Identify Opportunities to Optimize Natural Resources
II - Maintain a Commitment To Sustainability, Transparency, and Accountability
C. Pursue Alternative Funding Sources
IV - Promote Planning, Maintenance and Preservation of District Resources
A. Develop Projects and Programs to Ensure Safe and Reliable Services
B. Enhance Planning Efforts that Respond to Future Demands
REVIEW BY OTHERS
This agenda item has been reviewed by the Operations, Finance and Engineering
departments.
FISCAL IMPACT
There is no fiscal impact associated with this agenda item. If awarded this item would
be incorporated into the District’s Capital Improvement Schedule.
Recommended by:
________________
John Mura
General Manager/CEO
Respectfully submitted:
________________
Jeff Noelte
Director of Engineering and Operations
ATTACHMENTS
Resolution 2021.25
East Valley Water District
Resolution 2021.25
Page 1 of 2
1
9
6
RESOLUTION NO. 2021.25
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE EAST VALLEY WATER DISTRICT
AUTHORIZING THE GRANT APPLICATION, ACCEPTANCE, AND
EXECUTION
FOR THE EVWD WATER SUPPLY RECOVERY PROJECT
WHEREAS, East Valley Water District proposes to implement EVWD Water Supply
Recovery Project; and
WHEREAS, East Valley Water District has the legal authority and is authorized to enter
into a funding agreement with the State of California; and
WHEREAS, East Valley Water District intends to apply for grant funding from the
California Department of Water Resources for the Water Supply Recovery Project;
NOW THEREFORE BE IT RESOLVED by the Board of Directors of the East
Valley Water District as follows:
1. That pursuant and subject to all of the terms and provisions of Budget Act of
2021 (Stats. 2021, ch. 240, § 80), the East Valley Water District General Manager/CEO, or
designee is hereby authorized and directed to prepare and file an application for funding with the
Department of Water Resources, and take such other actions necessary or appropriate to obtain
grant funding.
2. The East Valley Water District General Manager/CEO, or designee is hereby
authorized and directed to execute the funding agreement with the Department of Water
Resources and any amendments thereto.
3. The East Valley Water District General Manager/CEO, or designee is hereby
authorized and directed to submit any required documents, invoices, and reports required to
obtain grant funding.
ADOPTED, this 8th day of December 2021.
ROLL CALL:
East Valley Water District
Resolution 2021.25
Page 2 of 2
1
9
6
Ayes: Directors:
Noes:
Absent:
Abstain:
David E. Smith,
Board President
ATTEST:
John Mura,
Board Secretary
December 8, 2021
I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2021.25
adopted by the Board of Directors of East Valley Water District at its Regular Meeting held
December 8, 2021.
John Mura,
Secretary, Board of Directors
Agenda Item
#3c
December 8, 20211
2
3
2
Meeting Date: December 8, 2021
Agenda Item #3c
Public Hearing
Regular Board Meeting
TO: Governing Board Members
FROM: Chief Financial Officer
SUBJECT: Formation of Community Facilities District (CFD) 2021-1 (Mediterra):
Consider Approval of Resolution 2021.24, CFD 2021-1 Resolution 2021.01, CFD 2021-1
Resolution 2021.02, and CFD 2021-1 Ordinance No. 1; Public Hearing
RECOMMENDATION
Staff recommends that the Board of Directors (Board):
Adopt Resolution 2021.24 establishing CFD 2021-1 (Mediterra) and approving a
Funding, Construction, and Acquisition Agreement;
Acting as the legislative body of the CFD, adopt CFD 2021-1 Resolution 2021.01;
Acting as the legislative body of the CFD, adopt CFD 2021-1 Resolution 2021.02
certifying the results of the election; and
Acting as the legislative body of the CFD, adopt CFD 2021-1 Ordinance No. 1
BACKGROUND / ANALYSIS
During the Board Meeting held on October 13, 2021, the Board: 1) accepted a petition
from Greenspot Corridor, LLC, an owner of more than 10% of property within the
Mediterra project, to form a Community Facilities District (CFD) for that project, 2)
adopted Resolutions of intention regarding the formation of a CFD and issuing CFD
bonds, and 3) set the date of December 8, 2021 to hold a public hearing for
consideration of forming a CFD.
A Public Report about CFD 2021-1 (attached) has been prepared by the District’s
Special Tax Consultant, Koppel & Gruber, for entry into the record of the public hearing.
The report includes:
A description of the CFD and facilities to be financed;
A cost estimate of the facilities;
Boundaries of the CFD; and
The method of levying special taxes within the CFD.
If the Public Report is accepted, the Board is asked to complete the formation of
Community Facilities District 2021-1 by approving/adopting a series of items attached
hereto. The first is a resolution to be considered while acting as the Board of East Valley
Water District:
Resolution 2021.24 – A Resolution of EVWD Establishing CFD No. 2021-1 and its
Improvement Areas 1 and 2, authorizing the levy of a special tax, and calling for an
Agenda Item
#3c
December 8, 20212
2
3
2
Meeting Date: December 8, 2021
Agenda Item #3c
Public Hearing
election; approving the Public Report for CFD 2021-1; and approving the Funding,
Construction, and Acquisition Agreement:
1. Funding, Construction & Acquisition Agreement - This Agreement documents the
understanding between EVWD and the Developer regarding responsibilities and
obligations of each concerning CFD financial matters, construction of
improvements, inspections, ownership of improvements, termination of
agreement, and assignment of rights.
After Community Facilities District 2021-1 has been established by the Board of East
Valley Water District, the following resolution will need to be passed by the Board acting
as the legislative body of Community Facilities District No. 2021-1:
CFD 2021-1 Resolution 2021.01 – A Resolution determining the necessity to incur
bonded indebtedness within the CFD and Improvement Areas 1 and 2, and calling of
special elections:
Describes purpose for issuing bonded indebtedness and sets maximum term
Calls for special election to vote on three propositions for each Improvement
Area. The propositions are: 1) to incur bonded indebtedness, 2) to set a special
tax, and 3) to establish an appropriations limit
There are three landowners within CFD 2021-1 (Mediterra). Forestar (USA) Real Estate
Group, Inc., and D.R. Horton Los Angeles Holding Company, Inc. are the owners of
Improvement Area 1, and Greenspot Corridor, LLC, is the sole owner of Improvement
Area 2. The County has confirmed that there are no registered voters within the
Improvement Areas, therefore, the aforementioned are the only three entities that can
vote on the three propositions identified above. Ballots and voting instructions have
been delivered to each owner advising them of the date and time by which ballots must
be returned to the District Secretary in order to be counted – the deadline is December
8, 2021 at 10:00 p.m. Assuming the ballots have been returned by the close of the
public hearing and tallied by the Board Secretary, the Board, acting as the legislative
body of the CFD is asked to certify the election by adopting the following:
CFD 2021-1 Resolution 2021.02 – A Resolution certifying the results of the
December 8, 2021 Special Tax and Bond elections.
After the elections have been certified, staff will need authorization from the Board,
acting as the legislative body of the CFD, to determine the amount of special taxes
needed each year, and to file the special tax assessment with the County Tax Assessor.
Adoption of the following Ordinance will grant that authorization:
CFD 2021-1 Ordinance No. 1 – Authorizes the levy of a special tax within
Community Facilities District 2021-1 and Improvement Areas 1 and 2.
Agenda Item
#3c
December 8, 20213
2
3
2
Meeting Date: December 8, 2021
Agenda Item #3c
Public Hearing
AGENCY GOALS AND OBJECTIVES
IV - Promote Planning, Maintenance and Preservation of District Resources
B. Enhance Planning Efforts that Respond to Future Demands
REVIEW BY OTHERS
This agenda item has been reviewed by the Finance Department, Finance and Human
Resources Committee, Bond Counsel, and the District's General Counsel.
FISCAL IMPACT
There is no fiscal impact associated with this agenda item.
Recommended by:
________________
John Mura
General Manager/CEO
Respectfully submitted:
________________
Brian Tompkins
Chief Financial Officer
ATTACHMENTS
1. Public Report – CFD No. 2021-1
2. EVWD Resolution 2021.24 CFD 2021-1
3. Funding, Construction, and Acquisition Agreement
4. CFD 2021-1 Resolution 2021.01
5. CFD 2021-1 Resolution 2021.02
6. CFD 2021-1 Ordinance No. 1
COMMUNITY FACILITIES DISTRICT NO. 2021 -1
(MEDITERRA)
OF THE
EAST VALLEY WATER DISTRICT
PUBLIC REPORT
NOVEMBER 12, 2021
EAST VALLEY WATER DISTRICT
BOARD OF DIRECTORS
DAVID E. SMITH, CHAIRMAN OF THE BOARD
PHILLIP R. GOODRICH, VICE CHAIRMAN OF THE BOARD
CHRIS CARRILLO, BOARD MEMBER
RONALD L. COATS, BOARD MEMBER
JAMES MORALES JR., BOARD MEMBER
GENERAL MANAGER/CEO
JOHN MURA
CHIEF FINANCIAL OFFICER
BRIAN TOMPKINS
TABLE OF CONTENTS
INTRODUCTION ........................................................................................................................................ 1
A. DESCRIPTION OF CFD NO. 2021-1 ............................................................................................... 1
B. DESCRIPTION OF FACILITIES .................................................................................................... 2
C. BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT ............................................. 4
D. COST ESTIMATE.............................................................................................................................. 5
E. RATE AND METHOD OF APPORTIONMENT ........................................................................... 5
F. GENERAL TERMS AND CONDITIONS ....................................................................................... 5
EXHIBIT A – BOUNDARY MAP .......................................................................................................... A-1
EXHIBIT B – COST ESTIMATES .........................................................................................................B-1
EXHIBIT C – RATES AND METHODS OF APPORTIONMENT .................................................... C-1
November 12, 2021 1 Community Facilities District No. 2021-1
(Mediterra)
East Valley Water District
Introduction
The Board of Directors (the “Board”) of the East Valley Water District (the “EVWD”) did,
pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as
amended (the “Act”), on October 13, 2021 adopt a resolution entitled “A Resolution of the
Board of Directors of the East Valley Water District Declaring Its Intention to Establish
Community Facilities District No. 2021-1 (Mediterra) of East Valley Water District, and
Improvement Area Nos. 1, and 2 Therein, to Authorize the Levy of a Special Tax to Pay
the Cost of Acquiring or Constructing Certain Public Facilities, and Paying for Certain
Incidental Expenses and to Pay Debt Service on Bonded Indebtedness” (the “Resolution of
Intention”). In the Resolution of Intention the Board expressly ordered the preparation of a
written Community Facilities District Report (the “Report”), for the proposed Community
Facilities District No. 2021-1 (Mediterra) of the East Valley Water District (the “CFD No.
2021-1”).
The Resolution of Intention ordering the Report did direct that the Report generally contain
the following:
1. a brief description of the public facilities by type (“Authorized Facilities”) which are
required to adequately meet the needs of CFD No. 2021-1; and
2. an estimate of the fair and reasonable cost of providing such public facilities and the
incidental expenses to be incurred in connection therewith.
For particulars, reference is made to the Resolution of Intention (Resolution Number
2021.15) for CFD No 2021-1, as previously approved and adopted by Board.
Now, Therefore Koppel & Gruber Public Finance, the appointed responsible firm directed
to prepare the Report, does hereby submit the following:
A. Description of CFD No. 2021-1
CFD No. 2021-1, is comprised of approximately 44.69 net taxable acres of
residentially zoned land within two Improvement Areas (“IAs”) and two zones
within each IA. At the time of formation, the CFD is expected to include 316
single family residential units. A map showing the boundaries of CFD No.
2021-1 and each of the IAs is included in Exhibit “A” of this Report. Table 1
below shows the number of projected units, the taxable acreage, and the not to
exceed bond amount for each IA within CFD No. 2021-1.
November 12, 2021 2 Community Facilities District No. 2021-1
(Mediterra)
East Valley Water District
TABLE 1
Projected Number of Units, Acreage and Bond Amount
By Improvement Area and Zone
CFD NO. 2021-1
IMPROVEMENT
AREA/ZONE
NO. OF
PROJECTED
TAXABLE UNITS
MINIMUM
TAXABLE
ACREAGE
NOT TO EXCEED
BOND AMOUNT
IA No. 1 – Zone A 98 16.94
IA No. 1 – Zone B 51 8.30
Sub Total IA No. 1 149 25.24 $8,000,000
IA No. 2 – Zone A 67 13.34
IA No. 2 – Zone B 100 6.11
Sub Total IA No. 2 167 19.45 $8,500,000
Totals 316 44.69 $16,500,000
B. Description of Facilities
The purpose of CFD No. 2021-1 is to provide for the cost of financing the
construction of the Authorized Facilities to be constructed (as shown in detail
and defined below), including the cost of planning and designing the
Authorized Facilities, and the incidental expenses, related to financing, forming
and administering CFD No. 2021-1.
Descriptions of the Authorized Facilities, which are defined in Attachment B of
the Resolution of Intention, are as follows:
The construction, purchase, modification, expansion, rehabilitation and/or
improvement of water and sewer facilities of the EVWD as well the
acquisition of capacity in the sewer system and/or water system of the
EVWD, and all appurtenances, and appurtenant work in connection with the
foregoing water and sewer facilities, including, without limitation, the cost
of engineering, planning, designing, materials testing, coordination,
construction staking, construction management and supervision for such
water and sewer facilities, and any other expenses incidental to the
construction, acquisition, modification, rehabilitation, completion,
inspection and financing of such facilities.
Incidental Expenses – CFD No. 2021-1 may also finance incidental expenses
as described in Section 4 of the Resolution of Intention and may include but is
not limited to the following:
The costs of planning and designing the facilities; and
November 12, 2021 3 Community Facilities District No. 2021-1
(Mediterra)
East Valley Water District
The costs of forming CFD No. 2021-1 and each IA therein, issuing bonds,
levying and collecting a special tax and the annual administration costs of
CFD No. 2021-1 and each IA.
November 12, 2021 4 Community Facilities District No. 2021-1
(Mediterra)
East Valley Water District
C. Boundaries of the Community Facilities District
A reduced map of the boundaries of CFD No. 2021-1 titled “Proposed
Boundaries of Community Facilities District No. 2021-1 (Mediterra) of the East
Valley Water District” is included in Exhibit “A” and is incorporated herein.
The boundaries include all the properties located in Improvement Areas 1 and
2.
A full-scale map is on file with the Clerk of the Board and was recorded with
the County Recorder in the County of San Bernardino in Book 89 of Maps of
Assessment and Community Facilities Districts, Pages 87-90, Document
Number 2021-0473453.
November 12, 2021 5 Community Facilities District No. 2021-1
(Mediterra)
East Valley Water District
D. Cost Estimate
The maximum bonded indebtedness to finance the Authorized Facilities and
Incidental Expenses as approved in the Resolution of Intention for CFD No.
2021-1 is $16,500,000 including $8,000,000 for IA No.1and $8,500,000 for IA
No. 2. This bonded indebtedness is proposed to fund Facilities for CFD No.
2021-1. Bonds will be sold by CFD No. 2021-1 and the IAs in one or more
series.
The estimated costs of the Facilities are shown in 2021 dollars. For particulars
on the estimated cost of Facilities, reference is made to Exhibit “B” of this
Report.
E. Rate and Method of Apportionment
The Rate and Method of Apportionment (the “RMA”) for each IA provides
sufficient information to allow a property owner within CFD No. 2021-1 to
estimate the Maximum Special Tax for his or her property. It also includes
method of prepayment in full or prepayment in part and the procedure for
prepayments.
For particulars on the rate and method of apportionment, reference is made to
Exhibit “C” of this report.
F. General Terms and Conditions
The general terms and conditions of CFD No. 2021-1 are as follows:
Substitution of Facilities – The description of the Authorized Facilities is
general in nature. The final nature and location of improvements and
Authorized Facilities will be determined upon the preparation of final plans
and specifications. The final plans and specifications may show substitutes
in lieu of, or modifications to, proposed work. Any such substitution shall
not be a change or modification in the proceedings as long as the Facilities
provide a service substantially similar to that as set forth in the Report.
Bonds – In order to finance the Authorized Facilities set forth in this
Report, it is necessary that bonds be issued pursuant to the terms, conditions
and authorizations as set forth in the Act, commencing with Section 53311
thereof and specifically, Article 5 therein.
November 12, 2021 Community Facilities District No. 2021-1
(Mediterra)
East Valley Water District
A - 1
EXHIBIT A
BOUNDARY MAP FOR
COMMUNITY FACILITIES DISTRICT NO. 2021-1
A reduced copy of the Boundary Map follows. The original of such map is on file in
the Office of the Clerk of the Board of Directors and in the records of the County
Recorder, County of San Bernardino, State of California.
November 12, 2021 Community Facilities District No. 2021-1
(Mediterra)
East Valley Water District
A - 2
November 12, 2021 Community Facilities District No. 2021-1
(Mediterra)
East Valley Water District
A - 3
November 12, 2021 Community Facilities District No. 2021-1
(Mediterra)
East Valley Water District
A - 4
November 12, 2021 Community Facilities District No. 2021-1
(Mediterra)
East Valley Water District
A - 5
November 12, 2021 Community Facilities District No. 2021-1
(Mediterra)
East Valley Water District
B- 1
EXHIBIT B
COST ESTIMATES
The Estimated Costs of Authorized Facilities follows. The total costs for CFD No.
2021-1 are estimates only in 2021 dollars. Actual costs of the Authorized Facilities
will be paid; however, CFD No. 2021-1 has the ability to reallocate amounts between
line items as long as the total costs do not exceed the total authorized bonded
amounts.
Authorized Facilities
Description of Authorized Facilities
Estimated Cost in
2021$ 1,2
EVWD Capacity Improvements
Water Capacity Charge (Residential Units) (3/4" Meter) $2,358,480
Water Capacity Charge, Irrigation (1-1/2” Meter) 124,010
Water Capacity Charge, Miscellaneous (2” Meter) 158,736
Water Capacity Charge, Miscellaneous (3” Meter) 79,368
Sewer Capacity Charge, Residential Units 2,467,211
Sub Total $5,187,805
EVWD Improvements
Water and sewer improvements that are required to serve the
development and are constructed by, or on behalf of the
Developer, including, without limitation, in-tract and
master-planned water and sewer transmission pipelines, lift
station, pump stations, water reservoirs and all appurtenant
improvements and soft costs.
$5,402,700
Sub Total $5,402,700
Total of Authorized Facilities $10,590,505
1. Estimated Cost is based on EVWD’s current fee amounts and the estimated number of dwelling units and
equivalent dwelling units in the development. The amount eligible to be funded for Capacity Improvements shall be
based on the actual number of dwelling units and equivalent dwelling units for which such fees are charged
EVWD’s then-current schedule of fees in effect at the time that such fees are actually paid.
2. Individual, usable and completed EVWD Improvements shall be eligible to be financed and acquired at their
total Actual Cost pursuant to the Funding Construction and Acquisition Agreement. In addition, for any EVWD
Improvement with an estimated cost in excess of $1,000,000, the Developer and General Manager of the Water
District may agree on discrete phases or portions of the EVWD Improvement for which the Actual Costs may be
reimbursed prior to completion of the EVWD Improvement.
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 1
EXHIBIT C
COMMUNITY FACILITIES DISTRICT NO. 20 21 -1
(MEDITERRA )
IMPROVEMENT AREA NO. 1
OF THE EAST VALLEY WATER DISTRICT
R ATE AND METHOD OF APPORTIONMENT
A Special Tax shall be levied on all Taxable Property (as defined below) within the
boundaries of Improvement Area No. 1 (“IA No. 1”) of Community Facilities District
No. 2021-1 (Mediterra), (“CFD No. 2021-1”) of the East Valley Water District (“Water
District”) and collected each Fiscal Year commencing in Fiscal Year 2021/2022 in an
amount determined by the Water District Board (as defined below), through the
application of this Rate and Method of Apportionment of the Special Tax to the extent
and in the manner herein provided.
1. DEFINITIONS
“Acreage” or “Acre” means the land area of an Assessor’s Parcel as shown on an
Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map,
the land area shown on the applicable Final Subdivision Map, parcel map,
condominium plan, or other recorded County parcel map. An Acre means 43,560
square feet of land.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being
Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of
California.
“Administrative Expenses” means the expenses incurred by the Water District on
behalf of IA No. 1 related to the determination of the amount of the levy of Annual
Special Taxes; the collection of Annual Special Taxes including, but not limited to,
the expenses of collecting delinquencies; the administration of the Bonds; the
payment of salaries and benefits or portion of for any employee of the Water District
whose employment duties are directly related to the administration of IA No. 1; and
the costs otherwise incurred in order to carry out authorized purposes of IA No. 1.
“Annual Special Tax” means any Special Tax actually levied in any Fiscal Year on
any Assessor’s Parcel.
“Assessor” means the Assessor of the County.
“Assessor’s Parcel” means a Lot or parcel shown on an Assessor’s Parcel Map with
an assigned Assessor's Parcel number.
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 2
“Assessor’s Parcel Map” means an official map of the County designating parcels
by Assessor’s Parcel number.
“Assigned Special Tax” means the Special Tax for each Land Use Class, as
determined in accordance with Section 3 below.
“Backup Special Tax” means the Special Tax amount applicable to each Assessor’s
Parcel of Developed Property, as determined in accordance with Section 3.A (i) and
3.B (i) below.
“Bonds” means any obligation of IA No. 1 to pay or repay a sum of money,
including obligations in the form of bonds, certificates of participation, long-term
leases, loans from government agencies, or loans from banks, other financial
institutions, private businesses, or individuals, or long-term contracts, or any
refunding thereof, secured in whole or in part by the levy of Special Taxes.
“Boundary Map” means that certain map entitled “Proposed Boundaries of
Community Facilities District No. 2021-1 (Mediterra) of East Valley Water District”
recorded in the Official Records of the County that distinguishes the boundaries of IA
No. 1 from the other improvement area.
“Building Permit” means a building permit for the construction of one or more
Residential Units within IA No. 1 issued by the City, or another public agency in the
event the City no longer issues building permits.
“Building Square Footage” means the square footage of usable area within the
perimeter of a residential structure, not including any carport, walkway, garage,
overhang, or similar area. The determination of Building Square Footage of a
Residential Unit shall be determined by reference to the Building Permit(s) for such
Residential Unit and/or other information as may demonstrate that the Building
Square Footage is specified incorrectly on the Building Permit(s).
“Calendar Year” means the period commencing January 1 of any year and ending
the following December 31.
“CFD Administrator” means an authorized representative of the Water District, or
designee thereof, responsible for determining the Special Tax Requirement, for
preparing the Annual Special Tax roll and calculating the Backup Special Tax.
“CFD No. 2021-1” means Community Facilities District No. 2021-1 (Mediterra) of
the Water District.
“City” means the City of Highland, California.
“County” means the County of San Bernardino, California.
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 3
“Debt Service” means for each Fiscal Year, the total amount of principal and interest
payable on any Outstanding Bonds during the Calendar Year commencing on January
1 of such Fiscal Year.
“Developed Property” means for each Fiscal Year, all Assessor’s Parcels of Taxable
Property, exclusive of Assessor’s Parcels of Provisional Undeveloped Property, for
which a Building Permit was issued prior to May 1 of the previous Fiscal Year.
“Exempt Property” means Assessor’s Parcels designated as being exempt from
Special Taxes pursuant to Section 8.
“Final Subdivision Map” means a subdivision of property created by recordation of
a final map or parcel map, pursuant to the Subdivision Map Act (California
Government Code Section 66410 et seq.) or recordation of a condominium plan
pursuant to California Civil Code 4200 et seq. or lot line adjustment that creates
individual lots or condominium units for which building permits may be issued
without further subdivision.
“Fiscal Year” means the period starting on July 1 and ending the following June 30.
“General Manager” means the General Manager of the Water District or his/her
designee.
“Improvement Area No. 1” or “IA No. 1” means Improvement Area No. 1 of CFD
No. 2021-1, as identified on the Boundary Map for CFD No. 2021-1, as in effect on
the date of formation of CFD No. 2021-1, and as may thereafter be amended in
accordance with the Act.
“Indenture” means the indenture, fiscal agent agreement, resolution or other
instrument pursuant to which Bonds are issued, as modified, amended and/or
supplemented from time to time, and any instrument replacing or supplementing the
same.
“Land Use Class” means any of the classes listed in Table 1 and Table 2 under
Section 3 below.
“Lot” means an individual legal lot or condominium unit created by a Final
Subdivision Map.
“Maximum Special Tax” means the Maximum Special Tax, determined in
accordance with Section 3 below, which may be levied in any Fiscal Year on any
Assessor’s Parcel of Taxable Property.
“Non-Residential Property” means all Assessor’s Parcels of Developed Property for
which a building permit(s) was issued for non-residential use.
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 4
“Outstanding Bonds” mean all Bonds, which are deemed to be outstanding under
the Indenture.
“Partial Prepayment Amount” means a prepayment of a portion of the Special Tax
Obligation applicable to an Assessor’s Parcel of Taxable Property as set forth in
Section 6.B below.
