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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 06/01/2016SPECIAL BOARD MEETING Closed Session will begin at 4:30 PM June 1, 2016 – 5:30 PM 31111 GREENSPOT ROAD, HIGHLAND, CA 92346 AGENDA CALL TO ORDER ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will be automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. RECESS INTO CLOSED SESSION CLOSED SESSION 1.CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION [Government Code Section 54956.9(d)(1)] Name of Case: City of San Bernardino v. San Bernardino Valley Municipal Water District, et al., San Bernardino County Superior Court Case No. CIVDS1605532 2.CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION [Government Code Section 54956.9(d)(1)] Name of Case: SoCal Environmental Justice Alliance v. San Bernardino Valley Municipal Water District, et al., San Bernardino County Superior Court Case No.CIVDS1605072 5:30 PM RECONVENE MEETING PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS ANNOUNCEMENT OF CLOSED SESSION ACTION ITEMS PUBLIC COMMENTS AGENDA ITEM 3. Review Draft Budget for FY 2016-17 REPORTS 4. General Manager/CEO Report 5. Legal Counsel Report 6. Board of Directors’ Comments ADJOURN Pursuant to Government Code Section 54954.2(a), any request for a disability-related 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) 885-4900 at least 72 hours prior to said meeting. SPECIAL BOARD AGENDA STAFF REPORT Agenda Item #3. Meeting Date: June 1, 2016 Disc ussion Item To: G o verning Board Memb ers From: G eneral Manager/CEO Subject: Review Draft Bud get for FY 2016-17 RECOMMENDATION: Staff rec ommend s that the Board of Direc tors review the p ro p o s ed FY 2016-17 Operating and C ap ital Imp ro vement P ro gram Budget. BACKGROUND / ANALYSIS: Presented for the Bo ard ’s review is the propos ed b udget for F Y 2016-17, which has b een develo p ed to continue to provid e high quality water d elivery and was tewater c o llectio n s ervic es to District ratep ayers. In develo p ing the fis c al p lan for next year, staff remained c ognizant of the s evere d ro ught and c o nservatio n mandates , and ho w the effec ts of these extraord inary cond itions must b e integrated into Dis tric t operatio ns and capital s pend ing. At the same time, s taff ens ured that expend itures direc tly correlate to Agency Ideals and Organizational Endeavo rs . The o p erating b udget is presented b y program, eac h having s tated goals and o b jectives for the upc o ming fis cal year that align with Agenc y Ideals, and eac h acc o mp anied by funding req uests to s upport o f tho s e o b jectives . The Capital Budget s p ecific ally identifies eq uipment sc heduled for rep lacement or upgrad e, and p ro jects from the Capital Improvement Pro gram des ignated as high p rio rity d ue to age and conditio n, or having ins uffic ient c apac ity to meet antic ip ated growth. Revenues : As d is c us s ed in the Bo ard wo rkshop o n May 18th, 2016, revenue pro jec tio ns fo r fis c al year 2016- 17 c o nsidered the imp lementation of Water Bud get Bas ed rates in 2015-16, as s oc iated rate ad justments , and the likely permanent change in c ustomer water us age res ulting fro m c o nservatio n mandates and the Dis tric t’s water efficiency rebate programs . As a res ult, estimated water c o nsumptio n has been reduced b y 1.5% c ompared to the p rio r year, with s ales revenue projec ted to gro w 9% to $13,500,000. Sys tem (meter) c harge revenues are als o exp ected to gro w 9% to $8,960,000, due primarily to rate adjus tments as no s ignific ant develo p ment is expec ted to c o nnec t to the District’s sys tem this c oming year. Revenue projec tio ns fo r the was tewater c o llectio n s ystem includ e a 1% inc reas e, to acc ount for a few new res id enc es that c o nnec ted to the Dis trict mid -way thro ugh 2015-16, and for billing of vacant units for s ys tem charges. Other c harges are expec ted to d ecrease b y 11% to $1,187,000 as effo rts to help c us tomers p ay o n time and avoid d elinquent fees will c o ntinue in 2016-17. Exp enses: Eac h p ro gram is evaluated on an annual b as is to d etermine its effectivenes s . As a res ult, s o me new p ro grams are c reated, and others redefined , in o rd er to ens ure that the programs are run effec tively and with a high level o f ac c o untability. Capital Outlay: T he Cap ital Outlay Budget is an effort to plan fo r the replac ement of vehic les and eq uip ment. The objec tive is to standardize the replac ement proc es s in order to create a managed s ystem o f p urc has ing and fund ing capital eq uipment, thereb y allowing the Dis trict to acc urately plan and bud get fo r future need s . S taff has s c hed uled replac ements in intervals o n an annual b as is to red uc e c ap ital, operating, and maintenanc e c o s ts in o rd er to maximize the safety and efficiency o f the District’s equip ment. The FY 2016-17 Capital Outlay Bud get to tals $743,000 with majo rity of the fund s reques ted going to ward continued replac ement o f truc ks and equipment in the District’s fleet. T he b udget also inc lud es c o ntinued inves tment in tec hnology to make work order flows between offic e and field s taff more efficient. Capital Improvement P ro gram: This year ’s proposed C ap ital Budget to tals $70,236,000, and fo cus es o n p ro jects id entified in the Water and Was tewater Mas ter P lan Up d ates. Staff has taken a very c o nservative ap p ro ach to p ro ject funding due to s ignificant uncertainties about water s ales , therefore, only $1,280,000 o f the total c ap ital bud get is fund ed by operating revenue. The balance is being funded b y Replac ement Res erves , anticipated grants , low interest loans from other governments, and c ap acity fees . The pro jec ts in the Capital Imp rovement Program includ e the S terling Natural Res o urc e Center and anc illary wastewater collec tion main imp rovements , three water p ip eline rep lacement projec ts, and a s ite study and d es ign fo r a new water sto rage tank. Two millio n dollars in anticipated grant fund s will als o allo w the Dis tric t to install ap p roximately 7,000 automated meters which will enhance c us tomers’ ability to monitor and ad just water usage. Debt Servic e: The increase in Debt Servic e is attributed to the following fac to rs : San Bernard ino Valley Munic ip al Water Dis tric t has award ed the contrac t fo r the Plant 134 turnout and hyd ro elec tric p ower generatio n projec t. If the projec t is comp leted in 2016, the firs t o f 10 annual p ayments to SBVMWD will be due in February 2017. Ac cordingly, a payment of $405,000 has b een inc luded in debt s ervice und er this reimburs ement agreement. Staff has dedic ated a signific ant amo unt o f time to the c areful evaluatio n o f revenue and program exp enditures , in order to develo p a bud get that will provid e sufficient funding to meet the needs o f the c o mmunity. Througho ut the coming year, s taff will closely mo nito r revenues vers us program s pend ing, and make ad justments as nec es s ary to ens ure the Dis tric t’s fis c al sus tainab ility. AGENCY IDEALS AND ENDEAVORS: Id eals and End eavor II - Maintain An Environment Committed To Elevated P ublic S ervic e (E) – Practice trans parent & acc o untable fis c al management FISCAL IMPACT : The FY 2016-17 Op erating and Capital Impro vement Program Bud get pres ented for review is b alanc ed . Res p ectfully s ubmitted: Rec o mmended b y: Jo hn Mura General Manager / C EO Brian Tompkins Chief F inancial Offic er ATTACHMENTS: Description Type Presentation for FY 20 16 -17 Draft Budget P resentation •District Vision •Budget Influences •Financials −Water Production Projections −Revenue Projections −District Overview •Program Overview •Capital Outlay •Capital Improvement Program •Staffing Needs 2EAST VALLEY WATER DISTRICT AGENDA 3 4EAST VALLEY WATER DISTRICT GOAL #1 •Complete Proposition 1 and State Revolving Fund applications to secure financing for the Sterling Natural Resource Center. GOAL #2 •Coordinate construction partner procurement, project design, and begin construction of the Sterling Natural Resource Center. GOAL #3 •Complete 20 year life-cycle and staffing analysis of the Sterling Natural Resource Center for consideration and possible approval by the Board of Directors. GOAL #4 •Develop programs and events to increase Board Member interaction with Community Groups, Regional Partners, and individual ratepayers. GOAL #5 •Maximize the benefits made in data collection by developing standard and custom reports for Board Members and Managers that will improve decision making. GOAL #6 •Develop a Fleet Management program and vehicle replacement program. 5EAST VALLEY WATER DISTRICT DISTRICT GOALS FINANCIALS FISCAL YEAR 2016-17 •California Drought −Conservation Program •Recycled Water Facility •Transparency and Accountability •Labor and Benefits •Capital Needs 7EAST VALLEY WATER DISTRICT BUDGET INFLUENCES 8EAST VALLEY WATER DISTRICT WATER PRODUCTION PROJECTIONS ACRE FEET PRODUCED SOURCE OF SUPPLY FY 2013-14 ACTUAL FY 2014-15 ACTUAL FY 2015-16 PROJECTED FY 2016-17 PROPOSED Groundwater 18,210 16,164 10,333 9,000 Surface Water 3,350 2,330 3,784 4,800 Purchased Water 237 174 200 2,300 Total 21,797 18,668 14,317 16,100 9EAST VALLEY WATER DISTRICT TOTAL WATER REVENUE PROJECTIONS FY 2015-16 BUDGET FY 2016-17 PROPOSED CHANGE Meter Charge $ 8,175,000 $ 8,960,000 9% Sales $12,350,000 $13,500,000 9% Total $20,525,000 $22,460,000 9% 10 REVENUE BY FUND Water Sales 58% Meter Charges 38% Other 4% Water Treatment 62% Collection 36% Other 2% Wastewater EAST VALLEY WATER DISTRICT WATER FUND WASTEWATER FUND Sales & Services $ 22,460,000 $ 12,070,000 Other Charges 820,000 240,000 Investment & Miscellaneous Revenue 105,000 22,000 Total Revenue 23,385,000 12,332,000 Program Expenses 15,647,900 11,042,100 Debt Service 4,007,000 317,000 Capital Expenditures 1,309,500 280,000 Replacement Reserve Contributions 2,420,600 692,900 Total Expenditures $ 23,385,000 $ 12,332,000 EAST VALLEY WATER DISTRICT OPERATING BUDGET SUMMARY 11 PROGRAM EXPENDITURE SUMMARY WATER FUND WASTEWATER FUND Governing Board $ 149,100 $ 63,900 General Administration 944,300 404,700 HR / Risk Management 514,500 220,500 Public Affairs 509,100 508,900 Conservation 1,021,000 0 Finance 761,900 326,100 Information Technology 541,800 232,200 Customer Service 1,324,700 405,300 Meter Service 348,000 0 Engineering 846,200 372,800 Water Production Administration 394,000 0 12EAST VALLEY WATER DISTRICT PROGRAM EXPENDITURE SUMMARY 13 WATER FUND WASTEWATER FUND Source of Supply $ 3,075,000 $ 0 Pumps & Boosters 714,000 0 Transmission & Distribution 221,000 0 Water Treatment 827,000 0 Water Quality 407,000 0 Maintenance Administration 194,400 21,600 Water Maintenance 1,759,000 0 Wastewater Maintenance 0 8,233,000 Facilities Maintenance 605,400 198,600 Fleet Maintenance 490,500 54,500 Total $15,647,900 $11,042,100 EAST VALLEY WATER DISTRICT 14 DISTRICT WIDE EXPENSES Personnel 22% Operating Expenses 49% Debt Service 11% Capital Investments 18% FY 2015-16 Personnel 25% Operating Expenses 49% Debt Service 12% Capital Investments 14% FY 2016-17 EAST VALLEY WATER DISTRICT 15 COST DISTRIBUTION Personnel 25% Operating Expenses 49% Debt Service 12% Capital Investments 14% Infrastructure, Maintenance & Equipment Replacement 75% EAST VALLEY WATER DISTRICT PROGRAM OVERVIEW PROPOSED BUDGETS •Programs Established Goals and Objectives Based on the District Vision −Budget Document Clearly States all Specific Goals and Objectives by Program •Based on Priorities and Expectations, Costs Were Estimated −Significant Change in PERS Contributions has Increased Labor and Benefits across all Programs by 3% to 5% −Other Significant Changes Noted on the Following Slides Program-based budgeting increases accountability and transparency. 17 PROGRAM GOALS & OBJECTIVES EAST VALLEY WATER DISTRICT GOVERNING BOARD •Significant Changes −General elections completed in FY15-16 and will not occur in FY16-17. −Communications training costs moved from General Administration budget to Governing Board budget. 18 FY 2015-16 APPROVED FY 2016-17 PROPOSED CHANGE $295,000 $213,000 -28% EAST VALLEY WATER DISTRICT GENERAL ADMINISTRATION •Significant Changes −Communications training moved to Governing Board budget. −Administrative Assistant position added. −Contract and legal services budgets adjusted to reflect a reduced need for these services. 19 FY 2015-16 APPROVED FY 2016-17 PROPOSED CHANGE $1,312,000 $1,349,000 3% EAST VALLEY WATER DISTRICT HUMAN RESOURCES/RISK MGMT •Significant Changes −Contract services increased for implementation of Trakstar Performance Appraisal software. −Legal services increased to support staffing analysis for SNRC. −General insurance decreased due to low number of accident and injury reports. 20 FY 2015-16 APPROVED FY 2016-17 PROPOSED CHANGE $697,000 $735,000 5% EAST VALLEY WATER DISTRICT PUBLIC AFFAIRS •Significant Changes −Additional purchases of chairs and other equipment to support facility rental activities have been added to FY16-17 budget. −Communications systems, training, materials & supplies needed for the Emergency Operations Center have been included in the FY16-17 budget. −Increases in contract services and printed materials have been included to support public outreach and community events for the SNRC. 21 FY 2015-16 APPROVED FY 2016-17 PROPOSED CHANGE $507,000 $1,018,000 101% EAST VALLEY WATER DISTRICT CONSERVATION •Significant Changes −Contract services, printing, and postage have increased significantly to support an increase in printed conservation materials. −Funding for direct rebates has been reduced for matching programs. −Focus will be on direct installation programs for toilets and weather based irrigation controllers. 22 FY 2015-16 APPROVED FY 2016-17 PROPOSED CHANGE $1,511,000 $1,021,000 -32% EAST VALLEY WATER DISTRICT FINANCE •Significant Changes −Legal service have increase to pay for legal review of the Cost of Service Analysis to be conducted for wastewater services. −Temporary labor has been increased to provide departmental support until the vacant Accountant position can be filled. 23 FY 2015-16 APPROVED FY 2016-17 PROPOSED CHANGE $992,300 $1,088,000 10% EAST VALLEY WATER DISTRICT INFORMATION TECHNOLOGY •Significant Changes −Contract services have increased as all copier maintenance contracts have been consolidated into the IT budget. −Contract services now include the implementation of a new cloud based backup solution. −Professional development has increased to provide staff training for GIS and virtual desktops. 24 FY 2015-16 APPROVED FY 2016-17 PROPOSED CHANGE $619,300 $774,000 25% EAST VALLEY WATER DISTRICT CUSTOMER SERVICE •Significant Changes −Contract services, rents and leases, and banking services have been reduced to reflect savings when the kiosks are replaced by more cost effective offsite payment center solutions. −Billing services have been reduced to reflect a more accurate budget of the cost of this third party service. −Postage costs have been reduced as a result of purchasing a metered postage machine. 25 FY 2015-16 APPROVED FY 2016-17 PROPOSED CHANGE $1,716,500 $1,730,000 1% EAST VALLEY WATER DISTRICT METER SERVICE •Significant Changes −Decrease in contract services for large meter testing due to the replacement of most large water meters in FY14-15 and FY15-16. −Labor costs have decreased due to the large percentage of new staff in the department. 26 FY 2015-16 APPROVED FY 2016-17 PROPOSED CHANGE $353,500 $348,000 -2% EAST VALLEY WATER DISTRICT ENGINEERING •Significant Changes −Labor has increased to reflect a restructuring of program staff: Director of Engineering and Operations replaces the Engineering Manager, and Construction Project Coordinator. −Contract Services has increased to support the need for GIS work on District digital maps. −Excavation permit expenditures were moved from Operations to the Engineering department. 27 FY 2015-16 APPROVED FY 2016-17 PROPOSED CHANGE $870,500 $1,219,000 38% EAST VALLEY WATER DISTRICT WATER PRODUCTION •Significant Changes −Contract Services has increased to provide funding for improving security and system documentation for the District’s telemetry system. −Purchased water has increased significantly to allow the District to purchase additional water made available by the State. −Water Assessments have increased significantly to fund District participation in NFWC pipeline upgrade projects. −Electricity cost projections have been reduced to reflect pumping efficiencies and participation in SCE programs. −Permits have increased to account for new $4 per connections charge being considered by the State Water Resources Control Board (SWRCB). 28 FY 2015-16 APPROVED FY 2016-17 PROPOSED CHANGE $4,791,000 $4,404,000 -8% EAST VALLEY WATER DISTRICT WATER TREATMENT •Significant Changes −Electricity costs at Plant 134 are expected to increase now that the getaway pipeline expansion project is complete and will allow the plant to operate at a higher capacity. 29 FY 2015-16 APPROVED FY 2016-17 PROPOSED CHANGE $736,000 $827,000 12% EAST VALLEY WATER DISTRICT WATER QUALITY •Significant Changes −Contract Services budget has increased to account for the cost of a watershed sanitary survey required by the SWRCB. −Contract Services has also increased to cover additional Title 22 sampling. 30 FY 2015-16 APPROVED FY 2016-17 PROPOSED CHANGE $342,000 $407,000 19% EAST VALLEY WATER DISTRICT FIELD MAINTENANCE ADMINISTRATION •Significant Changes −One position has been reassigned to the Engineering Department to assist with management of pipeline construction projects. 31 FY 2015-16 APPROVED FY 2016-17 PROPOSED CHANGE $355,500 $216,000 -39% EAST VALLEY WATER DISTRICT WATER MAINTENANCE •Significant Changes −Labor and benefits increased as two field staff were added to form two complete pipeline crews. −Tools increased $22,000 to replace non-capital equipment. −Permit costs were moved to the Engineering department. 32 FY 2015-16 APPROVED FY 2016-17 PROPOSED CHANGE $1,672,000 $1,759,000 5% EAST VALLEY WATER DISTRICT WASTEWATER MAINTENANCE •Significant Changes −Labor increased with four full-time staff now dedicated to video logging and jetting the collection system. −Treatment Services increased $360,000 to reflect phase 2 of the City of San Bernardino wastewater treatment rate increases. 33 FY 2015-16 APPROVED FY 2016-17 PROPOSED CHANGE $7,709,000 $8,233,000 7% EAST VALLEY WATER DISTRICT FACILITIES MAINTENANCE •Significant Changes −Contract Services for program administration has increased 146% to support the implementation of a long term preventative maintenance and equipment replacement schedule implementation effort. −Contract Service for facilities has decreased as related projects have been moved from this program’s operating budget to the capital budget. 34 FY 2015-16 APPROVED FY 2016-17 PROPOSED CHANGE $788,000 $804,000 2% EAST VALLEY WATER DISTRICT FLEET MAINTENANCE •Significant Changes −Contract Services has increased to support the implementation of a long- term preventative maintenance and vehicle replacement schedule implementation effort. −Fuel costs have decreased due to fuel efficiencies realized with a newer fleet and the reduced price of fuel. 35 FY 2015-16 APPROVED FY 2016-17 PROPOSED CHANGE $529,500 $545,000 3% EAST VALLEY WATER DISTRICT CAPITAL BUDGET CAPITAL ASSET EXPENDITURES CAPITAL OUTLAY (FUNDED BY OPERATIONS) 37 DESCRIPTION AMOUNT Wash Plan Contribution $ 52,000 Next Generation Network Firewalls 60,000 Ruggedized Surface Pros (10)18,000 HQ Site Improvements 50,000 Network Monitoring Tools 17,500 Civic Engagement Portal 20,000 Software Upgrades 92,000 Total $ 309,500 EAST VALLEY WATER DISTRICT CAPITAL OUTLAY (REPLACEMENT RESERVE) 38 DESCRIPTION AMOUNT Plant 134 Chemical Feed Pumps & Touch Screens $ 70,000 Plant 134 Fiberglass Chlorine Tank 25,000 Wastewater Bypass Pump & Hose 135,000 Service Trucks (4) & Tandem Axle Equipment Trailer 165,000 Generator -CCTV Truck 15,000 Copier & Mail Processing Equipment 23,500 Total $ 433,500 EAST VALLEY WATER DISTRICT CAPITAL IMPROVEMENT PROJECTS (FUNDED BY OPERATIONS & SRF) 39 PROJECT AMOUNT Habitat Conservation Plan $ 310,000 Automated Metering Infrastructure (AMI)2,011,000 Upper Zone Booster 250,000 Canal Zone Reservoir 410,000 Plant 101 Hydro Tank Rehabilitation 100,000 Greenspot Wastewater Capacity Improvement 700,000 SNRC & Collection System Improvements**63,850,000 **Staff is pursuing State grants/loans to fund this project. EAST VALLEY WATER DISTRICT CAPITAL IMPROVEMENT PROJECTS (FUNDED BY OPERATIONS & SRF) 40 PROJECT AMOUNT Facilities Relocations $ 100,000 Plant Site Facility Rehabilitation Projects 150,000 City Creek Manhole Relocation 100,000 Wastewater Flow Monitoring 30,000 Wastewater Cost of Service Analysis 80,000 Total $68,091,000 EAST VALLEY WATER DISTRICT CAPITAL IMPROVEMENT PROJECTS (REPLACEMENT RESERVE) 41 PROJECT AMOUNT Water Main Replacement -Pumalo $ 380,000 Water Main Replacement -Dwight / Glasgow 1,205,000 Intake Main Replacement -North Fork 125,000 Wastewater Main Replacement -Paloma 160,000 Wastewater Main Replacement -Orange 75,000 Wastewater Main Replacement -4th 200,000 Total $ 2,145,000 EAST VALLEY WATER DISTRICT CAPITAL BUDGET SUMMARY 42 WATER FUND WASTEWATER FUND Operating Revenue $ 1,309,500 $ 280,000 SRF Grants & Loans 2,011,000 63,850,000 Replacement Reserve 1,985,000 593,000 Developer Fees 250,000 700,000 Total Sources 5,556,000 65,423,000 Capital Improvement Projects 5,041,000 65,195,000 Capital Outlay 515,000 228,000 Total Expenditures $ 5,556,000 $ 65,423,000 EAST VALLEY WATER DISTRICT STAFFING NEEDS AUTHORIZED POSITIONS 4444 •Total Authorized Positions: 69 •Requested Positions −Accountant −Director of Engineering & Operations (Replaces Engineering Manager) AUTHORIZED POSITIONS 30 35 40 45 50 55 60 65 70 75 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Proposed Authorized & Funded Positions Does not include part time temporary positions. EAST VALLEY WATER DISTRICT DRAFT BUDGET FISCAL YEAR 2016-2017 EAST VALLEY WATER DISTRICT HIGHLAND, CALIFORNIA LEADERSHIP | PARTNERSHIP | STEWARDSHIP TRANSMITTAL LETTER ...............................................1 District Officials ...............................................................1 Strategic Goals and Strategies ...................................1 Short-Term Organization-Wide Factors ...................2 Priorities and Issues ......................................................2 INTRODUCTION ...........................................................3 Budget Guide .................................................................3 Statistical/Supplemental Information .......................7 Organizational Structure .............................................9 District Vision.................................................................10 FINANCIAL SUMMARY .............................................13 Budget Overview .........................................................13 Fund Structure ..............................................................17 Fund/Program Relationship .......................................17 Basis of Budgeting .......................................................19 Financial Policies ..........................................................19 Budget Process ..........................................................20 Fund Equity ...................................................................23 Revenues .......................................................................25 Long-Range Financial Plans .....................................27 Capital Expenditures ..................................................29 Impact of Capital Expenditure Investments on Operating Budget ........................................................31 Debt ................................................................................33 CONSOLIDATED FINANCIAL SCHEDULE ..........35 Three Year Consolidated and Fund Financial Schedules ......................................................................35 Water Fund ....................................................................39 Wastewater Fund ........................................................47 PROGRAM SUMMARIES ..........................................53 Position Summary Schedule ....................................53 Department Descriptions ..........................................53 Governing Board ....................................................57 General Administration ..........................................61 Human Resources..................................................65 Public Affairs ............................................................69 Conservation ...........................................................73 Finance .....................................................................77 Information Technology .........................................81 Customer Service ..................................................85 Meter Service ..........................................................89 Engineering .............................................................93 Water Production ...................................................97 Water Treatment ...................................................103 Water Quality .........................................................107 Water Maintenance ...............................................111 Wastewater Maintenance ...................................115 Facilities Maintenance .........................................119 Fleet Maintenance ...............................................123 CAPITAL BUDGET ....................................................127 Capital Outlay .............................................................129 Capital Improvement Program ...............................132 GLOSSARY ..................................................................177 Chart of Accounts .....................................................179 TABLE OF CONTENTS EAST VALLEY WATER DISTRICT page. 1 LEADERSHIP | PARTNERSHIP | STEWARDSHIP HONORABLE CHAIRMAN, GOVERNING BOARD & DISTRICT RATEPAYERS: STRATEGIC GOALS & STRATEGIES governing board of directors Chairman of the Board RONALD L. COATS Vice Chairman CHRIS CARRILLO Governing Board Member JAMES MORALES, JR. Governing Board Member NANETTE SHELTON Governing Board Member DAVID E. SMITH FISCAL YEAR BUDGET 2016-2017page. 2 district management General Manager/CEO JOHN MURA SHORT-TERM ORGANIZATION- WIDE FACTORS PRIORITIES & ISSUES Respectfully submitted, John Mura General Manager/CEO Information Technology Manager ROBERT PENG FISCAL YEAR BUDGET 2016-2017page. 2 INTRODUCTION Annual financial plan, policy document and operations guide for transparent communication. District Clerk JUSTINE HENDRICKSEN Human Resources/Risk & Safety Manager KERRIE BRYAN Public Affairs/ Conservation Manager KELLY MALLOY Operations Manager PATRICK MILROY Assistant General Manager JOSÉ MARTINEZ Chief Financial Officer BRIAN TOMPKINS EAST VALLEY WATER DISTRICT page. 3 INTRODUCTION Annual financial plan, policy document and operations guide for transparent communication. BUDGET GUIDE The budget document is East Valley Water District’s (EVWD or District) annual financial plan prepared by District Management and approved by the Governing Board. The financial plan serves as a policy document, operations guide for programs, and as means of transparent communication. The intended audience of the budget document is citizens, local businesses, debt holders and debt rating agencies, other governmental agencies, and other stakeholders. BUDGET DOCUMENT SECTIONS The budget document consists of 6 sections including: INTRODUCTION The Introduction section includes the General Manager/CEO’s Budget Transmittal Letter, Strategic Goals and Strategies, Short-Term Organization- Wide Factors, Priorities and Issues, Budget Guide, Statistical/Supplemental Information, Organizational Structure, and District Vision. FINANCIAL SUMMARY This section presents an in-depth District-Wide overview of the Fiscal Year 2016-17 Budget. CONSOLIDATED FINANCIAL SCHEDULE This section is a comprehensive summary of the District’s Operating Budget. PROGRAM SUMMARIES This section provides comprehensive information for each functional program within the District including their operational budget. The Fiscal Year 2016-17 Budget is organized into the following summary programs: • Governing Board • General Administration • Human Resources • Public Affairs • Conservation • Finance and Accounting • Information Technology • Customer Service • Meter Service • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Maintenance • Facilities Maintenance • Fleet Maintenance Each program section includes: • Program Personnel: This section is the authorized personnel allocated to each program. • Function: This section includes a basic description of the responsibilities of each program. FISCAL YEAR BUDGET 2016-2017page. 4 • Goals & Objectives: This section identifies specific goals and objectives for Fiscal Year 2016-17. • Accomplishments: This section includes highlights from Fiscal Year 2015-16. • Significant Changes: This section identifies causes of significant changes to program funding. • Key Performance Indicators: These tables present measures that help the District define and evaluate progress toward achieving departmental and organizational goals and objectives. • Program Budget Detail: This section is a breakdown of the program expenditures by category or line item. CAPITAL BUDGET This section presents the Capital Outlay expenditures and Capital Improvement Projects for the Fiscal Year 2016-17 Budget. GLOSSARY This section provides definitions for general terms and the Chart of Accounts used throughout the budget document. DISTINGUISHED BUDGET AWARD The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to East Valley Water District, California for its annual budget for the fiscal year beginning July 1, 2015. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. EAST VALLEY WATER DISTRICT page. 5 BUDGET FINANCIAL INFORMATION East Valley Water District operates on a fiscal year, or budget time period, that begins on July 1 and ends June 30. The columns typically presented are: FY 2014-15 ACTUAL Actual financial information for Fiscal Year 2014-15 as reported in the Comprehensive Annual Financial Report. The actual financial information is reported in the budget document on a budgetary basis. FY 2015-16 BUDGET The FY 2015-16 Budget as adopted by the Governing Board on June 10, 2015 and may also include any adjustments approved by the Governing Board at the Mid-Year Budget Review. FY 2015-16 PROJECTED The FY 2015-16 Projected column reflects the FY 2015-16 Budget in addition to any budget amendments approved by the Governing Board during the fiscal year. The FY 2015-16 Projected column is also adjusted to reflect management’s estimate of what revenues and expenditures will be at the end of the fiscal year. FY 2016-17 PROPOSED This column initially reflects the FY 2016-17 Proposed Budget submitted by the General Manager/CEO. After the Governing Board reviews and approves the Fiscal Year 2016-17 Budget, the information in the FY 2016-17 column changes, if necessary, to reflect the Board’s actions. AMOUNT CHANGED / % CHANGE These columns provide the amount changed/ percent change from the previous year’s budget to the newly proposed budget. FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE FISCAL YEAR BUDGET 2016-2017page. 6 THIS PAGE IS LEFT BLANK INTENTIONALLY EAST VALLEY WATER DISTRICT page. 7 STATISTICAL/ SUPPLEMENTAL INFORMATION EVWD provides water and wastewater services to residents within its 27.7 square mile service area to 104,457 people, within the cities of Highland and San Bernardino, portions of unincorporated County of San Bernardino, the San Manuel Band of Mission Indians, and Patton State Hospital. The District was formed through a local election of mostly citrus grove operators, to have water service provided by a public agency. EVWD is located in the foothills of the San Bernardino Mountains, 65 miles east of Los Angeles in the County of San Bernardino. §¨¦210 §¨¦210 §¨¦210 P L U N G E C R E E K Cook Cree k Oak Creek SAND CREEK COOK C R E E K P L U N GECREEK SAND CREEK S A N T A A N A R I V E R WARM CREEK T W IN CREEK ELD ERCREEK B L E DSOECREEK MILL CREEK C I T Y C R E E K CITY C R E E K SANTAANA RIVER S A N T A AN A RIVER TWIN CREEK DISTRICT SERVICE AREA HIGHLAND SAN BERNARDINO SEVENOAKS DAM WATER SOURCES With a service area just under 30 square-miles, the District has three sources for water, the Santa Ana River, the Bunker Hill Groundwater Basin, and the State Water Project. The Santa Ana River starts with natural springs and snow melt high in the San Bernardino Mountains. Groundwater is drawn from the Bunker Hill Basin, a natural underground storage area made up of soil, sand, and gravel. A small portion of the District’s water is imported from Northern California through the State Water Project. EVWD has access to this water through San Bernardino Valley Municipal Water District. 80% 18% SURFACE WATER (SANTA ANA RIVER) GROUND WATER (BUNKER HILL BASIN) 2%IMPORTED WATER (NORTHERN CALIFORNIA) FISCAL YEAR BUDGET 2016-2017page. 8 WASTEWATER COLLECTION & TREATMENT The District is responsible for the collection and conveyance of wastewater within the service area. Currently, all wastewater is sent to the San Bernardino Municipal Water Department facilities, where it is treated in accordance with a Joint Powers Agreement. In order to create a new source of supply, San Bernardino Valley Municipal Water District, in cooperation with East Valley Water District will be constructing the Sterling Natural Resource Center (SNRC). [INSERT ADDITIONAL TEXT HERE] POPULATION GROWTH Population growth projections vary within East Valley Water District’s service area due a number of proposed developments with unspecified timing for completion. Land use agencies have incorporated approximately 5,000 new housing and business units within General Plan documents. WEATHER The weather in Highland/San Bernardino varies throughout the year. During the summer, temperatures can reach 115° F and drop as low as 40° F during the winter. This area typically averages 18 inches of precipitation annually, mostly during the months of January through March. GOVERNMENT East Valley Water District is a California Special District established in 1954. The District is governed by a five member Governing Board elected by voters at-large to staggered four year terms. The Governing Board represents the public’s interest as policy makers with regards to rate for service, policies, ordinances, and budget adoption. Appointed by the Governing Board, the General Manager/CEO is responsible for overseeing daily operations and managing staff resources. East Valley Water District is a rate-based organization that receives no tax-related revenue and operates in accordance with Division 12 of the California Water Code. EDUCATION Residents within East Valley Water District’s service area have access to award winning K-12 schools through the Redlands Unified School District and San Bernardino City Unified School District. Local colleges and universities include California State University, San Bernardino, the University of California at Riverside, the University of Redlands, Loma Linda University. Community college locations include Crafton Hills College, Riverside Community College, and San Bernardino Valley Community College. HOSPITAL & MEDICAL FACILITIES Hospital and medical facilities located in or near the East Valley Water District service area include Arrowhead Regional Medical Center, Loma Linda University Medical Center, Kaiser Foundation Hospital, Kindred Hospital Rancho, Redlands Community Hospital, Community Hospital of San Bernardino, J. Pettis Veteran’s Administration Hospital, and St. Bernardine Medical Center. Additionally there are a number of urgent care and outpatient facilities located throughout the region. TRANSPORTATION Public transportation is available within the East Valley Water District service area through OmniTrans. With a variety of routes, OmniTrans provides busing services throughout the San Bernardino Valley, including Cities of Highland and San Bernardino. Community members have access to the Metrolink commuter rail service, which provides long distance transportation to commuters from the San Bernardino area to major center of employment including Los Angeles and Orange County. Within the District’s service area there is transportation access to Interstates 215, 210, 15, and 10; and Highways 30, 60, 91 and 330. $96,343 CITY OF HIGHLAND $56,463 CITY OF SAN BERNARDINO $56,463 COUNTY OF SAN BERNARDINO AVERAGE HOUSEHOLD INCOME EAST VALLEY WATER DISTRICT page. 9 PUBLIC SAFETY East Valley Water District serves members of the community within the cities of Highland and San Bernardino, unincorporated County of San Bernardino and San Manuel Band of Mission Indians. Within these communities law enforcement is provided by the San Bernardino County Sheriff’s Department and the City of San Bernardino Police Department. Fire protection services are provided by the California Department of Forestry and Fire and Protection (Cal Fire), San Bernardino County Fire Department, and the San Manuel Fire Department. MAJOR EMPLOYERS Major employment industries within the cities of Highland and San Bernardino include schools, mental health services, hospitals, police departments, casinos, state government, and real estate loans. ORGANIZATIONAL STRUCTURE Presented below is an overview of the District’s organizational structure. WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE CUSTOMER SERVICECONSERVATIONWATER TREATMENT WATER QUALITY RATEPAYERS GOVERNING BOARD GENERAL MANAGER/CEO ASSISTANT GENERAL MANAGER CHIEF FINANCIAL OFFICER LEGAL COUNSEL HUMAN RESOURCES PUBLIC AFFAIRS ENGINEERING FINANCEOPERATIONS MANAGER INFORMATION TECHNOLOGY GENERAL ADMINISTRATION DIRECTOR OF ENGINEERING & OPERATIONS WATER PRODUCTION METER SERVICES FLEET MAINTENANCE FISCAL YEAR BUDGET 2016-2017page. 10 DISTRICT VISION In April 2015, the Governing Board adopted a new District Vision and Core Values to replace the existing Mission Statement. Additionally, the District adopted ambitious Agency Ideals and Organizational Endeavors to further enhance the effort set forth in the 2012 Strategic Initiatives. East Valley Water District is a performance based agency. In order to ensure consistent decision- making throughout the organization, the Governing Board adopted the updated District Vision. By setting clear expectations, all staff members are encouraged to be active participants in operations while looking for opportunities to make a positive impact on the community. VISION Enhance and preserve the quality of life for our community through innovative leadership and world class public service. LEADERSHIP Motivating a group of people to act towards achieving a common goal or destination. PARTNERSHIP Developing relationships between a wide range of groups and individuals through collaboration and shared responsibility. STEWARDSHIP Embracing the responsibility of enhancing and protecting resources considered worth caring for and preserving. CORE VALUES I. ENCOURAGE INNOVATIVE INVESTMENTS TO PROMOTE SUSTAINABLE BENEFITS A. Develop Projects and Programs to Ensure Safe and Reliable Services B. Manage and Identify Methods to Conserve Natural Resources C. Enhance Emergency Preparedness Programs D. Dedicate Effort Toward System Maintenance and Modernization E. Actively Seek Alternative Supply Resources II. MAINTAIN AN ENVIRONMENT COMMITTED TO ELEVATED PUBLIC SERVICE A. Strive To Provide World Class Customer Relations B. Promote a Positive Organizational Culture C. Identify Strategies to Attract and Retain a High Quality Workforce D. Maximize Staff and Governing Board Capabilities Through Ongoing Professional Development E. Practice Transparent and Accountable Fiscal Management AGENCY IDEALS & ORGANIZATIONAL ENDEAVORS EAST VALLEY WATER DISTRICT page. 11 III. DEMONSTRATE VISIONARY LEADERSHIP TO ENHANCE DISTRICT IDENTITY A. Promote Community Involvement and Educational Opportunities B. Strengthen Regional, State and National Partnerships C. Utilize Innovative Communication Methods D. Respect and Preserve Regional Heritage E. Develop a Proactive Legislative Presence IV. FULLY UNDERSTAND CHALLENGES TO CULTIVATE EFFECTIVE SOLUTIONS A. Support Ongoing Business Process Improvement B. Encourage Performance Based Results Through Staff Empowerment C. Pursue Alternative Funding Sources D. Embrace an Environment of Active Learning and Knowledge Sharing E. Conduct Post Implementation Evaluations and Make Improvements as Necessary DISTRICT SPOTLIGHT 101,733 123,000 2016 POPULATION 2025 EST. POPULATION 6,500,000 GALLONS OF WASTEWATERCONVEYED DAILY 15,000,000 GALLONS OF WATER DELIVERED DAILY 320 LEAKSREPAIREDEACH YEAR 293 MILESOF WATER DISTRIBUTION 219 MILES OF WASTEWATERMAINS ESTABLISHED1954 17 430 ACTIVE GROUNDWATER WELLS FIRE HYDRANTS FLUSHED YEARLY31,000,000 GALLONS OF POTABLE WATER STORAGE 27.7 SQUARE MILE SERVICE AREA 23,000WATER METERS READ MONTHLY 1,370 VALVES EXERCISED YEARLY 3,275 WATER SAMPLES COLLECTED YEARLY FISCAL YEAR BUDGET 2016-2017page. 12 THIS PAGE IS LEFT BLANK INTENTIONALLY FINANCIAL SUMMARY An in-depth District-wide overview of the FY 2016-17 budget. EAST VALLEY WATER DISTRICT page. 13 FINANCIAL SUMMARY An in-depth District-wide overview of the FY 2016-17 budget. BUDGET OVERVIEW East Valley Water District utilizes program-based budgeting. Requested funds are associated with program goals and objectives. Performance is then reviewed on a quarterly basis with the Board of Directors. This performance based strategy provides the ability to monitor expenses related to a particular program or activity and track measurable benefits. Program-based budgeting results can be used in cost-benefit analyses, just as it would be in a business environment to determine the value of decisions and enhance transparency. District staff has developed program goals and objectives that can be directly related back to the District Vision. By adopting this Vision and clearly identifying the road to achieve this vision, rate payers and the Board of Directors can more easily see where dollars are invested, monitor the effectiveness of programs, and increase policy engagement. The following Budget Highlights discuss changes in program activities that influenced the development of the FY 2016-17 Budget. FY 2015-16 FY 2016-17 CHANGE Labor & Benefits $ 7,899,500 $ 8,630,000 9% Water Supply 575,000 1,245,000 117% Electrical Power 2,975,000 1,820,000 -39% Conservation Rebates 1,000,000 500,000 -50% Wastewater Treatment 7,250,000 7,610,000 5% Contract Services 2,130,000 2,607,000 22% Other Operating Expenses 3,967,600 4,278,000 8% Debt Service 3,925,000 4,324,000 10% Capital Expenditures 7,062,360 1,589,500 -77% Replacement Reserve - 3,113,500 Total Expenditures 36,784,460 35,717,000 Projected Revenue 33,420,000 35,717,000 Net $ (3,364,460)$ - FISCAL YEAR BUDGET 2016-2017page. 14 BUDGET HIGHLIGHTS The proposed budget for fiscal year 2016-17 is balanced with projected revenue equal to total expenditures and reserve contributions of $35,717,000. The prior year budget was adopted with a deficit of $3,364,000 as a withdrawal from reserves was required to purchase land for the Sterling Natural Resource Center water recycling facility. LABOR AND BENEFITS Labor and benefits costs are projected to increase by 9% compared to the prior year adopted budget. No new positions have been requested for the 2016-17 fiscal year, however, the proposed budget includes the full-year effect of two positions added during the 2015-16 year. These consist of two water service workers hired to fully staff a second water main repair crew made necessary due to a high number of main leak responses in the older sections of the District’s service area. In addition, a 2% cost of living adjustment negotiated with the employee bargaining unit will become effective July 1, 2016. An increase in benefit costs has been projected as the District continues to make scheduled payments toward reducing an unfunded actuarial liability (UAL) related to the District’s CalPERS pension plan. Water Supply The California State Water Resources Control Board has announced that State Water Project deliveries to Southern California will increase significantly in 2016-17 as a result of El Nino winter storms. In order to take advantage of this water availability, the District has increased its budget for purchased water by $500,000 to buy water for use in its current water supply mix, or to use for groundwater recharge. ELECTRICAL POWER The District realized significant power cost savings in 2015-16 as a result of two efforts: 1) the implementation of energy conservation measures recommended by a consultant after a thorough review of District water production operations, and 2) continued efforts by production staff to pump only during non-peak energy demand hours to avoid higher electricity rates. The 2016-17 budget for power costs has been reduced by 39% to reflect these energy savings efforts, and to reflect reduced costs associated with lower water consumption by District ratepayers. CONSERVATION District efforts to comply with the Governor’s April 2015 Executive Order to reduce water consumption by 28% included budgeting $1,000,000 in 2015-16 for direct conservation rebates to customers. Due to partial drought relief delivered by El Nino winter storms, the 28% mandate has been replaced by a collaborative approach to setting conservation goals for the next three years. As a result of this change, the District has reduced the direct rebate program budget by 50% for 2016-17, but will continue to encourage responsible water use through education and outreach efforts. WASTEWATER TREATMENT The City of San Bernardino currently treats wastewater flows from East Valley Water District, in accordance with a Joint Powers Agreement, and is responsible for establishing wastewater treatment rates. A City rate increase effective July 1, 2016 will increase the District’s treatment costs by approximately 5%. RECYCLED WATER FACILITY The District is aggressively planning the construction of a recycled water facility, to be called the Sterling Natural Resource Center (SNRC), which will provide a reliable, sustainable water supply for future residents. While the construction project is included in the capital budget, planning for the implementation of this new enterprise activity impacts the 2016-17 budgets of programs throughout the District. Staffing plans, public outreach, financial reporting, and technology studies related to the SNRC have all contributed to a 22% increase in Contract Services over the prior year. DEBT SERVICE Debt service costs will increase by 10% as the District begins repayment on a loan from the San Bernardino Valley Municipal Water District (SBVMWD). SBVMWD is the regional contractor for the State Water Project, which delivers Northern California water to agencies in Southern California. The purpose of the loan is to finance construction EAST VALLEY WATER DISTRICT page. 15 of a State Water Project turnout and hydroelectric generation facility at the District’s Plant 134. Construction is scheduled for completion in FY 2016-17. CAPITAL NEEDS Continued contributions to capital investments are a priority for the District. The District continues to evaluate vehicles and equipment as well as infrastructure to ensure proper planning and funding for replacement. A priority for the District for FY 2016-17 is the replacement of aging mainlines, and addressing water storage capacity deficiencies. The capital budget includes projects to address both of these priorities; and also identifies funding resources which include State Revolving Fund loan and grants, funding from operating revenue, and funding from replacement reserves. FISCAL YEAR BUDGET 2016-2017page. 16 EAST VALLEY WATER DISTRICT page. 17 WASTEWATERFUND WATER FUND FUND STRUCTURE FUND STRUCTURE A California special district, EVWD engages in two separate and distinct business-type activities, including: • Acquisition, treatment and distribution of potable water, and the construction, repair and replacement of related infrastructure, and • Collection of domestic and industrial wastewater, and the construction, repair and replacement of conveyance facilities Accordingly, the District’s budget is organized on the basis of two major enterprise funds - water and wastewater. Each enterprise fund is considered a separate budgetary and accounting entity, reported on a full accrual accounting basis with the exceptions noted in the Basis of Budgeting section on page 15 of this document. Each fund is a separate fiscal entity with its own self balancing set of accounts, and rates and budgets are adopted for each to support the associated operating and capital costs. Each enterprise fund records cash and financial resources, together with all related liabilities and residual equity balances. Operations and maintenance programs are supported by the financial resources of each fund in accordance with the allocations presented later in this section. FUND/PROGRAM RELATIONSHIP Operating expenses incurred by each of the District’s programs are allocated to the water and wastewater funds based on the assumed benefit of each service to each fund. The Benefit Assessment entailed the evaluation of each program and the services provided through activity based costing. With the implementation of water budget based rates, more costs were shifted from the Wastewater Fund to the Water Fund due to the increased cost of administering the new rates. A table illustrating the Fund/Program relationship for the current fiscal year is on the following page. WASTEWATER SERVICE CHARGES INTEREST INCOME & OTHER INCOME WATER SALES & SERVICE CHARGES WASTEWATER CAPITAL EXPENDITURES & DEBT SERVICE DISTRICT OPERATIONS & MAINTENANCE PROGRAMS WATER CAPITAL EXPENDITURES & DEBT SERVICE FISCAL YEAR BUDGET 2016-2017page. 18 FUND PROGRAM RELATIONSHIP PROGRAM WATER FUND WASTEWATER FUND TOTAL 1000 Governing Board $ 149,100 $ 63,900 $ 213,000 2000 General Administration 944,300 404,700 1,349,000 2100 Human Resources/Risk Management 514,500 220,500 735,000 2200 Public Affairs 509,100 508,900 1,018,000 2300 Conservation 1,021,000 - 1,021,000 3000 Finance 761,900 326,100 1,088,000 3200 Information Technology 541,800 232,200 774,000 3300 Customer Service 1,324,700 405,300 1,730,000 3400 Meter Services 348,000 - 348,000 4000 Engineering 846,200 372,800 1,219,000 5000 Water Production Administration 394,000 - 394,000 5000-51 Source of Supply 3,075,000 - 3,075,000 5000-52 Pumps & Boosters 714,000 - 714,000 5000-54 Transmission & Distribution 221,000 - 221,000 5100 Water Treatment 827,000 - 827,000 5200 Water Quality 407,000 - 407,000 6000 Maintenance Administration 194,400 21,600 216,000 6100 Water Maintenance 1,759,000 - 1,759,000 6200 Wastewater Maintenance - 8,233,000 8,233,000 7000 Facilities Maintenance 605,400 198,600 804,000 7100 Fleet Maintenance 490,500 54,500 545,000 TOTAL $ 15,647,900 $ 11,042,100 $ 26,690,000 EAST VALLEY WATER DISTRICT page. 19 BASIS OF BUDGETING The District’s financial records are kept in accordance