“Proportionately” or “Proportionate” means for Developed Property, that the ratio
of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s
Parcels of Developed Property. For Undeveloped Property, “Proportionately” means
that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax, as
applicable, per Acre is equal for all Assessor's Parcels of Undeveloped Property. The
term “Proportionately” may similarly be applied to other categories of Taxable
Property as described in Section 3 below.
“Provisional Undeveloped Property” means all Assessor’s Parcels of property that
would otherwise be classified as Exempt Property pursuant to the provisions of
Section 8, but cannot be classified as Exempt Property because to do so would reduce
the Acreage of all Taxable Property below the required minimum Acreage as set forth
in Section 8.
“Residential Unit” means each separate residential dwelling unit that comprises an
independent facility available for sale to an end user or rental separate from adjacent
residential dwelling units.
“Special Tax” means any special tax authorized to be levied within IA No. 1
pursuant to the Act and this Rate and Method of Apportionment.
“Special Tax Obligation” means the total obligation of an Assessor’s Parcel of
Taxable Property to pay the Special Tax for the remaining life of IA No. 1.
“Special Tax Requirement” means that amount required in any Fiscal Year to: (i)
pay Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the Outstanding
Bonds, including but not limited to, credit enhancement and rebate payments on the
Outstanding Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required
to establish or replenish any reserve funds for all Outstanding Bonds; (v) the costs
associated with the release of funds from an escrow account established in association
with the Bonds; (vi) accumulate funds to pay directly for acquisition or construction
of facilities provided that the inclusion of such amount does not cause an increase in
the Special Tax to be levied on Undeveloped Property or Provisional Undeveloped
Property, and (vii) pay for reasonably anticipated delinquent Special Taxes based on
the delinquency rate for Special Taxes levied in the previous Fiscal Year; less (viii) a
credit for funds available to reduce the annual Special Tax levy, as determined by the
CFD Administrator pursuant to the Indenture.
“State” means the State of California.
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 5
“Taxable Property” means all of the Assessor's Parcels within the boundaries of IA
No. 1, which are not exempt from the levy of the Special Tax pursuant to law or
Section 8 below.
“Trustee” means the trustee or fiscal agent under the Indenture.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property within
the boundaries of IA No. 1 not classified as Developed Property or Provisional
Undeveloped Property.
“Water District” means the East Valley Water District, California.
“Water District Board” means the Board of Directors of the East Valley Water
District, acting as the legislative body of CFD No. 2021-1, or its designee.
“Zone A” means a geographic area identified as IA No. 1 Zone A consisting of Lots
1 thru 88 and 671 thru 680 of Tract Map No. 18893-1, and as identified on the
Boundary Map for CFD No. 2021-1, as in effect on the date of formation of CFD No.
2021-1, and as may thereafter be amended in accordance with the Act.
“Zone B” means a geographic area identified as IA No. 1 Zone B consisting of Lots
89 thru 139 of Tract Map No.18893-2 , and as identified on the Boundary Map for
CFD No. 2021-1, as in effect on the date of formation of CFD No. 2021-1, and as
may thereafter be amended in accordance with the Act.
2. LAND USE CLASSIFICATION
Each Fiscal Year, beginning with Fiscal Year 2021/2022, each Assessor’s Parcel
within the boundaries of IA No. 1 shall be classified as Zone A or Zone B and further
classified as Taxable Property or Exempt Property. In addition, all Taxable Property
within IA No. 1 shall be classified as Developed Property, Undeveloped Property or
Provisional Undeveloped Property, and all such Taxable Property shall be subject to
the levy of Special Taxes in accordance with this Rate and Method of Apportionment
determined pursuant to Sections 3 and 4 below. Furthermore, each Assessor’s Parcel
of Developed Property which is a Residential Unit shall be classified to a Land Use
Class based on its Building Square Footage.
In the event a Building Permit is issued for a Lot prior to May 1 of the previous Fiscal
Year and an Assessor’s Parcel Number has not yet been assigned to such Lot for the
current Fiscal Year, the applicable parent Assessor’s Parcel may be classified as both
Developed Property and Undeveloped Property. In such an instance, the Special
Taxes levied on such Assessor’s Parcel shall be the sum of the amount derived from
the following (i) applying the Assigned Special Tax applicable to each Lot for which
a Building Permit was issued prior to May 1 of the previous Fiscal Year and (ii)
levying the acreage allocable to such actual or planned Lots for which a Building
Permit has not been issued prior to May 1 of the previous Fiscal Year as Undeveloped
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 6
Property; the allocable acreage shall be computed on a pro-rata basis based on the
relative number of remaining Lots without a Building Permit to the total number of
Lots entitled to be developed on such parent Assessor’s Parcel. The total number of
Lots entitled to be developed on the applicable Assessor’s Parcel shall be determined
from the recorded subdivision map, condominium map, condominium plan,
applicable site plan, plot plan, or other appropriate records kept by the City as
reasonably determined by the CFD Administrator.
Once classified as Developed Property, an Assessor’s Parcel may not be subsequently
re-classified as Undeveloped Property or changed to Exempt Property without the
Special Tax being paid off in full accordance with Section 6 below.
3. MAXIMUM SPECIAL TAX RATES
A. Developed Property in Zone A
The Maximum Special Tax applicable to an Assessor’s Parcel classified as
Developed Property in IA No. 1 Zone A for Fiscal Year 2021/2022 shall
be the greater of (i) the Assigned Special Tax determined pursuant to
Table 1 below or (ii) the amount derived by application of the Backup
Special Tax.
Table 1
IA No. 1 Zone A
Assigned Special Tax Rates
Fiscal Year 2021/2022
Land Use Class Building Square Footage Assigned Special Tax
1 Less than 2,300 Sq. Ft. $2,044 per Residential Unit
2 2,300 to 2,499 Sq. Ft. $2,110 per Residential Unit
3 2,500 to 2,699 Sq. Ft. $2,125 per Residential Unit
4 2,700 to 2,899 Sq. Ft. $2,140 per Residential Unit
5 Greater than 2,899 Sq. Ft. $2,155 per Residential Unit
Each July 1, commencing July 1, 2022, the Assigned Special Tax for
Developed Property shall be increased by two percent (2.0%) of the
amount in effect in the prior Fiscal Year.
i. Backup Special Tax and Undeveloped Property Maximum
Special Tax
The Backup Special Tax applicable to an Assessor’s Parcel classified as
Developed Property or the Maximum Special Tax applicable to an
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 7
Assessor’s Parcel of Undeveloped Property for Fiscal Year 2021/2022
shall be $12,324 per Acre or portion thereof for Zone A.
Each July 1, commencing July 1, 2022, the Backup Special Tax for
Developed Property and the Maximum Special Tax for Undeveloped
Property shall be increased by two percent (2.0%) of the amount in effect
in the prior Fiscal Year.
ii. Provisional Undeveloped Property
The Maximum Special Tax for Provisional Undeveloped Property for
Fiscal Year 2021/2022 shall be $12,324 per Acre or portion thereof for
Zone A.
Each July 1, commencing July 1, 2022, the Maximum Special Tax for
Provisional Undeveloped Property shall be increased by two percent
(2.0%) of the amount in effect in the prior Fiscal Year.
B. Developed Property in Zone B
The Maximum Special Tax applicable to an Assessor’s Parcel classified as
Developed Property in IA No. 1 Zone A for Fiscal Year 2021/2022 shall
be the greater of (i) the Assigned Special Tax determined pursuant to
Table 2 below or (ii) the amount derived by application of the Backup
Special Tax.
Table 2
IA No. 1 Zone B
Assigned Special Tax Rates
Fiscal Year 2021/2022
Land Use Class Building Square Footage Assigned Special Tax
1 Less than 2,100 Sq. Ft. $2,029 per Residential Unit
2 2,100 to 2,299 Sq. Ft. $2,044 per Residential Unit
3 Greater than 2,299 Sq. Ft. $2,059 per Residential Unit
Each July 1, commencing July 1, 2022, the Assigned Special Tax for
Developed Property shall be increased by two percent (2.0%) of the
amount in effect in the prior Fiscal Year.
i. Backup Special Tax and Undeveloped Property Maximum
Special Tax
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 8
The Backup Special Tax applicable to an Assessor’s Parcel classified as
Developed Property or the Maximum Special Tax applicable to an
Assessor’s Parcel of Undeveloped Property for Fiscal Year 2021/2022
shall be $12,554 per Acre or portion thereof for Zone B.
Each July 1, commencing July 1, 2022, the Backup Special Tax for
Developed Property and the Maximum Special Tax for Undeveloped
Property shall be increased by two percent (2.0%) of the amount in effect
in the prior Fiscal Year.
ii. Provisional Undeveloped Property
The Maximum Special Tax for Provisional Undeveloped Property for
Fiscal Year 2021/2022 shall be $12,554 per Acre or portion thereof for
Zone B.
Each July 1, commencing July 1, 2022, the Maximum Special Tax for
Provisional Undeveloped Property shall be increased by two percent
(2.0%) of the amount in effect in the prior Fiscal Year.
4. METHOD OF APPORTIONMENT
A. Special Tax
For each Fiscal Year, commencing Fiscal Year 2021/2022, the CFD
Administrator shall calculate the Annual Special Tax on all Taxable Property
in accordance with the following steps:
Step 1: The Special Tax shall be levied Proportionately on each Assessor’s
Parcel of Developed Property up to 100% of the applicable Assigned
Special Tax in Zone A and B as necessary to satisfy the Special Tax
Requirement;
Step 2: If additional monies are needed to satisfy the Special Tax
Requirement after the first step has been completed, the Special Tax shall
be levied Proportionately on each Assessor's Parcel of Undeveloped
Property up to 100% of the Maximum Special Tax for Undeveloped
Property;
Step 3: If additional monies are needed to satisfy the Special Tax
Requirement after the first two steps have been completed, then the levy
of the Special Tax on each Assessor's Parcel of Developed Property whose
Maximum Special Tax is determined through the application of the
Backup Special Tax shall be increased Proportionately from the Assigned
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 9
Special Tax up to 100% of the Maximum Special Tax for each such
Assessor's Parcel; and
Step 4: If additional monies are needed to satisfy the Special Tax
Requirement after the first three steps have been completed, then the
Special Tax shall be levied Proportionately on each Assessor’s Parcel of
Provisional Undeveloped Property at up to 100% of the Maximum Special
Tax for Provisional Undeveloped Property.
Notwithstanding the above, under no circumstances will the Special Tax levied
in any Fiscal Year against any Assessor’s Parcel of Developed Property for
which an occupancy permit for private residential use has been issued be
increased as a consequence of delinquency or default by the owner of any other
Assessor’s Parcel within IA No. 1 by more than 10% of the amount that would
have been levied in the Fiscal Year is the absence of such delinquency or
default, except for those Assessor’s Parcels of Developed Property whose
owners are also delinquent or in default on their Special Tax payments for one
or more other properties within IA No. 1.
5. COLLECTON OF ANNUAL SPECIAL TAXES
Collection of the Annual Special Tax shall be by the County in the same manner as
ordinary ad valorem property taxes are collected and the Annual Special Tax shall be
subject to the same penalties and the same lien priority in the case of delinquency as
ad valorem taxes; provided, however, that the Water District may provide for (i) other
means of collecting the Annual Special Tax, including direct billings thereof to the
property owners; and (ii) judicial foreclosure of delinquent Special Taxes to meet the
financial obligations of IA No. 1.
6. PREPAYMENT OF SPECIAL TAX OBLIGATION
Property owners may prepay and permanently satisfy the Special Tax Obligation by a
cash settlement with the Water District as permitted under Government Code Section
53344. Prepayment is permitted only under the following conditions:
The following definitions apply to this Section 6:
“Construction Fund” means the fund (regardless of its name) established pursuant
to the Indenture to hold funds, which are currently available for expenditure to
acquire or construct the facilities or pay fees.
“Construction Inflation Index” means the annual percentage change in the
Engineering News-Record Building Cost Index for the City of Los Angeles,
measured as of the Calendar Year, which ends in the previous Fiscal Year. In the
event this index ceases to be published, the Construction Inflation Index shall be
another index as determined by the CFD Administrator that is reasonably comparable
to the Engineering News-Record Building Cost Index for the City of Los Angeles.
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 10
“Future Facilities Costs” means the IA No. 1 Public Facilities Costs minus (i) costs
previously paid from the Construction Fund to acquire or construct the facilities, (ii)
monies currently on deposit in the Construction Fund, and (iii) monies currently on
deposit in an escrow or other earmarked fund that are expected to be available to
finance IA No. 1 Public Facilities Costs.
“IA No. 1 Public Facilities Costs” means $4,836,658 in 2021 dollars, which shall
increase by the Construction Inflation Index (as defined above) on July 1, 2022, and
on each July 1 thereafter, or such lower number as (i) shall be determined by the CFD
Administrator as sufficient to acquire or construct the facilities to be financed under
the authorized Mello-Roos financing program for IA No. 1, or (ii) shall be determined
by the Water District concurrently with a covenant that it will not issue any more IA
No. 1 Bonds (except refunding bonds) to be supported by Special Taxes.
“Outstanding Bonds” means all Previously Issued Bonds, which remain outstanding
as of the first interest and/or principal payment date following the current Fiscal Year
excluding Bonds to be redeemed at a later date with proceeds of prior prepayments of
Maximum Special Taxes.
“Previously Issued Bonds” means all IA No. 1 Bonds that have been issued prior to
the date of prepayment.
A. Prepayment in Full
The Special Tax Obligation applicable to an Assessor’s Parcel may be prepaid
and the obligation of the Assessor’s Parcel to pay any Special Tax permanently
satisfied as described herein, provided that a prepayment may be made with
respect to a particular Assessor’s Parcel only if there are no delinquent Special
Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner
of an Assessor’s Parcel intending to prepay the Special Tax Obligation shall
provide the CFD Administrator with written notice of intent to prepay and the
company or agency that will be acting as the escrow agent, if any. The CFD
Administrator shall provide the owner with a statement of the Prepayment
Amount (as defined below) for such Assessor’s Parcel within thirty (30) days of
the request and may charge a reasonable fee for providing this service.
Prepayment must be made more than sixty (60) days prior to any redemption date
for the IA No. 1 Bonds to be redeemed with the proceeds of such prepaid Special
Taxes, unless a shorter period is acceptable to the Trustee and the Water District.
The Prepayment Amount (defined below) shall be calculated as summarized
below (capitalized terms as defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Prepayment Amount
plus Defeasance Amount
plus Prepayment Administrative Fees and Expenses
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 11
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount (defined below)
shall be calculated as follows:
Paragraph No.:
1. Confirm that no Special Tax delinquencies apply to such Assessor’s
Parcel.
2. For an Assessor’s Parcel of Developed Property, determine the Maximum
Special Tax. For an Assessor’s Parcel of Undeveloped Property for which
a Building Permit has been issued, compute the Maximum Special Tax for
that Assessor’s Parcel as though it was already designated as Developed
Property, based upon the Building Permit(s) which has already been
issued for that Assessor’s Parcel. For an Assessor’s Parcel of Undeveloped
Property for which a Building Permit has not been issued, compute the
Maximum Special Tax for that Assessor’s Parcel.
3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by
the total estimated Maximum Special Tax for IA No. 1 based on the
Developed Property Special Tax which could be levied in the current
Fiscal Year on all expected development through build-out of IA No. 1 as
determined by the CFD Administrator, excluding any Assessor’s Parcels
for which the Special Tax Obligation has been prepaid.
4. Multiply the quotient computed pursuant to paragraph 3 by the
Outstanding Bonds to compute the amount of Outstanding Bonds to be
retired and prepaid (the “Bond Redemption Amount”).
5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4
by the applicable redemption premium (expressed as a percentage), if any,
on the Outstanding Bonds to be redeemed at the first available call date
(the “Redemption Premium”).
6. Compute the current Future Facilities Costs.
7. Multiply the quotient computed pursuant to paragraph 3 by the amount
determined pursuant to paragraph 6 to compute the amount of Future
Facilities Costs to be prepaid (the “Future Facilities Prepayment
Amount”).
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 12
8. Compute the amount needed to pay interest on the Bond Redemption
Amount from the first bond interest and/or principal payment date
following the current Fiscal Year until the earliest redemption date for the
Outstanding Bonds.
9. Compute the amount the CFD Administrator reasonably expects to derive
from the reinvestment of the Prepayment Amount less the Future Facilities
Amount and the Prepayment Administrative Fees and Expenses from the
date of prepayment until the redemption date for the Outstanding Bonds to
be redeemed with the prepayment.
10. Take the amount computed pursuant to paragraph 8 and subtract the
amount computed pursuant to paragraph 9 (the “Defeasance Amount”).
11. Verify the administrative fees and expenses of IA No. 1, including the
costs of computation of the prepayment, the costs to invest the prepayment
proceeds, the costs of redeeming Bonds, and the costs of recording any
notices to evidence the prepayment and the redemption (the “Prepayment
Administrative Fees and Expenses”).
12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of
the reserve requirement (as defined in the Indenture) on the prepayment
date, a reserve fund credit shall be calculated as a reduction in the
applicable reserve fund for the Outstanding Bonds to be redeemed
pursuant to the prepayment (the “Reserve Fund Credit”). No Reserve Fund
Credit shall be granted if reserve funds are below 100% of the reserve
requirement.
13. If any capitalized interest for the Outstanding Bonds will not have been
expended at the time of the first interest and/or principal payment
following the current Fiscal Year, a capitalized interest credit shall be
calculated by multiplying the larger quotient computed pursuant to
paragraph 3 by the expected balance in the capitalized interest fund after
such first interest and/or principal payment (the “Capitalized Interest
Credit”).
14. The Special Tax Obligation is equal to the sum of the amounts computed
pursuant to paragraphs 4, 5, 7, 10, and 11, less the amounts computed
pursuant to paragraphs 12 and 13 (the “Prepayment Amount”).
15. From the Prepayment Amount, the sum of the amounts computed pursuant
to paragraphs 4, 5, and 10, less the amounts computed pursuant to
paragraphs 12, and 13 shall be deposited into the appropriate fund as
established under the Indenture and be used to retire Outstanding Bonds or
make Debt Service payments. The amount computed pursuant to
paragraph 7 shall be deposited into the Construction Fund. The amount
computed pursuant to paragraph 11 shall be retained by IA No. 1.
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 13
The Prepayment Amount may be sufficient to redeem an amount other
than a $5,000 increment of Bonds. In such cases, the increment above
$5,000 or integral multiple thereof will be retained in the appropriate fund
established under the Indenture to redeem Bonds to be used with the next
prepayment of Bonds.
The CFD Administrator will confirm that all previously levied Special
Taxes have been paid in full. With respect to any Assessor's Parcel that is
prepaid in full, once the CFD Administrator has confirmed that all
previously levied Special Taxes have been paid, the Water District shall
cause a suitable notice to be recorded in compliance with the Act, to
indicate the prepayment of Special Taxes and the release of the Special
Tax lien on such Assessor’s Parcel, and the Special Tax Obligation of
such Assessor's Parcel to pay the Special Tax shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed
unless the amount of Maximum Special Taxes less Administrative Expenses for
each Fiscal Year that may be levied on Taxable Property, respectively, after the
proposed prepayment is at least 1.1 times the annual Debt Service on all
Outstanding Bonds.
B. Partial Prepayment
The Special Tax on an Assessor’s Parcel of Developed Property or for
Undeveloped Property for which a Building Permit has been issued may be
partially prepaid. The Partial Prepayment Amount shall be calculated as in
Section 6.A.; except that a partial prepayment shall be calculated according to the
following formula:
PP = (PE – A) x F + A
These terms have the following meaning:
PP = the Partial Prepayment
PE = the Prepayment Amount calculated according to Section 6.A.
F = the percentage by which the owner of the Assessor’s Parcel(s) is
partially prepaying the Special Tax.
A= The Administrative Fees and Expenses from Section 6.A.
The owner of any Assessor’s Parcel who desires such prepayment shall notify the
CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax,
(ii) the percentage by which the Special Tax shall be prepaid, and (iii) the
company or agency that will be acting as the escrow agent, if any. The CFD
Administrator shall provide the owner with a statement of the amount required for
the partial prepayment of the Special Tax for an Assessor’s Parcel within sixty
(60) days of the request and may charge a reasonable fee for providing this
service
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 14
With respect to any Assessor’s Parcel that is partially prepaid, the Water District
shall (i) distribute the funds remitted to it according to Section 6.A., and (ii)
indicate in the records of IA No. 1 that there has been a partial prepayment of the
Special Tax and that a portion of the Special Tax with respect to such Assessor’s
Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum
Special Tax, shall continue to be levied on such Assessor’s Parcel pursuant to
Section 3.
Notwithstanding the foregoing, no partial prepayment shall be allowed unless the
amount of Maximum Special Taxes A less Administrative Expenses for each
Fiscal Year that may be levied on Taxable Property, respectively, after the
proposed partial prepayment is at least 1.1 times the annual Debt Service on all
Outstanding Bonds.
7. TERM OF SPECIAL TAX
The Annual Special Tax shall be levied for a period of thirty-five (35) Fiscal Years
after the last series of Bonds has been issued, provided that the Special Tax shall not
be levied later than Fiscal Year 2071/2072.
8. EXEMPTIONS
The CFD Administrator shall classify as Exempt Property (i) Assessor’s Parcels
owned by the State of California, Federal or other local governments, (ii) Assessor’s
Parcels which are used as places of worship and are exempt from ad valorem property
taxes because they are owned by a religious organization, (iii) Assessor’s Parcels
developed or planned to be developed exclusively for any type of Non-Residential
Property use, (iv) Assessor’s Parcels with public utility easement by the restriction or
other restriction, as determined reasonably by the CFD Administrator, provided that
no such classification would reduce the sum of all Taxable Property within IA No. 1
to less than 16.94 Acres in Zone A and 8.30 Acres in Zone B. Assessor’s Parcels
which cannot be classified as Exempt Property because such classification would
reduce the sum of all Taxable Property in IA No. 1 to less than 16.94 Acres in Zone A
and 8.30 Acres in Zone B shall be classified as Provisional Undeveloped Property,
and will continue to be subject to the Special Tax accordingly. Tax exempt status for
this purpose of this paragraph will be assigned by the CFD Administrator in the
chronological order in which property becomes eligible for classification as Exempt
Property.
If the use of an Assessor’s Parcel of Exempt Property changes so that such Assessor’s
Parcel is no longer classified as one of the uses set forth in the first paragraph of this
Section 8 above that would make such Assessor’s Parcel eligible to be classified as
Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt
Property and shall be deemed to be Taxable Property.
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 15
9. APPEALS
Any landowner who pays the Annual Special Tax and claims the amount of the
Annual Special Tax levied on his or her Assessor’s Parcel is in error shall first consult
with the CFD Administrator regarding such error not later than twelve (12) months
after first having paid the first installment of the Annual Special Tax that is disputed.
If following such consultation, the CFD Administrator determines that an error has
occurred, the CFD Administrator may recommend changing the amount of the
Annual Special Tax levied on such Assessor’s Parcel. If following such consultation
and action, if any by the CFD Administrator, the landowner believes such error still
exists, such person may file a written notice with the General Manager appealing the
amount of the Annual Special Tax levied on such Assessor’s Parcel. Upon the receipt
of such notice, the General Manager may establish such procedures as deemed
necessary to undertake the review of any such appeal. The General Manager thereof
shall interpret this Rate and Method of Apportionment and make determinations
relative to the administration of the Annual Special Tax and any landowner appeals.
The decision of the General Manager shall be final and binding as to all persons.
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 16
COMMUNITY FACILITIES DISTRICT NO. 20 21 -1
(MEDITERRA )
IMPROVEMENT AREA NO. 2
OF THE EAST VALLEY WATER DISTRICT
RATE AND METHOD OF APPORTIONMENT
A Special Tax shall be levied on all Taxable Property (as defined below) within the
boundaries of Improvement Area No. 2 (“IA No. 2”) of Community Facilities District
No. 2021-1 (Mediterra), (“CFD No. 2021-1”) of the East Valley Water District (“Water
District”) and collected each Fiscal Year commencing in Fiscal Year 2021/2022 in an
amount determined by the Water District Board (as defined below), through the
application of this Rate and Method of Apportionment of the Special Tax to the extent
and in the manner herein provided.
1. DEFINITIONS
“Acreage” or “Acre” means the land area of an Assessor’s Parcel as shown on an
Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map,
the land area shown on the applicable Final Subdivision Map, parcel map,
condominium plan, or other recorded County parcel map. An Acre means 43,560
square feet of land.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being
Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of
California.
“Administrative Expenses” means the expenses incurred by the Water District on
behalf of IA No. 2 related to the determination of the amount of the levy of Annual
Special Taxes; the collection of Annual Special Taxes including, but not limited to,
the expenses of collecting delinquencies; the administration of the Bonds; the
payment of salaries and benefits or portion of for any employee of the Water District
whose employment duties are directly related to the administration of IA No. 2; and
the costs otherwise incurred in order to carry out authorized purposes of IA No. 2.
“Annual Special Tax” means any Special Tax actually levied in any Fiscal Year on
any Assessor’s Parcel.
“Assessor” means the Assessor of the County.
“Assessor’s Parcel” means a Lot or parcel shown on an Assessor’s Parcel Map with
an assigned Assessor's Parcel number.
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 17
“Assessor’s Parcel Map” means an official map of the County designating parcels
by Assessor’s Parcel number.
“Assigned Special Tax” means the Special Tax for each Land Use Class, as
determined in accordance with Section 3 below.
“Backup Special Tax” means the Special Tax amount applicable to each Assessor’s
Parcel of Developed Property, as determined in accordance with Section 3.A (i) and
3.B (i) below.
“Bonds” means any obligation of IA No. 2 to pay or repay a sum of money,
including obligations in the form of bonds, certificates of participation, long-term
leases, loans from government agencies, or loans from banks, other financial
institutions, private businesses, or individuals, or long-term contracts, or any
refunding thereof, secured in whole or in part by the levy of Special Taxes.
“Boundary Map” means that certain map entitled “Proposed Boundaries of
Community Facilities District No. 2021-1 (Mediterra) of East Valley Water District”
recorded in the Official Records of the County that distinguishes the boundaries of IA
No. 2 from the other improvement area.
“Building Permit” means a building permit for the construction of one or more
Residential Units within IA No. 2 issued by the City, or another public agency in the
event the City no longer issues building permits.
“Building Square Footage” means the square footage of usable area within the
perimeter of a residential structure, not including any carport, walkway, garage,
overhang, or similar area. The determination of Building Square Footage of a
Residential Unit shall be determined by reference to the Building Permit(s) for such
Residential Unit and/or other information as may demonstrate that the Building
Square Footage is specified incorrectly on the Building Permit(s).
“Calendar Year” means the period commencing January 1 of any year and ending
the following December 31.
“CFD Administrator” means an authorized representative of the Water District, or
designee thereof, responsible for determining the Special Tax Requirement, for
preparing the Annual Special Tax roll and calculating the Backup Special Tax.
“CFD No. 2021-1” means Community Facilities District No. 2021-1 (Mediterra) of
the Water District.
“City” means the City of Highland, California.
“County” means the County of San Bernardino, California.
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 18
“Debt Service” means for each Fiscal Year, the total amount of principal and interest
payable on any Outstanding Bonds during the Calendar Year commencing on January
1 of such Fiscal Year.
“Developed Property” means for each Fiscal Year, all Assessor’s Parcels of Taxable
Property, exclusive of Assessor’s Parcels of Provisional Undeveloped Property, for
which a Building Permit was issued prior to May 1 of the previous Fiscal Year.
“Exempt Property” means Assessor’s Parcels designated as being exempt from
Special Taxes pursuant to Section 8.
“Final Subdivision Map” means a subdivision of property created by recordation of
a final map or parcel map, pursuant to the Subdivision Map Act (California
Government Code Section 66410 et seq.) or recordation of a condominium plan
pursuant to California Civil Code 4200 et seq. or lot line adjustment that creates
individual lots or condominium units for which building permits may be issued
without further subdivision.
“Fiscal Year” means the period starting on July 1 and ending the following June 30.
“General Manager” means the General Manager of the Water District or his/her
designee.
“Improvement Area No. 2” or “IA No. 2” means Improvement Area No. 2 of CFD
No. 2021-1, as identified on the Boundary Map for CFD No. 2021-1, as in effect on
the date of formation of CFD No. 2021-1, and as may thereafter be amended in
accordance with the Act.
“Indenture” means the indenture, fiscal agent agreement, resolution or other
instrument pursuant to which Bonds are issued, as modified, amended and/or
supplemented from time to time, and any instrument replacing or supplementing the
same.
“Land Use Class” means any of the classes listed in Table 1 and Table 2 under
Section 3 below.
“Lot” means an individual legal lot or condominium unit created by a Final
Subdivision Map.
“Maximum Special Tax” means the Maximum Special Tax, determined in
accordance with Section 3 below, which may be levied in any Fiscal Year on any
Assessor’s Parcel of Taxable Property.
“Non-Residential Property” means all Assessor’s Parcels of Developed Property for
which a building permit(s) was issued for non-residential use.
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 19
“Outstanding Bonds” mean all Bonds, which are deemed to be outstanding under
the Indenture.
“Partial Prepayment Amount” means a prepayment of a portion of the Special Tax
Obligation applicable to an Assessor’s Parcel of Taxable Property as set forth in
Section 6.B below.
“Proportionately” or “Proportionate” means for Developed Property, that the ratio
of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s
Parcels of Developed Property. For Undeveloped Property, “Proportionately” means
that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax, as
applicable, per Acre is equal for all Assessor's Parcels of Undeveloped Property. The
term “Proportionately” may similarly be applied to other categories of Taxable
Property as described in Section 3 below.
“Provisional Undeveloped Property” means all Assessor’s Parcels of property that
would otherwise be classified as Exempt Property pursuant to the provisions of
Section 8, but cannot be classified as Exempt Property because to do so would reduce
the Acreage of all Taxable Property below the required minimum Acreage as set forth
in Section 8.
“Residential Unit” means each separate residential dwelling unit that comprises an
independent facility available for sale to an end user or rental separate from adjacent
residential dwelling units.
“Special Tax” means any special tax authorized to be levied within IA No. 2
pursuant to the Act and this Rate and Method of Apportionment.
“Special Tax Obligation” means the total obligation of an Assessor’s Parcel of
Taxable Property to pay the Special Tax for the remaining life of IA No. 2.
“Special Tax Requirement” means that amount required in any Fiscal Year to: (i)
pay Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the Outstanding
Bonds, including but not limited to, credit enhancement and rebate payments on the
Outstanding Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required
to establish or replenish any reserve funds for all Outstanding Bonds; (v) the costs
associated with the release of funds from an escrow account established in association
with the Bonds; (vi) accumulate funds to pay directly for acquisition or construction
of facilities provided that the inclusion of such amount does not cause an increase in
the Special Tax to be levied on Undeveloped Property or Provisional Undeveloped
Property, and (vii) pay for reasonably anticipated delinquent Special Taxes based on
the delinquency rate for Special Taxes levied in the previous Fiscal Year; less (viii) a
credit for funds available to reduce the annual Special Tax levy, as determined by the
CFD Administrator pursuant to the Indenture.
“State” means the State of California.
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 20
“Taxable Property” means all of the Assessor's Parcels within the boundaries of IA
No. 2, which are not exempt from the levy of the Special Tax pursuant to law or
Section 8 below.
“Trustee” means the trustee or fiscal agent under the Indenture.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property within
the boundaries of IA No. 2 not classified as Developed Property or Provisional
Undeveloped Property.
“Water District” means the East Valley Water District, California.
“Water District Board” means the Board of Directors of the East Valley Water
District, acting as the legislative body of CFD No. 2021-1, or its designee.
“Zone A” means a geographic area identified as IA No. 2 Zone A consisting of APN
0297-021-31-0000, and as identified on the Boundary Map for CFD No. 2021-1, as in
effect on the date of formation of CFD No. 2021-1, and as may thereafter be amended
in accordance with the Act.
“Zone B” means a geographic area identified as IA No. 2 Zone B consisting of APN
0297-051-27-0000, and as identified on the Boundary Map for CFD No. 2021-1, as in
effect on the date of formation of CFD No. 2021-1, and as may thereafter be amended
in accordance with the Act.
2. LAND USE CLASSIFICATION
Each Fiscal Year, beginning with Fiscal Year 2021/2022, each Assessor’s Parcel
within the boundaries of IA No. 2 shall be classified as Zone A or Zone B and further
classified as Taxable Property or Exempt Property. In addition, all Taxable Property
within IA No. 2 shall be classified as Developed Property, Undeveloped Property or
Provisional Undeveloped Property, and all such Taxable Property shall be subject to
the levy of Special Taxes in accordance with this Rate and Method of Apportionment
determined pursuant to Sections 3 and 4 below. Furthermore, each Assessor’s Parcel
of Developed Property which is a Residential Unit shall be classified to a Land Use
Class based on its Building Square Footage.
In the event a Building Permit is issued for a Lot prior to May 1 of the previous Fiscal
Year and an Assessor’s Parcel Number has not yet been assigned to such Lot for the
current Fiscal Year, the applicable parent Assessor’s Parcel may be classified as both
Developed Property and Undeveloped Property. In such an instance, the Special
Taxes levied on such Assessor’s Parcel shall be the sum of the amount derived from
the following (i) applying the Assigned Special Tax applicable to each Lot for which
a Building Permit was issued prior to May 1 of the previous Fiscal Year and (ii)
levying the acreage allocable to such actual or planned Lots for which a Building
Permit has not been issued prior to May 1 of the previous Fiscal Year as Undeveloped
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 21
Property; the allocable acreage shall be computed on a pro-rata basis based on the
relative number of remaining Lots without a Building Permit to the total number of
Lots entitled to be developed on such parent Assessor’s Parcel. The total number of
Lots entitled to be developed on the applicable Assessor’s Parcel shall be determined
from the recorded subdivision map, condominium map, condominium plan,
applicable site plan, plot plan, or other appropriate records kept by the City as
reasonably determined by the CFD Administrator.
Once classified as Developed Property, an Assessor’s Parcel may not be subsequently
re-classified as Undeveloped Property or changed to Exempt Property without the
Special Tax being paid off in full accordance with Section 6 below.
3. MAXIMUM SPECIAL TAX RATES
C. Developed Property in Zone A
The Maximum Special Tax applicable to an Assessor’s Parcel classified as
Developed Property in IA No. 2 Zone A for Fiscal Year 2021/2022 shall
be the greater of (i) the Assigned Special Tax determined pursuant to
Table 1 below or (ii) the amount derived by application of the Backup
Special Tax.
Table 1
IA No. 2 Zone A
Assigned Special Tax Rates
Fiscal Year 2021/2022
Land Use Class Building Square Footage Assigned Special Tax
1 Less than 2,500 Sq. Ft. $2,583 per Residential Unit
2 2,500 to 2,699 Sq. Ft. $2,623 per Residential Unit
3 2,700 to 2,899 Sq. Ft. $2,663 per Residential Unit
4 2,900 to 3,099 Sq. Ft. $2,704 per Residential Unit
5 3,100 to 3,299 Sq. Ft. $2,760 per Residential Unit
4 3,300 to 3,499 Sq. Ft. $2,816 per Residential Unit
5 Greater than 3,499 Sq. Ft. $2,872 per Residential Unit
Each July 1, commencing July 1, 2022, the Assigned Special Tax for
Developed Property shall be increased by two percent (2.0%) of the
amount in effect in the prior Fiscal Year.
i. Backup Special Tax and Undeveloped Property Maximum
Special Tax
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 22
The Backup Special Tax applicable to an Assessor’s Parcel classified as
Developed Property or the Maximum Special Tax applicable to an
Assessor’s Parcel of Undeveloped Property for Fiscal Year 2021/2022
shall be $14,408 per Acre or portion thereof for Zone A.
Each July 1, commencing July 1, 2022, the Backup Special Tax for
Developed Property and the Maximum Special Tax for Undeveloped
Property shall be increased by two percent (2.0%) of the amount in effect
in the prior Fiscal Year.
ii. Provisional Undeveloped Property
The Maximum Special Tax for Provisional Undeveloped Property for
Fiscal Year 2021/2022 shall be $14,408 per Acre or portion thereof for
Zone A.
Each July 1, commencing July 1, 2022, the Maximum Special Tax for
Provisional Undeveloped Property shall be increased by two percent
(2.0%) of the amount in effect in the prior Fiscal Year.
D. Developed Property in Zone B
The Maximum Special Tax applicable to an Assessor’s Parcel classified as
Developed Property in IA No. 2 Zone A for Fiscal Year 2021/2022 shall
be the greater of (i) the Assigned Special Tax determined pursuant to
Table 2 below or (ii) the amount derived by application of the Backup
Special Tax.
Table 2
IA No. 2 Zone B
Assigned Special Tax Rates
Fiscal Year 2021/2022
Land Use Class Building Square Footage Assigned Special Tax
1 Less than 1,700 Sq. Ft. $1,740 per Residential Unit
2 1,700 to 1,899 Sq. Ft. $1,774 per Residential Unit
3 1,900 to 2,099 Sq. Ft. $1,851 per Residential Unit
3 Greater than 2,099 Sq. Ft. $1,891 per Residential Unit
Each July 1, commencing July 1, 2022, the Assigned Special Tax for
Developed Property shall be increased by two percent (2.0%) of the
amount in effect in the prior Fiscal Year.
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 23
i. Backup Special Tax and Undeveloped Property Maximum
Special Tax
The Backup Special Tax applicable to an Assessor’s Parcel classified as
Developed Property or the Maximum Special Tax applicable to an
Assessor’s Parcel of Undeveloped Property for Fiscal Year 2021/2022
shall be $29,278 per Acre or portion thereof for Zone B.
Each July 1, commencing July 1, 2022, the Backup Special Tax for
Developed Property and the Maximum Special Tax for Undeveloped
Property shall be increased by two percent (2.0%) of the amount in effect
in the prior Fiscal Year.
ii. Provisional Undeveloped Property
The Maximum Special Tax for Provisional Undeveloped Property for
Fiscal Year 2021/2022 shall be $29,278 per Acre or portion thereof for
Zone B.
Each July 1, commencing July 1, 2022, the Maximum Special Tax for
Provisional Undeveloped Property shall be increased by two percent
(2.0%) of the amount in effect in the prior Fiscal Year.
4. METHOD OF APPORTIONMENT
B. Special Tax
For each Fiscal Year, commencing Fiscal Year 2021/2022, the CFD
Administrator shall calculate the Annual Special Tax on all Taxable Property
in accordance with the following steps:
Step 1: The Special Tax shall be levied Proportionately on each Assessor’s
Parcel of Developed Property up to 100% of the applicable Assigned
Special Tax in Zone A and B as necessary to satisfy the Special Tax
Requirement;
Step 2: If additional monies are needed to satisfy the Special Tax
Requirement after the first step has been completed, the Special Tax shall
be levied Proportionately on each Assessor's Parcel of Undeveloped
Property up to 100% of the Maximum Special Tax for Undeveloped
Property;
Step 3: If additional monies are needed to satisfy the Special Tax
Requirement after the first two steps have been completed, then the levy
of the Special Tax on each Assessor's Parcel of Developed Property whose
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 24
Maximum Special Tax is determined through the application of the
Backup Special Tax shall be increased Proportionately from the Assigned
Special Tax up to 100% of the Maximum Special Tax for each such
Assessor's Parcel; and
Step 4: If additional monies are needed to satisfy the Special Tax
Requirement after the first three steps have been completed, then the
Special Tax shall be levied Proportionately on each Assessor’s Parcel of
Provisional Undeveloped Property at up to 100% of the Maximum Special
Tax for Provisional Undeveloped Property.
Notwithstanding the above, under no circumstances will the Special Tax levied
in any Fiscal Year against any Assessor’s Parcel of Developed Property for
which an occupancy permit for private residential use has been issued be
increased as a consequence of delinquency or default by the owner of any other
Assessor’s Parcel within IA No. 2 by more than 10% of the amount that would
have been levied in the Fiscal Year is the absence of such delinquency or
default, except for those Assessor’s Parcels of Developed Property whose
owners are also delinquent or in default on their Special Tax payments for one
or more other properties within IA No. 2.
5. COLLECTON OF ANNUAL SPECIAL TAXES
Collection of the Annual Special Tax shall be by the County in the same manner as
ordinary ad valorem property taxes are collected and the Annual Special Tax shall be
subject to the same penalties and the same lien priority in the case of delinquency as
ad valorem taxes; provided, however, that the Water District may provide for (i) other
means of collecting the Annual Special Tax, including direct billings thereof to the
property owners; and (ii) judicial foreclosure of delinquent Special Taxes to meet the
financial obligations of IA No. 2.
6. PREPAYMENT OF SPECIAL TAX OBLIGATION
Property owners may prepay and permanently satisfy the Special Tax Obligation by a
cash settlement with the Water District as permitted under Government Code Section
53344. Prepayment is permitted only under the following conditions:
The following definitions apply to this Section 6:
“Construction Fund” means the fund (regardless of its name) established pursuant
to the Indenture to hold funds, which are currently available for expenditure to
acquire or construct the facilities or pay fees.
“Construction Inflation Index” means the annual percentage change in the
Engineering News-Record Building Cost Index for the City of Los Angeles,
measured as of the Calendar Year, which ends in the previous Fiscal Year. In the
event this index ceases to be published, the Construction Inflation Index shall be
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 25
another index as determined by the CFD Administrator that is reasonably comparable
to the Engineering News-Record Building Cost Index for the City of Los Angeles.
“Future Facilities Costs” means the IA No. 2 Public Facilities Costs minus (i) costs
previously paid from the Construction Fund to acquire or construct the facilities, (ii)
monies currently on deposit in the Construction Fund, and (iii) monies currently on
deposit in an escrow or other earmarked fund that are expected to be available to
finance IA No. 2 Public Facilities Costs.
“IA No. 2 Public Facilities Costs” means $5,753,847 in 2021 dollars, which shall
increase by the Construction Inflation Index (as defined above) on July 1, 2022, and
on each July 1 thereafter, or such lower number as (i) shall be determined by the CFD
Administrator as sufficient to acquire or construct the facilities to be financed under
the authorized Mello-Roos financing program for IA No. 2, or (ii) shall be determined
by the Water District concurrently with a covenant that it will not issue any more IA
No. 2 Bonds (except refunding bonds) to be supported by Special Taxes.
“Outstanding Bonds” means all Previously Issued Bonds, which remain outstanding
as of the first interest and/or principal payment date following the current Fiscal Year
excluding Bonds to be redeemed at a later date with proceeds of prior prepayments of
Maximum Special Taxes.
“Previously Issued Bonds” means all IA No. 2 Bonds that have been issued prior to
the date of prepayment.
A. Prepayment in Full
The Special Tax Obligation applicable to an Assessor’s Parcel may be prepaid
and the obligation of the Assessor’s Parcel to pay any Special Tax permanently
satisfied as described herein, provided that a prepayment may be made with
respect to a particular Assessor’s Parcel only if there are no delinquent Special
Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner
of an Assessor’s Parcel intending to prepay the Special Tax Obligation shall
provide the CFD Administrator with written notice of intent to prepay and the
company or agency that will be acting as the escrow agent, if any. The CFD
Administrator shall provide the owner with a statement of the Prepayment
Amount (as defined below) for such Assessor’s Parcel within thirty (30) days of
the request and may charge a reasonable fee for providing this service.
Prepayment must be made more than sixty (60) days prior to any redemption date
for the IA No. 2 Bonds to be redeemed with the proceeds of such prepaid Special
Taxes, unless a shorter period is acceptable to the Trustee and the Water District.
The Prepayment Amount (defined below) shall be calculated as summarized
below (capitalized terms as defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Prepayment Amount
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 26
plus Defeasance Amount
plus Prepayment Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount (defined below)
shall be calculated as follows:
Paragraph No.:
3. Confirm that no Special Tax delinquencies apply to such Assessor’s
Parcel.
4. For an Assessor’s Parcel of Developed Property, determine the Maximum
Special Tax. For an Assessor’s Parcel of Undeveloped Property for which
a Building Permit has been issued, compute the Maximum Special Tax for
that Assessor’s Parcel as though it was already designated as Developed
Property, based upon the Building Permit(s) which has already been
issued for that Assessor’s Parcel. For an Assessor’s Parcel of Undeveloped
Property for which a Building Permit has not been issued, compute the
Maximum Special Tax for that Assessor’s Parcel.
3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by
the total estimated Maximum Special Tax for IA No. 2 based on the
Developed Property Special Tax which could be levied in the current
Fiscal Year on all expected development through build-out of IA No. 2 as
determined by the CFD Administrator, excluding any Assessor’s Parcels
for which the Special Tax Obligation has been prepaid.
4. Multiply the quotient computed pursuant to paragraph 3 by the
Outstanding Bonds to compute the amount of Outstanding Bonds to be
retired and prepaid (the “Bond Redemption Amount”).
5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4
by the applicable redemption premium (expressed as a percentage), if any,
on the Outstanding Bonds to be redeemed at the first available call date
(the “Redemption Premium”).
6. Compute the current Future Facilities Costs.
7. Multiply the quotient computed pursuant to paragraph 3 by the amount
determined pursuant to paragraph 6 to compute the amount of Future
Facilities Costs to be prepaid (the “Future Facilities Prepayment
Amount”).
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 27
8. Compute the amount needed to pay interest on the Bond Redemption
Amount from the first bond interest and/or principal payment date
following the current Fiscal Year until the earliest redemption date for the
Outstanding Bonds.
9. Compute the amount the CFD Administrator reasonably expects to derive
from the reinvestment of the Prepayment Amount less the Future Facilities
Amount and the Prepayment Administrative Fees and Expenses from the
date of prepayment until the redemption date for the Outstanding Bonds to
be redeemed with the prepayment.
10. Take the amount computed pursuant to paragraph 8 and subtract the
amount computed pursuant to paragraph 9 (the “Defeasance Amount”).
11. Verify the administrative fees and expenses of IA No. 2, including the
costs of computation of the prepayment, the costs to invest the prepayment
proceeds, the costs of redeeming Bonds, and the costs of recording any
notices to evidence the prepayment and the redemption (the “Prepayment
Administrative Fees and Expenses”).
12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of
the reserve requirement (as defined in the Indenture) on the prepayment
date, a reserve fund credit shall be calculated as a reduction in the
applicable reserve fund for the Outstanding Bonds to be redeemed
pursuant to the prepayment (the “Reserve Fund Credit”). No Reserve Fund
Credit shall be granted if reserve funds are below 100% of the reserve
requirement.
13. If any capitalized interest for the Outstanding Bonds will not have been
expended at the time of the first interest and/or principal payment
following the current Fiscal Year, a capitalized interest credit shall be
calculated by multiplying the larger quotient computed pursuant to
paragraph 3 by the expected balance in the capitalized interest fund after
such first interest and/or principal payment (the “Capitalized Interest
Credit”).
14. The Special Tax Obligation is equal to the sum of the amounts computed
pursuant to paragraphs 4, 5, 7, 10, and 11, less the amounts computed
pursuant to paragraphs 12 and 13 (the “Prepayment Amount”).
15. From the Prepayment Amount, the sum of the amounts computed pursuant
to paragraphs 4, 5, and 10, less the amounts computed pursuant to
paragraphs 12, and 13 shall be deposited into the appropriate fund as
established under the Indenture and be used to retire Outstanding Bonds or
make Debt Service payments. The amount computed pursuant to
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 28
paragraph 7 shall be deposited into the Construction Fund. The amount
computed pursuant to paragraph 11 shall be retained by IA No. 2.
The Prepayment Amount may be sufficient to redeem an amount other
than a $5,000 increment of Bonds. In such cases, the increment above
$5,000 or integral multiple thereof will be retained in the appropriate fund
established under the Indenture to redeem Bonds to be used with the next
prepayment of Bonds.
The CFD Administrator will confirm that all previously levied Special
Taxes have been paid in full. With respect to any Assessor's Parcel that is
prepaid in full, once the CFD Administrator has confirmed that all
previously levied Special Taxes have been paid, the Water District shall
cause a suitable notice to be recorded in compliance with the Act, to
indicate the prepayment of Special Taxes and the release of the Special
Tax lien on such Assessor’s Parcel, and the Special Tax Obligation of
such Assessor's Parcel to pay the Special Tax shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed
unless the amount of Maximum Special Taxes less Administrative Expenses for
each Fiscal Year that may be levied on Taxable Property, respectively, after the
proposed prepayment is at least 1.1 times the annual Debt Service on all
Outstanding Bonds.
B. Partial Prepayment
The Special Tax on an Assessor’s Parcel of Developed Property or for
Undeveloped Property for which a Building Permit has been issued may be
partially prepaid. The Partial Prepayment Amount shall be calculated as in
Section 6.A.; except that a partial prepayment shall be calculated according to the
following formula:
PP = (PE – A) x F + A
These terms have the following meaning:
PP = the Partial Prepayment
PE = the Prepayment Amount calculated according to Section 6.A.
F = the percentage by which the owner of the Assessor’s Parcel(s) is
partially prepaying the Special Tax.
A= The Administrative Fees and Expenses from Section 6.A.
The owner of any Assessor’s Parcel who desires such prepayment shall notify the
CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax,
(ii) the percentage by which the Special Tax shall be prepaid, and (iii) the
company or agency that will be acting as the escrow agent, if any. The CFD
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 29
Administrator shall provide the owner with a statement of the amount required for
the partial prepayment of the Special Tax for an Assessor’s Parcel within sixty
(60) days of the request and may charge a reasonable fee for providing this
service
With respect to any Assessor’s Parcel that is partially prepaid, the Water District
shall (i) distribute the funds remitted to it according to Section 6.A., and (ii)
indicate in the records of IA No. 2 that there has been a partial prepayment of the
Special Tax and that a portion of the Special Tax with respect to such Assessor’s
Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum
Special Tax, shall continue to be levied on such Assessor’s Parcel pursuant to
Section 3.
Notwithstanding the foregoing, no partial prepayment shall be allowed unless the
amount of Maximum Special Taxes A less Administrative Expenses for each
Fiscal Year that may be levied on Taxable Property, respectively, after the
proposed partial prepayment is at least 1.1 times the annual Debt Service on all
Outstanding Bonds.