with Generally Accepted Accounting Principles (GAAP) for governmental enterprise funds. The District follows the GAAP requirement that enterprise funds use the full accrual basis of accounting. However, there are exceptions where the accrual basis is not conducive to effective presentation of the District’s budget, in which case, GAAP is not followed. Those exceptions are as follows: • Compensated absence liabilities that are expected to be liquidated with current expendable financial resources are accrued as earned by employees (GAAP standard) as opposed to being expended when paid (budget procedure). • Principal payments on Long Term Debt are applied to the outstanding liability on a GAAP basis, as opposed to being expended on a Budget basis. • Capital Outlay are capitalized on a GAAP basis, however, on a Budget basis, they are treated as expenditures. • Depreciation expense is recorded on a GAAP basis but is not contemplated on the Budget basis. • Interest expenditures are capitalized during construction on a GAAP basis, but are reported as an expense on a Budget basis. • Pension expense is budgeted based on employer contribution rates assigned by CalPERS. For financial statement reporting, pension expense is recorded based on the change the net pension liability in accordance with GASB 68. The activities of enterprise funds closely resemble those of ongoing businesses in which the purpose is to conserve and add to resources while meeting operating expenses from current revenues. Enterprise funds account for operations that provide services on a continuous basis and, in the case of East Valley Water District, are entirely financed by revenues derived from user charges. The District maintains a self-balancing set of accounts established to record the financial position and operating results that pertain to each activity. FINANCIAL POLICIES EVWD’s financial management policies provide a basic framework for the overall fiscal management of the District. The policies represent a foundation for addressing changing circumstances and conditions, and to assist in the decision-making process. Financial policies represent guidelines for evaluating both current activities and proposals for future programs. They also reflect long-standing principles and practices, which have enabled the District to maintain its financial stability. Policies are reviewed annually to ensure the guidelines represent a realistic, current framework for policy decisions. BALANCED BUDGET East Valley Water District shall prepare an itemized budget for each fund and each program within those funds. The budgets will be balanced, with current revenues equal to or greater than current expenditures/expenses using the following strategies: improve productivity; raise fees to offset costs of providing services and/or use reserves if available. INVESTMENT POLICY The District’s Investment Policy applies to the investment of short-term operating funds of the District in excess of those funds required to meet current District expenditures. District policy requires adherence to California Government Code sections 5921 and 53601 regarding allowable investments. The policy also includes guidelines on Pooling of Funds, Safety, Liquidity, Yield, Prudence, Ethical Standards, Risk, Diversification, and Reporting. RESERVE POLICY The District recognizes that fiscal responsibility requires anticipating, and preparing for, unforeseen events, in addition to ensuring sufficient funding is available for current operating, capital, and debt service needs. To that end, the District has adopted a Designated Funds (Reserve) Policy as part of prudent financial planning and to ensure sufficient funding for current and future needs. The Designated Funds Policy has established the following reserves and reserve target levels: • Operating Reserves – maintain 90 days of District’s budgeted total operating expenses; FISCAL YEAR BUDGET 2016-2017page. 20 • Rate Stabilization Reserves – maintain 45 days of District’s budgeted total operating expenses; • Capital Replacement Reserves – minimum of 100 percent of depreciation expense for the preceding year; • Emergency Reserves – 2 percent of the total value of Plant and Equipment. DEBT POLICY The District has adopted a policy regarding the utilization of debt. Standards established in this policy require: • An equitable allocation of capital costs/charges between current and future system users; • Minimum rate volatility. In addition, the District confines long-term borrowing to capital improvements for projects that cannot be financed from current revenues. When the District finances capital projects by issuing bonds, it will pay back the bonds within a period not to exceed the estimated useful life of the asset. The District maintains good communication with bond rating agencies regarding financial condition and will follow a policy of full disclosure on every financial report. The District has no legal debt limits. BUDGET PROCESS The budget reflects direction from the Governing Board as established by the District Vision and communicated to District staff through various meetings and workshops. The purpose of this budget document is to communicate the District’s financial priorities with citizens, local businesses, creditors, rating agencies, other local agencies and stakeholders, and District staff. The Fiscal Year 2016-17 Budget represents guidelines established to address the District’s short-term and long- term goals and objectives. This document also demonstrates the District’s ability to use financial resources for completing critical capital projects for current and future customers as well as the District’s commitment to meet its financial obligations. Staff is confident that the financial framework outlined in the FY 2016-17 Budget will allow the District to deliver reliable, high-quality water and wastewater services to its customers in a prudent and sustainable manner. Each year programs establish goals and objectives in support of the District’s ideals and endeavors that provide clear direction to staff regarding District- wide priorities. Progress is measured throughout the fiscal year and reported to the Governing Board on a quarterly basis. Moreover, in developing the budget, staff utilized the District Vision for prioritizing District resources for operational and capital activities. BUDGET ADJUSTMENTS In January of each year, District management meets to analyze revenues and spending to determine, if any, where transfers between budget line items are necessary in order to ensure that budget limitations STAKEHOLDER INPUT DISTRICT VISION DEVELOP PROGRAM GOALS & OBJECTIVES ESTABLISH PERFORMANCE INDICATORS & ESTIMATE COSTS ADOPT BUDGET MONITOR PROGRAMS & ADJUST AS NECESSARY EAST VALLEY WATER DISTRICT page. 21 are not exceeded. Managers and supervisors will submit requests for transfers prior to the Mid-Year budget review and authorized staff will review the requests and submit them to the Board for approval. When possible, transfers have no net effect on the original budget balance. However, if revenue shortfalls or unanticipated costs are realized, and transfers between line items cannot meet the projected deficit, projects are evaluated and a determination of either projects deferral or draws on reserves is made to meet the shortfall. All proposed changes are presented to the Governing Board at a Mid-Year budget review. STAKEHOLDER INPUT The District holds a number of public meetings in order to allow community members, customers, government agencies, and community organizations to provide comments and suggestions during the budget process. DISTRICT VISION In an effort to ensure consistent purpose, East Valley Water District has adopted a comprehensive statement that serves as a guide for the decision- making process throughout the organization. DEVELOP PROGRAM GOALS & OBJECTIVES Each department is tasked with developing achievable and measureable goals and objectives to be implemented in a single fiscal year. This endeavor clearly identifies the planned efforts for the given period of time. ESTABLISH KEY PERFORMANCE INDICATORS & ESTIMATE COSTS In order to assess the organization’s productivity and effectiveness, unique key performance indicators are utilized as a quantitative measure. Cost estimates reflect the anticipated expenses for accomplishing each program’s day-to-day operational tasks, special projects and overall program goals. ADOPT BUDGET Once the budget document has been prepared, including revenue and expense projects, the East Valley Water District Governing Board adopts a final budget prior to June 20 of each year. This final document is available for review by the public. MONITOR PROGRAMS & ADJUST AS NECESSARY Each department and program is responsible for reviewing monthly budget figures. Unforeseen costs that require a budget adjustment are taken to the Governing Board for approval quarterly. THIS ORGANIZATION TAKES GREAT PRIDE IN A COMMITMENT TO LEADERSHIP, PARTNERSHIP AND STEWARDSHIP IN ALL OPERATIONS AND ACTIVITIES. FISCAL YEAR BUDGET 2016-2017page. 22 CURRENT & PROPOSED BUDGET CYCLE CALENDAR DATE ACTIVITY June 1, 2016 FY 2016-17 Budget Workshop June 22, 2016 FY 2016-17 Budget Adoption October 26, 2016 First Quarter Budget Review at Public Board Meeting January 16, 2017 Budget Meeting to Distribute Worksheets to Management Staff February 8, 2017 FY 2016-17 Mid-Year Budget Review at Public Board Meeting March 13, 2017 FY 2017-18 Capital Outlay and Capital Improvement Program Planning Meeting March 24, 2017 FY 2017-18 New Position Requests Due to Finance March 24, 2017 FY 2017-18 Capital Improvement Project Requests Due to Finance March 29, 2017 FY 2017-18 Program Budget Requests Due to Finance April 19, 2017 FY 2017-18 Proposed Goals and Objectives Workshop at Public Board Meeting April 24, 2017 FY 2017-18 Districtwide Budget Review with Managers and General Manager/CEO May 4, 2017 FY 2017-18 Capital Outlay and CIP Budget Review with Managers and General Manager/CEO May 17, 2017 FY 2017-18 Revenue Projection Workshop at Public Board Meeting May 29, 2017 FY 2017-18 Budget Complete with all Revisions June 7, 2017 FY 2017-18 Budget Workshop at Public Board Meeting June 28, 2017 FY 2017-18 Budget Adoption at Public Board Meeting EAST VALLEY WATER DISTRICT page. 23 FUND EQUITY EVWD operates two enterprise funds for water and wastewater activities, the District does not have governmental or non-major enterprise funds as part of its operational fund structure. The fund equity schedule below, illustrates the change in fund equity for each fund, presenting beginning equity, total revenue and expenditures, ending equity, transfer to replacement reserve and the dollar and percentage change. YEAR FUND EQUITY JULY 1 REVENUES EXPENDITURES TRANSFER TO REPLACEMENT RESERVE FUND EQUITY JUNE 30 INCREASE / DECREASE % CHANGE IN FUND EQUITY WATER 2013-14 $ 85,785,263 $ 27,016,303 $ 19,677,942 $ - $ 93,123,624 $ 7,338,361 8.6% 2014-15 93,123,624 19,802,869 26,403,601 - 86,522,892 (6,600,732)-7.1% 2015-16 86,522,892 21,565,000 21,350,000 215,000 86,737,892 215,000 0.2% 2016-17 86,737,892 23,385,000 20,964,400 2,420,600 89,158,492 2,420,600 2.8% WASTEWATER 2013-14 28,723,843 11,974,164 11,752,137 - 28,945,870 222,027 0.8% 2014-15 28,945,870 11,537,516 14,191,401 - 26,291,985 (2,653,885)-9.2% 2015-16 26,291,985 11,910,000 11,910,000 - 26,291,985 - 0.0% 2016-17 $ 26,291,985 $ 12,332,000 $ 11,639,100 $ 692,900 $ 26,984,885 $ 692,900 2.6% FISCAL YEAR BUDGET 2016-2017page. 24 THIS PAGE IS LEFT BLANK INTENTIONALLY EAST VALLEY WATER DISTRICT page. 25 REVENUES East Valley Water District receives 97 percent of its revenue from user rates and fees; the District receives no increment from property or sales taxes. Rates and fees are reviewed on 3 to 5 year cycles and are adjusted as necessary to cover the costs of providing services to ratepayers. The District derives its authority for setting rates from §31000 of the California Water Code, and rate adjustments are adopted at public hearings conducted in accordance with requirements established by California Propositions 26 and/or 218. The District has four major revenue categories based on rates: • Water sales are based on the volume of water used by a customer during a billing period • Meter charges are fixed monthly charges assessed to customers based on the size of the service connection to their property • Wastewater collection charges are 1) fixed monthly charges for single family residences, and 2) a combination of fixed and volumetric charges for commercial and multi-family customers • Wastewater treatment rates are established by, and revenue remitted to, the City of San Bernardino Municipal Water Department, which is currently contracted to treat all wastewater generated by District customers. Other charges are assessed according to an adopted fee schedule, but are only charged to users who request, or require, use of District resources beyond the scope of delivering normal water and wastewater services. 38% WATER SALES 25% METER CHARGES 13% WASTEWATER COLLECTION 21% WASTEWATER TREATMENT 3%OTHER CHARGES FY 2016-17 RATE REVENUE FISCAL YEAR BUDGET 2016-2017page. 26 REVENUE HISTORY & FORECAST (IN MILLIONS) 20.1 $30 $25 $20 $15 $10 $5 18.4 11.411.8 20.5 11.6 22.5 12.1 24.2 12.4 24.8 12.5 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 WATER REVENUE WASTEWATER REVENUE Water and wastewater rate revenues are highly reliant on new development and rate increases for sustained growth. Water sales are also reliant on consumer demand, which increases or decreases based on weather and water rates. The multi-year drought in California has forced the District, and like agencies, to promote conservation and reduce water usage by a statewide average of 25 percent, causing a sharp drop in revenue. At the same time, development has been virtually non-existent for several years, leading agencies to turn to rate adjustments for fiscal sustainability. The District’s water sales and meter charge revenue are expected to increase through fiscal year 2017- 18 due to rate adjustments adopted in March 2015. These adjustments included a fundamental shift in how costs are recovered, increasing the percent of revenue collected through fixed meter charges from 15 percent to 26 percent of total revenue. This shift ensures a higher level of revenue stability, and fiscal sustainability for the District in the future. Wastewater collection rates have not been adjusted since 2012 so wastewater collection revenue has remained flat at $4.4 million over the past four years. Wastewater treatment rates, established by the City of San Bernardino, have scheduled increases in FY 2015-16 and FY 2016-17, leading to an increase in wastewater revenue of 7 percent over those two years. The District will conduct a wastewater cost of service analysis in 2017 and consider adjusting rates for wastewater collection services based on that analysis. EVWD has also been involved in planning meetings with developers representing approximately 4,500 new homes to be built in the District’s service area over the next 10-15 years. Accordingly, revenue forecasts include growth of an estimated 300 dwelling units per year beginning in FY 2018-19. EAST VALLEY WATER DISTRICT page. 27 LONG-RANGE FINANCIAL PLAN Insert text here>>>>>>>>>>> FISCAL YEAR BUDGET 2016-2017page. 28 EAST VALLEY WATER DISTRICT page. 29 CAPITAL EXPENDITURES East Valley Water District defines capital expenditures as 1) routine purchases and replacement of assets with a cost exceeding $5,000 and an expected life of more than two years, or 2) non-routine construction project expenditures that will result in capitalization of an asset costing more than $25,000. The District’s FY 2016-17 capital budget contains $71 million in total capital expenditures. The majority of these expenditures are ‘Year 1’ costs pertaining to projects shown in the District’s Capital Improvement Program, explained in detail in a separate section of this budget document. The remaining proposed capital expenditures of $691 thousand are routine asset purchases, which appear in each year’s budget as requests to replace vehicles, and computer and office equipment. Details for these requests are included in the Capital Outlay section of this budget. CAPITAL IMPROVEMENT PROGRAM The Engineering Department is responsible for planning and implementing major additions to, and replacement of, the District’s infrastructure. This includes plant and equipment related to the treatment, storage, and distribution of water, and the collection and transmission of wastewater for treatment. The primary resources for these planning efforts include the District’s Water Master Plan and Wastewater Collection System Master Plan, both updated in 2014. Projects included in the District’s Capital Improvement Program (CIP) based on those plans include: • Water Main Replacements—the District has scheduled the replacement of three water mains due to age and their propensity to develop leaks. Planned expenditures for FY 2016-17 are $1,255,000 to be funded by the water replacement reserve. • Canal Zone Storage Tank & Booster Station— these facilities will combine to enhance water delivery to one of the District’s highest elevation pressure zones. Planned expenditures for FY 2016-17 are $1,215,000 to be funded by water rates. • Automated Metering Infrastructure—this project involves four phases to replace all District water meters with automated metering technology, and will help the District realize water and energy efficiencies, and will empower customers to monitor water usage, and potentially leaks, in near ‘real time’. Phase 1 is scheduled for FY 2016- 17 at a cost of $2,011,000 and will be funded by a grant from the State of California Department of Water Resources. CAPITAL IMPROVEMENT PROGRAM Water Main Replacements $ 1,255,000 Storage Reservoirs 965,000 Booster Stations 250,000 AMI Meter Retrofits 2,011,000 Wastewater Collection Mains 4,115,000 Facility Rehabilitation/Relocation 250,000 Wastewater Rate Study 80,000 Regional Projects 360,000 Water Recycling Plant 61,000,000 Total CIP Expenditures $ 70,286,000 CAPITAL OUTLAY (ROUTINE) Vehicles $ 180,000 Treatment Plant Equipment 95,000 Computer Hardware/Software 257,500 Office Equipment 23,500 Emergency Wastewater Bypass 135,000 Total Capital Outlay $ 691,000 FISCAL YEAR BUDGET 2016-2017page. 30 CAPITAL OUTLAY ASSET INVESTMENTS ARE EXPECTED TO LAST MORE THAN TWO YEARS. • Wastewater Main Replacements—the District has scheduled the replacement of three sections of sewer main pipeline, rated as high priority due to the number of structural defects noted during video logging of these pipelines. A fourth pipeline has been scheduled for replacement as it is undersized and at risk of surcharging during heavy storms or new development. Planned expenditures during FY 2016-17 are $4,115,000, to be funded by wastewater rates and developer impact fees. • Facilities Rehabilitation/Relocation—this item involves various projects such as recoating water tanks, valve replacement, and improving the aesthetics of buildings at plant sites; it also provides a budget for relocating facilities in conjunction with city street or storm drain improvements. Planned expenditures for FY 2016-17 are $250,000 to be funded by water rates. • Wastewater Rate Study—this project involving consultants and District staff will provide a 5 year review of the adequacy of the District’s wastewater rates. FY costs will be approximately $80,000 to be funded by wastewater rates. The District has also identified the need for projects through regional planning efforts and included those projects in the District’s Capital Improvement Program. They include: • Habitat Conservation Plan and Wash Plan— these projects include participation of multiple agencies in the upper Santa Ana River watershed to address member agency disruption and preservation of endangered species habitat. Planned expenditures in FY 2016-17 are $360 thousand funded by operating revenue. • SNRC Water Recycling Facility—this joint project would capture and treat District wastewater flows at an elevation high enough to recharge the Bunker Hill Groundwater basin, rather than releasing treated water into the Santa Ana River for use downstream. Planned expenditures in FY 2016-17 are $61 million, funded by State Revolving Fund grants and low interest loans. EAST VALLEY WATER DISTRICT page. 31 IMPACT OF CAPITAL IMPROVEMENTS & OPERATING BUDGET The majority of the Capital Expenditures described in the preceding section will have no impact on future operating expenses, or will result in cost savings. One exception is the Water Recycling Facility which will result in a major shift of costs, from contracted treatment services, to costs associated with owning and operating a District facility such as labor, power, materials, and debt service. The following schedule provides an estimate of the effect of CIP projects on future operations: ANNUAL IMPACT ON OPERATIONS NATURE OF IMPACT Water Main Replacements $ - Storage Reservoirs - Booster Stations 30,000 Increased Power Costs AMI Meter Retrofits (100,000) Decrease labor costs Wastewater Collection Mains - Facility Rehabilitation/Relocation - Wastewatr Rate Study - Regional Projects 5,000 Increased Contract Services Water Recycling Plant (7,600,000) Decrease Contracted Treatment Water Recycling Plant 4,600,000 Increase in Debt Service Water Recycling Plant 3,000,000 Increase Labor, Power, Materials TOTAL $ (65,000) FISCAL YEAR BUDGET 2016-2017page. 32 EAST VALLEY WATER DISTRICT page. 33 DEBT The District has established its own policies regarding the utilization of debt instruments. According to the District’s Debt Management Policy, long-term borrowing is confined to capital improvement for projects that cannot be financed from current revenues. The District has a bond rating of AA- as rated by the Standard & Poor’s and Fitch ratings services. Bond rating is a credit risk evaluation for investors and is the single most important factor in determining the interest cost of bonds issued. A rating of AA- is considered a high quality investment grade rating. The District has no statutory or charter debt limitation, however, the bond covenants for the 2010 and 2013 Bonds, and funding / loan agreements for the State Revolving Fund and Bank loans, require that the District maintain a debt coverage ratio equal to 120% of annual debt service. The 2016-17 proposed operating budget provides the net revenue to debt ratios shown in the table below. Net Revenue in excess of annual debt service (excess coverage) provides funding for the District’s Capital Improvement Program and contributions to Replacement Reserves. WATER FUND WASTEWATER FUND TOTAL REVENUE Sales and Services $ 22,460,000 $ 12,070,000 $ 34,530,000 Other Charges 820,000 240,000 1,060,000 Interest & Miscellaneous Revenue 105,000 22,000 127,000 Total Revenues 23,385,000 12,332,000 35,717,000 OPERATING EXPENSES Programs 15,647,900 11,042,100 26,690,000 Total Operating Expenses 15,647,900 11,042,100 26,690,000 Net Revenue 7,737,100 1,289,900 9,027,000 ANNUAL DEBT SERVICE $ 4,007,000 $ 317,000 $ 4,324,000 DEBT COVERAGE RATIO 1.93 4.07 2.09 FISCAL YEAR BUDGET 2016-2017page. 34 The District has the following outstanding debt: • 2010 Bonds: issued to refund all outstanding long-term debt and to provide $16 million for future capital improvements. Total outstanding is $27,530,000 payable out of water and wastewater net revenue. • 2013 Bonds: issued to finance the construction of a new administration and operations headquarters. Total outstanding is $12,085,000 payable out of water and wastewater net revenue. • DWR Loans: borrowed to finance upgrades to treatment technology at the District’s Plant 134. Total outstanding is $6,585,158 payable out of water net revenue. • DWR Loans: borrowed to fund consolidation of two failing mutual water companies into District. Total outstanding is $442,976 payable from assessments to affected property owners. • U.S. Bank Loan: borrowed to finance construction and implementation of several energy conservation measures. Total outstanding is $3,299,108 payable out of guaranteed energy cost savings. • San Bernardino Valley Municipal Water District (SBVMWD) loan: borrowed to finance construction (in progress) of a State Water Project turnout and hydro-electric generation facility at the District’s Plant 134. Estimated loan amount is $4,000,000 payable out of water net revenue and energy cost savings. Debt service on this loan is included in the schedule below. The schedule below presents total debt service on existing debt through maturity. Future DWR Loan: the District has completed an application for State Revolving Fund grants & loans to finance the construction of a water recycling plant. The estimated cost loan amount is $110,000,000 with annual debt service of $4,600,000 payable out of wastewater net revenue. This debt service amount is not included in the schedule above. CONSOLIDATED FINANCIAL SCHEDULES Overview of revenues and other financing sources and expenditures. ANNUAL DEBT SERVICE PRINCIPAL INTEREST TOTAL 2017 $ 2,438,000 $ 1,886,000 $ 4,324,000 2018 2,493,000 1,811,000 4,304,000 2019 2,558,000 1,728,000 4,286,000 2020 2,638,000 1,640,000 4,278,000 2021 2,719,000 1,557,000 4,276,000 2022-2026 10,337,000 6,853,000 17,190,000 2027-2031 6,528,000 5,642,000 12,170,000 2032-2036 7,731,000 4,402,000 12,133,000 2037-2041 9,498,000 2,639,000 12,137,000 2042-2046 7,005,000 494,000 7,499,000 $ 53,945,000 $ 28,652,000 $ 82,597,000 EAST VALLEY WATER DISTRICT page. 35 CONSOLIDATED FINANCIAL SCHEDULES Overview of revenues and other financing sources