7. TERM OF SPECIAL TAX
The Annual Special Tax shall be levied for a period of thirty-five (35) Fiscal Years
after the last series of Bonds has been issued, provided that the Special Tax shall not
be levied later than Fiscal Year 2071/2072.
8. EXEMPTIONS
The CFD Administrator shall classify as Exempt Property (i) Assessor’s Parcels
owned by the State of California, Federal or other local governments, (ii) Assessor’s
Parcels which are used as places of worship and are exempt from ad valorem property
taxes because they are owned by a religious organization, (iii) Assessor’s Parcels
developed or planned to be developed exclusively for any type of Non-Residential
Property use, (iv) Assessor’s Parcels with public utility easement by the restriction or
other restriction, as determined reasonably by the CFD Administrator, provided that
no such classification would reduce the sum of all Taxable Property within IA No. 2
to less than 12.64 Acres in Zone A and 6.11 Acres in Zone B. Assessor’s Parcels
which cannot be classified as Exempt Property because such classification would
reduce the sum of all Taxable Property in IA No. 2 to less than 12.64 Acres in Zone A
and 6.11 Acres in Zone B shall be classified as Provisional Undeveloped Property,
and will continue to be subject to the Special Tax accordingly. Tax exempt status for
this purpose of this paragraph will be assigned by the CFD Administrator in the
chronological order in which property becomes eligible for classification as Exempt
Property.
If the use of an Assessor’s Parcel of Exempt Property changes so that such Assessor’s
Parcel is no longer classified as one of the uses set forth in the first paragraph of this
Section 8 above that would make such Assessor’s Parcel eligible to be classified as
November 12, 2021 Community Facilities District No. 202-1
(Mediterra)
East Valley Water District
C- 30
Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt
Property and shall be deemed to be Taxable Property.
9. APPEALS
Any landowner who pays the Annual Special Tax and claims the amount of the
Annual Special Tax levied on his or her Assessor’s Parcel is in error shall first consult
with the CFD Administrator regarding such error not later than twelve (12) months
after first having paid the first installment of the Annual Special Tax that is disputed.
If following such consultation, the CFD Administrator determines that an error has
occurred, the CFD Administrator may recommend changing the amount of the
Annual Special Tax levied on such Assessor’s Parcel. If following such consultation
and action, if any by the CFD Administrator, the landowner believes such error still
exists, such person may file a written notice with the General Manager appealing the
amount of the Annual Special Tax levied on such Assessor’s Parcel. Upon the receipt
of such notice, the General Manager may establish such procedures as deemed
necessary to undertake the review of any such appeal. The General Manager thereof
shall interpret this Rate and Method of Apportionment and make determinations
relative to the administration of the Annual Special Tax and any landowner appeals.
The decision of the General Manager shall be final and binding as to all persons.
East Valley Water District
Resolution 2021.24
Page 1 of 7
RESOLUTION NO. 2021.24
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE EAST VALLEY WATER DISTRICT
ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2021-1 (MEDITERRA)
OF EAST VALLEY WATER DISTRICT AND IMPROVEMENT AREA NOS. 1 AND 2
THEREIN, AUTHORIZING THE LEVY OF A SPECIAL TAX AND CALLING AN
ELECTION THEREIN
WHEREAS, the Board of Directors (the “Board”) of East Valley Water District (the
“District”), a county water district that is duly organized and existing under and by virtue of the
laws of the State of California, has previously adopted Resolution No. 2021.15 on October 13,
2021 (the “Resolution of Intention”) stating its intention to form Community Facilities District
No. 2021-1 (Mediterra) of East Valley Water District (the “Community Facilities District”) and
Improvement Area Nos. 1 and 2 therein (each, an “Improvement Area” and collectively, the
“Improvement Areas”), pursuant to the Mello-Roos Community Facilities Act of 1982, as
amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State
of California (the “Act”); and
WHEREAS, a copy of the Resolution of Intention setting forth a description of the
proposed boundaries of the Community Facilities District and Improvement Area Nos. 1 and 2
therein, the public facilities and the incidental expenses to be financed by the Community Facilities
District and Improvement Area Nos. 1 and 2 therein (the “Facilities” and “Incidental Expenses,”
respectively) is on file with the Board Secretary, and the Resolution of Intention is incorporated
herein by reference; and
WHEREAS, a combined notice of a public hearing (the “Hearing”) to be held on
December 8, 2021 was published and mailed to all landowners of the land proposed to be included
within the Community Facilities District and Improvement Area Nos. 1 and 2 therein; and
WHEREAS, on December 8, 2021, the Board opened the Hearing as required by law; and
WHEREAS, at the Hearing there was filed with Board a report containing a description
of the Facilities necessary to meet the needs of the Community Facilities District and Improvement
Area Nos. 1 and 2 therein and an estimate of the cost of such Facilities as required by Section
53321.5 of the Act (the “Community Facilities District Report”); and
WHEREAS, at the Hearing, all persons desiring to be heard on all matters pertaining to
the proposed formation of the Community Facilities District and Improvement Area Nos. 1 and 2
therein and the levy of the special taxes and the issuance of bonded indebtedness were heard and
a full and fair hearing was held; and
WHEREAS, at the Hearing, evidence was presented to the Board on the matters before it,
and the proposed formation of the Community Facilities District and Improvement Area Nos. 1
and 2 therein and the levy of special taxes was not precluded by a majority protest of the type
described in Section 53324 of the Act, and the Board at the conclusion of the hearing is fully
East Valley Water District
Resolution 2021.24
Page 2 of 7
advised as to all matters relating to the formation of the Community Facilities District and
Improvement Area Nos. 1 and 2 therein, the levy of the special taxes and the issuance of bonded
indebtedness; and
WHEREAS, the Board has determined that there have been no registered voters residing
within the proposed boundaries of the Community Facilities District and Improvement Area Nos.
1 and 2 therein for the period of 90 days prior to the Hearing and that the qualified electors in the
Community Facilities District and Improvement Area Nos. 1 and 2 therein are the landowners
within each Improvement Area; and
WHEREAS, on the basis of all of the foregoing, the Board has determined at this time to
proceed with the establishment of the Community Facilities District and Improvement Area Nos.
1 and 2 therein and with the calling of an election within the boundaries of each Improvement Area
to authorize: (i) the levy of special taxes within each Improvement Area pursuant to the rate and
method of apportionment of the special tax for such Improvement Area; (ii) the issuance of bonds
by the Community Facilities District on behalf of each Improvement Area to finance the Facilities
and Incidental Expenses; and (iii) the establishment of an appropriations limit for the Community
Facilities District; and
WHEREAS, the property owners of all of the land in the Community Facilities District
(the “Developer”) and the District desire to enter into a Funding, Construction and Acquisition
Agreement (the “Acquisition Agreement”) in order to provide for the acquisition, construction and
financing of the Facilities and Incidental Expenses within the Community Facilities District and
Improvement Area Nos. 1 and 2 therein;
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the District as
follows:
Section 1. Findings. The Board hereby specifically finds and declares that each of the
statements, findings and determinations of the District set forth in the above recitals and in the
preambles of the documents approved herein are true and correct.
Section 2. Formation. The Community Facilities District to be designated “Community
Facilities District No. 2021-1 (Mediterra) of East Valley Water District, County of San Bernardino,
State of California,” and Improvement Area Nos. 1 and 2 therein, is hereby established pursuant
to the Act. The Board hereby finds and determines that all prior proceedings taken with respect to
the establishment of the Community Facilities District and Improvement Area Nos. 1 and 2 therein
were valid and in conformity with the requirements of law, including the Act. This finding is made
in accordance with the provisions of Section 53325.1(b) of the Act.
Section 3. Boundaries. The boundaries of the Community Facilities District and
Improvement Area Nos. 1 and 2 therein are established as shown on the map designated “Boundary
Map Community Facilities District No. 2021-1 (Mediterra) of East Valley Water District, County
of San Bernardino, State of California,” which map is on file in the office of the Board Secretary
and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the
County of San Bernardino Book of Assessments and Community Facilities Districts in the County
East Valley Water District
Resolution 2021.24
Page 3 of 7
Recorder’s Office in Book No. [360 at pages 56-65 as Document No. 2021-0393892 on August
31, 2021].
Section 4. Types of Facilities to be Financed by the Community Facilities District. The
types of Facilities and Incidental Expenses that are authorized to be provided for the Community
Facilities District and Improvement Area Nos. 1 and 2 therein are those set forth in the Resolution
of Intention. The estimated costs of the Facilities and Incidental Expenses to be financed is set
forth in the Community Facilities District Report, which estimates may change as the Facilities
are designed and bid for construction and acquisition.
The District is authorized by the Act to contribute revenue to, or to construct or acquire the
Facilities, all in accordance with the Act. The Board finds that the proposed Facilities are
necessary to meet the increased demand that will be placed upon public infrastructure and the
District as a result of new development within the Community Facilities District and Improvement
Area Nos. 1 and 2 therein.
Section 5. Special Taxes. The Board hereby adopts the rate and method of apportionment
of special tax for each of the Improvement Areas attached to the Resolution of Intention as Exhibit
C (each, the “Rate and Method” for the applicable Improvement Area) as the applicable rate and
method of apportionment for the designated Improvement Area. Except where funds are otherwise
available, it is the intention of the Board, subject to the approval of the eligible voters within each
Improvement Area, to levy the proposed special taxes in each Improvement Area at the rates set
forth in the applicable Rate and Method on all non-exempt property within the Improvement Area
in order to pay: (i) the cost of the Facilities and the principal of and interest and other periodic
costs on the bonds proposed to be issued by the Community Facilities District on behalf of the
applicable Improvement Area to finance the Facilities and Incidental Expenses, including the
establishment and replenishment of reserve funds, any remarketing, credit enhancement and
liquidity facility fees (including such fees for instruments which serve as the basis of a reserve
fund in lieu of cash) and other expenses of the type permitted by Section 53345.3 of the Act; and
(ii) the Incidental Expenses.
The Community Facilities District expects to incur, and in certain cases has already
incurred, Incidental Expenses in connection with the creation of the Improvement Areas, providing
for the issuance of bonds, the levying and collecting of the special tax, the completion and
inspection of the Facilities and the annual administration of the bonds and the Community
Facilities District and Improvement Area Nos. 1 and 2 therein.
The Rate and Method for each Improvement Area is described in detail in Exhibit C to the
Resolution of Intention and incorporated herein by this reference, and the Board hereby finds that
said Exhibit C contains sufficient detail to allow each landowner within each Improvement Area
to estimate the maximum amount that may be levied against each parcel. As described in greater
detail in the Community Facilities District Report, which is incorporated by reference herein, the
special tax is based on the expected demand that each parcel of real property within each
Improvement Area will place on the Facilities and, accordingly, is hereby determined to be
reasonable. The special tax shall be levied on each assessor’s parcel in each Improvement Area
pursuant to the applicable Rate and Method, but the special tax shall not be levied after Fiscal Year
East Valley Water District
Resolution 2021.24
Page 4 of 7
2071-72. The special tax is apportioned to each parcel in each Improvement Area on the foregoing
bases pursuant to Section 53325.3 of the Act and such special tax is not a tax on or a tax based
upon the ownership of real property.
The District’s Chief Financial Officer will be responsible for preparing annually, or
authorizing a designee to prepare, a current roll of special tax levy obligations by assessor’s parcel
number and will be responsible for estimating future special tax levies pursuant to Section 53340.2
of the Act. The District’s Chief Financial Officer contact information is as follows: East Valley
Water District, Attn: Chief Financial Officer, 31111 Greenspot Road, Highland, California 92346,
(909) 889-9501.
Section 6. Public Hearing. In the event that a portion of the property within the
Improvement Areas shall become for any reason exempt, wholly or partially, from the levy of the
special tax specified in the applicable Rate and Method, the Board shall, on behalf of such
Improvement Area, increase the levy to the extent necessary and permitted by law and these
proceedings upon the remaining property within such Improvement Area which is not delinquent
or exempt in order to yield the required debt service payments on any outstanding bonds for such
Improvement Area or to prevent the Community Facilities District from defaulting on any other
obligations or liabilities for such Improvement Area; provided, however, that under no
circumstances shall the Special Tax levied on Residential Property (as such term is defined in the
Rates and Methods) in the Improvement Areas be increased as a consequence of delinquency or
default by the owner of any other parcel or parcels within the applicable Improvement Area by
more than ten percent (10%) above the amount that would have been levied in that fiscal year had
there never been any such delinquencies or defaults in the applicable Improvement Area. The
amount of the special tax will be set in accordance with the Rate and Method for the applicable
Improvement Area.
Section 7. Lien of Special Taxes. Upon recordation of a notice of special tax lien pursuant
to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the
special tax shall attach to all non-exempt real property in each Improvement Area; and this lien
shall continue in force and effect until the special tax obligation is prepaid and permanently
satisfied and the lien canceled in accordance with law or until collection of the special tax by the
Community Facilities District on behalf of the applicable Improvement Area ceases.
Section 8. Finding Related to Agricultural Land. Consistent with Section 53325.6 of the
Act, the Board finds and determines that the land within the Improvement Areas, if any, devoted
primarily to agricultural, timber or livestock uses and being used for the commercial production
of agricultural, timber or livestock products is contiguous to other land within the Community
Facilities District and Improvement Area Nos. 1 and 2 therein and will be benefited by the
Facilities proposed to be provided within the Community Facilities District and Improvement Area
Nos. 1 and 2 therein.
Section 9. No Other Taxes. It is hereby further determined that there is no ad valorem
property tax currently being levied on property within the proposed Community Facilities District
and Improvement Area Nos. 1 and 2 therein for the exclusive purpose of paying the principal of
or interest on bonds or other indebtedness incurred to finance the construction of capital facilities
East Valley Water District
Resolution 2021.24
Page 5 of 7
which provide the same services to the territory of the Community Facilities District and
Improvement Area Nos. 1 and 2 therein as are proposed to be provided by the Facilities to be
financed by the Community Facilities District and Improvement Area Nos. 1 and 2 therein.
Section 10. No Protests. Written protests against the establishment of the Community
Facilities District and Improvement Area Nos. 1 and 2 therein have not been filed by one half or
more of the registered voters within the boundaries of the Improvement Area or by the property
owners of one half or more of the area of land within the boundaries of the Community Facilities
District or Improvement Area Nos. 1 and 2 therein. The Board hereby finds that the proposed
special tax has not been precluded by a majority protest pursuant to Section 53324 of the Act.
Section 11. Elections. An election is hereby called within each Improvement Area on the
propositions of levying the special tax on the property within each Improvement Area, establishing
an appropriations limit for the Community Facilities District pursuant to Section 53325.7 of the
Act and incurring bonded indebtedness for each Improvement Area pursuant to Section 53351 of
the Act. The propositions to be placed on the ballot for each Improvement Area are attached hereto
as Exhibit A.
The date of the elections within each Improvement Area shall be December 8, 2021, or
such later date as is consented to by the Board Secretary and the landowners within the
Improvement Areas. The Board Secretary shall conduct the elections. Except as otherwise
provided by the Act, the elections shall be conducted by personally delivered or mailed ballot and,
except as otherwise provided by the Act, the elections shall be conducted in accordance with the
provisions of law regulating elections of the District insofar as such provisions are determined by
the Board Secretary to be applicable. Notwithstanding the foregoing, by unanimous consent of all
landowners within the Improvement Areas, analysis and arguments with respect to the matters set
forth on the ballots are waived.
Section 12. No Registered Voters. It is hereby found that there are no registered voters
within the territory of any of the Improvement Areas, and, pursuant to Section 53326 of the Act,
each landowner who is the owner of record on the date hereof, or the authorized representative
thereof, shall have one vote for each acre or portion thereof that he, she or it owns within each
Improvement Area. The voters shall be the landowners of record within each Improvement Area
as of December 8, 2021.
Section 13. Community Facilities District Report. The preparation of the Community
Facilities District Report is hereby ratified. The Community Facilities District Report, as
submitted, is hereby approved and made a part of the record of the Hearing regarding the formation
of the Community Facilities District and Improvement Area Nos. 1 and 2 therein, and is ordered
to be kept on file with the transcript of these proceedings and open for public inspection.
Section 14. Acquisition Agreement. The Acquisition Agreement in substantially the form
attached hereto is hereby approved. The President or Vice President of the Board or the General
Manager of the District or the designee thereof are authorized and directed to execute and deliver
the Acquisition Agreement with such changes, insertions and omissions as may be recommended
by General Counsel or Stradling Yocca Carlson & Rauth, the District’s Bond Counsel, and
East Valley Water District
Resolution 2021.24
Page 6 of 7
approved by the person executing the same, said execution being conclusive evidence of such
approval.
Section 15. Legislative Body. In accordance with the Act, the Board of the District shall
act as the governing board and legislative body of the Community Facilities District.
Section 16. Other Actions. The President or Vice President of the Board or the General
Manager or Chief Financial Officer of the District or the designee thereof and any other proper
officers of the District, acting singly, are hereby authorized and directed to do any and all things
and to execute and deliver any and all documents and certificates which such officers may deem
necessary or advisable in order to effectuate the purposes of this Resolution, and such actions
previously taken by such officers are hereby ratified and confirmed.
Section 17. Effect. This Resolution shall take effect immediately.
ADOPTED this 8th day of December, 2021.
ROLL CALL VOTE:
Ayes: Directors:
Noes:
Abstain:
Absent:
___________________________________
David E. Smith
Board President
ATTEST:
John Mura
Secretary, Board of Directors
East Valley Water District
Resolution 2021.24
Page 7 of 7
December 8, 2021
I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2021.24
adopted by the Board of Directors of East Valley Water District at its Regular Board Meeting held
December 8, 2021.
John Mura
Secretary, Board of Directors
A-1
EXHIBIT A
SAMPLE BALLOTS
COMMUNITY FACILITIES DISTRICT NO. 2021-1
(MEDITERRA)
OF EAST VALLEY WATER DISTRICT
(IMPROVEMENT AREA NO. 1)
SPECIAL TAX AND SPECIAL BOND ELECTION
December 8, 2021
This ballot represents ____ votes.
To vote, write or stamp a cross (“+” or “X”) in the voting square after the word
“YES” or after the word “NO”. All marks otherwise made are forbidden. All
distinguishing marks are forbidden and make the ballot void.
If you wrongly mark, tear or deface this ballot, return it to the Secretary of East
Valley Water District and obtain another.
PROPOSITION A: Shall Community Facilities District No. 2021-1
(Mediterra) of East Valley Water District (the “Community Facilities
District”), on behalf of Improvement Area No. 1 therein (the
“Improvement Area”), incur an indebtedness and issue bonds for the
Improvement Area in the maximum principal amount of $8,000,000,
with interest at a rate or rates not to exceed the maximum interest rate
permitted by law, to finance the Facilities and the Incidental Expenses
described in Resolution No. 2021.15 of the Board of Directors of East
Valley Water District?
YES □
NO □
PROPOSITION B: Shall a special tax with a rate and method of
apportionment as provided in Resolution No. 2021.15 of the Board of
Directors of East Valley Water District for the Improvement Area be
levied to pay for the Facilities and Incidental Expenses and the principal
of and interest on bonds issued to finance the Facilities and Incidental
Expenses and the other purposes described in Resolution No. 2021.15?
YES □
NO □
PROPOSITION C: For each year commencing with Fiscal Year 2021-
22, shall the appropriations limit, as defined by subdivision (h) of Section
8 of Article XIIIB of the California Constitution, for the Community
Facilities District be an amount equal to $8,000,000?
YES □
NO □
A-2
COMMUNITY FACILITIES DISTRICT NO. 2021-1
(MEDITERRA)
OF EAST VALLEY WATER DISTRICT
(IMPROVEMENT AREA NO. 2)
SPECIAL TAX AND SPECIAL BOND ELECTION
December 8, 2021
This ballot represents ____ votes.
To vote, write or stamp a cross (“+” or “X”) in the voting square after the word
“YES” or after the word “NO”. All marks otherwise made are forbidden. All
distinguishing marks are forbidden and make the ballot void.
If you wrongly mark, tear or deface this ballot, return it to the Secretary of East
Valley Water District and obtain another.
PROPOSITION A: Shall Community Facilities District No. 2021-1
(Mediterra) of East Valley Water District (the “Community Facilities
District”), on behalf of Improvement Area No. 2 therein (the
“Improvement Area”), incur an indebtedness and issue bonds for the
Improvement Area in the maximum principal amount of $8,500,000,
with interest at a rate or rates not to exceed the maximum interest rate
permitted by law, to finance the Facilities and the Incidental Expenses
described in Resolution No. 2021.15 of the Board of Directors of East
Valley Water District?
YES □
NO □
PROPOSITION B: Shall a special tax with a rate and method of
apportionment as provided in Resolution No. 2021.15 of the Board of
Directors of East Valley Water District for the Improvement Area be
levied to pay for the Facilities and Incidental Expenses and the principal
of and interest on bonds issued to finance the Facilities and Incidental
Expenses and the other purposes described in Resolution No. 2021.15?
YES □
NO □
PROPOSITION C: For each year commencing with Fiscal Year 2021-
22, shall the appropriations limit, as defined by subdivision (h) of Section
8 of Article XIIIB of the California Constitution, for the Community
Facilities District be an amount equal to $8,500,000?
YES □
NO □
4843-6133-4219v5/022497-0017
COMMUNITY FACILITIES DISTRICT NO. 2021-1 (MEDITERRA)
OF EAST VALLEY WATER DISTRICT
FUNDING, CONSTRUCTION AND ACQUISITION AGREEMENT
THIS FUNDING, CONSTRUCTION AND ACQUISITION AGREEMENT (this
“Agreement”) is made and entered into as of the date set forth on the signature page below by and
between EAST VALLEY WATER DISTRICT (the “Water District”), acting for and on behalf of
itself and COMMUNITY FACILITIES DISTRICT NO. 2021-1 (MEDITERRA) OF EAST
VALLEY WATER DISTRICT (the “CFD”), and GREENSPOT CORRIDOR, LLC, a California
limited liability company, and FORESTAR (USA) REAL ESTATE GROUP INC., a Delaware
corporation (collectively, the “Developer”), each individually a “Party” and collectively the
“Parties.”
RECITALS
A. The Developer has requested that the Water District consider the formation of a
community facilities district pursuant to the provisions of the Mello-Roos Community Facilities Act
of 1982, as amended (the “Act”), the designation of two improvement areas within the CFD, to be
designated as Improvement Area Nos. 1 and 2 (each, an “Improvement Area”) and the
authorization of special taxes for each Improvement Area (the “Special Taxes”) and the issuance of
bonded indebtedness in each Improvement Area (the “Bonds”) for the payment of the construction
and/or acquisition of certain public improvements to be owned, operated or maintained by the Water
District, including the acquisition of capacity in the Water District’s water and sewer systems and
Incidental Expenses as defined by the Act.
B. In order to proceed in a timely manner with development of its property within the
CFD which is described in Exhibit A (the “Developer Property”), the Developer desires to fund
through the CFD: (i) the Water District’s acquisition or construction, if any, of certain public
improvements that are to be owned, operated and maintained by the Water District (the “EVWD
Improvements”); and (ii) improvements included or to be included in the Water District’s water and
sewer connection and capacity fee programs (the “Capacity Improvements”), as more particularly
set forth and described in the Description of Cost Estimates set forth in Exhibit B (collectively, the
“Improvements”).
C. The Water District is authorized by the Act to form the CFD, to designate the
Improvement Areas, to levy Special Taxes and to issue Bonds to fund the Improvements.
D. The Water District’s Board of Directors has adopted policies and procedures (as
amended from time to time, the “Policy”) concerning the use of special district financing programs to
finance water and/or sewer system facilities.
E. The purpose of this Agreement is to set forth a formal understanding between the
Developer and the Water District (pursuant to the requirements of Government Code
Section 53313.51 and other provisions of the Act and the Policy) concerning financial and other
obligations and responsibilities related to the formation of the CFD and the Improvements to be
financed by the CFD, when and if formed, to the extent that proceeds of Special Taxes and Bonds of
each Improvement Area are available, and to set forth the conditions upon which: (1) the CFD will
reimburse the Developer or its designee for: (a) the amounts advanced by the Developer to form the
2
4843-6133-4219v5/022497-0017
CFD; and (b) the cost of the EVWD Improvements constructed by or on behalf of the Developer; and
(2) the CFD will fund Capacity Improvements and the Water District will grant credit against
applicable water and sewer capacity and connection fees.
AGREEMENT
SECTION 1. FEASIBILITY STUDY
At the Developer’s request, the Water District will undertake to analyze the propriety of
forming the CFD to finance the Improvements. The Water District will retain, at the Developer’s
expense, the necessary consultants to analyze the proposed formation thereof, including an engineer,
special tax consultant, bond counsel, appraiser and other consultants which are deemed necessary by
the Water District. In order to begin the process of analyzing the CFD’s formation, the Developer
has entered into a Reimbursement Agreement Re Formation of Proposed Community Facilities
District No. 2021-1 (Mediterra) of East Valley Water District (the “Reimbursement Agreement”)
pursuant to which the Developer has advanced to the Water District a sum of money to cover the
costs of forming the CFD. The Reimbursement Agreement requires the Developer to make
additional advances for such costs, as necessary. The amounts advanced by the Developer pursuant
to the Reimbursement Agreement and, to the extent determined reasonable and appropriate by the
Water District, expenses incurred by the Developer for engineering consultant costs in connection
with the formation of the CFD and the issuance of Bonds, will be reimbursable to the Developer,
without interest, from the proceeds of Bonds issued by the CFD when and if formed, and/or from the
proceeds of Special Taxes collected within each Improvement Area. In the event that Bonds are not
issued, or Special Taxes are not levied, to provide a source of reimbursement to the Developer, the
Water District shall not have any liability to the Developer to reimburse it for any of the amounts
which were previously advanced by the Developer and expended by the Water District.
The Developer will assist the Water District and its consultants, at no cost to the Water
District, in completing all reasonably necessary technical, financial and legal preparations required to
form the CFD. In the event that the Developer fails to fulfill its responsibilities under this Agreement
prior to formation of the CFD, the Water District shall have the unequivocal right to terminate its
obligations, receive payment of its full actual incurred cost and terminate this Agreement.
SECTION 2. REIMBURSEMENT PROCEDURE
It is hereby agreed by the Parties that, if the qualified electors of each Improvement Area
within the proposed CFD do not approve the proposed Special Tax to be levied within the
Improvement Areas, the Water District shall return any funds which have been advanced by the
Developer and have not been committed for any authorized purpose by the time of the election. It is
the intention of the Parties to make eligible for reimbursement, without interest, to the extent
permitted by law, any reasonable work undertaken, or expenses incurred, by or for the Developer
with respect to the Improvements, to the extent determined reasonable and appropriate by the Water
District. Any such reimbursement shall be payable only when and if the CFD is formed and Bonds
are sold or Special Taxes are levied. Reimbursement for costs and incidental expenses of EVWD
Improvements is conditional upon full compliance with the provisions of Sections 6 through 10 of
this Agreement. The funding of the acquisition or construction of the EVWD Improvements from
the proceeds of the Bonds shall not diminish any sewer and water capacity and connection fee credits
which are available to the Developer as a result of such acquisition or construction, as provided in a
3
4843-6133-4219v5/022497-0017
[CONFIRM] [Development Agreement for Water and Sewer Mediterra, TTM No. 18893], to be
entered into between the Water District and the Developer (the “Development Agreement”).
SECTION 3. SALE OF BONDS
3.1 Water District Policies. The Water District’s Board of Directors has adopted the
Policy setting forth the Water District’s policies and procedures concerning the use of special district
financing programs to finance water and/or sewer system facilities. Pursuant to the Policy, the total
annual amount of the Special Taxes to be collected with respect to property within an Improvement
Area and all other taxes and assessments which will be collected with respect to such property must
not exceed two percent (2%) of the projected initial sales price of a fully developed parcel. Also, the
ratio of the value of all parcels of property within an Improvement Area for which the Bonds are
being issued to the amount of outstanding community facilities district or assessment district bonds
attributable to such parcels (the “Value-to-Lien Ratio”) may not be less than four-to-one (4:1)
unless the Water District’s Board of Directors determines that a Value-to-Lien Ratio of less than 4:1
does not present any unusual credit risk. The fair market value of the property within each
Improvement Area for purposes of determining such ratio will be determined based on the assessed
value of the property or on the appraised value as determined by an appraisal made by an appraiser
selected by the Water District with a valuation date within three (3) months of the issuance of the
Bonds. Subject to satisfaction of applicable Water District policies and the requirements of this
Agreement, the Water District shall use its best efforts to issue and sell the Bonds in one or more
series for each Improvement Area in an amount that is sufficient to fund the Improvements, and the
payment of such Bonds may be supported by Special Taxes from the applicable Improvement Area.
3.2 Security for Payment of Special Taxes. Concurrently with the issuance and sale of
each series of Bonds, the Water District shall determine the parcels of land within an Improvement
Area for which Bonds are being issued that are owned by the Developer or any affiliate of the
Developer (the “Account Party”) for which the Maximum Special Taxes (as defined in the Rate and
Method of Apportionment of Special Tax for such Improvement Area, the “RMA”) are equal to or
exceed, in the aggregate, 20% of the Maximum Special Taxes in the Improvement Area (the
“Secured Parcels”). The Developer shall deliver to the Water District either: (i) a renewable,
irrevocable instrument of credit from a financial institution (rated “A” or better); or (ii) cash in-lieu
thereof (a “Security”) to secure the payment of the Special Taxes on the Secured Parcels. The
Security shall be in an amount equal to 100% of the product of the maximum annual debt service on
the Bonds multiplied by a fraction, the numerator of which is the Maximum Special Taxes on the
Secured Parcels and the denominator of which is the Maximum Special Taxes of all taxable property
within the Improvement Area (the “Stated Amount”). The Security shall be maintained by the
Account Party until the Secured Parcels owned by the Account Party are responsible for less than
twenty percent (20%) of the Maximum Special Taxes which may be levied on all taxable property
within the Improvement Area. The Stated Amount of such Security may be reduced from time to
time based on the foregoing formula, as hereinafter provided in this Section 3.2. All costs and fees
related to the establishment, maintenance and sizing of the Security in accordance with the terms of
this Agreement, including, but not limited to any fees of a financial institution to establish or
maintain any funds or accounts for such purposes, shall be borne by the Account Party.
Notwithstanding the foregoing, the Security shall be released at the end of a fiscal year (being June
30 of each year) if in the following fiscal year, the CFD will not levy any Special Taxes on Secured
Parcels owned by the Account Party.
4
4843-6133-4219v5/022497-0017
The Security shall name the Water District, or its designee, as a beneficiary and shall provide
that the Water District, or its designee, may draw an amount equal to any delinquencies in payment
of semiannual installments of the Special Taxes levied on the Secured Parcels owned by the Account
Party. The total amount to be drawn under the Security shall not exceed an amount that is equal to
the Special Taxes levied on the Secured Parcels that are delinquent at the time that the draw is made.
The amount drawn on the Security shall be applied in the same manner and for the same purposes as
the delinquent Special Taxes would have been applied; provided, however, that the payment of a
draw under the Security will not be deemed to cure the delinquency in payment of the Special Taxes.
If, subsequent to a draw on the Security and prior to the satisfaction of any reimbursements
due to the institution providing the Security (the “Security Provider”) pursuant to this Agreement,
the Water District receives payment of all or a portion of the delinquent Special Taxes or the
proceeds of a sale of delinquent real property pursuant to foreclosure proceedings (the “Delinquency
Proceeds”) for a parcel for which the Security has been drawn, the Security Provider shall be
reimbursed for such draws to the extent of Delinquency Proceeds net of the Water District’s costs of
collection, provided that the Security is or has been concurrently reinstated to, or a Substitute
Security (as defined below) provided for, the then applicable Stated Amount. The Security Provider
is intended by the Parties to be a third party beneficiary of this Section 3.2.
The Security shall be renewed, or a substitute Security which is reasonably satisfactory to the
Water District (a “Substitute Security”) shall be provided, not less than thirty (30) calendar days
prior to the expiration of the Security or Substitute Security then in effect. If the Account Party
provides a Substitute Security to the Water District, then the Water District or its designee shall
return any existing Security on the effective date of the Substitute Security to the Security Provider.
If the Security is not renewed within thirty (30) days prior to its expiration date and the
requirements for release or termination of the Security have not then been met, the full amount of the
Security may be drawn by the Water District and deposited in an account established under the
Indenture (as such term is defined herein) or in such account established with a financial institution
selected by the Water District. Thereafter, amounts in such account shall be held as security, and if
Special Taxes owed by the Account Party with respect to the Secured Parcels are not paid prior to
delinquency, then such amounts in such account may be applied by the Water District to pay the
delinquent Special Taxes owed by the Account Party with respect to such Secured Parcels on the
same terms and conditions as are applicable hereunder to draws on the Security.
At such time as the Security is renewed, or a Substitute Security is accepted by the Water
District, or the requirement for the Security has been terminated pursuant to this Section 3.2, the
Water District or its designee shall release all amounts in the Security account to the Security
Provider within ten (10) calendar days from the date of renewal or acceptance.
Following the sale or transfer by the Account Party of any property to a person other than the
Account Party, or upon the prepayment of the Special Tax obligation for a parcel owned by the
Account Party, the Account Party shall notify Water District of such event, in writing, and, if
requested by the Account Party, the Stated Amount of the Security shall be reduced and be
recalculated in accordance with this Section 3.2; provided, however, that Water District shall be
required to recalculate such amount and reduce the Security a maximum of two times each calendar
year, and any costs associated with the recalculation and reduction shall be borne by the Account
Party. The Security shall be terminated when: (1) the Maximum Special Taxes which are applicable
to all Secured Parcels owned by the Account Party comprise less than twenty percent (20%) of the
5
4843-6133-4219v5/022497-0017
Maximum Special Taxes of all taxable property within the Improvement Area; (2) the Account Party
has paid all Special Taxes on the Secured Parcels owned by the Account Party which are due in the
current fiscal year and the Maximum Special Taxes on the Secured Parcels which are owned by the
Account Party will be less than twenty percent (20%) of the Maximum Special Taxes which are
applicable to all taxable property within the Improvement Area in the next fiscal year; or (3) the
Account Party has paid all Special Taxes on the Secured Parcels owned by the Account Party which
are due in the current fiscal year and, in the following fiscal year, the CFD will not levy any Special
Taxes on Secured Parcels owned by the Account Party.
Reduction or termination of a Security shall occur automatically upon submission to the
Security Provider by the Water District of a “Certificate of Reduction or Termination.” The Water
District shall deliver to the Security Provider such Certificate of Reduction or Termination promptly
upon receipt from the Account Party of a certification which shall be made under penalty of perjury
and which shall indicate: (A) the legal description of all land that is owned by the Account Party; and
either (B) a recalculation of the new Stated Amount that the Account Party proposes be applicable to
the Security; or (C) if termination of the Security is requested, a statement either: (x) that the Secured
Parcels owned by the Account Party are responsible for less than twenty percent (20%) of the
Maximum Special Taxes which are applicable to all taxable property within the Improvement Area
in the current fiscal year; (y) the Account Party has paid all Special Taxes which are due in the
current fiscal year and the Maximum Special Taxes applicable to Secured Parcels owned by the
Account Party will be less than twenty percent (20%) of the Maximum Special Taxes applicable to
all taxable property within the Improvement Area in the next fiscal year; or (z) in the following fiscal
year, the CFD will not levy any Special Taxes on Secured Parcels owned by the Account Party.
The Account Party shall notify the Water District of any events that will result in a reduction
of the Stated Amount of the Security and shall provide the Water District with verification of said
events. The Account Party may provide the Water District with a Substitute Security in the reduced
amount and the Water District shall release and return to the Security Provider the Security then in
effect. The Parties expressly acknowledge that the Account Party’s failure to so notify the Water
District or to reduce the Security at the times which are prescribed herein shall in no way effect or
invalidate sale or transfer of property or recordation of maps on property.
If the Secured Parcels are sold or transferred by an Account Party with the result that the
Secured Parcels which are owned by the transferee or any of its affiliates (each, a “Transferee”) are
responsible for twenty percent (20%) or more of the Maximum Special Taxes of all taxable property
within the Improvement Area in the current fiscal year, a Security on the same terms specified herein
will be furnished by Transferee with respect to all Secured Parcels owned by such Transferee. Any
applicable purchase and sale agreement and/or escrow instructions shall notify the Transferee of this
Security requirement and obligate the Transferee to provide such Security, if applicable. The
Security of the Account Party will not be reduced to reflect the sale or transfer of such Secured
Parcels until a Security is furnished by the Transferee and accepted by the Water District. The
issuing financial institution and the form and terms of said Security will be subject to reasonable
prior approval by the Water District. All terms provided in this Section 3 are applicable to the
Transferee by replacing the term “Account Party” at each place where it occurs in each section with
the term “Transferee.” Each provider of a Security for a Transferee shall be an express third party
beneficiary of the provisions of this Section 3.
Any costs related to holding or maintaining the Security, including any fees of a fiscal agent,
trustee or other depository shall be borne by the Account Party.
6
4843-6133-4219v5/022497-0017
3.3 Major Landowner Initial and Continuing Disclosure. An owner of land within an
Improvement Area which is responsible for twenty percent (20%) or more of the Maximum Special
Taxes within the Improvement Area (a “Major Landowner”) will be required to provide all
information regarding the development of its property, including the financing plan for such
development, which is necessary to ensure that each official statement for the Bonds complies with
the requirements of Rule 15c2-12 of the Securities and Exchange Commission (the “Rule”) and all
other applicable federal and state securities laws. Additionally, the Developer acknowledges that, if
it is a Major Landowner at the time of issuance of the Bonds, it will be necessary for the Developer
to enter into a continuing disclosure agreement to provide such continuing disclosure pertaining to
the development of the land which is owned by the Developer within the Improvement Area as
necessary to assist the Bond underwriter in complying with the continuing disclosure requirements of
the Rule.
3.4 Bond Issuance Parameters. The terms and conditions upon which each series of
Bonds shall be issued and sold, the method of sale of the Bonds (including competitive sales,
negotiated underwritings and private placements), the timing of sale of the Bonds and the pricing of
the Bonds shall be determined solely by the Water District in its reasonable discretion in
conformance with the requirements of Government Code Section 53313.5, the Act, the Policy, other
Water District policies, including its debt management policy, and this Agreement. Each series of
Bonds shall be issued with a term not to exceed 31 years. The proceeds of the Bonds shall be used in
the following priority: (1) to fund a reserve fund for the payment of principal and interest with
respect to the Bonds in an amount equal to the least of: (i) ten percent (10%) of the initial principal
amount of the Bonds; (ii) maximum annual debt service on Bonds; or (iii) 125% of average annual
debt service; (2) to fund up to eighteen (18) months of capitalized interest; (3) to pay for the costs of
forming the CFD and/or to reimburse the Developer or its designee pursuant to the Reimbursement
Agreement for formation and issuance costs which have not already been reimbursed to the
Developer from collected Special Taxes; (4) to pay for costs of issuance of the Bonds, including,
without limitation, underwriter’s discount, bond counsel and disclosure counsel fees, municipal
advisor, appraisal and special tax consultant fees, printing fees and fiscal agent fees; (5) to pay up to
one year of estimated priority administrative costs related to the administration of the CFD; and
(6) to pay for the actual costs of the Improvements.
The CFD shall maintain records relating to the disbursements of proceeds of the sale of the
Bonds. The Indenture or Resolution (the “Indenture”) under which the Bonds are issued shall
establish an acquisition and construction fund or improvement fund (the “Improvement Fund”) into
which shall be deposited initially the proceeds of the Bonds net of the amount of proceeds required to
fund items (1) through (5) above. The Indenture shall also establish separate accounts of the
Improvement Fund designated the “EVWD Improvements Account” and the “Capacity
Improvements Account,” into which shall be deposited such portions of the Improvement Fund as
directed by the Water District and in writing at or subsequent to the closing of the sale of the Bonds
consistent with the following priorities:
(a) An amount that is sufficient to fund the reasonable, current estimated cost of
the Capacity Improvements which are anticipated to be funded out of the Bonds being issued shall be
deposited in the Capacity Improvements Account (any Special Taxes levied in the Improvement Area
and collected by the CFD remaining after the payment of administrative expenses of the CFD and the
reimbursement of the Developer for CFD formation and issuance costs pursuant to the
Reimbursement Agreement shall be deposited into the Capacity Improvements Account at the time
of Bond issuance, unless otherwise directed in writing by the Developer); and
7
4843-6133-4219v5/022497-0017
(b) If applicable, an amount to be agreed upon between the Developer and the
CFD prior to the issuance of Bonds which is sufficient to fund the reasonable, current estimated costs
of the EVWD Improvements shall be deposited, or later transferred, to the EVWD Improvements
Account.
Interest that is earned on moneys which are deposited in each of the Capacity Improvements
Account and the EVWD Improvements Account shall remain in such accounts until such time as all
of the Improvements have been funded. Additionally, the Developer may direct the CFD to transfer
excess moneys in any of the Capacity Improvements Account or the EVWD Improvements Account
to another account. The Indenture shall provide that amounts remaining in the Improvement Fund
after funding all proposed Improvements or sooner, as specified by the Water District, shall be
deposited in the special tax fund or bond service fund and be applied to pay debt service on the
Bonds and/or to call Bonds in advance of maturity. The Indenture shall also provide that amounts in
the reserve fund for the Bonds in excess of the reserve requirement shall be deposited in the special
tax fund or bond service fund and applied to pay debt service on the Bonds.
SECTION 4. LEVY AND ALLOCATION OF SPECIAL TAXES
Beginning in the first fiscal year in which a parcel within an Improvement Area is classified
as “Developed Property” pursuant to the RMA, Special Taxes shall be levied on such parcel to pay
administrative expenses of the CFD and to pay directly for Improvements. Such Special Taxes
collected each fiscal year prior to the issuance of Bonds of the Improvement Area that are in excess
of the amount required to fund such administrative expenses shall be held by the Water District in a
discrete fund (the “Special Fund”) and disbursed to fund Improvements in the same priority as
disbursements of the proceeds of Bonds from the Improvement Fund. Upon sale and delivery of the
Bonds or sooner, as specified by the Water District, the Board of Directors of the Water District, as
the legislative body of the CFD, shall annually levy a Special Tax in each Improvement Area as
provided for in the RMA for each Improvement Area.
SECTION 5. NOTICE OF SPECIAL TAX
The Developer, or the Developer’s successors or assigns, shall provide written notice to all
potential initial purchasers of lots advising of the Special Tax obligation which is applicable to the
Developer Property in the form required by Section 53341.5 of the Government Code. A sample
copy as prepared by the Developer is set forth in Exhibit C.
SECTION 6. DESIGN PLANS AND SPECIFICATIONS
The requirements of this Section 6 shall not apply to any EVWD Improvement that was
complete (as determined by the Water District’s Board of Directors) prior to the adoption by the
Water District’s Board of Directors of the resolution forming the CFD, but they shall apply to all
other EVWD Improvements. All plans, specifications and bid documents for the EVWD
Improvements (the “Plans”) which are constructed or to be constructed by the Developer shall be
prepared by the Developer at the Developer’s initial expense, subject to approval by the applicable
public agency. Costs for preparation of the Plans will be eligible for reimbursement, conditioned
upon the final approval of the applicable public agency and the availability of moneys in the Special
Fund or Improvement Fund (the “Authorized Funds”). Reimbursement of costs for plan revisions
will be considered on a case by case basis. All EVWD Improvements to be acquired with
Authorized Funds shall be bid in accordance with “public works” requirements of Section 7.4 to be
8
4843-6133-4219v5/022497-0017
eligible for reimbursement. The Developer shall not award bids for construction, or commence or
cause commencement of construction, of an EVWD Improvement until the Plans and bidding
documents have been approved by the Water District. The bid opening for EVWD Improvements
shall be coordinated with and take place at the Water District’s offices, with Water District personnel
in attendance.
SECTION 7. CONSTRUCTION OF IMPROVEMENTS
The requirements of this Section 7 shall not apply to any EVWD Improvement that was
complete (as determined by the Water District’s Board of Directors) prior to the adoption by the
Water District’s Board of Directors of the resolution forming the CFD, but they shall apply to all
other EVWD Improvements.
7.1 Construction or Acquisition Election. Upon the approval of Plans for an EVWD
Improvement, the Developer and the Water District shall determine whether the Developer will
provide for construction of such EVWD Improvement in accordance with Sections 7.2, 7.4 and 8 of
this Agreement (the “Acquisition Election”) or whether the Water District will provide for
construction of such EVWD Improvement in accordance with Section 7.3 of this Agreement (the
“Construction Election”). Sections 7.2, 7.4 and 8 specify the requirements for construction of the
EVWD Improvements pursuant to the Acquisition Election which the Water District believes are
necessary to ensure that such EVWD Improvements are constructed as if they had been constructed
under the direction and supervision or under the authority of the Water District.
7.2 Acquisition Election. If the Acquisition Election is selected with respect to EVWD
Improvements in accordance with the provisions of Section 8, a qualified engineering firm (the
“Field Engineer”) shall be employed by the Developer to provide all field engineering surveys
which are determined to be necessary by the Water District’s inspection personnel. The Field
Engineer shall promptly furnish to Water District a complete set of grade sheets listing all locations,
offsets, etc., in accordance with good engineering practices, and attendant data and reports resulting
from the Field Engineer’s engineering surveys and/or proposed facility design changes. The Water
District shall have the right, but not the obligation, to review, evaluate and analyze whether such
results comply with applicable specifications.
A full-time soil-testing firm, approved by Water District, shall be employed by the Developer
to conduct soil compaction testing and certification. The Developer shall promptly furnish results of
all such compaction testing to the Water District for its review, evaluation and decision as to
compliance with applicable specifications. In the event that the compaction is not in compliance
with applicable specifications, the Developer shall be fully liable and responsible for the costs of
achieving compliance. A final report certifying all required compaction in accordance with the
specifications shall be a condition of final acceptance of facilities.
The costs of all surveying, testing and reports associated with the EVWD Improvements
which are furnished and constructed by the Developer’s contractor(s) shall be eligible to be paid from
Authorized Funds in the EVWD Improvements Account.
The Water District shall not be responsible for conducting any environmental,
archaeological, biological or cultural studies or any mitigation requirements that may be requested by
appropriate Federal, State, and/or local agencies. Any such work shall be paid for and conducted by
the Developer and reimbursed out of the EVWD Improvements Account.
9
4843-6133-4219v5/022497-0017
7.3 Construction Election. If the Construction Election is selected for an EVWD
Improvement, upon the award of a construction contract for an EVWD Improvement to be
constructed by the Water District, funds in the EVWD Improvements Account in an amount equal to
the costs of the EVWD Improvement shall be reserved for payments under such contract and shall
not be available for the funding of other EVWD Improvements until all payments which are required
by such contract have been made. At the time of either or both: (i) the execution of a contract for the
construction of an EVWD Improvement as to which the Construction Election has been made; and
(ii) completion of construction of the EVWD Improvement, the Developer shall be entitled to
reimbursement from Authorized Funds in the EVWD Improvements Account of any actual costs of
such EVWD Improvements which were incurred by the Developer at that time.
If Bonds have not been issued or insufficient funds are reserved in the Improvement Fund,
the Water District agrees to accept advances of funds from the Developer (if the Developer agrees to
make such advances in its sole discretion) upon the Water District’s award of a construction contract
for an EVWD Improvement to be constructed by the Water District in an amount equal to the
difference between the amount of reserved funds and the contract amount. The amount of such
advances shall be reimbursed to the Developer to the extent of Authorized Funds in the EVWD
Improvements Account.
7.4 Public Works Requirements. In order that the EVWD Improvements as to which the
Acquisition Election is made may be properly and readily acquired by the Water District, the
Developer shall comply with all of the following requirements with respect to any such EVWD
Improvements to be acquired with Authorized Funds, and the Developer shall provide such proof to
the Water District as the Water District may reasonably require and at such intervals and in such
form as the Water District may reasonably require, that the following requirements have been
satisfied as to the construction of all such EVWD Improvements:
(a) The Developer shall prepare a bid package for review, comment and approval
by the General Manager of the Water District or his or her designee (the “District Representative”).
(b) The Developer shall, after obtaining at least three sealed bids for the
construction of the EVWD Improvements, submit to the Water District written evidence of such
competitive bidding procedure, including evidence of the means by which bids were solicited, a
listing of all responsive bids and their amounts, and the name or names of the contractor or
contractors to whom the Developer proposes to award the contracts for such construction, which
shall be the lowest responsible bidder.
(c) The District Representative shall attend the bid opening. If the District
Representative is unable to attend the bid opening, the District Representative shall approve or
disapprove of a contractor or contractors, in writing, within five (5) business days after receipt from
the Developer of the name or names of such contractor or contractors which are recommended by the
Developer. If the District Representative disapproves of any such contractor, the Developer shall
select the next lowest responsible bidder from the competitive bids received which is acceptable to
the District Representative.
(d) The specifications and bid and contract documents shall require all such
contractors to pay prevailing wages and to otherwise comply with applicable provisions of the Labor
Code, the Government Code and the Public Contract Code relating to public works projects and as
10
4843-6133-4219v5/022497-0017
required by the procedures and standards of the Water District with respect to the construction of its
public works projects.
(e) The Developer shall submit faithful performance and payment bonds
conforming in all respects to the requirements which are set forth in the Water District’s “Standard
Water and/or Sewer Facilities and Service Agreement.” The following documents shall be submitted
to the Water District along with the performance and payment bonds:
(i) The original, or a certified copy, of the unrevoked appointment,
power of attorney, bylaws or other instrument entitling or authorizing the person who executed the
bond to do so;
(ii) A certified copy of the certificate of authority of the insurer issued by
the State of California’s Insurance Commissioner; and
(iii) Copies of the insurer’s most recent annual and quarterly statements
filed with the Department of Insurance.
(f) The Developer and its contractor and subcontractors shall be required to
provide proof of insurance coverage throughout the term of the construction of the EVWD
Improvements, which they will construct in conformance with the Water District’s standard
procedures and requirements. The Water District’s Insurance requirements are set out in Section 21.