and expenditures. THREE YEAR CONSOLIDATED & FUND FINANCIAL SCHEDULES ITEM FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE REVENUES 4100 Water Sales $13,505,159 $11,950,000 $12,350,000 $13,500,000 $1,550,000 13% 4200 Meter Charges 4,874,581 8,175,000 8,130,000 8,960,000 785,000 10% 4301 Penalties 659,502 550,000 550,000 685,000 135,000 25% 4400 WW Collection Charges 4,531,355 4,600,000 4,400,000 4,460,000 (140,000)-3% 4500 WW Treatment Charges 6,907,828 7,250,000 7,250,000 7,610,000 360,000 5% 4605 Other Operating Charge 418,482 785,000 700,000 360,000 (425,000)-54% 4701 Interest Income 100,830 35,000 65,000 97,000 62,000 177% 4703 Energy Incentives/ Rebates 188,584 50,000 - - (50,000)-100% 4704 Miscellaneous Revenue 265,020 25,000 30,000 45,000 20,000 80% TOTAL REVENUES $31,451,341 $33,420,000 $33,475,000 $35,717,000 $2,297,000 7% FISCAL YEAR BUDGET 2016-2017page. 36 ITEM FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 Regular Labor $ 5,756,174 $ 5,645,000 $ 5,789,950 $ 5,846,000 $ 201,000 4% 5102 Temporary Labor 74,788 57,000 57,000 29,000 (28,000)-49% 5103 Overtime 242,492 275,500 275,500 279,000 3,500 1% 5104 Standby 34,538 40,000 40,000 35,000 (5,000)-13% 5200 Benefits 2,478,637 1,882,000 2,284,900 2,441,000 559,000 30% Personnel Total 8,586,629 7,899,500 8,447,350 8,630,000 730,500 9% WATER SUPPLY 6101 Purchased Water 123,057 200,000 200,000 750,000 550,000 275% 6102 Replenishment 288,419 175,000 175,000 163,000 (12,000)-7% 6103 Water Assessment 189,379 200,000 200,000 332,000 132,000 66% Water Supply Total 600,855 575,000 575,000 1,245,000 670,000 117% OPERATING EXPENSES 6201 Materials & Supplies 697,165 589,500 469,350 669,000 79,500 13% 6202 Tools 21,686 26,000 18,500 57,000 31,000 119% 6203 Office Supplies 46,655 42,500 47,650 45,000 2,500 6% 6204 Chemicals 266,294 340,000 285,000 345,000 5,000 1% 6205 Conservation Rebates - 1,000,000 1,400,000 500,000 (500,000)-50% 6301 Contract Services 3,148,783 2,130,000 2,235,000 2,607,000 477,000 22% 6302 Banking Services 229,937 310,000 315,000 315,000 5,000 2% 6303 Printing & Publishing 96,369 78,500 113,500 137,000 58,500 75% 6304 Legal Services 264,546 265,000 282,500 236,000 (29,000)-11% 6305 Treatment Services 6,907,828 7,250,000 7,250,000 7,610,000 360,000 5% 6306 Rents & Leases 5,009 36,000 18,000 12,000 (24,000)-67% 6307 Uniforms 2,550 73,000 71,730 74,000 1,000 1% 6308 Billing Services - 75,000 50,000 52,000 (23,000)-31% 6309 48-hr Notices - 375,000 375,000 378,000 3,000 1% 6310 Street Services - 250,000 275,000 300,000 50,000 20% 6311 Landscape Svcs 340 142,000 180,000 145,000 3,000 2% 6312 Janitorial Svcs 420 125,000 100,000 125,000 - 0% 6401 Utilities 43,738 25,000 25,000 26,000 1,000 4% 6402 Telephone 104,568 129,000 122,900 133,000 4,000 3% 6403 Electricity 2,201,773 2,975,000 2,070,000 1,820,000 (1,155,000)-39% 6404 Fuel 133,526 175,000 125,000 125,000 (50,000)-29% 6405 Permits 99,006 109,000 114,000 220,000 111,000 102% EAST VALLEY WATER DISTRICT page. 37 ITEM FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE 6406 Postage 165,155 195,500 186,800 217,000 21,500 11% 6501 Memberships 74,112 106,600 94,800 108,000 1,400 1% 6502 Prof Dev 168,036 167,000 167,920 205,000 38,000 23% 6503 Edu Assistance 13,327 5,500 4,900 10,000 4,500 82% 6504 Meetings - 8,500 9,000 32,000 23,500 276% 6505 Emp Recog - 8,500 13,000 14,000 5,500 65% 6701 Gen Insurance 183,691 254,500 190,000 175,000 (79,500)-31% 6702 Ins Claims 2,200 1,000 1,700 2,000 1,000 100% 6703 Over/Short 541 - 500 1,000 1,000 - 6705 OPEB Retirees 98,841 55,000 120,000 120,000 65,000 118% Operating Expenses Total 14,976,096 17,322,600 16,731,750 16,815,000 (507,600)-3% TOTAL EXPENSES $24,163,580 $25,797,100 $25,754,100 $26,690,000 $ 892,900 3% FISCAL YEAR BUDGET 2016-2017page. 38 The table below provides a high-level summary of each Program’s Operating Expense in relationship to the District’s Total Operating Budget. ITEM FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE EXPENSES - OPERATING BY PROGRAM 1000 Governing Board 165,994 295,000 295,000 213,000 (82,000)-28% 2000 General Administration 1,315,281 1,312,000 1,281,600 1,349,000 37,000 3% 2100 Human Resources/ Risk Management 757,599 697,000 714,200 735,000 38,000 5% 2200 Public Affairs 914,362 507,000 523,400 1,018,000 511,000 101% 2300 Conservation - 1,511,000 1,996,600 1,021,000 (490,000)-32% 3000 Finance 1,225,485 992,300 1,081,250 1,088,000 95,700 10% 3200 Information Technology 645,583 619,300 693,500 774,000 154,700 25% 3300 Customer Service 1,660,805 1,716,500 1,693,000 1,730,000 13,500 1% 3400 Meter Services 335,478 353,500 346,000 348,000 (5,500)-2% 4000 Engineering 1,229,076 870,500 1,094,650 1,219,000 348,500 40% 5000 Water Production Admin 433,654 353,000 353,000 394,000 41,000 12% 5000-51 Source of Supply 2,745,402 3,278,000 2,224,000 3,075,000 (203,000)-6% 5000-52 Pumps & Boosters 618,759 960,000 960,000 714,000 (246,000)-26% 5000-54 Trans & Distribution 189,506 200,000 200,000 221,000 21,000 11% 5100 Water Treatment 733,278 736,000 809,000 827,000 91,000 12% 5200 Water Quality 341,933 342,000 344,000 407,000 65,000 19% 6000 Maintenance Admin 496,029 355,500 360,500 216,000 (139,500)-39% 6100 Water Maintenance 1,808,688 1,672,000 1,778,000 1,759,000 87,000 5% 6200 Wastewater Maintenance 7,363,248 7,709,000 7,697,000 8,233,000 524,000 7% 7000 Facilities Maintenance 653,186 788,000 829,000 804,000 16,000 2% 7100 Fleet Maintenance 530,233 529,500 480,400 545,000 15,500 3% Subtotal Operating Expenses 24,163,579 25,797,100 25,754,100 26,690,000 892,900 3% EXPENSES - OTHER Debt Service 3,560,567 3,925,000 3,925,000 4,324,000 399,000 10% Capital Outlay 637,517 700,000 633,000 309,500 (390,500)-56% Capital Improvement 3,089,678 6,362,360 2,947,900 1,280,000 (5,082,360)-80% Transfer to Reserves $ - $ - $ 215,000 $ 3,113,500 $ 3,113,500 - Transfer from Reserves - (3,364,460) - - 3,364,460 -100% Subtotal Other Expenses 7,287,762 7,622,900 7,720,900 9,027,000 1,404,100 18% NET $ - $ - $ - $ - $ - EAST VALLEY WATER DISTRICT page. 39 WATER FUND East Valley Water District understands the importance of preserving California’s water supplies, especially in times of drought, and has taken many steps to encourage water use efficiency. The water budget based rates promote water efficiency and is based on the cost of service; is equitable and fair; promotes sustainable behavior change; has shown to be effective in reducing water use; and is supported by Governor Brown in his Executive Order on Water Restrictions issued on April 1, 2015 that calls on water agencies throughout California to implement structures that promote conservation. Water budget based rates structure has been recognized by the State Water Resources Control Board for producing superior water savings and is an approved alternative approach for compliance with current California Drought Emergency Conservation Regulations. RATES EVWD bills all customers on a monthly basis for water usage. In March 2015, the Board of Directors unanimously approved restructuring the water rates from a uniform structure to water budget based rates to encourage efficient water use and secure the District’s long-term financial stability. The Board’s decision also included the approval of a three-year schedule of changes to the District’s water rates. Water budget based rates are designed to treat customers fairly by meeting each individual customer’s unique needs. Its intent is to determine the quantity of water that would be considered an efficient level of water use. EVWD considers multiple factors in calculating each customer’s monthly water budget: • Number of Occupants • Number of Dwelling Units • Medical Needs • Horses/Live Stock • Business Needs • Agricultural Needs • Irrigable Landscape • Weather The new rates have been designed with a three-tier structure, each developed based on the District’s cost of service to provide three different sources and uses of water. Based on the new rate structure, approximately 60 percent of the District’s revenue requirements may be captured from the amount of water used. MONTHLY METER CHARGE METER SIZE FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 5/8 in. $ 20.96 $ 23.06 $ 24.67 $ 24.67 3/4 in. 26.61 29.27 31.32 31.32 1 in. 37.92 41.71 44.63 44.63 1.5 in. 66.19 72.81 77.91 77.91 2 in. 100.12 110.13 117.84 117.84 3 in. 207.54 228.30 244.28 244.28 4 in. 365.85 402.44 430.61 430.61 6 in. 744.67 819.14 876.48 876.48 8 in. 1,366.62 1,503.25 1,608.51 1,608.51 FISCAL YEAR BUDGET 2016-2017page. 40 REVENUES Water revenues are generated through the following avenues: • Fixed Meter Charges • Water Consumption Sales • Penalties ―Late Fees ―Shut Off Notice ―Reconnect Fees • Initiation of Service Fees • Energy Incentives • Miscellaneous Reimbursements ―District property damage ―In Lieu Programs • Interest Projecting revenues for FY 2015-16 was particularly difficult as a result of the Governor’s Executive Order on April 1, 2015 that requires the District to reduce water consumption by 28 percent and the first year implementing new water budget based rate structure. In order to be as accurate as possible, staff evaluated and considered external factors that would have any impact on revenue projections: • Number of accounts by class • Total irrigable landscaped area in the District service area • Historical water usage • State mandates • Operational changes A careful analysis of the District’s water accounts and usage were considered as the foundation for projecting water sales. To determine Tier 1 usage, each residential account was assumed to receive 10 units of Tier 1 water. Next, staff used GIS data to provide the total square footage of irrigable landscape and converted the efficient amount of water necessary. Tier 3 water was based on historical usage for irrigation accounts. Other classification includes temporary water meters used mainly for construction. The table on the following page reflects FY 2016-17 assumptions for revenue projections. The number of accounts does not include fire services. COMMODITY CHARGE METER SIZE FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 Tier 1 $ 1.45 $ 1.63 $ 1.83 $ 1.83 Tier 2 2.07 2.32 2.61 2.61 Tier 3 2.89 3.24 3.64 3.64 MONTHLY FIRE LINE SERVICE CHARGE METER SIZE FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 1 in. $ 7.99 $ 8.78 $ 9.40 $ 9.40 1.5 in. 11.98 13.18 14.10 14.10 2 in. 15.97 17.57 18.80 18.80 3 in. 23.96 26.35 28.20 28.20 4 in. 31.94 35.14 37.59 37.59 6 in. 47.91 52.70 56.39 56.39 8 in. 63.88 70.27 75.19 75.19 10 in. 79.85 87.84 93.99 93.99 EAST VALLEY WATER DISTRICT page. 41 EXPENSES Expenses are based on the cost to provide water to meet customer demands. The table below projects the amount of water to be produced for FY 2016-17. The amount of water produced is more than the amount of water sold to account for normal system water loss. WATER SALES (ACRE FEET) CLASS NO. OF ACCOUNTS TIER 1 TIER 2 TIER 3 TOTAL TOTAL SALES Residential 18,475 5,094 3,076 758 8,928 $ 7,784,000 Multi-Family 463 2,066 769 402 3,237 2,812,000 Commercial 787 1,187 92 149 1,428 1,146,000 Irrigation 275 - 888 601 1,489 1,758,000 TOTALS 20,000 8,347 4,825 1,910 15,082 $ 13,500,000 METER CHARGE METER SIZE NO. OF SERVICES RATE TOTAL 5/8 in. 4,321 $23.06 $1,205,000 3/4 in. 12,150 29.27 4,299,000 1 in. 4,146 41.71 2,091,000 1.5 in. 254 72.81 224,000 2 in. 283 110.13 378,000 3 in. 64 228.30 177,000 4 in. 22 402.44 108,000 6 in. 2 819.44 20,000 8 in. 10 1,503.28 182,000 Fire Service 1 in. 1,091 8.78 116,000 Fire Service 1.5 in. 9 13.18 2,000 Fire Service 4 in. 49 35.14 21,000 Fire Service 6 in. 131 52.70 84,000 Fire Service 8 in. 49 70.27 42,000 Fire Service 10 in. 10 87.84 11,000 TOTALS 22,591 $ 8,960,000 WATER PRODUCTION (ACRE FEET) SOURCE OF SUPPLY FY 2013-14 ACTUAL FY 2014-15 ACTUAL FY 2015-16 PROJECTED FY 2016-17 PROPOSED Ground Water 18,210 16,164 10,333 9,000 Surface Water 3,350 2,330 3,784 4,800 TOTAL 21,560 18,494 14,117 13,800 FISCAL YEAR BUDGET 2016-2017page. 42 During July through August 2014, customers significantly decreased water usage in response to an emergency regulation adopted by the State Water Board on July 15, 2014. The effort to reduce water usage has resulted in commendable reductions, and the District anticipates continued reduction in non- essential water usage. The continued severity of the drought has prompted the District to put forth significant effort towards the Conservation Program. As such, the Conservation Program has become a fully funded program within the Water Fund and has $1,000,000 dedicated assist customers with conservation efforts such as the replacement of turf and other related activities. Included in these costs are San Bernardino Valley Municipal Water District’s (SBVMWD) reimbursements in the amount of $500,000 to help offset the expense. Staff continues to review and enhance processes to ensure optimal performance. However, due to the new rate structure, cost allocations for the Information Technology and Customer Service Departments were shifted to the Water Fund. Previously, those costs were allocated evenly between the Water and Wastewater Fund. It has been determined that budget based rates require a significant amount of time and commitment from staff therefore justifying the shift in expenses. Moreover, due to the uncertainty of revenue income, staff has reprioritized programs to ensure critical programs continue while additional services can be re- evaluated at mid-year. CONCLUSION The District strives to provide safe and reliable water delivery services. In light of the continued drought, the District has put forth significant effort to overcome the challenges of maintaining a fiscally sustainable and operationally dependable organization. The District maintains its commitment to investing in critical infrastructure to ensure the future of its thriving community. Due to the variable factors, mid-year review will be an important time to review projections and program expenditures to make adjustments as necessary. EAST VALLEY WATER DISTRICT page. 43 FY 2016-17 PROPOSED BUDGET WATER FUND ITEM FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE REVENUES 4100 Water Sales $13,505,159 $11,950,000 $12,350,000 $13,500,000 $1,550,000 13% 4200 Meter Charges 4,874,581 8,175,000 8,130,000 8,960,000 785,000 10% 4301 Late Payment Fee 223,421 100,000 100,000 220,000 120,000 120% 4303 Disconnect Notice Charge 389,517 400,000 400,000 415,000 15,000 4% 4605 Other Operating Charge 418,482 585,000 500,000 170,000 (415,000)-71% 4701 Interest Income 59,603 25,000 55,000 75,000 50,000 200% 4703 Energy Incentives/ Rebates 188,584 50,000 - - (50,000)-100% 4704 Miscellaneous Revenue 219,983 25,000 30,000 45,000 20,000 80% TOTAL REVENUES 19,879,330 21,310,000 21,565,000 23,385,000 2,075,000 10% OPERATING EXPENSES SOURCE OF SUPPLY/WELLS 5101 Regular Labor 321,326 335,000 299,000 342,000 7,000 2% 5103 Overtime 25,387 28,000 28,000 27,000 (1,000)-4% 5200 Benefits 144,772 97,500 112,500 129,000 31,500 32% 6101 Purchased Water 123,057 200,000 200,000 750,000 550,000 275% 6102 Groundwater Replenishment 288,419 175,000 175,000 163,000 (12,000)-7% 6103 Water Assessment 189,379 200,000 200,000 332,000 132,000 66% 6201 Materials & Supplies 28,369 59,500 57,000 63,000 3,500 6% 6204 Chemicals 162,804 150,000 120,000 150,000 - 0% 6301 Contract Services 136,977 235,000 196,500 256,000 21,000 9% 6311 Landscape Services - 40,000 40,000 40,000 - 0% 6402 Telephone 626 - - - - - 6403 Electricity 1,497,656 2,000,000 1,250,000 1,000,000 (1,000,000)-50% 6405 Permits - 8,000 24,000 100,000 92,000 1150% Source Of Supply Total 2,918,772 3,528,000 2,702,000 3,352,000 (176,000)-5% PUMPS & BOOSTERS 5101 Regular Labor 82,631 85,000 80,000 85,000 - 0% 5103 Overtime 4,410 5,000 5,000 5,000 - 0% 5200 Benefits 32,761 25,000 25,000 29,000 4,000 16% 6201 Materials & Supplies 17,310 25,000 25,000 25,000 - 0% FISCAL YEAR BUDGET 2016-2017page. 44 ITEM FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE 6301 Contract Services 10,629 100,000 100,000 80,000 (20,000)-20% 6311 Landscape Services - 35,000 35,000 35,000 - 0% 6403 Electricity 471,017 750,000 500,000 500,000 (250,000)-33% Pumps & Boosters Total 618,758 1,025,000 770,000 759,000 (266,000)-26% TREATMENT 5101 Regular Labor $223,800 $211,000 $206,500 $217,000 $6,000 3% 5103 Overtime 8,875 10,000 10,000 10,000 - 0% 5200 Benefits 74,531 52,000 81,000 69,000 17,000 33% 6201 Materials & Supplies 31,539 20,000 15,000 20,000 - 0% 6204 Chemicals 80,788 150,000 125,000 150,000 - 0% 6301 Contract Services 170,443 185,500 190,500 179,000 (6,500)-4% 6311 Landscape Services - 12,000 12,000 14,000 2,000 17% 6401 Utilities 7,861 15,000 15,000 15,000 - 0% 6402 Telephone 8,380 7,500 11,000 - (7,500)-100% 6403 Electricity 134,576 125,000 200,000 200,000 75,000 60% 6405 Permits 250 5,000 - - (5,000)-100% Treatment Total $741,043 $793,000 $866,000 $874,000 $81,000 10% TRANSMISSION & DISTRIBUTION 5101 Regular Labor $836,491 $850,000 $851,000 $894,000 $44,000 5% 5103 Overtime 137,705 155,000 155,000 157,000 2,000 1% 5200 Benefits 383,788 297,500 372,500 376,000 78,500 26% 6201 Materials & Supplies 337,199 255,000 185,000 215,000 (40,000)-16% 6202 Tools 11,509 10,000 5,000 32,000 22,000 220% 6204 Chemicals 22,702 40,000 40,000 45,000 5,000 13% 6301 Contract Services 388,240 114,000 177,000 116,000 2,000 2% 6307 Uniforms 1,890 20,000 20,000 20,000 - 0% 6310 Street Services - 250,000 275,000 300,000 50,000 20% 6405 Permits 45,360 50,000 60,000 - (50,000)-100% 6406 Postage 1,838 2,500 2,500 2,000 (500)-20% Trans & Dist Total 2,166,722 2,044,000 2,143,000 2,157,000 113,000 6% CUSTOMER SERVICE 5101 Regular Labor 509,917 438,000 519,500 548,100 110,100 25% 5102 Temporary Labor 30,838 - - 2,100 2,100 - 5103 Overtime 17,923 13,500 23,500 23,500 10,000 74% 5200 Benefits 251,353 165,000 241,500 267,800 102,800 62% EAST VALLEY WATER DISTRICT page. 45 ITEM FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE 6201 Materials & Supplies 4,794 3,600 4,600 5,100 1,500 42% 6202 Tools 278 250 500 1,000 750 300% 6203 Office Supplies 5,279 4,200 4,200 2,100 (2,100)-50% 6301 Contract Services 407,661 70,500 88,000 56,800 (13,700)-19% 6302 Banking Services 132,099 210,000 210,000 206,500 (3,500)-2% 6303 Printing & Publishing - - - 2,800 2,800 - 6304 Legal Services 1,587 3,500 3,500 3,500 - 0% 6306 Rents & Leases - 16,800 8,400 8,400 (8,400)-50% 6307 Uniforms - 15,500 15,500 8,600 (6,900)-45% 6308 Billing Services - 52,500 35,000 36,400 (16,100)-31% 6309 Shut Off Notice Services - 375,000 375,000 378,000 3,000 1% 6402 Telephone 1,930 1,700 1,700 3,400 1,700 100% 6406 Postage 102,736 112,000 105,000 105,700 (6,300)-6% 6502 Professional Development 32,555 7,000 7,000 9,800 2,800 40% 6503 Education Assistance - 1,750 1,750 2,100 350 20% 6504 Meetings - - - 1,000 1,000 - 6703 Cash Over/Short 379 - - - - - Customer Service Total 1,499,329 1,490,800 1,644,650 1,672,700 181,900 12% ADMINISTRATION 5101 - Regular Labor 2,542,290 2,393,350 2,502,155 2,434,800 41,450 2% 5102 - Temporary Labor 21,514 46,900 47,400 18,200 (28,700)-61% 5103 - Overtime 23,154 35,800 37,200 38,300 2,500 7% 5104 - Standby 30,519 34,000 34,000 33,000 (1,000)-3% 5200 - Benefits 1,063,568 778,500 990,210 1,003,500 225,000 29% 6201 - Materials & Supplies 175,700 142,300 119,295 205,500 63,200 44% 6202 - Tools 3,738 6,900 7,700 16,400 9,500 138% 6203 - Office Supplies 28,673 26,200 31,855 31,200 5,000 19% 6205 - Conservation Rebates - 1,000,000 1,400,000 500,000 (500,000)-50% 6301 - Contract Services 1,150,479 813,800 921,500 1,207,800 394,000 48% 6302 - Banking Services 28,857 7,000 10,500 14,000 7,000 100% 6303 - Printing & Publishing 67,458 62,450 97,450 107,900 45,450 73% 6304 - Legal Services 183,595 181,000 194,550 161,000 (20,000)-11% 6306 - Rents & Leases 3,506 7,800 4,200 - (7,800)-100% 6307 - Uniforms 636 21,100 22,811 32,400 11,300 54% 6311 - Landscape Services 238 35,750 65,100 39,200 3,450 10% 6312 - Janitorial Services 294 81,250 70,000 87,500 6,250 8% 6401 - Utilities 25,114 6,500 7,000 7,700 1,200 18% FISCAL YEAR BUDGET 2016-2017page. 46 ITEM FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE 6402 - Telephone 69,074 83,100 81,430 98,600 15,500 19% 6403 - Electricity 68,967 65,000 84,000 84,000 19,000 29% 6404 - Fuel 93,468 122,500 87,500 112,500 (10,000)-8% 6405 - Permits 39,400 27,600 21,000 84,000 56,400 204% 6406 - Postage 11,586 27,550 33,010 52,800 25,250 92% 6501 - Memberships & Dues 51,917 75,540 67,560 77,300 1,760 2% 6502 - Professional Develop- ment 88,567 110,350 113,544 139,400 29,050 26% 6503 - Education Assistance 9,359 2,100 1,680 5,500 3,400 162% 6504 - Meetings - 5,950 6,300 22,000 16,050 270% 6505 - Employee Recognition - 5,950 9,100 9,800 3,850 65% 6701 - General Insurance 128,584 178,150 133,000 122,500 (55,650)-31% 6702 - Insurance Claims 1,540 700 1,190 1,400 700 100% 6704 - Bad Debt - - 500 1,000 1,000 - 6705 - OPEB Retirees 69,189 38,500 84,000 84,000 45,500 118% Administration Total 5,980,984 6,423,590 7,286,740 6,833,200 409,610 6% TOTAL OPERATING EXPENSES 13,925,608 15,304,390 15,412,390 15,647,900 343,510 2% OTHER USES 7101 - Debt Principal 1,630,602 1,855,000 $1,855,000 2,343,000 488,000 26% 7102 - Debt Interest 1,634,047 1,750,000 1,750,000 1,664,000 (86,000)-5% 7500 - Reserve Contribution - - 215,000 2,420,600 2,420,600 - 8101 - Capital Outlay 627,827 633,250 615,250 239,500 (393,750)-62% 8999 - Capital Improvement Program 2,061,246 1,767,360 1,717,360 1,070,000 (697,360)-39% Total Other Uses 5,953,722 6,005,610 6,152,610 7,737,100 1,731,490 29% NET $ - $ - $ - $ - $ - EAST VALLEY WATER DISTRICT page. 47 WASTEWATER FUND The Wastewater Fund pays for all activities related to the operations and maintenance of the wastewater collection infrastructure as well as the treatment of wastewater. All treatment charges collected from customers are remitted to the City of San Bernardino Municipal Water Department. RATES There are two sets of rates that make up the Wastewater Charge: 1. East Valley Water District Collection System Charge that includes conveyance and maintenance of the wastewater mains and; 2. City of San Bernardino Wastewater Treatment Charge that includes the treatment and disposal of waste. Each set of rates has two components: 1. System Charge based on customer type, Residential or Commercial. 2. Service Charge based on the amount and concentration of the wastewater discharged into the wastewater system. Amount and concentration have a direct impact to the entire wastewater system and treatment facility. The District’s service area for wastewater is divided into two regions with City Creek being the identifying landmark. Residences and businesses west of City Creek are charged a different rate than those east of City Creek due to the timing of development and the hydraulics of the system. RESIDENTIAL East Valley Water District bills residential customers a monthly wastewater charge based on the number of dwelling units, up to four units, per property. Properties with four or more units are classified as multi-family. The table below identifies the number of services and the wastewater charges per month. RESIDENTIAL NUMBER OF SERVICES COLLECTION CHARGE TREATMENT CHARGE TOTAL MONTHLY CHARGE West of City Creek 14,122 $ 15.36 $ 20.85 $ 36.21 East of City Creek 5,283 17.36 22.85 40.21 FISCAL YEAR BUDGET 2016-2017page. 48 COMMERCIAL East Valley Water District bills commercial customers on a monthly basis for wastewater usage using the formula [Wastewater System Charge + (Usage Rate x Water Used) = Monthly Wastewater Bill]. The table below identifies the costs per month for the collection and maintenance of the wastewater conveyance system and City of San Bernardino Wastewater Treatment Charges. EVWD COLLECTION CHARGE CITY OF SAN BERNARDINO TREATMENT CHARGE COMMERCIAL CUSTOMER SYSTEM CHARGE $/HCF TREATMENT CHARGE $/HCF Flat Rate $3.90 $- $2.40 $- WEST OF CITY CREEK Multi-Family 0.55 1.48 Commercial/Retail/Dry Cleaners 0.55 2.47 Restaurants/Hotels 0.55 3.18 Laundromats/Government/Office Building/Motels 0.55 1.77 Schools/Churches 0.55 1.29 Convalescent Homes 0.55 1.58 Office Buildings/Motels 0.55 1.77 Auto Repair/Service/Carwash 0.55 1.53 EAST OF CITY CREEK Multi-Family 0.55 1.57 Commercial/Retail/Dry Cleaners 0.55 2.56 Restaurants/Hotels 0.55 3.27 Laundromats/Government 0.55 1.86 Schools/Churches 0.55 1.38 Convalescent Homes 0.55 1.67 Office Buildings/Motels 0.55 1.86 Auto Repair/Service/Carwash 0.55 1.62 EAST VALLEY WATER DISTRICT page. 49 REVENUES Wastewater revenues consist of collection charges, treatment charges, and miscellaneous revenues such as interest income and capacity charges for new services. The District anticipates that the increase will be related to collecting wastewater connection charges from vacant homes. Also, the City of San Bernardino has begun the process for a possible rate increase to treatment. Those revenues will be remitted to the City of San Bernardino, therefore having no impact on District Operations. EXPENSES Operating expenses have remained the same overall in the Wastewater Fund. The District continues to conduct preventive maintenance programs on the wastewater mains such as videoing the lines and cleaning the lines on a regular schedule. Additionally, staff has invested more time and efforts into the spot repairs of the mains when sags and cracks are found in the lines when reviewing video tapes of the wastewater system. With the implementation of Water Budget Based Water Rates, costs associated with Customer Service and Information Technology were shifted to the Water Fund because of increased efforts to administer the new tiered rates. Over the past year, the District has been exploring options to resolve the District’s wastewater capacity limitations while utilizing existing resources in the most effective and efficient manner during the ongoing drought. The completion of the Recycled Water Feasibility Study in October 2014 recommended that the District initiate a recycled water program to treat a majority of the wastewater flows generated by East Valley Water District customers. The treated wastewater can then be reused for groundwater recharge, providing the greatest benefit to the District’s customers. Building a Recycled Water Center will mitigate the impacts of future droughts by providing a long term reliable water supply. This approach makes the District self-reliant rather than relying on the City of San Bernardino for treatment and disposal of wastewater. The continued focus for FY 2016-17 will be moving this project forward toward design and build. CONCLUSION Overall, the Wastewater Fund is balanced with a transfer from reserves. However, a rate study must be conducted to ensure proper rates are charged to fund future capital improvement projects and that the District continues to meet debt service obligations as set forth in the bond covenants. District staff will continue to monitor the revenues and expenses and present the progress to the Board of Directors on a quarterly basis. FY 2016-17 PROPOSED BUDGET WASTEWATER FUND ITEM FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE REVENUES 4301 - Late Payment Fee $ 46,564 $ 50,000 $ 50,000 $ 50,000 $ - 0% 4400 - WW Collection Charges 4,531,355 4,600,000 4,400,000 4,460,000 (140,000)-3% 4500 - WW Treatment Charges 6,907,828 7,250,000 7,250,000 7,610,000 360,000 5% 4605 - Other Operating Charge 45,037 200,000 200,000 190,000 (10,000)-5% 4701 - Interest Income 41,227 10,000 10,000 22,000 12,000 120% TOTAL REVENUES 11,572,011 12,110,000 11,910,000 12,332,000 222,000 2% FISCAL YEAR BUDGET 2016-2017page. 50 ITEM FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE TREATMENT 6305 - Treatment Services 6,907,828 7,250,000 7,250,000 7,610,000 360,000 5% Treatment Total 6,907,828 7,250,000 7,250,000 7,610,000 360,000 5% TRANSMISSION & DISTRIBUTION 5101 - Regular Labor $123,760 $135,000 $155,000 $242,000 $107,000 79% 5103 - Overtime 13,195 3,000 3,000 3,000 - 0% 5200 - Benefits 49,517 55,000 64,000 115,000 60,000 109% 6201 - Materials & Supplies 26,332 30,000 20,000 27,000 (3,000)-10% 6202 - Tools 4,559 5,000 2,000 5,000 - 0% 6301 - Contract Services 238,057 228,000 200,000 228,000 - 0% 6307 - Uniforms - 3,000 3,000 3,000 - 0% Trans & Dist Total $455,420 $459,000 $447,000 $623,000 $164,000 36% CUSTOMER SERVICE 5101 - Regular Labor $127,380 $252,000 $132,000 $144,900 $(107,100)-43% 5102 - Temporary Labor 13,216 - - 900 900 - 5103 - Overtime 1,969 11,500 1,500 1,500 (10,000)-87% 5200 - Benefits 66,562 95,000 58,500 70,200 (24,800)-26% 6201 - Materials & Supplies 636 2,400 900 900 (1,500)-63% 6202 - Tools - 250 - - (250)-100% 6203 - Office Supplies 2,263 1,800 1,800 900 (900)-50% 6301 - Contract Services 171,239 34,500 34,500 22,200 (12,300)-36% 6302 - Banking Services 56,614 90,000 90,000 88,500 (1,500)-2% 6303 - Printing & Publishing - - - 1,200 1,200 - 6304 - Legal Services 680 1,500 1,500 1,500 - 0% 6306 - Rents & Leases - 7,200 3,600 3,600 (3,600)-50% 6307 - Uniforms - 7,500 6,000 2,400 (5,100)-68% 6308 - Billing Services - 22,500 15,000 15,600 (6,900)-31% 6402 - Telephone 194 1,300 300 600 (700)-54% 6406 - Postage 44,030 48,000 45,000 45,300 (2,700)-6% 6502 - Professional Development 13,850 3,000 3,000 4,200 1,200 40% 6503 - Education Assistance - 750 750 900 150 20% 6703 - Cash Over/Short 162 - - - - - Customer Service Total $498,795 $579,200 $394,350 $405,300 $(173,900)-30% ADMINISTRATION 5101 - Regular Labor $988,579 $945,650 $1,044,795 $938,200 $(7,450)-1% EAST VALLEY WATER DISTRICT page. 51 ITEM FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE 5102 - Temporary Labor 9,220 10,100 9,600 7,800 (2,300)-23% 5103 - Overtime 9,874 13,700 12,300 13,700 - 0% 5104 - Standby 4,019 6,000 6,000 2,000 (4,000)-67% 5200 - Benefits 411,785 316,500 339,690 381,500 65,000 21% 6201 - Materials & Supplies 75,286 51,700 42,555 107,500 55,800 108% 6202 - Tools 1,602 3,600 3,300 2,600 (1,000)-28% 6203 - Office Supplies 10,440 10,300 9,795 10,800 500 5% 6301 - Contract Services 475,058 348,700 327,000 461,200 112,500 32% 6302 - Banking Services 12,367 3,000 4,500 6,000 3,000 100% 6303 - Printing & Publishing 28,911 16,050 16,050 25,100 9,050 56% 6304 - Legal Services 78,684 79,000 82,950 70,000 (9,000)-11% 6306 - Rents & Leases 1,503 4,200 1,800 - (4,200)-100% 6307 - Uniforms 24 5,900 4,419 7,600 1,700 29% 6311 - Landscape Services 102 19,250 27,900 16,800 (2,450)-13% 6312 - Janitorial Services 126 43,750 30,000 37,500 (6,250)-14% 6401 - Utilities 10,763 3,500 3,000 3,300 (200)-6% 6402 - Telephone 24,364 35,400 28,470 30,400 (5,000)-14% 6403 - Electricity 29,557 35,000 36,000 36,000 1,000 3% 6404 - Fuel 40,058 52,500 37,500 12,500 (40,000)-76% 6405 - Permits 13,996 18,400 9,000 36,000 17,600 96% 6406 - Postage 4,965 5,450 1,290 11,200 5,750 106% 6501 - Memberships & Dues 22,195 31,060 27,240 30,700 (360)-1% 6502 - Professional Develop- ment 33,064 46,650 44,376 51,600 4,950 11% 6503 - Education Assistance 3,968 900 720 1,500 600 67% 6504 - Meetings - 2,550 2,700 9,000 6,450 253% 6505 - Employee Recognition - 2,550 3,900 4,200 1,650 65% 6701 - General Insurance 55,107 76,350 57,000 52,500 (23,850)-31% 6702 - Insurance Claims 660 300 510 600 300 100% 6705 - OPEB Retirees 29,652 16,500 36,000 36,000 19,500 118% Administration Total 2,375,929 2,204,510 2,250,360 2,403,800 $199,290 9% TOTAL OPERATING EXPENSES 10,237,972 10,492,710 10,341,710 11,042,100 549,390 5% OTHER USES 7101 - Debt Principle $102,958 $90,000 $90,000 $95,000 $5,000 6% 7102 - Debt Interest 192,960 230,000 230,000 222,000 (8,000)-3% 7500 - Reserve Contribution - - - 692,900 692,900 - 7600 - Reserve Transfer - (3,364,460) - - 3,364,460 -100% 8101 - Capital Outlay 9,690 66,750 17,750 70,000 3,250 5% FISCAL YEAR BUDGET 2016-2017page. 52 ITEM FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE 8999 - Capital Improvement Program 1,028,431 4,595,000 1,230,540 210,000 (4,385,000)-95% Total Other Uses 1,334,039 1,617,290 1,568,290 1,289,900 (327,390)-20% NET $ - $ - $ - $ - $ (3,364,460) PROGRAM SUMMARIES Comprehensive information for each functional program within the District. EAST VALLEY WATER DISTRICT page. 53 PROGRAM SUMMARIES Comprehensive information for each functional program within the District. POSITION SUMMARY SCHEDULE East Valley Water District continues to evaluate workforce needs to ensure all services are addressed by a high quality workforce. In FY 2015-16, the District made some organizational changes which included the addition of an Administrative Assistant in General Administration and reclassification of the Field Maintenance Superintendent from Maintenance Administration to a Construction Coordinator in the Engineering Department. Since the California Drought played a major role in the development of the FY 2015-16 budget, the District planned for, but did not hire, 1 Conservation Analyst and 1 Part time Conservation Representative. Additionally, the District dedicated a significant amount of time and energy to succession planning and organizational assessment. These efforts identified areas of growth for FY 2016-17, which includes the addition of 2 full-time positions, an Accountant and a Director of Engineering and Operations to replace the Engineering Manager. The table on page 32 summarizes the number of full time equivalent (FTE) by Department. All authorized positions are funded in the proposed budget for FY 2016-17. DEPARTMENT DESCRIPTIONS The District utilizes program-based budgeting. Requested funds are associated with the expected results and performance is measured by indicators and reviewed on a quarterly basis with the Governing Board. This results-oriented strategy provides the ability to monitor expenses related to a particular program or activity and track measurable benefits. Program-based budgeting results can be used in cost-benefit analyses, just as it would be in a business environment to determine the value of decisions and enhance transparency. Program goals and objectives have been designed to correlate directly with the District’s newly adopted vision, and are built from the agency ideals and organizational endeavors. Based on these goals and objectives, key performance indicators (KPI) monitor progress towards meeting program objectives. Program-based budgeting also increases accountability and transparency as the rate payers and Governing Board can more easily see where dollars are invested and monitor program effectiveness. Some KPIs are included to notate industry benchmarks to help staff understand the District’s performance in comparison to the water and wastewater industry. AWWA helps improve both operational efficiency and managerial effectiveness. FISCAL YEAR BUDGET 2016-2017page. 54 FULL TIME STAFFING SUMMARY BY DEPARTMENT DEPARTMENT FY 2014-15 ACTUAL FY 2015-16 BUDGET 2016-17 PROPOSED 2000 General Administration 3.0 4.0 4.0 2100 Human Resources 2.5 2.0 2.0 2200 Public Affairs 4.0 2.5 2.5 2300 Conservation - 1.5 1.5 3000 Finance 7.0 7.0 7.0 3200 Information Technology 3.0 3.0 3.0 3300 Customer Service 8.0 8.0 8.0 3400 Meter Services 4.0 4.0 4.0 4000 Engineering 6.5 6.0 7.0 5000 Water Production 7.0 7.0 7.0 5100 Water Treatment 2.0 2.0 2.0 5200 Water Quality 2.0 2.0 2.0 6000 Maintenance Administration 2.0 2.0 1.0 6100 Water Maintenance 11.0 11.0 11.0 6200 Wastewater Maintenance 2.0 2.0 4.0 7000 Facilities Maintenance 1.0 1.0 1.0 7100 Fleet Maintenance 2.0 2.0 2.0 TOTAL DISTRICT EMPLOYEES 66 67 69 The FY 2016-17 Budget is organized into the following summary programs: • Governing Board • General Administration • Human Resources • Public Affairs • Conservation • Finance • Information Technology • Customer Service • Meter Service • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Maintenance • Facilities Maintenance • Fleet Maintenance EAST VALLEY WATER DISTRICT page. 55 68 FY 2010 66 FY 2011 63 FY 2012 63 FY 2013 65 FY 2014 66 FY 2015 67 FY 2016 69 FY 2017 TOTAL AUTHORIZED POSITIONS PROGRAM-BASED BUDGETING INCREASES ACCOUNTABILITY AND TRANSPARENCY. FISCAL YEAR BUDGET 2016-2017page. 56 THIS PAGE IS LEFT BLANK INTENTIONALLY EAST VALLEY WATER DISTRICT page. 57 GOVERNING BOARD FUNCTION The Governing Board is the legislative body of the organization and is comprised of five members elected at- large to four year staggered terms of office. Board members are responsible for the development and adoption of all District policy. The Governing Board appoints the General Manager/CEO to be charged with the implementation of adopted policy. PROGRAM PERSONNEL Governing Board Members 5 Total FTE 5 THE GOVERNING BOARD IS THE DISTRICT’S LEGISLATIVE BODY RESPONSIBLE FOR THE DEVELOPMENT AND ADOPTION OF ALL DISTRICT POLICIES FY 2016-17 GOALS & OBJECTIVES GOAL ONE Conduct Board Evaluation (FY 2016-17) OBJECTIVES 1. Retain consultant to facilitate evaluation process. 2. Establish procedures for 360 evaluation. 3. Develop evaluation survey to be distributed to Board and Executive Team. 4. Conduct evaluation and post evaluation recommendations. GOAL TWO Increase Community Involvement (FY 2016-17) OBJECTIVES 1. Continue communication training for outreach programs. 2. Attend community events on behalf of the District. GOAL THREE Address Agenda Items Brought Before the Board of Director’s Relating to the Sterling Natural Resource Center (FY 2016-17) OBJECTIVES 1. Review and consider engineering reports relating to permitting. 2. Consider approval of funding agreements with the SWRCB. 3. Review and consider RFQ/RFP for design build entity and other procurement related agenda items. GOAL FOUR Continue Efforts to Increase the District as a Regional Leader (FY 2016-17) OBJECTIVES 1. Identify new opportunities to collaborate with regional entities. 2. Increase official roles in industry related organizations. 3. Actively participate in regional working groups. FISCAL YEAR BUDGET 2016-2017page. 58 GOVERNING BOARD KEY PERFORMANCE INDICATORS AGENCY IDEAL GOAL OBJECTIVE KEY PERFORMANCE INDICATOR FY 2014-15 ACTUALS FY 2015-16 PROJECTED FY 2016-17 PROPOSED IV-E 1 4 Number of 360 Evaluations for Board Members N/A N/A 5 II-D 2 1 Number of communication training sessions held for Board Members N/A 3 3 III-A 2 2 Number of community events attended on behalf of District 10 15 20 I-A 3 3 Number of agenda items for SNRC considered 2 4 5 III-B 4 3 Number of regional working group meetings attended 100 140 150 FY 2015-16 ACCOMPLISHMENTS • Conducted all activities required for the 2015 elections • Received Chairman of the Year award from California Special District’s Association • Completed General Manager/CEO evaluation • Streamlined communications related to board agendas, expense reports and other District related documents • Conducted Board training throughout the year • Approved General Manager/CEO Goals and Objectives for FY 2016-17 • Addressed agenda items relating to the Sterling Natural Resource Center • Established four standing committees and one ad-hoc committee • Approved a balanced budget for FY 2015-16 • Newly elected Board Members completed mandatory training SIGNIFICANT CHANGES • General electrions completed in FY 2015-16 and will not occur in FY 2016-17 • Communications training costs moved from General Administration budget to Governing Board budget EAST VALLEY WATER DISTRICT page. 59 PROGRAM BUDGET DETAIL FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 - Regular Labor $ 87,071 $ 105,000 $ 105,000 $ 105,000 $ - 0% 5200 - Benefits 44,245 40,000 40,000 41,000 1,000 3% OPERATING EXPENSES 6201 - Materials & Supplies --- 1,000 1,000 100% 6301 - Contract Services - 100,000 100,000 10,000 (90,000)-90% 6307 - Uniforms --- 1,000 1,000 100% 6502 - Professional Development 34,677 50,000 50,000 55,000 5,000 10% GOVERNING BOARD TOTAL $ 165,993 $ 295,000 $ 295,000 $ 213,000 $ (82,000)-28% GOVERNING BOARD FISCAL YEAR BUDGET 2016-2017page. 60 THIS PAGE IS LEFT BLANK INTENTIONALLY EAST VALLEY WATER DISTRICT page. 61 GENERAL ADMINISTRATION FUNCTION The General Manager/CEO is responsible for overseeing day-to- day administration and program implementation of District operations. Administration is responsible for managing, documenting, organizing, communicating, and ensuring the implementation and execution of the District’s Vision. PROGRAM PERSONNEL General Manager 1 Assistant General Manager 1 District Clerk 1 Administrative Assistant 1 Total FTE 4 ADMINISTRATION EXECUTES THE DISTRICT VISION FY 2016-17 GOALS & OBJECTIVES GOAL ONE Preserve and Maintain North Fork Water Company Records (FY 2015-16 to 2017-18) OBJECTIVES 1. Prepare historical documents for public display. 2. Create a chronological list of North Fork Shareholders from 1885 to present. GOAL TWO Dissolve City Creek Water Company (FY 2016-17 to 2017-18) OBJECTIVES 1. Develop action plan for dissolution of City Creek Water Company. 2. Gather all relevant historical documents. 3. Schedule City Creek Water Company board meeting. GOAL THREE Maintain Financing and Construction Documents Related to the Sterling Natural Resource Center (FY 2016-17 to 2017-18) OBJECTIVES 1. Catalog existing public records for project to date. 2. Collaborate with staff to develop procedures for electronic record storage. GOAL FOUR Promote Public Transparency and Accountability (FY 2016-17) OBJECTIVES 1. Provide the community access to agendas, minutes, reports and public notices. 2. Develop community relationships and encourage public engagement. FISCAL YEAR BUDGET 2016-2017page. 62 GENERAL ADMINISTRATION KEY PERFORMANCE INDICATORS AGENCY IDEAL GOAL OBJECTIVE KEY PERFORMANCE INDICATOR FY 2014-15 ACTUAL FY 2015-16 PROJECTED FY 2016-17 PROPOSED I-D 1 2 Document original shareholders and successors of North Fork Water Company N/A N/A 70% I-D 2 3 Schedule City Creek Board Meeting N/A N/A 1 IV-A 3 1 Inventory and maintain documents for the Sterling Natural Resource Center N/A N/A 100% II-E 4 1 Publish Open Meeting/Public Notices on or before statutory time period 100%100%100% II-E 4 1 Respond to Public Records Requests pursuant to statutory requirements 100%100%100% III-A 4 2 Number of Community Conversations and/or speaking engagements with local community based organizations 6 11 12 FY 2015-16 ACCOMPLISHMENTS • Received $322,000 Grant from SAWPA for implementation of Budget Based Rates • Held eleven community conversations and public speaking engagements • Conducted orientation for potential board candidates prior to election • Successful recruitment process for Assistant General Manager • Promoted Customer Service Representative to Administrative Assistant • Established El Niño Task Force Committee • Implemented Adopt-a-School program partnership between San Bernardino City Unified School District (SBCUSD) and the San Bernardino Area Chamber of Commerce, which partners SBCUSD schools with local businesses to create opportunities for student success • Held monthly meetings and provided training to Administrative Assistants in support of Standing and Ad-Hoc Committees • Two staff members received Special District Board Secretary Clerk Certificates • Conducted successful interviews for Conservation Commission • Completed North Fork Water Company historical records inventory • Established an Agenda Policy and Procedure Manual • Reviewed the District’s Records Retention Policy SIGNIFICANT CHANGES • Communications training moved to Governing Board budget • Administrative Assistant position added • Contract and legal services budgets adjusted to reflect a reduced need for these services EAST VALLEY WATER DISTRICT page. 63 PROGRAM BUDGET DETAIL FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 Regular Labor $ 592,749 $ 565,000 $ 567,600 $ 651,000 $ 86,000 15% 5103 Overtime - - - - - 0% 5200 Benefits 238,552 200,000 210,000 266,000 66,000 33% OPERATING EXPENSES 6201 Materials & Supplies 3,694 2,000 10,000 5,000 3,000 150% 6203 Office Supplies 8,223 5,000 5,000 5,000 - 0% 6301 Contract Services 171,379 200,000 170,000 146,000 (54,000)-27% 6303 Printing & Publishing 1,594 3,000 3,000 3,000 - 0% 6304 Legal Services 191,129 200,000 200,000 150,000 (50,000)-25% 6307 Uniforms - - - 1,000 1,000 100% 6402 Telephone 4,077 5,000 5,000 4,000 (1,000)-20% 6406 Postage 190 1,000 1,000 1,000 - 0% 6501 Membership & Dues 54,407 86,000 75,000 77,000 (9,000)-10% 6502 Professional Development 15,521 40,000 30,000 30,000 (10,000)-25% 6503 Education Assistance - - - - - 0% 6504 Meetings - 5,000 5,000 10,000 5,000 100% GENERAL ADMIN. TOTAL $ 1,281,515 $ 1,312,000 $ 1,281,600 $ 1,349,000 $ 37,000 3% GENERAL ADMINISTRATION FISCAL YEAR BUDGET 2016-2017page. 64 THIS PAGE IS LEFT BLANK INTENTIONALLY EAST VALLEY WATER DISTRICT page. 65 HUMAN RESOURCES FUNCTION Human Resources plans, directs, manages and oversees programs and operations related to personnel matters, including employee relations, contract administration, retention, recruitment and selection of employees, administration of health and welfare benefits, risk management, administration of safety regulations, and professional development services. Specific functions include: • Personnel: recruitment, labor negotiations and ensure compliance with all state and federal laws. • Worker’s Compensation: oversight of the District’s comprehensive Risk Management Program. • Employee Services: management and administration of employee compensation, benefit plans and monitor labor agreements. • Safety: ensure a safe work environment. PROGRAM PERSONNEL Human Resources/ Risk & Safety Manager 1 Senior Administrative Assistant 1 Administrative Intern 0.5 Total FTE 2.5 HUMAN RESOURCES MANAGES & OVERSEES PERSONNEL MATTERS FY 2016-17 GOALS & OBJECTIVES GOAL ONE Support Workforce Needs of the Sterling Natural Resource Center (FY 2015-16 to 2017-18) OBJECTIVES 1. Conduct staffing analysis for both treatment operations and community learning center. 2. Create job descriptions and salary ranges for new staff classifications. 3. Identify current staff members interested in opportunities at the SNRC. 4. Collaborate with local agencies to facilitate Operator-in- Training and related development programs. GOAL TWO Initiate Programs In Support of the District’s Succession Planning, Recruitment, and Retention Efforts (FY 2015-16 to 2017-18) OBJECTIVES 1. Promote training and development programs. 2. Identify potential District leaders. 3. Apply recruitment strategies to attract a multi-generational workforce. GOAL THREE Promote a Positive Organizational Culture that Holds Managers, Supervisors and Employees Accountable for Creating and Maintaining a Supportive and Encouraging Work Environment (FY 2015-16 To 2017-18) OBJECTIVES 1. Conduct annual employee engagement surveys and receive feedback from follow-up focus group meetings. 2. Develop a 360 degree (multi-rater) performance appraisal for supervisors and managers to create a channel of open communication through feedback from bosses, peers, and subordinates. 3. Create an innovative recognition program that will encourage employees to submit ideas for minimizing District expenses or improving the operation or work efficiency of the District. FISCAL YEAR BUDGET 2016-2017page. 66 GOAL FOUR Implement the District’s Volunteer Program to Promote Community Involvement, Provide Work Experience Opportunities, and Offer Staff Assistance (FY 2015-16 to 2016-17) OBJECTIVES 1. Conduct departmental needs assessment to gain understanding of areas where volunteers could be utilized. 2. Identify three recruiting sources to attract volunteer applicants. 3. Interview and background screen volunteer applicants. 4. Provide orientation and training to all volunteers. HUMAN RESOURCES KEY PERFORMANCE INDICATORS AGENCY IDEAL GOAL OBJECTIVE KEY PERFORMANCE INDICATOR FY 2014-15 ACTUAL FY 2015-16 PROJECTED FY 2016-17 PROPOSED II-C 1 2 Number of job descriptions created for SNRC N/A 0 3 II-D 2 1,2 Number of participants enrolled in the Leadership Academy and other training programs N/A 10 15 II-B 3 1 Percentage of employees participating in the annual employee engagement survey N/A 91%90% IV-B 3 3 Number of ideas submitted through the Innovative Recognition Program N/A N/A 4 III-A 4 3 Number of volunteers enrolled in the District’s volunteer program N/A 0 5 FY 2015-16 ACCOMPLISHMENTS • Conducted District-Wide Succession Planning • Created Employee Mentoring and Cross-Training Programs • Facilitated the Leadership Action Academy • Generated Total Compensation Statements to inform employees of the total value of their compensation and benefits • Implemented Trakstar performance appraisal software to automate the performance management process • Increased efficiency by consolidating employee identification badges and proximity access cards into one resource • Earned the CalPERS District of Distinction Award • Earned The Press Enterprise Top Workplace Award • Hired six new EVWD team members • Processed three internal promotions SIGNIFICANT CHANGES • Contract Services increased for implementation of Trakstar Performance Appraisal Software • Legal services increased to support staffing analysis for the SNRC • General insurance decreased due to low number of accident and injury reports EAST VALLEY WATER DISTRICT page. 67 PROGRAM BUDGET DETAIL FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 Regular Labor $ 184,346 $ 200,000 $ 197,000 $ 201,000 $ 1,000 1% 5102 Temporary Labor 4,372 12,000 12,000 12,000 - 0% 5103 Overtime 3,765 3,000 3,000 3,000 - 0% 5200 Benefits 95,713 65,000 84,000 84,000 19,000 29% OPERATING EXPENSES 6201 Materials & Supplies 3,358 4,000 1,500 4,000 - 0% 6203 Office Supplies 1,955 1,000 1,500 3,000 2,000 200% 6301 Contract Services 128,661 61,500 52,000 70,000 8,500 14% 6303 Printing & Publishing - 500 500 1,000 500 100% 6304 Legal Services 24,969 15,000 21,500 25,000 10,000 67% 6406 Postage 202 500 500 1,000 500 100% 6501 Membership & Dues 6,166 4,500 4,500 5,000 500 11% 6502 Professional Development 8,443 7,500 7,500 10,000 2,500 33% 6504 Meetings - 3,500 4,000 5,000 1,500 43% 6505 Employee Recognition - 8,500 13,000 14,000 5,500 65% 6701 General Insurance 183,691 254,500 190,000 175,000 (79,500)-31% 6702 Insurance Claims 2,200 1,000 1,700 2,000 1,000 100% 6705 Retiree Benefits 98,841 55,000 120,000 120,000 65,000 118% HUMAN RESOURCES TOTAL $ 746,682 $ 697,000 $ 714,200 $ 735,000 $ 38,000 5% HUMAN RESOURCES FISCAL YEAR BUDGET 2016-2017page. 68 THIS PAGE IS LEFT BLANK INTENTIONALLY EAST VALLEY WATER DISTRICT page. 69 PUBLIC AFFAIRS FUNCTION Public Affairs is the primary outreach vehicle for increasing awareness of the District’s mission and role in the local and regional community. Through media, community and governmental relations, the District is able to provide effective communications to various community stakeholders. PROGRAM PERSONNEL Public Affairs & Conservation Manager 1 Community Relations Officer 0.5 Senior Administrative Assistant 1 Public Affairs Representative 0.5 Administrative Intern 0.5 Total FTE 3.5 PUBLIC AFFAIRS IS THE PRIMARY OUTREACH VEHICLE FOR THE DISTRICT FY 2016-17 GOALS & OBJECTIVES GOAL ONE Conduct an Extensive Outreach Program for the SNRC in Order to Inform a Broad Range of Stakeholders of the Project Benefits (FY 2015-16 to 2017-18) OBJECTIVES 1. Conduct educational meetings with representatives from local schools, in order to identify cooperative opportunities at the SNRC. 2. Create and distribute printed materials informing a wide audience of the project overview and benefits. 3. Host special events relating to milestones of the SNRC. GOAL TWO Enhance Communication Methods in Order to Promote and Support the District’s Identity (FY 2016-17) OBJECTIVES 1. Update the District’s Strategic Communications Plan to reflect the adopted Organizational Ideals and Endeavors. 