(g) The Developer and all such contractors shall comply with such other
requirements relating to the construction of the EVWD Improvements which the Water District may
impose by written notification delivered to the Developer and each such contractor at the time either
prior to the receipt of bids by the Developer for the construction of such EVWD Improvements or, to
the extent required as a result of changes in applicable laws, during the progress of construction
thereof; provided that such other requirements shall only be imposed to the extent that the Water
District reasonably determines they are required in order to comply with applicable law. In
accordance with Section 8, the Developer shall be deemed the awarding body and shall be solely
responsible for compliance and enforcement of the provisions of the Labor Code, Government Code
and Public Contract Code.
(h) A “Change Order” is an order from the Developer to a contractor authorizing
a change in the work to be performed. The Developer shall receive comments from the District
Representative prior to the Developer’s approval of any Change Order. The District Representative
shall comment on or deny the Change Order request within five (5) business days of receipt of all
necessary information. The Water District’s comments to a Change Order shall not be unreasonably
delayed, conditioned or withheld. The Developer shall not be entitled to be compensated for costs
associated with a Change Order that has not been approved by the District Representative.
The Developer shall provide proof to the Water District, at such intervals and in such form as
the Water District may reasonably require, that the foregoing requirements have been satisfied as to
all of the EVWD Improvements as to which the Acquisition Election has been made which are
funded through Bond proceeds.
11
4843-6133-4219v5/022497-0017
SECTION 8. INSPECTION; COMPLETION OF CONSTRUCTION
The requirements of this Section shall not apply to any EVWD Improvement that was
complete (as determined by the Water District’s Board of Directors) prior to the adoption by the
Water District’s Board of Directors of the resolution forming the CFD, but they shall apply to all
other EVWD Improvements.
The Water District shall have primary responsibility for inspecting the EVWD Improvements
to assure that the work is being accomplished in accordance with the Plans. Such inspection does not
include inspection for compliance with safety requirements by the Developer’s contractor(s). The
Water District’s personnel shall be granted access to each construction site at all reasonable times for
the purpose of accomplishing such inspection. Upon satisfaction of the Water District’s inspectors,
the Developer shall notify the Water District in writing that an EVWD Improvement has been
completed in accordance with the Plans. Any actual costs reasonably incurred by the Water District
for inspection which has not been previously paid by the Developer shall be reimbursed from
Authorized Funds.
Within three (3) business days of receipt of written notification from EVWD inspectors that
an EVWD Improvement has been completed in accordance with the Plans, the District
Representative shall notify the Developer in writing that such EVWD Improvement has been
satisfactorily completed. Upon receiving such notification, the Developer shall file a Notice of
Completion with the County of San Bernardino Recorder’s Office, pursuant to the provisions of
Section 3093 of the Civil Code. The Developer shall furnish to the Water District a duplicate copy of
each such Notice of Completion showing thereon the date of filing with the County of San
Bernardino (the “County”). The Water District will in turn file a notice with the County for
acceptance.
SECTION 9. LIENS
With respect to any EVWD Improvement that was complete (as determined by the Water
District’s Board of Directors) prior to the adoption by the Water District’s Board of Directors of the
resolution forming the CFD, prior to any payment by the CFD to the Developer for such EVWD
Improvement, the Developer shall provide to the Water District such evidence or proof as the Water
District shall require that all persons, firms and corporations supplying work, labor, materials,
supplies and equipment for the construction of the EVWD Improvements have been paid, and that no
claims of liens have been recorded by or on behalf of any such person, firm or corporation. With
respect to EVWD Improvements, upon the earlier of: (i) receipt of all applicable lien releases; or
(ii) expiration of the time for the recording of claim of liens as prescribed by Sections 3115 and 3116
of the Civil Code, the Developer shall provide to the Water District such evidence or proof as the
Water District shall require that all persons, firms and corporations supplying work, labor, materials,
supplies and equipment for the construction of the EVWD Improvements have been paid and that no
claims of liens have been recorded by or on behalf of any such person, firm or corporation.
SECTION 10. ACQUISITION; ACQUISITION PRICE; SOURCE OF FUNDS
The acquisition price of an EVWD Improvement that was complete (as determined by the
Water District’s Board of Directors) prior to the adoption by the Water District’s Board of Directors
of the resolution forming the CFD shall be its fair market value, as determined by the District
12
4843-6133-4219v5/022497-0017
Representative or his or her designee, as of the date of acquisition. The Water District shall consider
input and data provided by the Developer prior to determining the final fair market value.
The costs eligible to be included in the acquisition price of an EVWD Improvement that is
not described in the preceding paragraph (the “Actual Costs”) shall include:
(i) The actual hard costs for the construction of such EVWD
Improvement as established by the Water District-approved construction contracts and approved
Change Orders, including costs of payment, performance and maintenance bonds and insurance
costs, pursuant to this Agreement;
(ii) The design and engineering costs of such EVWD Improvement
including, without limitation, the costs incurred in preparing the Plans. Costs for Plan revisions will
be considered on a case by case basis;
(iii) The costs of environmental evaluations and public agency permits
and approvals which are attributable to the EVWD Improvement;
(iv) Costs incurred by the Developer for construction management and
supervision of such EVWD Improvement, not to exceed five percent (5%) of the actual construction
cost, subject to prior approval by the Water District of any construction management or supervision
contract with respect to an EVWD Improvement;
(v) Professional costs associated with the EVWD Improvement such as
engineering, inspection, construction staking, materials, testing and similar professional services; and
(vi) Costs approved by the Water District in accordance with the Act of
acquiring any real property or interests therein required for the EVWD Improvement, including,
without limitation, any water tank sites, temporary construction easements, temporary by-pass roads
and maintenance easements.
Provided that the Developer has complied with the requirements of this Agreement, the
Water District agrees to pay the acquisition price of a completed EVWD Improvement to the
Developer or its designee within thirty (30) days after the Developer’s satisfaction of the
preconditions to such payment stated herein, but only to the extent that there are sufficient
Authorized Funds available. Except in the case of an EVWD Improvement which described in the
first paragraph of this Section 10, the acquisition price to be paid from Authorized Funds for the
acquisition of an EVWD Improvement by the Water District shall be the least of: (1) the value of the
EVWD Improvement; or (2) the total of the Actual Costs of the EVWD Improvement.
As a condition to the payment of the acquisition price, the ownership of the completed
EVWD Improvement shall be transferred to the Water District by grant deed, bill of sale or such
other documentation as such public agency may require free and clear of all taxes, liens,
encumbrances and assessments, but subject to any exceptions which the Water District determines do
not interfere with the actual or intended use of the land or interest therein (including the lien of a
community facilities district so long as the subject property is exempt from taxation or is otherwise
not taxable by such community facilities district). Upon the transfer of ownership of EVWD
Improvements or any portion thereof to the Water District, the Water District shall be responsible for
the maintenance of such EVWD Improvements or the portion transferred. Notwithstanding the
13
4843-6133-4219v5/022497-0017
foregoing, the acquisition price of an EVWD Improvement may be paid prior to transfer of
ownership and acceptance of the EVWD Improvement if it is substantially completed at the time of
payment. The EVWD Improvement shall be considered “substantially complete” when it has been
reasonably determined by the Water District to be usable, subject to final completion of such items as
are not essential to the primary use or operation of the EVWD Improvement.
For purposes of determining the acquisition price to be paid by the CFD for the acquisition of
the EVWD Improvements by the Water District (other than EVWD Improvements described in the
first paragraph of this Section 10), the value of such EVWD Improvements shall include the
construction costs which are specified in the Water District-approved contracts and Water District-
approved Change Orders conforming to Section 8. Water District approval is a condition prior to
initiation of contract work. However, if the Water District reasonably determines that the additional
Actual Costs are excessive and that the value of the EVWD Improvements is less than the total
amount of such Actual Costs and such construction costs, the price to be paid for the acquisition of
the EVWD Improvements shall be the value thereof as determined by the District Representative;
subject, however, to the Developer’s right to appeal to the Water District’s Board of Directors.
Upon completion of the construction of an EVWD Improvement, the Developer shall deliver
or cause to be delivered to the Water District a Disbursement Request Form in substantially the form
set forth in Exhibit D, copies of the contract(s) with the contractor(s) who have constructed the
EVWD Improvement and other relevant documentation with regard to the payments made to such
contractor(s) and each of them for the construction of the EVWD Improvement, documentation
evidencing payment of prevailing wages, and invoices and purchase orders with respect to all
equipment, materials and labor which were purchased for the construction of the EVWD
Improvement. The District Representative shall complete its determination of the value of each
EVWD Improvement as promptly as is reasonably possible.
Notwithstanding the preceding provisions of this Section 10, the source of funds for the
acquisition of the EVWD Improvements or any portion thereof shall be Authorized Funds. If for any
reason beyond the Water District’s control the proceedings for the formation of the CFD are not
completed or Bonds are not sold, the Water District shall not be required to acquire the EVWD
Improvements from the Developer, except to the extent of funds deposited into the Special Fund. In
such event, the Developer shall complete the design and construction and offer to the Water District
ownership of such portions of the EVWD Improvements as are required to be constructed by the
Developer pursuant to the Development Agreement (but only at such times as required by such
condition), but need not construct any portion of the EVWD Improvements which it is not so
required to construct.
In addition to the foregoing, the Water District shall have the right to withhold payment for
acquisition of an EVWD Improvement, if:
(a) the Developer or any of its affiliates is delinquent in the payment of any
Special Taxes levied by the CFD on properties then owned by the Developer or any of its affiliates
within the CFD; or
(b) the Developer is not then in substantial compliance with a condition or
obligation imposed upon the Developer Property by the Water District, including but not limited to,
payment of all applicable fees, dedication of all applicable rights-of-way or other property and
construction requirements.
14
4843-6133-4219v5/022497-0017
The Water District shall immediately provide written notice to the Developer of the decision
to withhold any such payment and shall specify the reason for such decision. If the payment is
withheld as a result of the delinquency in the payment of Special Taxes, the notice shall identify the
delinquent parcels and the amount of such delinquency. If the payment is withheld as a result of
substantial non-compliance with a condition or obligation, the notice shall specify such condition or
obligation and what action will be necessary by the Developer to substantially comply with such
condition or obligation. Upon receipt of evidence reasonably satisfactory to the Water District that
the Developer has paid the delinquent Special Taxes or complied with the subject condition or
obligation, the Water District shall forthwith make all payments which have been withheld pursuant
to the provisions of this Section 10.
SECTION 11. EASEMENTS AND/OR FEE TITLE OWNERSHIP DEEDS
Without limiting the Developer’s right to reimbursement for such grants pursuant to Section
10 above, the Developer shall, at the time that the Water District acquires the EVWD Improvements
as provided in Section 10, grant or cause to be granted to the Water District, by appropriate
instruments prescribed by the Water District, all easements across private property and/or fee title
ownership deeds which may be reasonably necessary for the proper operation and maintenance of
such EVWD Improvements, or any part thereof, but only to the extent located within the Developer
Property.
SECTION 12. PERMITS
The Developer shall be responsible for obtaining all necessary construction permits from the
city within which the work is to be done, if any (the “City”) and/or the County (as appropriate)
covering construction and installation of the EVWD Improvement as to which the Acquisition
Election has been made. The Water District will request the City and/or County to issue an “operate
and maintain permit” to the Water District, which will become effective upon the completion of the
EVWD Improvements and acceptance of ownership therewith by the Water District.
SECTION 13. MAINTENANCE
Prior to the transfer of ownership of an EVWD Improvement by the Developer to the Water
District, as provided in Section 10, the Developer shall be responsible for the maintenance thereof
and shall require its contractor(s) to repair all facilities damaged by any party other than the Water
District, prior to acceptance by the Water District and/or make corrections which are determined to
be necessary by the Water District’s inspection personnel. The Water District shall not be permitted
to place any EVWD Improvement in service prior to acceptance of the same, unless the Developer
otherwise consents in writing.
SECTION 14. INSPECTION OF RECORDS
The Water District shall have the right to review all books and records of the Developer
pertaining to the costs and expenses incurred by the Developer for the design and construction of the
EVWD Improvements during normal business hours by making arrangements with the Developer.
The Developer shall have the right to review all books and records of the Water District pertaining to
costs and expenses incurred by the Water District for services of the Field Engineer by making
arrangements with the Water District.
15
4843-6133-4219v5/022497-0017
SECTION 15. OWNERSHIP OF IMPROVEMENTS
Notwithstanding the fact that some or all of the EVWD Improvements may be constructed in
dedicated street rights-of-way or on property which has been or will be dedicated to the Water
District, each EVWD Improvement shall be and remain the property of the Developer until acquired
by the Water District as provided in this Agreement.
SECTION 16. MATERIALS AND WORKMANSHIP WARRANTY
The requirements of this Section 16 shall not apply to any EVWD Improvement that was
complete (as determined by the Water District’s Board of Directors) prior to the adoption by the
Water District’s Board of Directors of the resolution forming the CFD, but they shall apply to all
other EVWD Improvements.
Upon the completion of the acquisition of an EVWD Improvement by the Water District, the
performance bond related to such individual EVWD Improvement provided by the Developer
pursuant to Section 7.4(e) shall be reduced by 90%, and the remaining 10% shall serve as a
maintenance bond to guarantee that such EVWD Improvement will be free from defects due to faulty
workmanship or materials for a period of one year. Release of performance and payment bonds is
addressed in the Development Agreement.
SECTION 17. CAPACITY IMPROVEMENTS
Amounts deposited in the Capacity Improvements Account pursuant to Section 3.4 shall be
disbursed at the written direction of the Water District upon the Developer’s submittal of a written
payment request at the time or times that water and sewer connection or capacity fees are payable to
the Water District. Upon receipt of the Developer’s request for disbursement, the Water District
shall submit a written requisition for payment of the requested amount to the CFD Administrator (the
“Administrator”), who shall directly pay the amount to the Water District, and the Developer shall
receive credit against the applicable water and sewer connection or capacity fees. Pending the
disbursement of said monies, the amounts in the Capacity Improvements Account shall be invested
as directed in writing by the Water District and investment earnings shall either remain in such
account or be transferred to the Improvement Fund to be used as provided in Section 3.4. The Water
District shall expend any amounts disbursed to it from the Capacity Improvements Account on
capital facilities. If the Developer is required to deposit security to assure payment of water and/or
sewer connection or capacity fees of the Water District prior to the issuance of the Bonds or due to
insufficient funds being on deposit in the Capacity Improvements Account, the Developer shall be
reimbursed the full amount of deposit at such time as, and to the extent funds are subsequently
available in the Capacity Improvements Account. The payment of a deposit as described in the
preceding sentence shall not be construed as a dedication or gift of the water and/or sewer connection
or capacity fees of the Water District or as a waiver of any right to reimbursement of such fees.
SECTION 18. [RESERVED].
SECTION 19. INDEPENDENT CONTRACTOR
In performing this Agreement, the Developer is an independent contractor and not the agent
of the Water District. The Water District shall not have any responsibility for payment to any
16
4843-6133-4219v5/022497-0017
contractor or supplier of the Developer. It is not intended by the Parties that this Agreement create a
partnership or joint venture among them and this Agreement shall not otherwise be construed.
SECTION 20. INDEMNIFICATION
The Developer shall assume the defense of, indemnify and save harmless, the Water District,
its officers, employees and agents, and the CFD, its officers, employees and agents (each, an
“Indemnified Party” and collectively, the “Indemnified Parties”), from and against all actions,
damages, claims, losses or expenses of every type and description to which they may be subject or
put, by reason of, or resulting from the Developer’s performance of its obligations under this
Agreement, the issuance of the Bonds and the Developer’s construction of the EVWD Improvements
for which an Acquisition Election is made pursuant to Section 7.2. No provision of this Agreement
shall in any way limit the extent of the Developer’s responsibility for payment of damages resulting
from the operations of the Developer and its contractors; provided, however, that the Developer shall
not be required to assume the defense or indemnify and save harmless any Indemnified Party from
and against any actions, damages, claims, losses or expenses resulting from the breach of this
Agreement by, or the negligence or willful misconduct of, an Indemnified Party.
SECTION 21. INSURANCE REQUIREMENTS
Neither the Developer nor its contractor shall commence work on an EVWD Improvement
under this Agreement prior to obtaining all insurance required hereunder with a company or
companies acceptable to the Water District, nor shall the Developer’s contractor allow any
subcontractor to commence work on its subcontract until all insurance required of the subcontractor
has been obtained.
The Developer shall, during the life of this Agreement, notify the Water District in writing of
any incident giving rise to any potential bodily injury or property damage claim and any resultant
settlements, whether in conjunction with this or any other project which may affect the limits of the
required coverage, as soon as is reasonable and practical.
Both the Developer and its contractor shall conform in every respect to the requirement set
forth in the Standard Water and/or Sewer Facilities and Service Agreement, by and between the
Water District and the Developer.
SECTION 22. CONFLICT WITH OTHER AGREEMENTS
Except as specifically provided herein, nothing contained herein shall be construed as
releasing the Developer from any condition of development or requirement imposed by any other
agreement with Water District. In the event of a conflicting provision, such other agreement shall
prevail unless such conflicting provision is specifically waived or modified in writing by Water
District.
SECTION 23. TERMINATION
The provisions of this Agreement related to the acquisition and financing of the
Improvements shall terminate and be of no further force or effect if the first series of Bonds for the
CFD are not sold within 10 years from the date of this Agreement, unless this Agreement extended
by the Parties. If the Water District is unable to sell the first series of Bonds for the CFD after
17
4843-6133-4219v5/022497-0017
diligent, commercially reasonable efforts to do so, this Agreement shall terminate and be of no
further force and effect; provided, however, that in such event, any collected Special Taxes
remaining after the payment of administrative expenses of the CFD and reimbursement to the
Developer of CFD formation costs shall be used to pay for Improvements in accordance with this
Agreement and the Developer shall receive a credit against fees otherwise payable to Water District
in the amount so used to pay for any Capacity Improvements. Eligibility for capacity and
construction fee credits as a result of the construction of the EVWD Improvements shall be pursuant
to the Development Agreement.
SECTION 24. NOTICES
Any notice, payment or instrument required or permitted by this Agreement to be given or
delivered to either Party shall be deemed to have been received when either personally delivered or
received through overnight delivery or seventy-two (72) hours following deposit of the same in any
United States Post Office in California, registered or certified, postage prepaid. Any notice to the
CFD or the Water District shall be addressed to East Valley Water District, 31111 Greenspot Road,
Highland, CA 92346, Attention: General Manager. Any notice to the Developer shall be addressed
to: Sunland Communities, LLC, 10575 Oakdale Drive, Rancho Cucamonga, CA 91730 Attention:
Camille Bahri, and D.R. Horton, 2280 Wardlow Circle, Suite 100, Corona, CA 92878 Attention:
Alyssa M. Bottinelli.
Each Party may change its address for delivery of notice by delivering written notice of such
change of address to the other Party hereto.
SECTION 25. NO GIFT OR WAIVER.
25.1 No Gift or Waiver for EVWD Improvements. The Developer and the Water District
acknowledge that:
(a) The Developer or its predecessor may have constructed or may be
constructing EVWD Improvements before Authorized Funds that will be used to acquire them are
available with the expectation that the Developer will be reimbursed for such EVWD Improvements
to the extent and in the manner set forth in this Agreement.
(b) The Water District may inspect EVWD Improvements and process
Disbursement Request Forms even if Authorized Funds do not exist at the time of such inspection
and processing or are not then sufficient to satisfy the Disbursement Request in full.
(c) The Developer may convey EVWD Improvements to the Water District and
the Water District may accept such EVWD Improvements even if Authorized Funds do not exist at
the time of such conveyance and acceptance or are not then sufficient to satisfy the Disbursement
Request in full.
(d) If the Water District accepts EVWD Improvements before a Disbursement
Request is paid in full, the unpaid balance of the Disbursement Request will be paid from time to
time, in any number of installments and irrespective of the length of time that payment is deferred, as
Authorized Funds become available.
18
4843-6133-4219v5/022497-0017
(e) The Developer’s conveyance or dedication of EVWD Improvements to the
Water District before the availability of Authorized Funds to acquire the EVWD Improvements is
not, and shall not be deemed to be, a gift or a waiver of the Developer’s right to payment of the
purchase price of such EVWD Improvements pursuant to this Agreement.
25.2 No Gift or Waiver for Capacity Fees. The Developer and the Water District
acknowledge that:
(a) Prior to the availability of Authorized Funds, the Developer or its predecessor
may have been or may be required to deposit funds to assure payment of water and/or sewer
connection or capacity fees of the Water District.
(b) The Developer or its predecessor has deposited or will be depositing such
funds with the expectation that the Developer will be reimbursed for these deposits to the extent and
in the manner set forth in this Agreement.
(c) The reimbursement of such deposits pursuant to Section 17 may occur from
time to time, in any number of installments and irrespective of the length of time that payment is
deferred, as Authorized Funds become available.
(d) The Developer’s deposit of such funds to the Water District before the
availability of Authorized Funds to reimburse the Developer is not, and shall not be deemed, a gift or
a waiver of the Developer’s right to reimbursement of such deposits pursuant to this Agreement.
SECTION 26. GENERAL PROVISIONS
(a) Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the Water District and the Developer and their respective heirs, executors, legal
representatives, successors, and authorized assigns.
(b) Amendment. This Agreement may be amended at any time but only in
writing signed by each Party hereto.
(c) Entire Agreement. This Agreement, and the agreements referenced herein,
contains the entire understanding and agreement between the Parties with respect to the matters that
are provided for herein and supersedes all prior agreements and negotiations between the Parties with
respect to the subject matter of this Agreement. There are no oral or written representations,
understanding, undertakings or agreements which are not contained or expressly referred to herein,
and any such representations, understandings or agreements are superseded by this Agreement. No
evidence of any such representations, understandings or agreements shall be admissible in any
proceeding of any kind or nature relating to the terms or conditions of this Agreement, its
interpretation or breach. This Agreement shall be binding upon, and enforceable by and against the
CFD upon the establishment of the CFD.
(d) Exhibits. All exhibits attached hereto are incorporated into this Agreement
by reference.
(e) Severability. If any part of this Agreement is held to be illegal or
unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given
effect to the fullest extent reasonably possible.
19
4843-6133-4219v5/022497-0017
(f) Waiver. Failure by a Party to insist upon the strict performance of any of the
provisions of this Agreement by the other Parties hereto, or the failure by a Party to exercise its rights
upon the default of another Party, shall not constitute a waiver of such party’s right to insist and
demand strict compliance by such other Parties with the terms of this Agreement thereafter.
(g) No Third Party Beneficiaries. Except as provided explicitly in this
Agreement, no person or entity shall be deemed to be a third party beneficiary hereof, and nothing in
this Agreement (either express or implied) is intended to confer upon any person or entity, other than
the Water District, the CFD, and the Developer (and their respective successors and assigns), and the
Security Provider (with respect to Section 3.2 only) any rights, remedies, obligations or liabilities
under or by reason of this Agreement.
(h) Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original, but all of which shall constitute but one instrument.
(i) Assignment. The Developer may assign all or any of its rights pursuant to
this Agreement to a purchaser of all or any portion of the Developer Property. Such a purchaser and
assignee shall, as a condition to taking an assignment of such rights, enter into an assignment and
assumption agreement with the Water District and the Developer, in a form reasonably acceptable to
the Developer and the Water District, whereby such rights assigned are specified and such purchaser
agrees, except as may be otherwise specifically provided therein, to assume the obligations of the
Developer pursuant to this Agreement and to be bound thereby. A company that acquires all of the
assets of the Developer, including ownership of the Developer itself, shall be deemed a successor and
shall not require an assignment or assumption agreement to be bound by, and enjoy the benefits of,
this Agreement.
(j) Governing Law. This Agreement and any dispute arising hereunder shall be
governed by and interpreted in accordance with the laws of the State of California.
(k) Construction of Agreement. This Agreement has been reviewed by legal
counsel for both the Water District and the Developer and shall be deemed for all purposes to have
been jointly drafted by the Water District and the Developer. No presumption or rule that
ambiguities shall be construed against the drafting Party shall apply to the interpretation or
enforcement of this Agreement.
(l) Attorneys’ Fees. In the event of any action or proceeding, including an
arbitration or a reference pursuant to Section 638 et seq., of the Code of Civil Procedure brought by
any Party against any other under this Agreement, the prevailing Party shall be entitled to recover its
actual attorneys’ fees and all fees, costs and expenses incurred for prosecution, defense, consultation
or advice in such action or proceeding. In addition to the foregoing, the prevailing Party shall be
entitled to its actual attorneys’ fees and all fees, costs and expenses incurred in any post-judgment
proceedings to collect or enforce the judgment. This provision is separate and several and shall
survive the merger of this Agreement into any judgment on this Agreement.
(m) Venue and Forum. Any action at law or in equity arising under this
Agreement brought by any Party hereto for the purpose of enforcing, construing or determining the
validity of any provision of this Agreement shall be filed and tried in the Superior Court of the
County of San Bernardino, State of California, and the Parties waive all provisions of law providing
for the filing, removal or change of venue to any other court.
20
4843-6133-4219v5/022497-0017
[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
S-1
4843-6133-4219v5/022497-0017
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year
written below.