2. Develop a community engagement program that utilizes Governing Board Members, General Manager/CEO, and staff for stakeholder interactions. 3. Implement customer appreciation activities in order to encourage positive interactions with the community. 4. Develop on and off-site programs for local students that highlight District operations and are consistent with educational standards. GOAL THREE Implement Measures to Continue Elevating the District’s Emergency Preparedness Program (FY 2016-17) OBJECTIVES 1. Identify and implement operational procedures for the activation of the District’s Emergency Operations Center (EOC). 2. Update the Emergency Response Plan to reflect the current District emergency preparedness needs. 3. Facilitate section specific training for District staff, as recommended by the Federal Emergency Management Agency (FEMA) and California Office of Emergency Services (Cal OES). FISCAL YEAR BUDGET 2016-2017page. 70 PUBLIC AFFAIRS KEY PERFORMANCE INDICATORS AGENCY IDEAL GOAL OBJECTIVE KEY PERFORMANCE INDICATOR FY 2014-15 ACTUAL FY 2015-16 PROJECTED FY 2016-17 PROPOSED III-A 1 2 Total number of impressions of SNRC print material N/A 150,000 44,000 III- A 2 2 Number of community events conducted 16 23 12 IV- D 2 4 Number of educational events conducted 20 25 20 I-C 3 1 Percentage of Emergency Response Plan updated 0%0%75% FY 2015-16 ACCOMPLISHMENTS • Conducted an extensive outreach effort for the Sterling Natural Resource Center • Developed a dedicated Sterling Natural Resource Center website • Implemented a social media program • Facilitated training for all District staff to be ICS 100/700 certified • Updated the Facility Rental Fees and Policy to better reflect the costs of providing the service • Conducted quarterly emergency preparedness exercises SIGNIFICANT CHANGES • Additional purchases of chairs and other equipment to support facility rental activities have been added to the FY 2016-17 budget • Communications systems, training, and materials and supplies needed for the Emergency Operations Center have been included in the FY 2016-17 budget • Increases in contract services and printed materials have been included to support pubilc outreach and community events for the SNRC EAST VALLEY WATER DISTRICT page. 71 PROGRAM BUDGET DETAIL FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 Regular Labor $ 284,776 $ 220,000 $ 255,500 $ 296,000 $ 76,000 35% 5102 Temporary Labor 8,208 15,000 15,000 - (15,000)-100% 5103 Overtime 9,207 7,000 7,000 7,000 - 0% 5200 Benefits 106,645 63,000 72,300 106,000 43,000 68% OPERATING EXPENSES 6201 Materials & Supplies 109,479 43,000 25,350 158,000 115,000 267% 6203 Office Supplies 1,826 2,000 2,150 7,000 5,000 250% 6301 Contract Services 235,135 75,000 75,000 348,000 273,000 364% 6303 Printing & Publishing 94,775 50,000 50,000 46,000 (4,000)-8% 6304 Legal Services 16,541 5,000 5,000 5,000 - 0% 6307 Uniforms - - - 2,000 2,000 100% 6402 Telephone 637 - 3,000 3,000 3,000 100% 6406 Postage 15,321 15,000 1,700 20,000 5,000 33% 6501 Membership & Dues 5,183 3,000 3,000 4,000 1,000 33% 6502 Professional Development 8,878 6,000 6,000 11,000 5,000 83% 6503 Education Assistance 204 3,000 2,400 2,000 (1,000)-33% 6504 Meetings - - - 3,000 3,000 100% PUBLIC AFFAIRS TOTAL $ 896,815 $ 507,000 $ 523,400 $ 1,018,000 $ 511,000 101% PUBLIC AFFAIRS FISCAL YEAR BUDGET 2016-2017page. 72 THIS PAGE IS LEFT BLANK INTENTIONALLY EAST VALLEY WATER DISTRICT page. 73 CONSERVATION FUNCTION Conservation is responsible for overseeing programs that facilitate and encourage sustainable water use throughout the District. Specific functions include: • Rebate program development and administration • Educational outreach regarding conservation techniques • Preparing and submitting regulatory reporting requirements PROGRAM PERSONNEL Community Relations Officer 0.5 Conservation Coordinator 1 Conservation Representative 0.5 Total FTE 2 CONSERVATION ENCOURAGS SUSTAINABLE WATER USE FY 2016-17 GOALS & OBJECTIVES GOAL ONE Maintain Compliance with Water Conservation Standards Established by the SWRCB (FY 2016-17) OBJECTIVES 1. Meet conservation reduction goal established by the SWRCB. 2. Revise the District’s Water Conservation Ordinance. 3. Conduct a Water Audit for the Distribution System. GOAL TWO Evaluate and Revise the Water Conservation Rebate Program Offered by the District (FY 2016-17) OBJECTIVES 1. Review and update the Turf Removal Program. 2. Develop and implement a direct installation toilet program. 3. Identify large water users and implement programs to reduce Tier 3 usage. 4. Research and identify potential grant funding sources to offset conservation program costs. GOAL THREE Continue Water Conservation Outreach to Encourage Continued Water Use Efficiency and Meet Conservation Goals Established in the 2015 Urban Water Management Report (FY 2016-17) OBJECTIVES 1. Develop and implement additional educational materials to be utilized for both customers and District staff. 2. Design and install educational signage to allow for self- guided tours of the District’s demonstration garden. 3. Create a strategic outreach effort that incorporates seasonal demand, inefficiencies, and helpful concepts. FISCAL YEAR BUDGET 2016-2017page. 74 CONSERVATION KEY PERFORMANCE INDICATORS AGENCY IDEAL GOAL OBJECTIVE KEY PERFORMANCE INDICATOR FY 2014-15 ACTUAL FY 2015-16 PROJECTED FY 2016-17 PROPOSED I-B 1 1 SWRCB water conservation goal achieved -Yes Yes I-B 2 2 Number of toilets installed through direct installation program -N/A 50 IV-C 2 4 Alternative conservation funding received -TBD $50,000 III-C 3 3 Number of educational materials created -40 20 FY 2015-16 ACCOMPLISHMENTS • Developed and implemented a turf replacement rebate program for residential and commercial customers • Hosted 4 water conservation workshops for the community • Developed and implemented a direct install weather based irrigation controller program • Implemented a positive outreach campaign with “On our Way To 28” to encourage a sense of community efforts in achieving the mandated State reductions • Submitted all required monthly reports to the SWRCB as required for the statewide drought tracking effort • Renovated the Headquarters Demonstration Garden to serve as a resource for easily applied water efficient landscape design options SIGNIFICANT CHANGES • Contract services, printing and postage have increased significantly to support an increase in printed conservation materials • Funding for direct rebates has been reduced for matching programs • Focus will be on direct installation programs for toilets and weather based irrigation controllers EAST VALLEY WATER DISTRICT page. 75 PROGRAM BUDGET DETAIL FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 Regular Labor $ - $ 230,000 $ 230,000 $ 102,000 $ (128,000)-56% 5102 Temporary Labor - 25,000 25,000 - (25,000)-100% 5103 Overtime - 8,000 8,000 8,000 - 0% 5200 Benefits - 60,000 87,600 31,000 (29,000)-48% OPERATING EXPENSES 6201 Materials & Supplies - 35,000 20,000 20,000 (15,000)-43% 6203 Office Supplies - 2,000 3,000 4,000 2,000 100% 6205 Conservation Rebates - 1,000,000 1,400,000 500,000 (500,000)-50% 6301 Contract Services - 100,000 125,000 221,000 121,000 121% 6303 Printing & Publishing - 25,000 60,000 80,000 55,000 220% 6304 Legal Services - 5,000 1,000 1,000 (4,000)-80% 6307 Uniforms - - - 1,000 1,000 100% 6402 Telephone - - - 1,000 1,000 100% 6406 Postage - 15,000 30,000 40,000 25,000 167% 6501 Membership & Dues - 2,000 2,000 2,000 - 0% 6502 Professional Development - 4,000 5,000 7,000 3,000 75% 6504 Meetings - - - 3,000 3,000 100% CONSERVATION TOTAL $ - $ 1,511,000 $ 1,996,600 $ 1,021,000 $ (490,000)-32% CONSERVATION FISCAL YEAR BUDGET 2016-2017page. 76 THIS PAGE IS LEFT BLANK INTENTIONALLY EAST VALLEY WATER DISTRICT page. 77 FINANCE & ACCOUNTING FUNCTION Finance oversees the financial operations of the District in order to provide accountability and adequate control over the use of District funds. Finance staff maintains the financial systems and records in accordance with Generally Accepted Accounting Principles (GAAP) as well as applicable laws, regulations and District policies. PROGRAM PERSONNEL Chief Financial Officer 1 Business Services Manager 1 Accountant 1 Senior Accounting Technician 1 Accounting Technician 1 Administrative Assistant 1 Storekeeper/Buyer 1 Total FTE 7 FINANCE PROVIDES ACCOUNTABILITY & ADEQUATE CONTROL OVER DISTRICT FUNDS FY 2016-17 GOALS & OBJECTIVES GOAL ONE Support Financing, and Establish Recordkeeping Functions, for SNRCWater Recycling Project (FY 2014-15 to 2017-18) OBJECTIVES 1. Conduct cost of service analysis for wastewater treatment/ conveyance services and schedule a Prop 218 hearing. 2. Create wastewater treatment and reclaimed water funds in District’s accounting system. 3. Collaborate with staff, consultants and other agencies to prepare initial budget for SNRC. GOAL TWO Enhance Internal and External Stakeholder Understanding of District Financial Reports and Documents (FY 2015-16 to 2016-17) OBJECTIVES 1. Meet monthly with Program Managers to discuss budget variance reports. 2. Complete audit and adopt Comprehensive Annual Financial Report (CAFR) within 4 months of fiscal year end. 3. Submit CAFR and annual budget for GFOA award consideration. 4. Complete and post online monthly financial reports within 40 days of month end. GOAL THREE Enhance District Credit Rating (AA- to AA) in Order to Reduce Cost of Borrowing (FY 2016-17 to 2018-19) OBJECTIVES 1. Complete long term financial plan. 2. Review and update District reserve and debt management policies. 3. Budget to build adequate replacement reserves in appropriate program budgets. GOAL FOUR Convert Departmental Processes to Use Paperless Technologies (FY 2015-16 to 2017-18) OBJECTIVES 1. Convert all vendor payments from paper checks to ACH transfers. 2. Implement automated bar code inventory system. FISCAL YEAR BUDGET 2016-2017page. 78 FINANCE & ACCOUNTING KEY PERFORMANCE INDICATORS AGENCY IDEAL GOAL OBJECTIVE KEY PERFORMANCE INDICATOR FY 2014-15 ACTUAL FY 2015-16 PROJECTED FY 2016-17 PROPOSED I-B 1 1 Complete COSA & Hearing for Rates, Fees or Charges 2 1 1 II-D 2 1 Monthly meetings with Program Mgrs. to discuss budget variance reports N/A 84 96 II-E 2 2 No. of days after year end CAFR is adopted 162 162 118 II-E 2 2 No of consecutive years GFOA CAFR award received 3 4 5 II-E 3 2 Number of fiscal policies updated 1 2 3 IV-A 4 1 Percent of vendor payments by ACH 21%40%50% FY 2015-16 ACCOMPLISHMENTS • Completed Cost Of Service Analysis for Miscellaneous Fees and presented at Public Hearing • Received GFOA Distinguished Budget Award for FY 2015-16 Budget • Received GFOA Certificate of Achievement for Excellence in Financial Reporting for FY 2014-15 • Closed out grants for Baseline Gardens Consolidation and SAWPA Budget Based Rates • Implemented Affordable Care Act reporting and compliance • Implemented fixed asset and inventory tracking modules in Tyler SIGNIFICANT CHANGES • Legal services have increased to pay for legal review of the Cost of Service Analysis to be conducted for wastewater services • Temporary labor has been increased to provide departmental support until the vacant Accountant position can be filled EAST VALLEY WATER DISTRICT page. 79 PROGRAM BUDGET DETAIL FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 Regular Labor $ 618,752 $ 640,000 $ 643,950 $ 640,000 $ -0% 5102 Temporary Labor 13,635 - - 25,000 25,000 100% 5103 Overtime 1,280 1,500 1,500 3,000 1,500 100% 5200 Benefits 351,876 205,000 266,000 255,000 50,000 24% OPERATING EXPENSES 6203 Office Supplies 10,815 7,000 10,000 6,000 (1,000)-14% 6301 Contract Services 111,925 100,000 100,000 76,000 (24,000)-24% 6302 Banking Services 41,225 10,000 15,000 16,000 6,000 60% 6303 Printing & Publishing - - - - - 0% 6304 Legal Services 8,454 10,000 25,000 35,000 25,000 250% 6307 Uniforms - 3,000 2,000 3,000 - 0% 6402 Telephone 1,355 1,500 3,000 3,000 1,500 100% 6406 Postage 582 1,000 1,000 1,000 - 0% 6501 Membership & Dues 2,098 3,300 3,300 4,000 700 21% 6502 Professional Development 10,066 10,000 10,000 16,000 6,000 60% 6503 Education Assistance 13,024 - - - - 0% 6504 Meetings - - - 4,000 4,000 100% 6704 Bad Debt 615 - 500 1,000 1,000 100% FINANCE & ACCT. TOTAL $ 1,185,702 $ 992,300 $ 1,081,250 $ 1,088,000 $ 95,700 10% FINANCE & ACCOUNTING FISCAL YEAR BUDGET 2016-2017page. 80 THIS PAGE IS LEFT BLANK INTENTIONALLY EAST VALLEY WATER DISTRICT page. 81 INFORMATION TECHNOLOGY FUNCTION Information Technology (IT) is responsible for system maintenance, network management, systems support, updating software/ hardware, and monitoring District needs for new equipment. PROGRAM PERSONNEL Information Technology Manager 1 Network Administrator 1 Information Systems Technician 1 Total FTE 3 INFORMATION TECHNOLOGY IS RESPONSIBLE FOR NETWORK MANAGEMENT & SYSTEMS SUPPORT FY 2016-17 GOALS & OBJECTIVES GOAL ONE Maintain Secure and Reliable Technology Infrastructure, while Providing Highly Responsive IT Services, in Accordance with the District’s IT Strategic Plan (FY 2016-17) OBJECTIVES 1. Enhance the District’s cyber security with upgrade to next generation network firewalls. 2. Provide IT support for leading edge remote customer payment acceptance solutions. 3. Mitigate security risks and elevate staff awareness through ‘test’ phishing email campaign. 4. Limit network down-time to less than 8 hours annually. GOAL TWO Assess and Evaluate Existing Technology Solutions to Improve Operations (FY 2016-17) OBJECTIVES 1. Deploy new features and improve the utilization of the Laserfiche electronic document management system. 2. Identify additional District processes to benefit from the use of the DocuSign digital signature solution. 3. Implement a Data Quality Assurance and Control Program to establish accountability and ensure the accuracy of data- driven decision making. GOAL THREE Enhance Business Analytics by Making Information More Accessible and Presentable (FY 2016-17) OBJECTIVES 1. Meet with program managers to develop understanding of desired program reporting. 2. Improve data-driven decision making for Customer Service by implementing a call center business intelligence portal. 3. Develop a business intelligence center within SharePoint to share reports and provide access to other tools and applications. FISCAL YEAR BUDGET 2016-2017page. 82 INFORMATION TECHNOLOGY KEY PERFORMANCE INDICATORS AGENCY IDEAL GOAL OBJECTIVE KEY PERFORMANCE INDICATOR FY 2014-15 ACTUAL FY 2015-16 PROJECTED FY 2016-17 PROPOSED I-A 1 1 Percent of IT strategic plan projects for fiscal year completed 100%75%100% IV-D 1 3 Number of ‘test’ phishing email campaigns delivered N/A N/A 12 I-A 1 4 Number of hours online services down 12 2.5 4 I-D 2 2 Processes automated with DocuSign digital signature solution NA 3 2 III-C 3 3 Number of staff reporting tools developed 14 20 10 FY 2015-16 ACCOMPLISHMENTS • Modernized the data center by implementing server virtualization and a virtual desktop infrastructure • Migrated email to the Office 365 platform, obtained SharePoint, and upgraded Microsoft Office software • The new Web Content Security Filter has blocked over 5,000 spyware webpage requests since implementation • Completed four Post Implementation Evaluation Reviews. • Developed six Conservation related reporting dashboards and tools • Conducted a comprehensive assessment of our SCADA wireless radio network • Transitioned to the Smart Utility Systems billing portal to support Budget Based Rates, Conservation, Social Media integration, and plan for AMI deployment • Deployed a Call Quality Management solution to capture contact center call metrics • All conference rooms received upgraded technology to support wireless connections and multiple presenters • Enhanced mobility, efficiency, and communications by deploying 12 Microsoft Surface Pro devices to field staff • Staff presented “Conservation Through Transformation” at the 2015 ESRI User Conference SIGNIFICANT CHANGES • Contract services have increased as all copier maintenance contracts have been consolidated into the IT budget • Contract services now includes the implementation of a new cloud based backup solution • Professional development has increased to provide staff training for GIS and virtual desktops EAST VALLEY WATER DISTRICT page. 83 PROGRAM BUDGET DETAIL FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 Regular Labor $ 227,299 $ 275,000 $ 278,000 $ 290,000 $ 15,000 5% 5102 Temporary Labor - - - - - 0% 5103 Overtime - - - - - 0% 5200 Benefits 71,455 75,000 89,000 104,000 29,000 39% OPERATING EXPENSES 6201 Materials & Supplies 42,759 30,000 20,000 30,000 - 0% 6203 Office Supplies 2,052 3,000 2,000 - (3,000)-100% 6301 Contract Services 279,021 225,000 281,000 321,000 96,000 43% 6307 Uniforms - - - 1,000 1,000 100% 6402 Telephone 3,715 3,000 5,500 5,000 2,000 67% 6501 Membership & Dues 547 1,300 1,000 6,000 4,700 362% 6502 Professional Development 5,073 7,000 17,000 14,000 7,000 100% 6504 Meetings - - - 3,000 3,000 100% IT TOTAL $ 631,921 $ 619,300 $ 693,500 $ 774,000 $ 154,700 25% INFORMATION TECHNOLOGY FISCAL YEAR BUDGET 2016-2017page. 84 THIS PAGE IS LEFT BLANK INTENTIONALLY EAST VALLEY WATER DISTRICT page. 85 CUSTOMER SERVICE FUNCTION Customer Service is responsible for responding to customer inquiries, establishing and discontinuing service, preparing monthly bills, processing payments, and collecting outstanding customer balances. Customer Service staff continues to explore opportunities to provide convenient methods of payments and strives to resolve all customer concerns on a daily basis. PROGRAM PERSONNEL Customer Service Supervisor 1 Senior Customer Service Rep 1 Customer Service Rep III 1 Customer Service Rep II 2 Customer Service Rep I 2 Receptionist 1 Total FTE 8 CUSTOMER SERVICE STAFF RESPONDS TO CUSTOMER CONCERNS ON A DAILY BASIS FY 2016-17 GOALS & OBJECTIVES GOAL ONE Strive to Provide World Class Customer Service (FY 2014-15 TO FY 2016-17) OBJECTIVES 1. Attend training specific to enhancing the guest experience. 2. Conduct customer satisfaction surveys. 3. Enhance customer convenience by employing new off-site payment center options. GOAL TWO Improve Departmental / Customer Processes (FY 2015-16 TO 2017-18) OBJECTIVES 1. Streamline process for final review of disconnection list to allow field staff adequate time to perform required service disconnections / reconnections. 2. Reduce number of customer disconnections by increasing number of courtesy reminder calls. GOAL THREE Improve Customer Awareness and Understanding of District Processes (FY 2015-16 to 2017-18) OBJECTIVES 1. Collaborate with Public Affairs to produce video regarding billing process for display in lobby. 2. Track number and types of customer calls for purpose of creating an action plan to proactively address customer questions and concerns. GOAL FOUR Practice Prudent Fiscal Management (FY 2016-17 to 2017-18) OBJECTIVES 1. Present options for cost recovery of electronic payment merchant fees. 2. Increase utilization of paperless billing. 3. Increase utilization of Pre-Authorized payment bill collection method. FISCAL YEAR BUDGET 2016-2017page. 86 CUSTOMER SERVICE KEY PERFORMANCE INDICATORS AGENCY IDEAL GOAL OBJECTIVE KEY PERFORMANCE INDICATOR FY 2014-15 ACTUAL FY 2015-16 PROJECTED FY 2016-17 PROPOSED II-C 1 1 Number of customer service training sessions attended/held N/A 8 12 IV-A 1 2 Number of customer service surveys completed & received N/A N/A 100 IV-C 1 3 Number off-site payments received (Kiosks, PaynearMe)6,158 8,342 9,000 IV-A 2 2 Number of automated phone call reminders delivered N/A 22,285 34,285 IV-C 3 2 Number of customers enrolled in paperless billing 1,200 1,626 2,300 IV-C 3 3 Number of customers enrolled in Pre-Authorized Payment Plan 1,484 1,550 1,750 FY 2015-16 ACCOMPLISHMENTS • Implemented DocuSign for new water/ wastewater applications • Implemented call monitoring system for quality assurance • Increased customer communication with automated reminder calls • Completed and implemented a three year strategic plan • Created a Customer Service policy • Established a policy manual for the daily duties of the department • Department received advanced customer service training • Created customer service satisfaction surveys SIGNIFICANT CHANGES • Contract services, rents and leases, and banking services have been reduced to reflect savings when the kiosks are replaced by more cost effective offsite payment center solutions • Billing services have been reduced to reflect a more accurate budget of the cost of this third party service • Postage costs have been reduced as a result of purchasing a metered postage machine EAST VALLEY WATER DISTRICT page. 87 PROGRAM BUDGET DETAIL FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 Regular Labor $ 398,584 $ 465,000 $ 443,500 $ 483,000 $ 18,000 4% 5102 Temporary Labor 44,054 - 5,000 3,000 3,000 100% 5103 Overtime 6,564 5,000 - 5,000 - 0% 5200 Benefits 221,872 175,000 195,000 234,000 59,000 34% OPERATING EXPENSES 6201 Materials & Supplies 2,121 3,000 3,000 3,000 - 0% 6203 Office Supplies 7,542 6,000 6,000 3,000 (3,000)-50% 6301 Contract Services 569,570 90,000 115,000 74,000 (16,000)-18% 6302 Banking Services 188,713 300,000 300,000 295,000 (5,000)-2% 6303 Printing & Publishing - - - 4,000 4,000 100% 6304 Legal Services 2,267 5,000 5,000 5,000 - 0% 6306 Rents & Leases - 24,000 12,000 12,000 (12,000)-50% 6307 Uniforms - 20,000 20,000 8,000 (12,000)-60% 6308 Billing Services - 75,000 50,000 52,000 (23,000)-31% 6309 Shut Off Notice Services - 375,000 375,000 378,000 3,000 1% 6402 Telephone 646 1,000 1,000 2,000 1,000 100% 6406 Postage 146,766 160,000 150,000 151,000 (9,000)-6% 6502 Professional Development 46,166 10,000 10,000 14,000 4,000 40% 6503 Education Assistance - 2,500 2,500 3,000 500 20% 6504 Meetings - - - 1,000 1,000 100% 6703 Cash Over/Short (74) - - - - 0% CUSTOMER SERVICE TOTAL $ 1,634,791 $ 1,716,500 $ 1,693,000 $ 1,730,000 $ 13,500 1% CUSTOMER SERVICE FISCAL YEAR BUDGET 2016-2017page. 88 THIS PAGE IS LEFT BLANK INTENTIONALLY EAST VALLEY WATER DISTRICT page. 89 METER SERVICE FUNCTION Meter Services is responsible for completing all on-site related customer requests such as turning water on/off, monthly meter readings for billing, and assisting customers at their residence when requested. Meter Services staff may also at times assist the Meter Maintenance program by installing new meters, testing meters for accuracy, and repairing meter leaks. PROGRAM PERSONNEL Meter Reader I 3 Meter Reader II 1 Total FTE 4 METER SERVICES SERVES AS A FIELD EXTENSION OF CUSTOMER SERVICE FY 2016-17 GOALS & OBJECTIVES GOAL ONE Ensure Accurate and Efficient Reading of Customer Meters (FY 2016-17) OBJECTIVES 1. Provide training to new meter reading personnel. 2. Log damaged meter registers into Cityworks to schedule for replacement. 3. Attend Automated Meter Infrastructure (AMI) training to prepare for the AMI project implementation. GOAL TWO Utilize Opportunities to Create Dialogue with Customers While Meter Reading to Promote District Outreach (FY 2016-17) OBJECTIVES 1. Train meter readers on District’s water budget based billing rate structure. 2. Provide customers information regarding District programs through verbal communication and handouts. 3. Educate District customers on the importance and functionality of AMI. GOAL THREE Provide Highly Professional and Timely Response to Requests for On-Site Customer Service Requests (FY 2016-17) OBJECTIVES 1. Develop meter reader rotation schedule for performance of customer service duties. 2. Respond to customer generated requests for service within two hours. FISCAL YEAR BUDGET 2016-2017page. 90 METER SERVICE KEY PERFORMANCE INDICATORS AGENCY IDEAL GOAL OBJECTIVE KEY PERFORMANCE INDICATOR FY 2014-15 ACTUAL FY 2015-16 PROJECTED FY 2016-17 PROPOSED IV-A 1 2 Number of damaged meter registers logged into Cityworks for replacement N/A 85 120 IV-A 1 3 Number of participants attending automated Meter Infrastructure training N/A 4 2 III-A 2 2 Number of handouts on District conservation programs distributed N/A 2,000 2,000 II-A 3 1 Number of meter readers performing customer service duties. 2 4 4 FY 2015-16 ACCOMPLISHMENTS • Reviewed meter routes and cycles and identified reader workload; adjusted amount of books per cycle where needed • Trained staff on preventative maintenance for plastic meter registers to prevent damage • Implemented Cityworks logging process for damaged meter registers • Trained staff on water budget based rates and billing system • Communicated the District’s drought ordinance and conservation rebates to customers SIGNIFICANT CHANGES • Decrease in contract services for large meter testing due to the replacement of most large water meters in FY 2014-15 and FY 2015-16 • Labor costs have decreased due to the large percentage of new staff in the department EAST VALLEY WATER DISTRICT page. 91 PROGRAM BUDGET DETAIL FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 Regular Labor $ 213,596 $ 225,000 $ 208,000 $ 210,000 $ (15,000)-7% 5103 Overtime 13,328 20,000 20,000 20,000 - 0% 5200 Benefits 82,715 85,000 105,000 104,000 19,000 22% OPERATING EXPENSES 6201 Materials & Supplies 3,309 3,000 2,500 3,000 - 0% 6202 Tools 278 500 500 1,000 500 100% 6301 Contract Services 8,105 15,000 7,500 5,000 (10,000)-67% 6307 Uniforms - - - 3,000 3,000 100% 6402 Telephone 1,478 3,000 3,000 2,000 (1,000)-33% 6502 Professional Development 239 2,000 1,000 - (2,000)-100% METER SERVICE TOTAL $ 323,048 $ 353,500 $ 347,500 $ 348,000 $ (5,500)-2% METER SERVICE FISCAL YEAR BUDGET 2016-2017page. 92 THIS PAGE IS LEFT BLANK INTENTIONALLY EAST VALLEY WATER DISTRICT page. 93 ENGINEERING FUNCTION Engineering is responsible for identifying and implementing infrastructure projects needed to provide safe and reliable water and wastewater service. Staff administers and manages the Capital Improvement Program, assists developers in building new residential and commercial properties, and provides support in the maintenance and repair of water and wastewater infrastructure. PROGRAM PERSONNEL Director of Engineering & Operations 1 (Vacant) Associate Engineer 1 Construction Project Coordinator 1 Senior Engineering Technician 1 Engineering Technician II 2 Senior Administrative Assistant 1 Total FTE 7 ENGINEERING IMPLEMENTS INFRASTRUCTURE PROJECTS NEEDED TO PROVIDE SAFE & RELIABLE SERVICES FY 2016-17 GOALS & OBJECTIVES GOAL ONE Provide Leadership in the Development and Implementation of the District’s Capital Improvement Program and Maintain Compliance with the SWRCB (FY 2016-17) OBJECTIVES 1. Complete water main replacement projects on Pumalo and Dwight Streets. 2. Prioritize wastewater main replacement and construct new mains and lift stations for the SNRC facility. 3. Complete design of Canal Zone booster station project. 4. Complete Canal Zone reservoir site study and design work. 5. Complete Wastewater System Management Plan audit. GOAL TWO Foster Partnership Opportunities with Surrounding Agencies and Other Stakeholders to Provide Benefits to the District and the Region (FY 2016-17) OBJECTIVES 1. Complete District section of the Regional Urban Water Management Plan. 2. Fund District participation in regional Wash Plan and Habitat Conservation Plan (HCP). 3. Incorporate San Bernardino Valley Municipal Water District conjunctive use well project into EVWD water supply planning efforts. 4. Partner with developers on site selection and sizing of Mountain zone reservoir. 5. Update the District’s development, professional service and construction agreements along with the policy for implementing them. GOAL THREE Implement Modernization Updates Using Programs and/or Software to Track Customer Service Efficiency (FY 2016-17) OBJECTIVES 1. Develop tracking system utilizing City Works for miscellaneous fees. 2. Develop tracking system for Project Coordinator inspections utilizing City Works. 3. Develop tracking system utilizing City Works for Plan Checking. 4. Continue updating GIS Basemap. FISCAL YEAR BUDGET 2016-2017page. 94 ENGINEERING KEY PERFORMANCE INDICATORS AGENCY IDEAL GOAL OBJECTIVE KEY PERFORMANCE INDICATOR FY 2014-15 ACTUAL FY 2015-16 PROJECTED FY 2016-17 PROPOSED I-A 1 1 Number of Fully Funded FY 2016-17 CIP projects initiated 5 4 8 I-B 1 5 SSMP annual audit completed N/A N/A 100% I-A 2 1 Regional Urban Water Management Plan completed N/A N/A 100% I-B 3 4 Number of updates to GIS base map completed 50%75%75% FY 2015-16 ACCOMPLISHMENTS • Completed the Plant 134 Booster Station Upgrade • Completed the Plant 134 “Getaway Capacity” pipeline improvement • Completed wastewater capacity improvements on Church and Whitlock • Completed 6 Valaria manhole replacements • Completed the North Fork Santa Ana River and Plunge Creek Crossing Assessment • Completed the North Fork pipeline survey • Completed the wastewater and water plan reviews for the Glenrose Ranch Development, Tract 16745 • Completed 38 Plant drawing updates • Completed 5,405 meter updates/leaks logged into GIS & Cityworks • Completed 500 meter service area updates (MSA) for (Budget based billing accounts) • Completed 110 various maps using GIS for different departments • Completed Developer Handbook • Completed the update to EVWD standard drawings for water and wastewater SIGNIFICANT CHANGES • Labor has increased to reflect two new positions: Director of Engineering and Operations, and Construction Project Coordinator • Contract Services has increased to support the need for GIS work on District digital maps • Excavation permit expenditures were moved from Operations to the Engineering department EAST VALLEY WATER DISTRICT page. 95 PROGRAM BUDGET DETAIL FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 Regular Labor $ 597,498 $ 436,000 $ 632,500 $ 549,000 $ 113,000 26% 5102 Temporary Labor 4,519 5,000 5,000 - (5,000)-100% 5103 Overtime 2,044 1,500 1,500 2,000 500 33% 5200 Benefits 248,626 165,000 167,000 272,000 107,000 65% OPERATING EXPENSES 6201 Materials & Supplies - - - 10,000 10,000 100% 6202 Tools - 3,500 4,000 4,000 500 14% 6203 Office Supplies 5,902 8,500 8,000 9,000 500 6% 6301 Contract Services 241,085 157,500 200,000 200,000 42,500 27% 6303 Printing & Publishing - - - 3,000 3,000 100% 6304 Legal Services 21,186 25,000 25,000 15,000 (10,000)-40% 6307 Uniforms - 2,000 2,730 5,000 3,000 150% 6402 Telephone 2,465 3,000 2,400 2,000 (1,000)-33% 6405 Permits 46,652 46,000 30,000 120,000 74,000 161% 6406 Postage 332 500 100 1,000 500 100% 6501 Membership & Dues 1,082 1,500 1,000 2,000 500 33% 6502 Professional Development 20,392 15,500 15,420 22,000 6,500 42% 6504 Meetings 20,392 15,500 15,420 3,000 (12,500)-81% ENGINEERING TOTAL $ 1,212,175 $ 886,000 $ 1,110,070 $ 1,219,000 $ 333,000 38% ENGINEERING FISCAL YEAR BUDGET 2016-2017page. 96 THIS PAGE IS LEFT BLANK INTENTIONALLY EAST VALLEY WATER DISTRICT page. 97 WATER PRODUCTION FUNCTION Water Production is responsible for the daily monitoring and operations of the entire water production system, which includes 18 wells, 18 reservoirs and 24 booster stations. This program also ensures the timely preventative maintenance of all pumps and motors for wells and boosters. Responsibilities also include: • Daily flow adjustment, irrigation delivery and repairs for the North Fork Canal. PROGRAM PERSONNEL Operations Manager 1 Senior Water Production Operator 1 Water Production Operator III 4 Administrative Assistant 1 Total FTE 7 WATER PRODUCTION IS RESPONSIBLE FOR MONITORING & OPERATING THE ENTIRE WATER SYSTEM FY 2016-17 GOALS & OBJECTIVES GOAL ONE Identify System Improvement Opportunities to Increase Water Production and Distribution Efficiencies (FY 2016-17) OBJECTIVES 1. Install pressure regulating valves to facilitate transfer of water produced by Plant 134 to lower zones. 2. Implement SCADA programming to coordinate with pressure regulating valves. 3. Evaluate electrical saving opportunities using programs available through Southern California Edison. GOAL TWO Utilize Computerized Asset Management Systems to Maintain Electronic Production Records and Reports (FY 2016-17) OBJECTIVES 1. Implement a training program to ensure understanding of recording maintenance in Cityworks. 2. Implement preventative maintenance schedules for water production facilities. GOAL THREE Ensure System Reliability Through Routine System Inspections and Testing (FY 2016-17) OBJECTIVES 1. Increase water pump and reservoir inspections to comply with State Water Resources Control Board recommendations. 2. Develop and prioritize a list of pumps and reservoirs that require maintenance. 3. Incorporate projects identified by inspections into District Capital Improvement Program. FISCAL YEAR BUDGET 2016-2017page. 98 WATER PRODUCTION KEY PERFORMANCE INDICATORS AGENCY IDEAL GOAL OBJECTIVE KEY PERFORMANCE INDICATOR FY 2014-15 ACTUAL FY 2015-16 PROJECTED FY 2016-17 PROPOSED I-D 1 1 Pressure regulating valves installed N/A 1 1 I-D 2 2 Complete preventative maintenance schedules for Water Production facilities 50%50%50% I-A 3 1 Number of reservoirs inspected per year 2 4 4 I-A 3 3 Pumps/reservoirs scheduled for repair or replacement 4 2 4 FY 2015-16 ACCOMPLISHMENTS • Implemented Cityworks maintenance work orders • Conducted production meter audit and standardized all meters within Plants across the District • Improved accuracy of monthly reports to local agencies • Increased staff knowledge of North Fork Water Company • Implemented electronic notification of North Fork irrigation deliveries using the EVWD website • Participated in SCE Demand Bidding program resulting in reduced utility costs SIGNIFICANT CHANGES • Contract Services has increased to provide funding for improving security and system documentation for the District’s telemetry system • Purchased water has increased significantly to allow the District to purchase additional water made available by the State • Water Assessments have increased significantly to fund District participation in NFWC pipeline upgrade projects • Electricity cost projections have been reduced to reflect pumping efficiencies and participation in SCE programs • Permits have increased to account for new $4 per connections charge being considered by the SWRCB EAST VALLEY WATER DISTRICT page. 99 PROGRAM BUDGET DETAIL — ADMINISTRATION FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 Regular Labor $ 218,389 $ 198,000 $ 184,500 $ 194,000 $ (4,000)-2% 5103 Overtime 114 500 500 1,000 500 100% 5104 Standby 21,142 20,000 20,000 15,000 (5,000)-25% 5200 Benefits 104,933 65,000 110,000 81,000 16,000 25% OPERATING EXPENSES 6201 Materials & Supplies 32 - - - - 0% 6202 Tools - - - 5,000 5,000 100% 6203 Office Supplies 4,313 4,000 6,000 4,000 - 0% 6301 Contract Services 42,010 33,500 33,500 59,000 25,500 76% 6307 Uniforms 449 10,000 10,000 12,000 2,000 20% 6402 Telephone 12,225 15,000 15,000 14,000 (1,000)-7% 6405 Permits - - - - - 0% 6501 Membership & Dues 129 2,000 2,000 3,000 1,000 50% 6502 Professional Development 11,419 5,000 5,000 6,000 1,000 20% 6503 Education Assistance 100 - - - - 0% ADMINISTRATION TOTAL $ 415,255 $ 353,000 $ 386,500 $ 394,000 $ 41,000 12% WATER PRODUCTION FISCAL YEAR BUDGET 2016-2017page. 100 WATER PRODUCTION PROGRAM BUDGET DETAIL — SOURCE OF SUPPLY/WELLS FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 Regular Labor $ 234,053 $ 255,000 $ 230,000 $ 261,000 $ 6,000 2% 5103 Overtime 24,819 25,000 25,000 25,000 - 0% 5200 Benefits 112,923 75,000 75,000 99,000 24,000 32% OPERATING EXPENSES 6101 Purchased Water 123,057 200,000 200,000 750,000 550,000 275% 6102 Groundwater Replenishment 288,419 175,000 175,000 163,000 (12,000)-7% 6103 Water Assessment 189,379 200,000 200,000 332,000 132,000 66% 6201 Materials & Supplies 22,385 40,000 40,000 45,000 5,000 13% 6204 Chemicals 162,804 150,000 120,000 150,000 - 0% 6301 Contract Services 75,550 150,000 111,500 150,000 - 0% 6402 Telephone 626 - - - 0% 6403 Electricity 1,497,656 2,000,000 1,250,000 1,000,000 (1,000,000)-50% 6405 Permits - 8,000 24,000 100,000 92,000 1150% SOURCE OF SUPPLY/ WELLS TOTAL $ 2,731,671 $3,278,000 $ 2,450,500 $ 3,075,000 $ (203,000)-6% PROGRAM BUDGET DETAIL — BOOSTING AND PUMPING FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 Regular Labor $ 78,041 $ 85,000 $ 80,000 $ 85,000 $ - 0% 5103 Overtime 4,410 5,000 5,000 5,000 - 0% 5200 Benefits 32,761 25,000 25,000 29,000 4,000 16% OPERATING EXPENSES 6201 Materials & Supplies 17,310 20,000 20,000 20,000 - 0% 6301 Contract Services 10,629 75,000 75,000 75,000 - 0% 6403 Electricity 471,017 750,000 500,000 500,000 (250,000)-33% BOOSTING & PUMPING TOTAL $ 614,168 $ 960,000 $ 705,000 $ 714,000 $ (246,000)-26% EAST VALLEY WATER DISTRICT page. 101 WATER PRODUCTION PROGRAM BUDGET DETAIL — TRANSMISSION AND DISTRIBUTION FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 Regular Labor $ 62,744 $ 80,000 $ 75,000 $ 86,000 $ 6,000 8% 5103 Overtime 6,236 5,000 5,000 5,000 - 0% 5200 Benefits 51,969 25,000 25,000 30,000 5,000 20% OPERATING EXPENSES 6201 Materials & Supplies 3,273 10,000 10,000 10,000 - 0% 6204 Chemicals 22,702 40,000 40,000 45,000 5,000 13% 6301 Contract Services 38,323 40,000 40,000 45,000 5,000 13% TRANSMISSION & DISTRIBUTION TOTAL $ 185,247 $ 200,000 $ 195,000 $ 221,000 $ 21,000 11% FISCAL YEAR BUDGET 2016-2017page. 102 THIS PAGE IS LEFT BLANK INTENTIONALLY EAST VALLEY WATER DISTRICT page. 103 WATER TREATMENT FUNCTION Water Treatment is responsible for the daily operation of water treatment facilities, namely Plant 134, Plant 39 and Plant 28. Plant 134 is a Surface Water Treatment Plant that takes in water from the Santa Ana River or the State Water Project via the North Fork Canal. PROGRAM PERSONNEL Water Production Supervisor 1 Senior Treatment Plant Operator 1 Total FTE 2 WATER TREATMENT IS RESPONSIBLE FOR OPERATING WATER TREATMENT FACILITIES FY 2016-17 GOALS & OBJECTIVES GOAL ONE Evaluate Maintenance at Well-Head Treatment Facilities to Optimize Efficiencies (FY 2016-17) OBJECTIVES 1. Replace GAC Plant 28 nozzles and tank lining. 2. Conduct analysis of inactive mobile treatment units and determine whether they should be rehabilitated or sold. GOAL TWO Increase Operational Efficiencies for Surface Water Treatment Plant 134 (FY 2016-17) OBJECTIVES 1. Document and track all preventative maintenance for equipment and motors at the Plant. 2. Implement electronic tracking of membrane filter repairs and maintenance. 3. Implement more efficient process for sludge removal when Plant is operating at higher capacity. FISCAL YEAR BUDGET 2016-2017page. 104 WATER TREATMENT KEY PERFORMANCE INDICATORS AGENCY IDEAL GOAL OBJECTIVE KEY PERFORMANCE INDICATOR FY 2014-15 ACTUAL FY 2015-16 PROJECTED FY 2016-17 PROPOSED I- A 1 2 Number of mobile treatment units reactivated or sold N/A N/A 3 I-D 2 1 Percent of equipment and motors at Treatment Plant on preventative maintenance schedules 0%50%90% I-D 2 2 Number of filter membranes repaired N/A 540 675 IV-A 2 3 Tons of sludge removed Unknown 400 500 FY 2015-16 ACCOMPLISHMENTS • Trained all Production staff on Treatment Plant operations and maintenance • Implemented a preventative maintenance schedule for equipment and motors • Participated in the Plant 134 upgrade project • Documented bypass flow process SIGNIFICANT CHANGES • Electricity costs at Plant 134 are expected to increase now that the getaway pipeline expansion project is complete and will allow the plant to operate at a higher capacity EAST VALLEY WATER DISTRICT page. 105 PROGRAM BUDGET DETAIL FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 Regular Labor $ 213,599 $ 211,000 $ 206,500 $ 217,000 $ 6,000 3% 5103 Overtime 8,875 10,000 10,000 10,000 - 0% 5200 Benefits 74,531 52,000 81,000 69,000 17,000 33% OPERATING EXPENSES 6201 Materials & Supplies 31,540 15,000 10,000 15,000 - 0% 6204 Chemicals 80,788 150,000 125,000 150,000 - 0% 6301 Contract Services 170,538 160,500 165,500 166,000 5,500 3% 6402 Telephone 8,380 7,500 11,000 - (7,500)-100% 6403 Electricity 134,576 125,000 200,000 200,000 75,000 60% 6405 Permits 250 5,000 - - (5,000)-100% WATER TREATMENT TOTAL $ 723,077 $ 736,000 $ 809,000 $ 827,000 $ 91,000 12% WATER TREATMENT FISCAL YEAR BUDGET 2016-2017page. 106 THIS PAGE IS LEFT BLANK INTENTIONALLY EAST VALLEY WATER DISTRICT page. 107 WATER QUALITY FUNCTION Water Quality is responsible for ensuring District compliance with state and federal drinking water regulations. This program also manages, supervises and coordinates the activities of fire service backflow protection devices, customer-owned backflow protection devices, water sampling and testing, and fire hydrant flushing. PROGRAM PERSONNEL Water Quality Coordinator 1 Water Quality Technician 1 Total FTE 2 WATER QUALITY COMPLIES WITH ALL REQUIRED DRINKING WATER REGULATIONS FY 2016-17 GOALS & OBJECTIVES GOAL ONE Provide Safe and Reliable Water to Our Customers (FY 2016-17) OBJECTIVES 1. Ensure water sampling and testing as required by the State Water Resources Control Board. 2. Collect source water quality data for improving current and future treatment operations. 3. Complete sampling as required for EPA LT2 Rule schedule. GOAL TWO Retrofit Flush-Out valves to Control Discharge Flows and Enable the District to Account for Water Loss (FY 2016-17) OBJECTIVES 1. Identify and prioritize 12 flush-out valves in the distribution system. 2. Collaborate with water maintenance to schedule and perform appropriate modifications. GOAL THREE Provide Backflow Testing Services to District Customers to Improve Program Compliance and Enhance Customer Relations (FY 2016-17) OBJECTIVES 1. Assign qualified staff to perform annual testing. 2. Provide requirement information and purpose of program to customers through an interactive notification process. 3. Improve overall compliance by completing tests on all active and inactive devices. 4. Recover program cost of service through backflow testing fee assessed monthly (misc. fees schedule). FISCAL YEAR BUDGET 2016-2017page. 108 WATER QUALITY KEY PERFORMANCE INDICATORS AGENCY IDEAL GOAL OBJECTIVE KEY PERFORMANCE INDICATOR FY 2014-15 ACTUAL FY 2015-16 PROJECTED FY 2016-17 PROPOSED I-A 1 1,2,3 Percent of LT2, Title 22 sampling program compliance N/A 100%100% I-D 2 1 Number of flush out valves identified and modified in the District N/A N/A 12 I-A 3 3 Number of customers with backflow devices in compliance with state standards N/A 90%90% FY 2015-16 ACCOMPLISHMENTS • Completed staff training on Utility Billing and mapping Software • Completed Tri-Annual Lead and Copper Rule Sampling • Disposed of Uranium Resin (Plant 40) • Completed quarterly source water monitoring as required • Completed approximately 80 Cross Connection surveys, resulting in numerous new backflow installations • Installed 3 new auto flush units • Modified flushing protocols to discharge waste into sanitary wastewater when applicable SIGNIFICANT CHANGES • Contract Services budget has increased to account for the cost of a watershed sanitary survey required by the SWRCB • Contract Services has also increased to cover additional Title 22 sampling EAST VALLEY WATER DISTRICT page. 109 PROGRAM BUDGET DETAIL FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 Regular Labor $ 69,431 $ 80,000 $ 69,000 $ 81,000 $ 1,000 1% 5103 Overtime 568 3,000 3,000 2,000 (1,000)-33% 5200 Benefits 31,849 22,500 37,500 30,000 7,500 33% SOURCE OF SUPPLY WELLS OPERATING EXPENSES 6201 Materials & Supplies 5,985 14,500 12,000 13,000 (1,500)-10% 6301 Contract Services 61,426 50,000 50,000 101,000 51,000 102% 6307 Uniforms 132 - - 3,000 3,000 100% TRANSMISSION AND DISTRIBUTION PERSONNEL EXPENSES 5101 Regular Labor 67,624 80,000 80,000 81,000 1,000 1% 5103 Overtime 194 - - 2,000 2,000 100% 5200 Benefits 20,820 22,500 22,500 30,000 7,500 33% TRANSMISSION AND DISTRIBUTION OPERATING EXPENSES 6201 Materials & Supplies 5,169 - - - - 0% 6202 Tools 1,575 5,000 3,000 5,000 - 0% 6301 Contract Services 67,516 62,000 62,000 57,000 (5,000)-8% 6406 Postage 1,838 2,500 2,500 2,000 (500)-20% WATER QUALITY TOTAL $ 334,127 $ 342,000 $ 341,500 $ 407,000 $ 65,000 19% WATER QUALITY FISCAL YEAR BUDGET 2016-2017page. 110 THIS PAGE IS LEFT BLANK INTENTIONALLY EAST VALLEY WATER DISTRICT page. 111 WATER MAINTENANCE FUNCTION Water Maintenance is responsible for the daily repair and maintenance of the District’s water transmission and distribution pipelines, and all related equipment, including fire hydrants, meters, valves, and meter vaults. PROGRAM PERSONNEL Field Service Supervisor 1 Senior Field Service Worker 2 Field Service Worker III 2 Field Service Worker II 4 Field Service Worker I 3 Total FTE 12 WATER MAINTENANCE MAINTAINS THE DISTRICT’S WATER TRANSMISSION & DISTRIBUTION SYSTEM FY 2016-17 GOALS & OBJECTIVES GOAL ONE Expand Knowledge Base of Employees and Reduce Staff Exposure to Hazards in the Work Environment through Professional Development and Enhanced Safety Training (FY 2016-17) OBJECTIVES 1. Implement On-Site Safety Training Program developed through the Leadership Academy. 2. Schedule regular training for Personal Protective Equipment, material usage, tool handling, and traffic safety. GOAL TWO Encourage Continued Education and Technology Training to Support Advancement Opportunities (FY 2016-17) OBJECTIVES 1. Conduct in-house certification training programs. 2. Utilize District learning lab to increase exposure to Microsoft Office and typing programs. 3. Increase number of tablets deployed in the field. GOAL THREE Utilize Staff to Provide Additional Support that Enhances World Class Customer Service (FY 2016-17) OBJECTIVES 1. Train staff to conduct Water Conservation activities. 2. Train staff to support facilities related coverage. 3. Implement a staff rotation schedule to allow for training on various trucks and equipment. GOAL FOUR Implement a Valve Shut Down Program at District Plants as Part of Emergency Response Plan (FY 2016-17) OBJECTIVES 1. Collect GPS data for valves at Plants and provide to Engineering for inclusion in GIS database. 2. Exercise valves at Plants in preparation for emergency shut downs. 3. Identify Plant valves that require repair. 4. Identify closed valves at pressure zone splits to document locations on District distribution maps. FISCAL YEAR BUDGET 2016-2017page. 112 WATER MAINTENANCE KEY PERFORMANCE INDICATORS AGENCY IDEAL GOAL OBJECTIVE KEY PERFORMANCE INDICATOR FY 2014-15 ACTUAL FY 2015-16 PROJECTED FY 2016-17 PROPOSED IV–D 1 2 Percent of staff trained on safety procedures to prevent injuries and avoid hazardous situations in the field 100%100%100% II-D 2 1 In-house certification training classes held 0 0 4 II-D 2 3 Number of tablets used for documentation of maintenance work orders 6 8 10 I-C 4 2 Number of practice emergency Plant shut downs performed N/A 10 10 I-A 4 4 Percent of the District zone splits identified and properly documented 0%0%%50% FY 2015-16 ACCOMPLISHMENTS • Implemented annual ride-along evaluations for all DOT drivers • Conducted traffic control and competent person training • Conducted daily vehicle inspections and coordinated repairs • Trained staff on Cityworks to manage assets and track work activity • Created a valve shut down program as part of our Emergency Response Plan • Exercised 1,500 gate valves • Serviced 2,000 hydrants • Repaired/replaced 184 service leaks • Repaired 119 main leaks • Repaired 17 vault lids • Responded to 1,798 call outs after hours SIGNIFICANT CHANGES • One position has been reassigned to the Engineering Department to assist with management of pipeline construction projects • Labor and benefits increased as two field staff were added to form two complete pipeline crews • Tools increased $22,000 to replace non-capital equipment • Permit costs were moved to the Engineering department EAST VALLEY WATER DISTRICT page. 113 PROGRAM BUDGET DETAIL — FIELD MAINTENANCE ADMINISTRATION FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 Regular Labor $ 323,084 $ 235,000 $ 216,000 $ 105,000 $ (130,000)-55% 5103 Overtime 250 - - - - 0% 5104 Standby 13,396 20,000 20,000 20,000 - 0% 5200 Benefits 117,805 72,000 96,000 42,000 (30,000)-42% OPERATING EXPENSES 6203 Office Supplies 3,084 3,000 3,000 3,000 - 0% 6303 Printing & Publishing - - - - - 0% 6402 Telephone 15,048 15,000 15,000 21,000 6,000 40% 6501 Membership & Dues 2,203 500 500 2,000 1,500 300% 6502 Professional Development 7,162 10,000 10,000 18,000 8,000 80% 6503 Education Assistance - - - 5,000 5,000 100% FIELD MAINTENANCE ADMINISTRATION TOTAL $ 482,032 $ 355,500 $ 360,500 $ 216,000 $ (139,500)-39% WATER MAINTENANCE FISCAL YEAR BUDGET 2016-2017page. 114 WATER MAINTENANCE PROGRAM BUDGET DETAIL — WATER MAINTENANCE FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 Regular Labor $ 640,991 $ 690,000 $ 696,000 $ 727,000 $ 37,000 5% 5103 Overtime 131,274 150,000 150,000 150,000 - 0% 5200 Benefits 328,918 250,000 325,000 316,000 66,000 26% OPERATING EXPENSES 6201 Materials & Supplies 328,756 245,000 175,000 205,000 (40,000)-16% 6202 Tools 9,933 5,000 2,000 27,000 22,000 440% 6301 Contract Services 282,401 12,000 75,000 14,000 2,000 17% 6307 Uniforms 1,795 20,000 20,000 20,000 - 0% 6310 Street Services - 250,000 275,000 300,000 50,000 20% 6405 Permits 45,360 50,000 60,000 - (50,000)-100% WATER MAINTENANCE TOTAL $ 1,769,428 $ 1,672,000 $ 1,778,000 $ 1,759,000 $ 87,000 5% EAST VALLEY WATER DISTRICT page. 115 WASTEWATER MAINTENANCE FUNCTION Wastewater Maintenance is responsible for the maintenance and repair of the 208 miles of the wastewater conveyance system. Based on the Wastewater System Maintenance Plan, crews complete preventative video monitoring, scheduled maintenance, system repairs, and emergency repairs. PROGRAM PERSONNEL Field Service Worker II 2 Field Service Worker I 2 Total FTE 4 WASTEWATER MAINTENANCE REPAIRS & MAINTAINS A 208-MILE SYSTEM FY 2016-17 GOALS & OBJECTIVES GOAL ONE Support Future Sanitary Needs of the SNRC by Evaluating the Fats, Oils and Grease (FOG) Entering the District’s Wastewater Collections System (FY 2016-17) OBJECTIVES 1. Identify FOG monitoring compliance agency. 2. Determine how FOG is generated. 3. Explore requirements to implement FOG program. 4. Identify food establishments in service area that will need regulation. 5. Familiarize staff with compliance standards. GOAL TWO Continue Wastewater Collection System Maintenance and Management (FY 2016-17) OBJECTIVES 1. Video at least sixty miles of wastewater main to complete a full system review by FY 2018-19. 2. Coordinate with Customer Service to identify septic tank owners and partner with Engineering to map them on GIS. 3. Encourage employees to attain the Grade I Collection System Maintenance certification. 