Dated: ___________, 2021 EAST VALLEY WATER DISTRICT
By: General Manager
GREENSPOT CORRIDOR, LLC, a California
limited liability company
By:
Name:
Title:
By:
Name:
Title:
FORESTAR (USA) REAL ESTATE GROUP INC., a
Delaware corporation
By:
Name:
Title:
4843-6133-4219v5/022497-0017
LIST OF EXHIBITS
EXHIBIT A - DESCRIPTION OF DEVELOPER PROPERTY
EXHIBIT B - DESCRIPTION OF COST ESTIMATES OF THE IMPROVEMENTS
EXHIBIT C - NOTICE OF SPECIAL TAX (as prepared by Developer)
EXHIBIT D - DISBURSEMENT REQUEST FORM
A-1
4843-6133-4219v5/022497-0017
EXHIBIT A
DESCRIPTION OF DEVELOPER PROPERTY
Real property located in the County of San Bernardino, State of California, City of San
Bernardino described as follows:
COMMUNITY FACILITIES DISTRICT BOUNDARY:
[TO COME]
IMPROVEMENT AREA NO. 1:
[TO COME]
IMPROVEMENT AREA NO. 2:
[TO COME]
B-1
4843-6133-4219v5/022497-0017
EXHIBIT B
DESCRIPTION OF COST ESTIMATES OF THE IMPROVEMENTS
The Improvements consist of the Capacity Improvements and the EVWD Improvements, as
described below.
I. CAPACITY IMPROVEMENTS.
Water and sewer facilities included in EVWD’s water and sewer capacity and connection fee
programs used to finance expansion projects, exclusive of in-tract facilities constructed by a property
owner, but including and not limited to the following: water and sewer transmission pipelines, sewer
treatment plants, disposal ponds, pumping plants, lift stations, and water reservoirs, including all
costs of site acquisition, planning, design, engineering, legal services, materials testing, coordination,
surveying, construction staking, construction inspection and any and all appurtenant facilities and
appurtenant work relating to the foregoing.
Estimated Cost of the Capacity Improvements
Description Estimated Cost1
Water Capacity Charge (Residential Units - ¾” Meter)$2,358,480
Water Capacity Charge (Miscellaneous - 1” Meter)-
Water Capacity Charge (Irrigation - 1½” Meter)124,010
Water Capacity Charge (Miscellaneous – 2” Meter)158,736
Water Capacity Charge (Miscellaneous – 3” Meter)79,368
Sewer Capacity Charge (Residential Units) 2,467,211
Total Fees $5,187,805
II. EVWD IMPROVEMENTS.
Estimated Cost of the EVWD Improvements
Description2 Estimated Cost
Water and sewer improvements that are required to serve the
development and are constructed by, or on behalf of the Developer,
including, without limitation, in-tract and master planned water and
sewer transmission pipelines, lift station, pump stations, water
reservoirs and all appurtenant improvements and soft costs.
$5,402,700
1 Estimated Cost is based on the Water District’s current fees and the estimated number of dwelling units and equivalent dwelling
units in the development. The amount eligible to be funded for Capacity Improvements shall be based on the actual number of
dwelling units and equivalent dwelling units for which such fees are charged and the Water District’s then-current schedule of
fees in effect at the time that such fees are actually paid.
2 Individual, usable and completed EVWD Improvements shall be eligible to be financed and acquired at their total Actual Cost
pursuant to this Agreement. In addition, for any EVWD Improvement with an estimated cost in excess of $1,000,000, the
Developer and General Manager of the Water District may agree on discrete phases or portions of the EVWD Improvement for
which the Actual Costs may be reimbursed prior to completion of the EVWD Improvement.
C-1
4843-6133-4219v5/022497-0017
EXHIBIT C
NOTICE OF SPECIAL TAX
NOTICE OF SPECIAL TAX
COMMUNITY FACILITIES DISTRICT NO. 2021-1 (MEDITERRA)
OF THE EAST VALLEY WATER DISTRICT
COUNTY OF SAN BERNARDINO, CALIFORNIA
TO THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS:
TRACT NO. ________, LOT NO.:___________
[TO COME FROM DEVELOPER]
Buyer: Dated: _______________
Buyer: Dated: _______________
D-1
4843-6133-4219v5/022497-0017
EXHIBIT D
DISBURSEMENT REQUEST FORM
1. Community Facilities District No. 2021-1 (Mediterra) of East Valley Water District
(the “CFD”) is hereby requested to pay from the EVWD ________________________ Account, or
any applicable account or sub-account thereof, established by the CFD in connection with its 20__
Special Tax Bonds (the “Bonds”) to East Valley Water District (the “Water District”) as payee, the
sum set forth below:
$_____________________ (the Requested Amount”)
2. The Requested Amount represents the payment of EVWD Fees for ___ lot(s) within
the boundaries of the CFD (the “Property”).
(Tract No. __________, Lot Nos. ________________).
Or, EVWD Improvements as supported by attached documentation.
3. The Requested Amount is due and payable, has not formed the basis of any prior
request or disbursement.
4. The Water District, as payee, is hereby directing payment of the Requested Amount
be payable to [__], a [__] (the “Developer”), pursuant to the wiring instructions attached hereto.
5. The Requested Amount is authorized and payable pursuant to the terms of the certain
Funding, Construction and Acquisition Agreement (the “Agreement”), by and between the Water
District, acting for and on behalf of itself and the CFD, and the Developer.
6. Capitalized undefined terms used herein shall have the meaning ascribed to them in
the Agreement.
D-2
4843-6133-4219v5/022497-0017
[___], a [___]
By:
Name:
Title:
Dated: EAST VALLEY WATER DISTRICT
By:
Its:
[ATTACH WIRING INSTRUCTIONS]
East Valley Water District
Resolution 2021.01
Page 1 of 4
RESOLUTION NO. 2021.01
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE EAST VALLEY WATER DISTRICT,
ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT
NO. 2021-1 (MEDITERRA) OF EAST VALLEY WATER DISTRICT, DETERMINING
THE NECESSITY TO INCUR BONDED INDEBTEDNESS WITHIN THE
COMMUNITY FACILITIES DISTRICT AND IMPROVEMENT AREA NOS. 1 AND 2
THEREIN AND CALLING ELECTIONS THEREIN
WHEREAS, the Board of Directors (the “Board”) of East Valley Water District (the
“District”), a county water district that is duly organized and existing under and by virtue of the
laws of the State of California, has previously adopted Resolution No. 2021.15 on October 13,
2021 (the “Resolution of Intention”) stating its intention to form Community Facilities District
No. 2021-1 (Mediterra) of East Valley Water District (the “Community Facilities District”) and
Improvement Area Nos. 1 and 2 therein (each, an “Improvement Area” and collectively, the
“Improvement Areas”), pursuant to the Mello-Roos Community Facilities Act of 1982, as
amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State
of California (the “Act”); and
WHEREAS, on December 8, 2021, the Board also adopted Resolution No. 2021.16 stating
its intention to incur bonded indebtedness within the proposed Community Facilities District in an
amount not to exceed: (a) $8,000,000 for Improvement Area No. 1; and (b) $8,500,000 for
Improvement Area No. 2; to finance: (1) the purchase, construction, expansion, improvement or
rehabilitation of public improvements identified in Exhibit B to the Resolution of Intention,
including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”);
and (2) the incidental expenses to be incurred in financing the Facilities and forming and
administering the Community Facilities District and the Improvement Areas therein (the
“Incidental Expenses”); and
WHEREAS, a combined notice of a public hearing (the “Hearing”) to be held on
December 8, 2021 was published and mailed to all landowners of the land proposed to be included
within the Community Facilities District and Improvement Area Nos. 1 and 2 therein, which
Hearing relates to the intention of the Board to form the proposed Community Facilities District
and the Improvement Areas therein and to incur bonded indebtedness for the Improvement Areas;
and
WHEREAS, on December 8, 2021, the Board opened the Hearing to determine whether it
should proceed to form the Community Facilities District and the Improvement Areas therein,
issue bonds to pay for the Facilities and Incidental Expenses and authorize a rate and method of
apportionment of a special tax for each Improvement Area to be levied within each Improvement
Area for the purposes described in the Resolution of Intention; and
WHEREAS, at the Hearing, all persons desiring to be heard on all matters pertaining to
the formation of the Community Facilities District and the Improvement Areas therein, the levy of
a special tax and the issuance of bonds to pay for the cost of the proposed Facilities and Incidental
Expenses were heard, and a full and fair hearing was held; and
East Valley Water District
Resolution 2021.01
Page 2 of 4
WHEREAS, subsequent to such Hearing, the Board adopted a resolution establishing the
Community Facilities District and the Improvement Areas therein (the “Resolution of
Formation”); and
WHEREAS, the Board desires to make the necessary findings to incur bonded
indebtedness for the Community Facilities District and the Improvement Areas therein, to declare
the purpose for said indebtedness and to authorize the submittal of certain propositions to the voters
of each Improvement Area, being the owners of land within the Improvement Areas, all as
authorized and required by law;
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the District as
follows:
Section 1. Findings. The Board hereby specifically finds and declares that each of the
statements, findings and determinations set forth in the above recitals are true and correct.
Section 2. Necessity of Incurring Bonded Indebtedness. It is necessary to incur bonded
indebtedness of the Community Facilities District in a maximum aggregate principal amount not
to exceed: (a) $8,000,000 for Improvement Area No. 1; and (b) $8,500,000 for Improvement Area
No. 2.
Section 3. Purposes of Indebtedness. The indebtedness is to be incurred for the purposes
of financing the costs of purchasing, constructing, modifying, expanding, improving or
rehabilitating the Facilities, as described in the Resolution of Intention and the Resolution of
Formation, financing the Incidental Expenses and carrying out the powers and purposes of the
Community Facilities District on behalf of the Improvement Areas, including, but not limited to,
financing the costs of selling the bonds, establishing and replenishing bond reserve funds and
paying remarketing, credit enhancement and liquidity facility fees (including such fees for
instruments which serve as the basis of a reserve fund in lieu of cash), administrative expenses and
other expenses of the type authorized by Section 53345.3 of the Act.
Section 4. Payment of Bonded Indebtedness. The whole of the property within the
Improvement Areas, other than property exempted from the special tax pursuant to the provisions
of the rate and method of apportionment for each Improvement Area attached to the Resolution of
Intention as Exhibit C, shall pay for the bonded indebtedness of the applicable Improvement Area
pursuant to the levy of the special tax in such Improvement Area authorized by the Resolution of
Formation.
Section 5. Maximum Term. The maximum term of the bonds to be issued shall in no event
exceed [thirty-one (31)] years from the September 1 next following the date of issuance of the
bonds of such series, or such longer term as is then permitted by law.
Section 6. Interest Rates. The bonds shall bear interest at the rate or rates not to exceed
the maximum interest rate permitted by law, payable annually or semiannually, or in part annually
and in part semiannually, except that the first interest payment may be for a period of less than six
months, with the actual rate or rates and times of payment to be determined at the time or times of
sale thereof. The bonds may bear a variable or fixed interest rate, provided that such variable rate
East Valley Water District
Resolution 2021.01
Page 3 of 4
or fixed rate shall not exceed the maximum rate permitted by Section 53531 of the California
Government Code, or any other applicable provision of law limiting the maximum interest rate on
the bonds.
Section 7. Calling of Special Elections. Pursuant to Section 53351 of the Act, a special
election is hereby called for each Improvement Area on the proposition of incurring the bonded
indebtedness for such Improvement Area. The proposition relative to incurring bonded
indebtedness for each Improvement Area shall be in the forms set forth in Exhibit A to the
Resolution of Formation. The elections in the Improvement Areas on the proposition of incurring
bonded indebtedness shall be consolidated with the elections on the propositions to levy a special
tax and to establish an appropriations limit for the Community Facilities District, which
propositions shall be in the forms set forth in Exhibit A to the Resolution of Formation.
Section 8. Conduct of Elections. The date of the consolidated special elections for the
Improvement Areas shall be December 8, 2021, or such later date as is consented to by the Board
Secretary of the District and the owners of land within each Improvement Area. The elections
shall be conducted by the Board Secretary of the District. Except as otherwise provided by the
Act, the elections shall be conducted in accordance with the provisions of law regulating elections
of the District insofar as such provisions are determined by the Board Secretary to be applicable.
The Board Secretary is authorized to conduct the elections following the adoption of the
Resolution of Formation and this resolution; and all ballots shall be received by, and the Board
Secretary shall close the elections by 10:00 p.m. on the election day; provided that the elections
shall be closed at such earlier time as all qualified electors have voted as provided in Section
53326(d) of the Act. It is hereby found that there are no registered voters within the territory of
any of the Improvement Areas and, pursuant to Section 53351(j) of the Act, the ballots for the
special elections shall be distributed in person or by mail with return postage prepaid to the
landowners of record within each Improvement Area as of the close of the December 8, 2021
Hearing regarding the formation of the Community Facilities District and the Improvement Areas
therein. Each landowner shall have one vote for each acre or portion thereof that he, she or it owns
within each Improvement Area, as provided in Section 53326 of the Act.
Section 9. Effect. This Resolution shall take effect immediately.
ADOPTED this 8th day of December, 2021.
ROLL CALL VOTE:
Ayes: Directors:
Noes:
Abstain:
Absent:
___________________________________
David E. Smith
Board President
East Valley Water District
Resolution 2021.01
Page 4 of 4
ATTEST:
John Mura
Secretary, Board of Directors
December 8, 2021
I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2021.01
adopted by the Board of Directors of East Valley Water District at its Regular Board Meeting held
December 8, 2021.
John Mura
Secretary, Board of Directors
East Valley Water District
Resolution 2021.02
Page 1 of 2
RESOLUTION NO. 2021.02
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE EAST VALLEY WATER DISTRICT,
ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT
NO. 2021-1 (MEDITERRA) OF EAST VALLEY WATER DISTRICT, CERTIFYING
THE RESULTS OF THE DECEMBER 8, 2021 SPECIAL TAX AND BOND ELECTIONS
WHEREAS, the Board of Directors (the “Board”) of East Valley Water District (the
“District”), a county water district that is duly organized and existing under and by virtue of the
laws of the State of California, acting as the legislative body of Community Facilities District No.
2021-1 (Mediterra) of East Valley Water District (the “Community Facilities District”), called and
duly held elections on December 8, 2021 within the boundaries of Improvement Area Nos. 1 and
2 of the Community Facilities District (each an “Improvement Area,” and, collectively, the
“Improvement Areas”) pursuant to resolutions adopted on the date hereof for the purpose of
presenting to the qualified electors within each Improvement Area the propositions which are
attached hereto as Exhibit A; and
WHEREAS, there has been presented to the Board a certificate of the Board Secretary
canvassing the results of the elections, a copy of which is attached hereto as Exhibit B;
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the District as
follows:
Section 1. Findings. The Board hereby specifically finds and declares that each of the
statements, findings and determinations set forth in the above recitals are true and correct.
Section 2. Propositions Approved. Propositions A, B and C presented to the qualified
electors of each Improvement Area on December 8, 2021 were approved by more than two-thirds
of the votes cast at the election held for each such Improvement Area, and each of Propositions A,
B and C for each Improvement Area has carried. The Board is hereby authorized to levy on the
land within each Improvement Area the special tax described in Proposition B for the applicable
Improvement Area for the purposes described therein and to take the necessary steps to levy the
special tax authorized by Proposition B for the applicable Improvement Area and to issue bonds
in an amount not to exceed $8,000,000 for Improvement Area No. 1, and $8,500,000 for
Improvement Area No. 2, as specified in each Proposition A.
Section 3. Recordation of Notice of Special Tax Lien. The Board Secretary is hereby
directed to record in the Office of the County Recorder within fifteen days of the date hereof a
notice of special tax lien for each Improvement Area which Bond Counsel to the Community
Facilities District shall prepare in the form required by Streets and Highways Code Section 3114.5.
Section 4. Effect. This Resolution shall take effect immediately.
ADOPTED this 8th day of December, 2021.
East Valley Water District
Resolution 2021.02
Page 2 of 2
ROLL CALL VOTE:
Ayes: Directors:
Noes:
Abstain:
Absent:
___________________________________
David E. Smith
Board President
ATTEST:
John Mura
Secretary, Board of Directors
December 8, 2021
I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2021.02
adopted by the Board of Directors of East Valley Water District at its Regular Board Meeting held
December 8, 2021.
John Mura
Secretary, Board of Directors
A-1
EXHIBIT A
SAMPLE BALLOTS
COMMUNITY FACILITIES DISTRICT NO. 2021-1
(MEDITERRA)
OF EAST VALLEY WATER DISTRICT
(IMPROVEMENT AREA NO. 1)
SPECIAL TAX AND SPECIAL BOND ELECTION
December 8, 2021
This ballot represents ___ votes.
To vote, write or stamp a cross (“+” or “X”) in the voting square after the word “YES” or after
the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and
make the ballot void.
If you wrongly mark, tear or deface this ballot, return it to the Secretary of East Valley Water
District and obtain another.
PROPOSITION A: Shall Community Facilities District No. 2021-1
(Mediterra) of East Valley Water District (the “Community Facilities
District”), on behalf of Improvement Area No. 1 therein (the “Improvement
Area”), incur an indebtedness and issue bonds for the Improvement Area in
the maximum principal amount of $8,000,000, with interest at a rate or rates
not to exceed the maximum interest rate permitted by law, to finance the
Facilities and the Incidental Expenses described in Resolution No. 2021.15
of the Board of Directors of East Valley Water District?
YES □
NO □
PROPOSITION B: Shall a special tax with a rate and method of
apportionment as provided in Resolution No. 2021.15 of the Board of
Directors of East Valley Water District for the Improvement Area be levied
to pay for the Facilities and Incidental Expenses and the principal of and
interest on bonds issued to finance the Facilities and Incidental Expenses
and the other purposes described in Resolution No. 2021.15?
YES □
NO □
PROPOSITION C: For each year commencing with Fiscal Year 2021-22,
shall the appropriations limit, as defined by subdivision (h) of Section 8 of
Article XIIIB of the California Constitution, for the Community Facilities
District be an amount equal to $8,000,000?
YES □
NO □
A-2
COMMUNITY FACILITIES DISTRICT NO. 2021-1
(MEDITERRA)
OF EAST VALLEY WATER DISTRICT
(IMPROVEMENT AREA NO. 2)
SPECIAL TAX AND SPECIAL BOND ELECTION
December 8, 2021
This ballot represents ____ votes.
To vote, write or stamp a cross (“+” or “X”) in the voting square after the word “YES” or after
the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and
make the ballot void.
If you wrongly mark, tear or deface this ballot, return it to the Secretary of East Valley Water
District and obtain another.
PROPOSITION A: Shall Community Facilities District No. 2021-1
(Mediterra) of East Valley Water District (the “Community Facilities
District”), on behalf of Improvement Area No. 2 therein (the “Improvement
Area”), incur an indebtedness and issue bonds for the Improvement Area in
the maximum principal amount of $8,500,000, with interest at a rate or rates
not to exceed the maximum interest rate permitted by law, to finance the
Facilities and the Incidental Expenses described in Resolution No. 2021.15
of the Board of Directors of East Valley Water District?
YES □
NO □
PROPOSITION B: Shall a special tax with a rate and method of
apportionment as provided in Resolution No. 2021.15 of the Board of
Directors of East Valley Water District for the Improvement Area be levied
to pay for the Facilities and Incidental Expenses and the principal of and
interest on bonds issued to finance the Facilities and Incidental Expenses
and the other purposes described in Resolution No. 2021.15?
YES □
NO □
PROPOSITION C: For each year commencing with Fiscal Year 2021-22,
shall the appropriations limit, as defined by subdivision (h) of Section 8 of
Article XIIIB of the California Constitution, for the Community Facilities
District be an amount equal to $8,500,000?
YES □
NO □
B-1
EXHIBIT B
CERTIFICATE OF THE BOARD SECRETARY
AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS
I, ______________________, Secretary of the East Valley Water District, do hereby certify
that I have examined the returns of the Special Tax and Bond Elections for Improvement Area No. 1
and Improvement Area No. 2 Community Facilities District No. 2021-1 (Mediterra) of East Valley
Water District (the “Improvement Areas”). The elections were held in the boardroom of East Valley
Water District at 31111 Greenspot Road, Highland, California 92346, on December 8, 2021. I caused
to be delivered a ballot to the authorized representative of each qualified elector within each
Improvement Area. One (1) ballot was returned for Improvement Area No. 1 and one (1) ballot was
returned for Improvement Area No. 2.
I further certify that the results of said elections and the number of votes cast for and against
Propositions A, B and C for each Improvement Area are as follows:
IMPROVEMENT AREA NO. 1
PROPOSITION A PROPOSITION B PROPOSITION C
YES:YES:YES:
NO:NO:NO:
TOTAL: __TOTAL: __TOTAL: __
IMPROVEMENT AREA NO. 2
PROPOSITION A PROPOSITION B PROPOSITION C
YES:YES:YES:
NO:NO:NO:
TOTAL: __TOTAL: __TOTAL: __
Dated this 8th day of December, 2021.
Secretary
East Valley Water District
East Valley Water District
CFD 2021-1 Ordinance No. 1
Page 1 of 4
CFD 2021-1 ORDINANCE NO. 1
AN ORDINANCE OF THE BOARD OF DIRECTORS OF EAST VALLEY WATER
DISTRICT, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 2021-1 (MEDITERRA) OF EAST VALLEY WATER DISTRICT,
AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THE COMMUNITY
FACILITIES DISTRICT AND IMPROVEMENT AREA NOS. 1 AND 2 THEREIN
THE BOARD OF DIRECTORS OF EAST VALLEY WATER DISTRICT DOES
HEREBY ORDAIN AS FOLLOWS:
______________________________________________________________________________
SECTION 1.Findings.
(a) On October 13, 2021, the Board of Directors (the “Board”) of East Valley Water
District (the “District”) adopted Resolution No. 2021.15 declaring its intention to form
Community Facilities District No. 2021-1 (Mediterra) of East Valley Water District (the
“Community Facilities District”) and Improvement Area Nos. 1 and 2 therein (each an
“Improvement Area” and, collectively, the “Improvement Areas”) pursuant to the Mello-Roos
Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of Division 2 of
Title 5 of the Government Code of the State of California (the “Act”), and adopted Resolution
No. 2021.16 declaring its intention to incur bonded indebtedness of the Community Facilities
District on behalf of each Improvement Area.
(b) On December 8, 2021, after providing all notice required by the Act, the Board
opened a public hearing required by the Act relative to the formation of the Community Facilities
District and Improvement Area Nos. 1 and 2 therein, the proposed levy of a special tax within each
Improvement Area to finance certain public improvements described in Resolution No. 2021.15
and to secure the payment of any bonded indebtedness of the Community Facilities District on
behalf of each Improvement Area, and the proposed issuance of up to $8,000,000 of bonded
indebtedness on behalf of Improvement Area No. 1 and $8,500,000 of bonded indebtedness on
behalf of Improvement Area No. 2.
(c) At the public hearing, all persons desiring to be heard on all matters pertaining to
the formation of the Community Facilities District and Improvement Area Nos. 1 and 2 therein,
the proposed levy of the special tax within each Improvement Area to finance the public facilities
and incidental expenses described in Resolution No. 2021.15 and the proposed issuance of bonded
indebtedness of the Community Facilities District on behalf of each Improvement Area were heard
and a full and fair hearing was held.
(d) On December 8, 2021, following the close of the public hearing, the Board adopted
a resolution establishing the Community Facilities District and Improvement Area Nos. 1 and 2
therein (the “Resolution of Formation”) and a resolution determining the necessity to incur bonded
indebtedness of the Community Facilities District on behalf of each Improvement Area (the
“Resolution to Incur Bonded Indebtedness”), each of which called a consolidated special election
East Valley Water District
CFD 2021-1 Ordinance No. 1
Page 2 of 4
on December 8, 2021 within each Improvement Area on three propositions relating to the levying
of a special tax, the incurring of bonded indebtedness and the establishment of an appropriations
limit for the Community Facilities District.
(e) On December 8, 2021, a special election was held within each Improvement Area
at which the qualified electors approved by more than a two-thirds vote Propositions A, B and C
authorizing the levy of a special tax within each Improvement Area for the purposes described in
Resolution No. 2021.15 and the Resolution of Formation and the issuance of bonded indebtedness
for each Improvement Area as described in the Resolution to Incur Bonded Indebtedness.
SECTION 2.Ordinance Authorizing the Levy of a Special Tax within the Community
Facilities District and Improvement Area Nos. 1 and 2 therein.
(a) The above Findings are true and correct.
(b) By the passage of this Ordinance, the Board authorizes the levy of a special tax
within the Community Facilities District and Improvement Area Nos. 1 and 2 therein at the
maximum rates and in accordance with the rates and methods of apportionment set forth in Exhibit
C to Resolution No. 2021.15 adopted on October 13, 2021, which rate and method of
apportionment for each Improvement Area are incorporated by reference herein (each the “Rate
and Method” for the applicable Improvement Area).
(c) The Chief Financial Officer of the District is hereby further authorized and directed,
on or before August 10 of each year, or such later date as is permitted by law, to determine the
specific special tax rates and amounts to be levied for the next ensuing tax year for each parcel of
real property and the amount to be levied on each parcel of land in each Improvement Area
pursuant to the applicable Rate and Method. The special tax rate to be levied pursuant to the
applicable Rate and Method shall not exceed the applicable maximum rates set forth therein, but
the special tax may be levied at a lower rate.
(d) Properties or entities of the state, federal or other local governments shall be exempt
from the special tax, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act and
the applicable Rate and Method. No other properties or entities are exempt from the special tax
unless the properties or entities are expressly exempted in the Resolution of Formation, or in a
resolution of consideration to levy a new special tax or special taxes or to alter the rate or method
of an existing special tax as provided in Section 53334 of the Act.
(e) All of the collections of the special tax pursuant to the applicable Rate and Method
shall be used as provided for in the Act and the Resolution of Formation. The special tax shall be
levied within each Improvement Area only so long as needed for the purposes described in the
Resolution of Formation.
(f) The special tax levied pursuant to each Rate and Method shall be collected in the
same manner as ordinary ad valorem property taxes are collected and shall be subject to the same
penalties and the same procedure, sale and lien priority in case of delinquency as is provided for
ad valorem taxes (which such procedures include the exercise of all rights and remedies permitted
East Valley Water District
CFD 2021-1 Ordinance No. 1
Page 3 of 4
by law to make corrections, including, but not limited to, the issuance of amended or supplemental
tax bills), as such procedure may be modified by law or by the Board from time to time.
(g) As a cumulative remedy, if any amount levied as a special tax for payment of the
interest or principal of any bonded indebtedness of the Community Facilities District on behalf of
an Improvement Area, together with any penalties and other charges accruing under this
Ordinance, are not paid when due, the Board may, not later than four years after the due date of
the last installment of principal on the bonds issued by the Community Facilities District on behalf
of such Improvement Area, order that the same be collected by an action brought in the superior
court to foreclose the lien of such special tax.
(h) The specific authorization for adoption of this Ordinance is pursuant to the
provisions of Section 53340 of the Act.
(i) The Board Secretary is hereby authorized to transmit a certified copy of this
Ordinance to the San Bernardino County Assessor and Treasurer-Tax Collector, and to perform
all other acts which are required by the Act, this Ordinance or by law in order to accomplish the
purpose of this Ordinance.
SECTION 3.Compliance with California Environmental Quality Act. The Board finds
that this Ordinance is not subject to the California Environmental Quality Act (“CEQA”) pursuant
to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect
physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in
Section 15378) of the State CEQA Guidelines, California Code of Regulations, Title 14,
Chapter 3, because it has no potential for resulting in physical change to the environment, directly
or indirectly. Further, if the activity is deemed a project, the Board finds that this Ordinance is
exempt pursuant to Section 15061(b)(3) of the State CEQA Guidelines.
SECTION 4.Severability. If any provision of this Ordinance or the application thereof
to any person or circumstance is held invalid, such invalidity shall not affect other provisions or
applications of this Ordinance which can be given effect without the invalid provision or
application, and to this end the provisions of this Ordinance are severable. The Board hereby
declares that it would have adopted this Ordinance irrespective of the invalidity of any particular
portion thereof.
SECTION 5.Publication. The Board Secretary shall certify to the adoption of this
Ordinance and cause it, or a summary of it, to be published in a newspaper of general circulation
printed and published within the City of Highland, pursuant to all legal requirements.
SECTION 6.Effect. This Ordinance shall take effect 30 days from the date of its
adoption.
* * * * *
East Valley Water District
CFD 2021-1 Ordinance No. 1
Page 4 of 4
The foregoing ordinance was duly passed and adopted at a meeting of the Board of
Directors of the East Valley Water District, upon motion duly made, seconded and carried on
December 8, 2021:
ADOPTED this 8th day of December, 2021 by the following roll call vote:
ROLL CALL VOTE:
Ayes: Directors:
Noes:
Abstain:
Absent:
___________________________________
David E. Smith
Board President
ATTEST:
John Mura
Secretary, Board of Directors
December 8, 2021
I HEREBY CERTIFY that the foregoing is a full, true and correct copy of CFD 2021-1 Ordinance
No. 1 adopted by the Board of Directors of East Valley Water District at its Regular Board Meeting
held December 8, 2021.
John Mura
Secretary, Board of Directors
Agenda Item
#3d
December 8, 20211
2
6
2
Meeting Date: December 8, 2021
Agenda Item #3d
Public Hearing
Regular Board Meeting
TO: Governing Board Members
FROM: General Manager/CEO
SUBJECT: Consider Adoption of Ordinance No. 402 - Establishing Compensation,
Benefits, and Authorizing Reimbursement of Expenses and Establishing Training
Requirements for the Board of Directors; Public Hearing
RECOMMENDATION
Staff recommends that the Board of Directors adopt Ordinance No. 402, replacing
Ordinance No. 388 and establishing compensation, benefits, and authorizing
reimbursement of expenses and establishing training requirements for the Board of
Directors.
BACKGROUND / ANALYSIS
East Valley Water District is governed by five-members of the community elected at
large. Each member is elected to a four-year term. The role of the Board of Directors is
to provide oversight and establish the governing policies of the District.
The daily meeting stipend pursuant to California Water Code Section 20202 is a daily
per diem amount paid to board members for a day of service. The daily meeting stipend
cannot be paid for more than a total of ten (10) days in any calendar month and for not
more than one meeting or event per day.
Pursuant to California Water Code Section 20202, the Board of Directors may review
and increase their compensation rate no more than 5% annually. The current rate of
compensation paid to the Board of Director is $175.00 per day for each day’s
attendance at meetings which has not been adjusted since 2008.
In an effort to establish consistency while considering Board of Directors compensation,
staff suggests using the average from the comparator agencies the District uses as part
of employee negotiations. The average daily meeting stipend of the comparator
agencies is $228.76.
Staff recommends that the daily meeting stipend be increased to $225.00 and in the
future be reconsidered after completion of employee negotiations.
If approved, the new ordinance will take effect the 1st day of January 2022.
Agenda Item
#3d
December 8, 20212
2
6
2
Meeting Date: December 8, 2021
Agenda Item #3d
Public Hearing
AGENCY GOALS AND OBJECTIVES
I - Implement Effective Solutions Through Visionary Leadership
II - Maintain a Commitment To Sustainability, Transparency, and Accountability
B. Maximize Internal Capabilities through Ongoing Professional Development
A. Practice Transparent and Accountable Fiscal Management
III - Deliver Public Service With Purpose While Embracing Continuous Growth
C. Promote a Positive Organizational Culture
REVIEW BY OTHERS
This agenda item has been reviewed by Legal Counsel and Administration.
FISCAL IMPACT
This item is funded in the current fiscal year budget.
Recommended by:
________________
John Mura
General Manager/CEO
ATTACHMENTS
Ordinance No. 402 redlined
Ordinance No. 402 final draft
East Valley Water District
Ordinance No. 388402
AprilDecember 8, 20215
Page 1 of 5
ORDINANCE NO. 388402
ORDINANCE OF THE EAST VALLEY WATER DISTRICT, SAN
BERNARDINO COUNTY, CALIFORNIA, ESTABLISHING
COMPENSATION, BENEFITS, AND AUTHORIZING
REIMBURSEMENT OF EXPENSES AND ESTABLISHING
TRAINING REQUIREMENTS FOR THE BOARD OF DIRECTORS
BE IT ORDAINED by the Board of Directors of the East Valley Water District
(“District”) as follows:
WHEREAS, it is recognized that each member of the Board of Directors expends
a considerable amount of time and effort serving on committees and attending meetings
including, but not limited to meetings of the Board of Directors; and
WHEREAS, the office of Director is a public service position and should not be
considered an employment position for the purpose of generating income for the Director.
This Ordinance seeks to establish a reasonable and just compensation for the time and
effort put forward by Board members; and
WHEREAS, in consideration for the expenditure of time and effort, it is appropriate
to provide reasonable compensation and to authorize reimbursement of expenses for the
Board of Directors, pursuant to Section 30507 of the Water Code; and
WHEREAS, California Water Code Section 20202 provides that the Board of
Directors may adopt an ordinance authorizing compensation for the Directors for a total
of not more than ten (10) days in any calendar month and in an amount in excess of $100
per day, as may be adjusted each year.
NOW, THEREFORE, BE IT ORDAINED by the Board of Directors of the District
as follows:
Section 1. Compensation. Subject to the limitation of Section 2 of this
Ordinance, each member of the Board of Directors shall be compensated for attending:
(a) Regular, special, emergency, and adjourned meetings of the Board
of Directors.
(b) Regular, special, emergency, and adjourned meetings of a
committee of the Board of Directors, or a committee to which the Board member has been
assigned by the Chairman of the Board of Directors, provided that attendance is as a
East Valley Water District
Ordinance No. 388402
AprilDecember 8, 20215
Page 2 of 5
member or alternate member of that committee. If the Board member has been assigned
to an outside committee or board which also pays compensation to its committee or board
members, then that compensation shall be accepted by the board member first and, if the
compensation paid by the outside committee or board is less than the compensation set
forth in this Ordinance, the District shall pay the difference.
(c) A conference related to District business provided that such
compensation shall not exceed the duration of the conference plus one day travel time to
the conference and one day travel time from the conference.
(d) A meeting with the District’s General Manager or designee
concerning District operations or attendance at the District to perform District business.
(e) City Council meetings, other water agency meetings, and other
community meetings where the member is requested to attend by the Board Chairman,
General Manager, or Board authorization or is making a presentation on the District’s
behalf. This prohibition shall not apply to a Director who has held office less than 18
months.
(f) Board Chairman authorized meetings with local, state, or federal
elected officials or their staff members that are related to District business.
(g) Court hearings or other legal proceedings related to District
business, including meetings with District counsel.
(h) Training sessions mandated by law including, but not limited to,
ethics training and harassment training and other relevant training whether provided in
person or through webcast.
(i) The Board of Directors may retroactively approve payment for
attendance at any meeting/event attended by a member of the Board. Board members
shall not be compensated for attending social gatherings, picnics, awards banquets,
holiday events, retirement dinners, and similar functions unless previously approved by
the Board of Directors. Except for Board members with 18 months or less of service on
the Board, Board members shall not be compensated for attending meetings of other
public agencies unless attendance was approved by the Chairman of the Board of
Directors prior to attendance.
Section 2. Compensation Limits. Compensation for attendance at a meeting
and/or conference as specified in Section 1, shall not exceed, on a per day basis, that
amount of compensation as established by the Board, regardless of the number of
meetings and/or conferences that are attended on the same day, provided that the total
compensable days in a calendar month shall not exceed ten days. Attendance shall mean
East Valley Water District
Ordinance No. 388402
AprilDecember 8, 20215
Page 3 of 5
that the Director is present during not less than seventy-five percent (75%) of the duration
of the meeting or conference presentations.
Section 3. Reporting.Board members shall report briefly, orally or in writing,
on their respective representative assignment and conference activities. If written, the
reports shall be submitted concurrently with the Director’s monthly expense
reimbursement voucher.
Section 4. Directors’ Benefits. Members of the Board of Directors are
eligible to enroll in District sponsored group insurance plans available to eligible
employees for health, dental, vision, and life insurance. The benefits allowed to the
members of the Board of Directors shall not be greater than the most generous schedule
of benefits being received by any category of District employees.
(a) Continuation Benefits. Pursuant to California Government Code
Sections 53200-53210, the District may, subject to the terms and
conditions as may be established by the Board, contribute to the cost of
health and dental insurance coverage to former Board members, and
their spouses and dependents, who served in office after January 1,
1981; were not first elected to a term of office that began on or after
January 1, 1995; served not less than twelve (12) years on the Board at
the time of termination; and who are otherwise eligible to receive
retirement benefits. The amount and duration of benefits described
under this Section shall be commensurate with and equal to those
benefits provided for in the “Memorandum of Understanding Between
The East Valley Water District and The San Bernardino Public
Employees Association July 1, 2014 through June 30, 2017”, as
amended from time to time, which benefits are available to District
retirees with twenty (20) years or more of service with the District.
(b) Subject to the terms and conditions as may be established by the Board
of Directors of the District, the District shall make health and welfare
benefits available to its former Board members who do not qualify under
Section 3(a) of this Ordinance, and to the spouses and dependents of
such Board members on a self-pay basis and who otherwise satisfy any
and all additional eligibility requirements imposed by CALPERS. The
election requirements for the insurance coverage provided herein, and
the length of time in which said coverage shall be made available to such
participants upon election, shall be the same as set forth in the
continuation of benefits under the “Consolidated Omnibus Budget
Reconciliation Act of 1985”.
East Valley Water District
Ordinance No. 388402
AprilDecember 8, 20215
Page 4 of 5
Section 5. Training. All members of the Board of Directors and executive staff
as designated by the Board shall complete training in the areas of ethics and sexual
harassment as required by and in compliance with applicable law. The District shall
maintain records indicating the dates that District officials completed said training and the
entity that provided the training. The District shall maintain these records for at least five
(5) years after District officials receive the training. The records are public record subject
to disclosure under the “California Public Records Act”.
Section 6.Ordinance Review. All compensation/benefits provided to
members of the Board of Directors shall be reviewed as an information item at the first
Board Meeting of December of each year. At that time, the Board of Directors may
instruct staff to place the amendment of this Ordinance on the Board’s Agenda for the
first Meeting in January of the following year for amendment. CurrentlyCompensation
Amount. The rate of compensation for members of the Board of Directors of the District
shall be $175225.00 per day’s service.
Section 7. Reimbursement of Expenses. Each member of the Board of
Directors shall be reimbursed for reasonable out-of-pocket expenses incurred by such
member in performing services rendered pursuant to Section 1, or in performing services
otherwise authorized or ratified by the Board of Directors. Reimbursement for lodging,
conferences, and travel expenses shall be in accordance with District Policy 1.1 Board of
Director’s Expense Reimbursement Policy, as may be amended from time to time.
Section 8. Expense Vouchers. The Directors shall be paid based upon a duly
executed District approved expense voucher submitted monthly by the Directors. Said
vouchers shall be submitted to the District Clerk by noon Tuesday preceding the first
regular Board Meeting of the following month. Expense vouchers will be accompanied
by the appropriate receipts or affidavit of expense documenting each expense. The
Board of Directors shall retain the discretion to reject reimbursement for expenses not
supported by receipts, determination shall be made at a regularly scheduled Board
meeting.
Section 9. Repeal of Prior Ordinances and Resolutions. Ordinance 371 and
Resolution 2014.18 are388 is repealed as of the effective date of this Ordinance and this
Ordinance shall supersede any and all other prior ordinances or resolutions in conflict
with the provisions hereof.
Section 10. Effective Date. This Ordinance shall take effect as of the 1st day of
January 2022.become effective upon adoption.
East Valley Water District
Ordinance No. 388402
AprilDecember 8, 20215
Page 5 of 5
Adopted: April 8, 2015 this 8th day of December 2021
James Morales, Jr.
David E. Smith
Board President of the East Valley
Water District Board of Directors
ATTEST:
John Mura, General Manager/CEO of
East Valley Water District and
Secretary of the East Valley Water District
Board of Directors
STATE OF CALIFORNIA )
COUNTY OF )SS
SAN BERNARDINO )
I, John Mura, Secretary of East Valley Water District Board of Directors, DO
HEREBY CERTIFY that the forgoing Ordinance being No. 388402 , was adopted at a
regular meeting on AprilDecember 8, 20215, of said District by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
John Mura
Secretary
East Valley Water District
Ordinance No. 388402
AprilDecember 8, 20215
Page 6 of 5
East Valley Water District
Ordinance No. 402
December 8, 2021
Page 1 of 5
ORDINANCE NO. 402
ORDINANCE OF THE EAST VALLEY WATER DISTRICT, SAN
BERNARDINO COUNTY, CALIFORNIA, ESTABLISHING
COMPENSATION, BENEFITS, AND AUTHORIZING
REIMBURSEMENT OF EXPENSES AND ESTABLISHING
TRAINING REQUIREMENTS FOR THE BOARD OF DIRECTORS
BE IT ORDAINED by the Board of Directors of the East Valley Water District
(“District”) as follows:
WHEREAS, it is recognized that each member of the Board of Directors expends
a considerable amount of time and effort serving on committees and attending meetings
including, but not limited to meetings of the Board of Directors; and
WHEREAS, the office of Director is a public service position and should not be
considered an employment position for the purpose of generating income for the Director.
This Ordinance seeks to establish a reasonable and just compensation for the time and
effort put forward by Board members; and
WHEREAS, in consideration for the expenditure of time and effort, it is appropriate
to provide reasonable compensation and to authorize reimbursement of expenses for the
Board of Directors, pursuant to Section 30507 of the Water Code; and
WHEREAS, California Water Code Section 20202 provides that the Board of
Directors may adopt an ordinance authorizing compensation for the Directors for a total
of not more than ten (10) days in any calendar month and in an amount in excess of $100
per day, as may be adjusted each year.
NOW, THEREFORE, BE IT ORDAINED by the Board of Directors of the District
as follows:
Section 1. Compensation. Subject to the limitation of Section 2 of this
Ordinance, each member of the Board of Directors shall be compensated for attending:
(a) Regular, special, emergency, and adjourned meetings of the Board
of Directors.
(b) Regular, special, emergency, and adjourned meetings of a
committee of the Board of Directors, or a committee to which the Board member has been
assigned by the Chairman of the Board of Directors, provided that attendance is as a
member or alternate member of that committee. If the Board member has been assigned
to an outside committee or board which also pays compensation to its committee or board
members, then that compensation shall be accepted by the board member first and, if the
East Valley Water District
Ordinance No. 402
December 8, 2021
Page 2 of 5
compensation paid by the outside committee or board is less than the compensation set
forth in this Ordinance, the District shall pay the difference.
(c) A conference related to District business provided that such
compensation shall not exceed the duration of the conference plus one day travel time to
the conference and one day travel time from the conference.
(d) A meeting with the District’s General Manager or designee
concerning District operations or attendance at the District to perform District business.
(e) City Council meetings, other water agency meetings, and other
community meetings where the member is requested to attend by the Board Chairman,
General Manager, or Board authorization or is making a presentation on the District’s
behalf. This prohibition shall not apply to a Director who has held office less than 18
months.
(f) Board Chairman authorized meetings with local, state, or federal
elected officials or their staff members that are related to District business.
(g) Court hearings or other legal proceedings related to District
business, including meetings with District counsel.
(h) Training sessions mandated by law including, but not limited to,
ethics training and harassment training and other relevant training whether provided in
person or through webcast.
(i) The Board of Directors may retroactively approve payment for
attendance at any meeting/event attended by a member of the Board. Board members
shall not be compensated for attending social gatherings, picnics, awards banquets,
holiday events, retirement dinners, and similar functions unless previously approved by
the Board of Directors. Except for Board members with 18 months or less of service on
the Board, Board members shall not be compensated for attending meetings of other
public agencies unless attendance was approved by the Chairman of the Board of
Directors prior to attendance.
Section 2. Compensation Limits. Compensation for attendance at a meeting
and/or conference as specified in Section 1, shall not exceed, on a per day basis, that
amount of compensation as established by the Board, regardless of the number of
meetings and/or conferences that are attended on the same day, provided that the total
compensable days in a calendar month shall not exceed ten days. Attendance shall mean
that the Director is present during not less than seventy-five percent (75%) of the duration
of the meeting or conference presentations.
Section 3. Reporting.Board members shall report briefly, orally or in writing,
on their respective representative assignment and conference activities. If written, the
East Valley Water District
Ordinance No. 402
December 8, 2021
Page 3 of 5
reports shall be submitted concurrently with the Director’s monthly expense
reimbursement voucher.
Section 4. Directors’ Benefits. Members of the Board of Directors are
eligible to enroll in District sponsored group insurance plans available to eligible
employees for health, dental, vision, and life insurance. The benefits allowed to the
members of the Board of Directors shall not be greater than the most generous schedule
of benefits being received by any category of District employees.
(a) Continuation Benefits. Pursuant to California Government Code
Sections 53200-53210, the District may, subject to the terms and
conditions as may be established by the Board, contribute to the cost of
health and dental insurance coverage to former Board members, and
their spouses and dependents, who served in office after January 1,
1981; were not first elected to a term of office that began on or after
January 1, 1995; served not less than twelve (12) years on the Board at
the time of termination; and who are otherwise eligible to receive
retirement benefits. The amount and duration of benefits described
under this Section shall be commensurate with and equal to those
benefits provided for in the “Memorandum of Understanding Between
The East Valley Water District and The San Bernardino Public
Employees Association July 1, 2014 through June 30, 2017”, as
amended from time to time, which benefits are available to District
retirees with twenty (20) years or more of service with the District.
(b) Subject to the terms and conditions as may be established by the Board
of Directors of the District, the District shall make health and welfare
benefits available to its former Board members who do not qualify under
Section 3(a) of this Ordinance, and to the spouses and dependents of
such Board members on a self-pay basis and who otherwise satisfy any
and all additional eligibility requirements imposed by CALPERS. The
election requirements for the insurance coverage provided herein, and
the length of time in which said coverage shall be made available to such
participants upon election, shall be the same as set forth in the
continuation of benefits under the “Consolidated Omnibus Budget
Reconciliation Act of 1985”.
Section 5. Training. All members of the Board of Directors and executive staff
as designated by the Board shall complete training in the areas of ethics and sexual
harassment as required by and in compliance with applicable law. The District shall
maintain records indicating the dates that District officials completed said training and the
entity that provided the training. The District shall maintain these records for at least five
(5) years after District officials receive the training. The records are public record subject
to disclosure under the “California Public Records Act”.
East Valley Water District
Ordinance No. 402
December 8, 2021
Page 4 of 5
Section 6. Compensation Amount. The rate of compensation for members of
the Board of Directors of the District shall be $225.00 per day’s service.
Section 7. Reimbursement of Expenses. Each member of the Board of
Directors shall be reimbursed for reasonable out-of-pocket expenses incurred by such
member in performing services rendered pursuant to Section 1, or in performing services
otherwise authorized or ratified by the Board of Directors. Reimbursement for lodging,
conferences, and travel expenses shall be in accordance with District Policy 1.1 Board of
Director’s Expense Reimbursement Policy, as may be amended from time to time.
Section 8. Expense Vouchers. The Directors shall be paid based upon a duly
executed District approved expense voucher submitted monthly by the Directors. Said
vouchers shall be submitted to the District Clerk by noon Tuesday preceding the first
regular Board Meeting of the following month. Expense vouchers will be accompanied
by the appropriate receipts or affidavit of expense documenting each expense. The
Board of Directors shall retain the discretion to reject reimbursement for expenses not
supported by receipts, determination shall be made at a regularly scheduled Board
meeting.
Section 9. Repeal of Prior Ordinances and Resolutions. Ordinance 388 is
repealed as of the effective date of this Ordinance and this Ordinance shall supersede
any and all other prior ordinances or resolutions in conflict with the provisions hereof.
Section 10. Effective Date. This Ordinance shall take effect the 1st day of
January 2022.
Adopted this 8th day of December 2021
David E. Smith
Board President of the East Valley
Water District Board of Directors
ATTEST:
John Mura, General Manager/CEO of
East Valley Water District and
Secretary of the East Valley Water District
Board of Directors
East Valley Water District
Ordinance No. 402
December 8, 2021
Page 5 of 5
STATE OF CALIFORNIA )
COUNTY OF )SS
SAN BERNARDINO )
I, John Mura, Secretary of East Valley Water District Board of Directors, DO
HEREBY CERTIFY that the forgoing Ordinance being No. 402 , was adopted at a regular
meeting on December 8, 2021, of said District by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
John Mura
Secretary
Agenda Item
#3e
December 8, 20211
2
6
1
Meeting Date: December 8, 2021
Agenda Item #3e
Discussion Item
Regular Board Meeting
TO: Governing Board Members
FROM: General Manager/CEO
SUBJECT: Consider Approval of Board Reorganization A. Elect official officers for the
positions of Board President and Vice President B. Appointment of General
Manager/CEO C. Set the time, day and place for holding meetings
RECOMMENDATION
Staff recommends that the Board of Directors:
A. Elect official officers for the positions of Board President and Vice President
B. Appointment of General Manager/CEO
C. Set the time, day and place for holding meetings
BACKGROUND / ANALYSIS
The Board of Directors conducts their reorganization process at the first regular meeting
in December pursuant to California Water Code Section 30520.
The Board reorganization ensures the efficient management of the District and reflects
a dedication to the highest standards of integrity and accountability so as to continue to
earn the trust and confidence of the public served by the District.
Staff is recommending that the District continue to hold regularly scheduled Board
meetings at 31111 Greenspot Road, Highland, CA, on the 2nd and 4th Wednesday of
each month at 5:30 p.m.
AGENCY GOALS AND OBJECTIVES
II - Maintain a Commitment To Sustainability, Transparency, and Accountability
A. Practice Transparent and Accountable Fiscal Management
REVIEW BY OTHERS
This agenda item has been reviewed by Administration and Legal Counsel.
FISCAL IMPACT
There is no fiscal impact associated with this agenda item.
Agenda Item
#3e
December 8, 20212
2
6
1
Meeting Date: December 8, 2021
Agenda Item #3e
Discussion Item
Recommended by:
________________
John Mura
General Manager/CEO
ATTACHMENTS
No attachments