4. Zero wastewater spills/overflows reportable to the State Water Resources Control Board. FISCAL YEAR BUDGET 2016-2017page. 116 WASTEWATER MAINTENANCE KEY PERFORMANCE INDICATORS AGENCY IDEAL GOAL OBJECTIVE KEY PERFORMANCE INDICATOR FY 2014-15 ACTUAL FY 2015-16 PROJECTED FY 2016-17 PROPOSED I-A 2 1 Miles of wastewater line inspected by video 32 60 60 I-D 2 2 Percent of septic tanks identified and documented in District GIS system N/A 60%100% II-D 2 3 Number of employees with Collection Grade I Certification N/A 2 2 I-D 2 4 Reportable wastewater incidents to SWRCB 0 0 0 FY 2015-16 ACCOMPLISHMENTS • Enhanced wastewater maintenance cross- training program • Performed sixty miles of wastewater main video • Three staff obtained Grade 1 collection systems maintenance • Jetted 240 miles of wastewater • Identified approximately 1000 septic tank owners • Completed video (CCTV) of Patton State Hospital SIGNIFICANT CHANGES • Labor increased with four full-time staff now dedicated to video logging and jetting the collection system • Treatment Services increased $360,000 to reflect phase 2 of the City of San Bernardino wastewater treatment rate increases EAST VALLEY WATER DISTRICT page. 117 PROGRAM BUDGET DETAIL FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 Regular Labor $ 116,739 $ 135,000 $ 155,000 $ 242,000 $ 107,000 79% 5103 Overtime 13,195 3,000 3,000 3,000 - 0% 5200 Benefits 49,517 55,000 64,000 115,000 60,000 109% OPERATING EXPENSES 6201 Materials & Supplies 26,332 30,000 20,000 27,000 (3,000)-10% 6202 Tools 4,559 5,000 2,000 5,000 - 0% 6301 Contract Services 238,057 228,000 200,000 228,000 - 0% 6307 Uniforms - 3,000 3,000 3,000 - 0% 6305 Treatment Services 6,907,828 7,250,000 7,250,000 7,610,000 360,000 5% WASTEWATER MAINT. TOTAL $ 7,356,227 $ 7,709,000 $ 7,697,000 $ 8,233,000 $ 524,000 7% WASTEWATER MAINTENANCE FISCAL YEAR BUDGET 2016-2017page. 118 THIS PAGE IS LEFT BLANK INTENTIONALLY EAST VALLEY WATER DISTRICT page. 119 FACILITIES MAINTENANCE FUNCTION Facilities Maintenance is responsible for the complete maintenance and repair of all District facilities, including Administration Buildings, water facilities, District owned vacant properties and easements. PROGRAM PERSONNEL Facilities Maintenance Coordinator 1 Total FTE 1 FACILITIES MAINTENANCE REPAIRS & MAINTAINS ALL DISTRICT FACILITIES FY 2016-17 GOALS & OBJECTIVES GOAL ONE Continue to Ensure the Functional Upkeep of District Facilities (FY 2016-17) OBJECTIVES 1. Conduct evaluation of the District Facilities and create prioritized upgrade list. 2. Submit project sheets to request funding for facility upgrades. GOAL TWO Continue to Manage the Headquarters to a Level that Ensures the Facility is Always Aesthetically Pleasing, Clean, Sanitary, and Safe (FY 2016-17) OBJECTIVES 1. Promptly repair/ replace any problematic building systems. 2. Work with safety and security committee to address Headquarter concerns. GOAL THREE Develop a Facilities Maintenance Program to Track and Anticipate Future Costs Associated with all District Facilities (FY 2016-17) OBJECTIVES 1. Create an RFP for the Facilities Maintenance Program. 2. Interview qualified vendors. 3. Select appropriate vendor. 4. Collaborate with selected vendor to build facility update schedule. FISCAL YEAR BUDGET 2016-2017page. 120 FACILITIES MAINTENANCE KEY PERFORMANCE INDICATORS AGENCY IDEAL GOAL OBJECTIVE KEY PERFORMANCE INDICATOR FY 2014-15 ACTUAL FY 2015-16 PROJECTED FY 2016-17 PROPOSED I-A 1 2 Facility upgrade projects completed N/A 2 2 I-D 2 1 Respond to maintenance requests daily 100%100%100% I-A 2 3 Number of safety/security issues addressed N/A 5 3 I-D 3 4 Number of facility maintenance schedules completed N/A N/A 4 FY 2015-16 ACCOMPLISHMENTS • Tracked all facilities maintenance in the Cityworks Program • Established a written level of service standards for the Headquarters to be used during the Facilities rental process • Organized Safety Data Sheets throughout each department • Completed upgrades to Plant 127 SIGNIFICANT CHANGES • Contract Services for program administration has increased to support the implementation of a long term preventative maintenance and equipment replacement schedule implementation effort • Contract Service for facilities has decreased as related projects have been moved from this program’s operating budget to the capital budget EAST VALLEY WATER DISTRICT page. 121 PROGRAM BUDGET DETAIL FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 Regular Labor $ 56,477 $ 85,000 $ 86,000 $ 89,000 $ 4,000 5% 5103 Overtime 13,669 25,000 25,000 25,000 - 0% 5200 Benefits 21,530 30,000 53,000 37,000 7,000 23% ADMINISTRATION OPERATING EXPENSES 6201 Materials & Supplies 25,482 20,000 25,000 25,000 5,000 25% 6202 Tools 1,879 2,000 2,000 2,000 - 0% 6301 Contract Services 316,099 35,000 35,000 86,000 51,000 146% 6306 Rents & Leases 5,009 12,000 6,000 - (12,000)-100% 6307 Uniforms 79 12,000 10,000 11,000 (1,000)-8% 6311 Landscape Services - 55,000 93,000 56,000 1,000 2% 6312 Janitorial Services 420 125,000 100,000 125,000 - 0% 6313 Facilities Repair - - 2,000 - - 0% 6401 Utilities 35,878 10,000 10,000 11,000 1,000 10% 6402 Telephone 52,929 75,000 60,000 75,000 - 0% 6403 Electricity 98,524 100,000 120,000 120,000 20,000 20% SOURCE OF SUPPLY/WELLS OPERATING EXPENSES 6201 Materials & Supplies - 5,000 5,000 5,000 - 0% 6301 Contract Services 1,225 35,000 35,000 5,000 (30,000)-86% 6311 Landscape Services - 40,000 40,000 40,000 - 0% PUMPS AND BOOSTERS OPERATING EXPENSES 6201 Materials & Supplies - 5,000 5,000 5,000 - 0% 6301 Contract Services - 25,000 25,000 5,000 (20,000)-80% 6311 Landscape Services 340 35,000 35,000 35,000 - 0% TREATMENT OPERATING EXPENSES 6201 Materials & Supplies 179 5,000 5,000 5,000 - 0% 6301 Contract Services 8,614 25,000 25,000 13,000 (12,000)-48% 6311 Landscape Services - 12,000 12,000 14,000 2,000 17% 6401 Utilities 11,229 15,000 15,000 15,000 - 0% FACILITIES MAINT. TOTAL $ 649,562 $ 788,000 $ 829,000 $ 804,000 $ 16,000 2% FACILITIES MAINTENANCE FISCAL YEAR BUDGET 2016-2017page. 122 THIS PAGE IS LEFT BLANK INTENTIONALLY EAST VALLEY WATER DISTRICT page. 123 FLEET MAINTENANCE FUNCTION Fleet Maintenance is responsible for the maintenance and repair of the District’s fleet, which includes approximately 54 vehicles and 15 pieces of heavy equipment. Fleet maintenance is also responsible for maintaining air quality regulations, vehicle registration and transportation requirements. PROGRAM PERSONNEL Senior Equipment Mechanic 1 Equipment Mechanic II 1 Total FTE 2 FLEET MAINTENANCE REPAIRS & MAINTAINS THE DISTRICT’S VEHICLE FLEET FY 2016-17 GOALS & OBJECTIVES GOAL ONE Ensure Emergency Equipment is Ready, and Staff Adequately Trained, for Emergency Response (FY 2016-17) OBJECTIVES 1. Conduct emergency generator transfer-switch training with appropriate staff. 2. Develop a two way radio communication program for emergency preparedness. GOAL TWO Develop a Fleet Maintenance Management Program to Track Cost Associated with Vehicle Maintenance (FY 2016-17) OBJECTIVES 1. Create an RFP for Fleet Management. 2. Interview qualified vendors. 3. Select appropriate vendor/software. 4. Complete set-up and track all maintenance work in selected program. 5. Submit recommendations and justifications for vehicle/ equipment replacement during budget process. GOAL THREE Comply with Federal Department of Transportation Driver/ Equipment Regulations (FY 2016-17) OBJECTIVES 1. Ensure drivers are thoroughly trained on new vehicles prior to operation. 2. Conduct monthly audits of Daily Vehicle Inspection reports. FISCAL YEAR BUDGET 2016-2017page. 124 FLEET MAINTENANCE KEY PERFORMANCE INDICATORS AGENCY IDEAL GOAL OBJECTIVE KEY PERFORMANCE INDICATOR FY 2014-15 ACTUAL FY 2015-16 PROJECTED FY 2016-17 PROPOSED I-A 1 1 Number of staff trained on emergency generator hook-ups N/A 3 3 I-C 1 2 Percent of vehicles with two way communication capabilities 10%0%50% I-D 2 5 Number of vehicle/equipment units replaced 3 3 6 IV-A 3 2 Percent daily Inspection reports audited N/A 100%25% FY 2015-16 ACCOMPLISHMENTS • 98 percent passed DOT inspections • Responded to vehicles requiring repairs within a 24-hour period • All logs and permits 100 percent up-to-date with AQMD • Conducted daily vehicle inspection report audits SIGNIFICANT CHANGES • Contract Services has increased to support the implementation of a long-term preventative maintenance and vehicle replacement schedule implementation effort • Fuel costs have decreased due to fuel efficiencies realized with a newer fleet and the reduced price of fuel EAST VALLEY WATER DISTRICT page. 125 PROGRAM BUDGET DETAIL FY 2014-15 ACTUALS FY 2015-16 BUDGET FY 2015-16 PROJECTED FY 2016-17 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 Regular Labor $ 140,370 $ 150,000 $ 150,900 $ 151,000 $ 1,000 1% 5103 Overtime 2,699 3,000 3,000 3,000 - 0% 5200 Benefits 79,149 55,000 55,000 66,000 11,000 20% OPERATING EXPENSES 6201 Materials & Supplies 66,000 60,000 60,000 60,000 - 0% 6202 Tools 3,461 5,000 5,000 8,000 3,000 60% 6203 Office Supplies 942 1,000 1,000 1,000 - 0% 6301 Contract Services 91,607 75,000 75,000 125,000 50,000 67% 6402 Telephone 911 1,000 1,000 1,000 - 0% 6404 Fuel 133,526 175,000 125,000 125,000 (50,000)-29% 6501 Membership & Dues 2,298 2,500 2,500 3,000 500 20% 6502 Professional Development - 2,000 2,000 2,000 - 0% FLEET MAINTENANCE TOTAL $ 520,963 $ 529,500 $ 480,400 $ 545,000 $ 15,500 3% FLEET MAINTENANCE FISCAL YEAR BUDGET 2016-2017page. 126 THIS PAGE IS LEFT BLANK INTENTIONALLY CAPITAL BUDGET Capital investments in assets and projects based on the needs of the District. EAST VALLEY WATER DISTRICT page. 127 CAPITAL BUDGET Capital investments in assets and projects based on the needs of the District. Capital Budget includes Capital Outlay expenditures and the Capital Improvement Program. CAPITAL IMPROVEMENT PROGRAM A Capital Improvement Project expenditure is an individually significant construction project with a cost $25,000 or more that creates a new capital asset, improves an existing asset (increases its service capacity, etc.), or significantly and unusually extends an asset’s operating life. The District’s Capital Improvement Program (CIP) is a 5 year budget. However, each year projects are reviewed and evaluated based on the needs of the District. Therefore, some projects may be omitted and others moved forward annually during the development of each fiscal year budget. Proposed Capital Improvement Projects for the budgeted fiscal years were submitted by the Engineering, Operations and Maintenance Programs in accordance with the anticipated needs of the District as outlined in the updated Wastewater Master Plan and Water Master Plan. The District has evaluated and prioritized projects included in the Master Plans based on the following criteria: • Preservation of public health and water quality. • Improvements required as a result of local, state or federal legislation/mandates. • Reduction of current maintenance expenditures and avoidance of costly future rehabilitation. • Preservation of existing facilities/infrastructure. • Positive impacts on customers. • Grant/loan secured or leverage of funds or grant/loan availability. For FY 2016-17, the District was able to fund Capital Improvement Projects through revenues, reserves, and development fees totaling $4,375,000. Engineering will continue to complete ongoing projects from previous years and provide quarterly updates on the progress. FISCAL YEAR BUDGET 2016-2017page. 128 THIS PAGE IS LEFT BLANK INTENTIONALLY EAST VALLEY WATER DISTRICT page. 129 CAPITAL OUTLAY The District defines capital outlay expenditures as an individually significant acquisition of capital assets (not involving construction) that are expected to last more than 2 years and have an individual cost of $5,000 or more. This threshold is applied at the individual asset level. Group purchases of individual assets under $5,000 are not capitalized, even if the group totals to more than $5,000. Each year as part of the budget process, the District’s Program Managers and Supervisors compile and submit a list of capital outlay requests for consideration. Then staff reviews and prioritizes the list of equipment based on a needs assessment and the amount of funding available. Items that benefit both the water and wastewater systems are allocated accordingly. FY 2016-17 CAPITAL OUTLAY ITEM DESCRIPTION WATER WASTEWA- TER TOTAL FUNDED BY OPERATING REVENUE Sharepoint Development $ 35,000 $ 15,000 $ 50,000 Mobile Ruggedized Surface Pros (10) 18,000 - 18,000 Virtual Desktop Expansion - - - Laserfiche Upgrade 14,000 6,000 20,000 Wash Plan Endowment Contribution 52,000 - 52,000 HQ Site Improvements 35,000 15,000 50,000 Inventory Bar Code System 8,000 - 8,000 Active Directory / Shared Folder Monitoring S/W 5,500 2,500 8,000 Civic Engagement Portal 14,000 6,000 20,000 Contact Center Business Intelligence 9,500 4,500 14,000 Network Monitoring Expansion 6,500 3,000 9,500 Next Generation Firewalls (2) 42,000 18,000 60,000 Subtotal 239,500 70,000 309,500 FUNDED BY REPLACEMENT RESERVE Copier / Printer 4,500 2,000 6,500 NeoPost Mail Processing Equipment 11,000 6,000 17,000 Fiber Glass Chlorine Tank 25,000 - 25,000 Polymer Chemical Feed Pumps-Plant 134 (2), 2 Touch Screens 70,000 - 70,000 Wastewater By-Pass Pump and Hose - 135,000 135,000 Generator - CCTV Truck - 15,000 15,000 Trucks (4) 140,000 - 140,000 Tandem Axle Equipment Trailer 25,000 - 25,000 Subtotal 275,500 158,000 433,500 TOTAL CAPITAL OUTLAY $ 515,000 $ 228,000 $ 743,000 FISCAL YEAR BUDGET 2016-2017page. 130 CAPITAL IMPROVEMENT PROJECTS FIVE YEAR PROGRAM SCHEDULE (FY 2017-21) PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL GENERAL Habitat Conservation Plan $ 105,000 $ 310,000 $ 767,000 $ - $ - $ - $ 1,182,000 AMI Meter Retrofit Program - 2,011,000 500,000 1,000,000 2,000,000 2,500,000 8,011,000 General Subtotal 105,000 2,321,000 1,267,000 1,000,000 2,000,000 2,500,000 9,193,000 WATER Canal Zone Storage Reservoir 250,000 410,000 2,415,000 - - - 3,075,000 Highland Hills Reservoir Upsize - 1,000,000 - - - 1,000,000 Mountain Zone 1 MG Reservoir - - - 125,000 750,000 - 875,000 Foothill Zone 4 MG Reservoir - - - - 500,000 1,750,000 2,250,000 Upper Zone Booster Station 50,000 250,000 1,195,000 - - - 1,495,000 Canal Zone Booster Station - - - 1,495,000 - - 1,495,000 Water Main, Pumalo Street 95,000 380,000 - - - - 475,000 Water Main, Dwight/Glasgow 120,000 1,205,000 - - - - 1,325,000 Water Main, Sterling/ Highland 100,000 - - 430,000 - - 530,000 Water Main, Fisher/Stratford - - 120,000 800,000 - - 920,000 Water Main, Reedy/Messina - - - 312,500 - - 312,500 Water Main, Victoria Avenue - - - 550,000 1,000,000 - 1,550,000 Water Main, La Praix/14th - - - - 100,000 - 100,000 Water Main, Del Rosa/ Highland - - - - - 245,000 245,000 Water Main, Elmwood/ Lynwood - - - - - 220,000 220,000 Water Main, Harlan Lane - - - - - 200,000 200,000 North Fork Pipeline Survey 16,000 - - - - - 16,000 North Fork Pipeline Replacement 30,000 125,000 160,000 - - - 315,000 Facilities Relocations - 100,000 100,000 100,000 100,000 100,000 500,000 Plant 101 Hydro Tank Rehabilitation - 100,000 - - - - 100,000 Facility Rehabilitations - 150,000 - 150,000 - 150,000 450,000 Well and Booster Rehabilitations 118,180 - 150,000 150,000 150,000 150,000 718,180 Water Subtotal 779,180 2,720,000 5,140,000 4,112,500 2,600,000 2,815,000 18,166,680 EAST VALLEY WATER DISTRICT page. 131 PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL WASTEWATER Wastewater Main, Paloma Road - 160,000 - - - - 160,000 Wastewater Main, Orange Street - 75,000 - - - - 75,000 Wastewater Main, 4th Street - 200,000 - - - - 200,000 City Creek Manhole Relocation - 100,000 910,000 - - - 1,010,000 Sterling Natural Resource Center (SNRC) - 61,000,000 36,900,000 - - - 97,900,000 5th Street Wastewater Trunk Line (SNRC) - 350,000 3,150,000 - - - 3,500,000 Del Rosa Drive Wastewater Trunk Line (SNRC) - 400,000 3,700,000 - - - 4,100,000 6th Street Lift Station and Force Main (SNRC) - 1,800,000 15,900,000 - - - 17,700,000 3rd Street Lift Station and Force Main (SNRC) - 300,000 2,500,000 - - - 2,800,000 Greenspot East Wastewater Main - 700,000 6,330,000 - - - 7,030,000 Victoria Avenue Wastewater Pipeline - - - 100,000 737,000 - 837,000 Wastewater Flow Monitoring - 30,000 - - - - 30,000 Wastewater Multi-Year Rate Study - 80,000 - - - - 80,000 Wastewater Subtotal - 65,195,000 69,390,000 100,000 737,000 - 135,422,000 TOTAL $884,180 $70,236,000 $75,797,000 $5,212,500 $5,337,000 $5,315,000 $162,781,680 FISCAL YEAR BUDGET 2016-2017page. 132 CAPITAL IMPROVEMENT PROJECTS FY 2016-17 PROPOSED FUNDING WATER OPERATING REVENUE WASTEWATER OPERATING REVENUE REPLACEMENT RESERVE GRANTS/ LOANS OTHER FUND DEVELOPER FEES PROJECT TOTAL GENERAL Habitat Conservation Plan $ 310,000 $ - $ - $ - $ - $ 310,000 AMI Meter Retrofit Program - - - 2,011,000 - 2,011,000 General Subtotal 310,000 - - 2,011,000 - 2,321,000 WATER Canal Zone Storage Reservoir 410,000 - - - - 410,000 Upper Zone Booster Station - - - - 250,000 250,000 Water Main, Pumalo Street - - 380,000 - - 380,000 Water Main, Dwight/Glasgow - - 1,205,000 - - 1,205,000 North Fork Pipeline Replacement - - 125,000 - - 125,000 Facilities Relocations 100,000 - - - - 100,000 Plant 101 Hydro Tank Rehabilitation 100,000 - - - - 100,000 Facility Rehabilitations 150,000 - - - - 150,000 Water Subtotal 760,000 - 1,710,000 - 250,000 2,720,000 WASTEWATER Wastewater Main, Paloma Road - - 160,000 - - 160,000 Wastewater Main, Orange Street - - 75,000 - - 75,000 Wastewater Main, 4th Street - - 200,000 - - 200,000 City Creek Wastewater Manhole Relocation - 100,000 - - - 100,000 Sterling Natural Resource Center (SNRC) - - - 61,000,000 - 61,000,000 5th Street Wastewater Trunk Line (SNRC) - - - 350,000 - 350,000 Del Rosa Drive Wastewater Trunk Line (SNRC) - - - 400,000 - 400,000 6th Street Lift Station and Force Main (SNRC) - - - 1,800,000 - 1,800,000 3rd Street Lift Station and Force Main (SNRC) - - - 300,000 - 300,000 Greenspot East Wastewater Main - - - - 700,000 700,000 Wastewater Flow Monitoring - 30,000 - - - 30,000 Wastewater Multi-Year Rate Study - 80,000 - - - 80,000 Wastewater Subtotal - 210,000 435,000 63,850,000 700,000 65,195,000 TOTAL $ 1,070,000 $ 210,000 $ 2,145,000 $ 65,861,000 $ 950,000 $ 70,236,000 EAST VALLEY WATER DISTRICT page. 133 HABITAT CONSERVATION PLAN PROJECT DESCRIPTION The District is involved in a regional effort, led by the San Bernardino Valley Municipal Water District, to establish a Habitat Conservation Plan for the Santa Ana River watershed. This effort will provide a planning document and implementation plan to balance the interests of water agencies providing water for domestic, irrigation, and commercial use, with environmental concerns – primarily the endangered Santa Ana Sucker fish. The current year funding request includes completion of planning and design, and captive propagation, while future year cost estimates are intended to cover permitting, tributary construction and water supply, and species translocation. Costs shown are East Valley Water District’s share of an estimated $32 million project. OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE The District’s ongoing share of annual monitoring and management costs are estimated at $17,000. UTILITIES N/A PROJECT TYPE New General Planning LOCATION Upper Santa Ana River Watershed PROJECT MANAGER Engineering TOTAL PROJECT COST $1,185,000 PRIOR YEARS BUDGET $108,000 START DATE October 2014 ESTIMATED COMPLETION October 2018 CAPITAL REQUESTS New Project FISCAL YEAR BUDGET 2016-2017page. 134 HABITAT CONSERVATION PLAN PROJECT COST PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 105,000 $ 310,000 $ - $ - $ - $ - $ 415,000 Land and Land Preparation - - - - - - - Construction (Contract) - - 767,000 - - - 767,000 Project Mgmt/Inspection - - - - - - - Equipment/Furnishings - - - - - - - Materials - - - - - - - EVWD Labor - - - - - - - Other (Legal) - - - - - - - ANNUAL TOTAL $ 105,000 $ 310,000 $ 767,000 $ - $ - $ - $ 1,182,000 PROJECT FUNDING PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 105,000 $ 310,000 $ 767,000 $ - $ - $ - $ 1,182,000 Replacement Reserve - - - - - - - Grants/Loans - - - - - - - Bond Proceeds - - - - - - - Development Fees - - - - - - - Other - - - - - - - ANNUAL TOTAL $ 105,000 $ 310,000 $ 767,000 $ - $ - $ - $ 1,182,000 EAST VALLEY WATER DISTRICT page. 135 AMI METER PROGRAM PROJECT DESCRIPTION This project will consist of retrofitting existing AMR and manual read meters throughout the District with Advanced Metering Infrastructure (AMI) hardware, software, and meters. Funding for phase one of this project will be provided through a grant from the Department of Water Resources-Energy Grant Program and replace 6,100 (25 percent) of the District’s meters. Phases 2, 3 and 4 of the District-wide implementation of AMI metering will be funded by operating revenue over the next four to seven years. OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES This project will reduce staffing and equipment costs required to collect manual reads of meters. Meter reading staff and equipment, with an annual cost of approximately $100,000, will be reassigned to other District programs, mitigating the need to fill vacant positions in those programs from external sources. DEBT SERVICE N/A MAINTENANCE Annual maintenance costs for AMI software and hardware will be $50,000. UTILITIES Minimal increase in annual telecommunications costs of $5,400. PROJECT TYPE Replacement Water Distribution LOCATION All service connections throughout the District. PROJECT MANAGER Engineering/ Information Technology TOTAL PROJECT COST $8,000,000 PRIOR YEARS BUDGET $2,011,000 (Rolled forward to current year 2016-17) START DATE July 2016 ESTIMATED COMPLETION June 2022 CAPITAL REQUESTS Previously Programmed Project FISCAL YEAR BUDGET 2016-2017page. 136 AMI METER RETROFIT PROGRAM PROJECT COST PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - - Construction (Contract) - 1,907,500 500,000 1,000,000 2,000,000 2,500,000 7,907,500 Project Mgmt/Inspection - - - - - - - Equipment/Furnishings - - - - - - - Materials - - - - - - - EVWD Labor - 103,500 - - - - 103,500 Other (Legal) - - - - - - - ANNUAL TOTAL $ - $ 2,011,000 $ 500,000 $ 1,000,000 $ 2,000,000 $ 2,500,000 $ 8,011,000 PROJECT FUNDING PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ - $ 500,000 $ 1,000,000 $ 2,000,000 $ 2,500,000 $ 6,000,000 Replacement Reserve - - - - - - - Grants/Loans - 2,011,000 - - - - 2,011,000 Bond Proceeds - - - - - - - Development Fees - - - - - - - Other - - - - - - - ANNUAL TOTAL $ - $ 2,011,000 $ 500,000 $ 1,000,000 $ 2,000,000 $ 2,500,000 $ 8,011,000 EAST VALLEY WATER DISTRICT page. 137 CANAL ZONE STORAGE RESERVOIR PROJECT DESCRIPTION The District’s 2014 Water System Master Plan update recommended a phased approach to addressing a 25 million gallon (MG) storage capacity deficiency in the District’s existing water distribution system. Adding storage in the District’s Canal Zone was listed as the top priority. The purpose of this project is to plan, design, and build a 2.5 MG storage tank in the District’s Canal 3 pressure zone. OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A PROJECT TYPE New Water Storage LOCATION A siting study will be completed to determine the best location for this reservoir. PROJECT MANAGER Engineering/Operations TOTAL PROJECT COST $3,075,000 PRIOR YEARS BUDGET N/A START DATE July 2016 ESTIMATED COMPLETION June 2018 CAPITAL REQUESTS New Project FISCAL YEAR BUDGET 2016-2017page. 138 CANAL ZONE STORAGE RESERVOIR PROJECT COST PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 250,000 $ - $ - $ - $ - $ - $ 250,000 Land and Land Preparation - 150,000 - - - - 150,000 Construction (Contract) - 210,000 2,165,000 - - - 2,375,000 Project Mgmt/Inspection - 30,000 200,000 - - - 230,000 Equipment/Furnishings - - - - - - - Materials - - - - - - - EVWD Labor - 20,000 50,000 - - - 70,000 Other (Legal) - - - - - - - ANNUAL TOTAL $ 250,000 $ 410,000 $ 2,415,000 $ - $ - $ - $3,075,000 PROJECT FUNDING PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ 410,000 $ 2,415,000 $ - $ - $ - $2,825,000 Replacement Reserve - - - - - - - Grants/Loans - - - - - - - Bond Proceeds - - - - - - - Development Fees 250,000 - - - - - 250,000 Other - - - - - - - ANNUAL TOTAL $ 250,000 $ 410,000 $ 2,415,000 $ - $ - $ - $3,075,000 EAST VALLEY WATER DISTRICT page. 139 UPPER ZONE BOOSTER STATION PROJECT DESCRIPTION This project is required in conjunction with the Canal Zone Storage Reservoir which, when completed, will need approximately 2.9 million gallons per day (MGD) of water supply pumped from lower pressure zones. This booster station will meet that demand by pumping water from the Upper Zone to the Canal Zone, and will be built to boost the 2.9 MGD supply capacity required. OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A PROJECT TYPE New Water Pumping LOCATION A siting study will be completed to determine the best location for this booster station. PROJECT MANAGER Engineering/Operations TOTAL PROJECT COST $1,495,000 PRIOR YEARS BUDGET N/A START DATE February 2017 ESTIMATED COMPLETION June 2019 CAPITAL REQUESTS New Project FISCAL YEAR BUDGET 2016-2017page. 140 UPPER ZONE BOOSTER STATION PROJECT COST PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 50,000 $ 75,000 $ - $ - $ - $ - $ 125,000 Land and Land Preparation - - - - - - - Construction (Contract) - 125,000 995,000 - - - 1,120,000 Project Mgmt/Inspection - 50,000 150,000 - - - 200,000 Equipment/Furnishings - - - - - - - Materials - - - - - - - EVWD Labor - - 50,000 - - - 50,000 Other (Legal) - - - - - - ANNUAL TOTAL $ 50,000 $ 250,000 $ 1,195,000 $ - $ - $ - $ 1,495,000 PROJECT FUNDING PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ - $ 1,195,000 $ - $ - $ - $ 1,195,000 Replacement Reserve - - - - - - - Grants/Loans - - - - - - - Bond Proceeds - - - - - - - Development Fees 50,000 250,000 - - - - 300,000 Other - - - - - - - ANNUAL TOTAL $ 50,000 $ 250,000 $ 1,195,000 $ - $ - $ - $ 1,495,000 EAST VALLEY WATER DISTRICT page. 141 WATER MAIN REPLACEMENT—PUMALO STREET PROJECT DESCRIPTION The scope of this project is to replace 2,000 linear feet of 8-inch steel water main. The existing main was constructed in 1966. Since 2006 this section of main has experienced 20 main leaks. OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE Less labor for repairing leaks will allow field staff more time to focus on preventative maintenance throughout the District UTILITIES N/A PROJECT TYPE Replacement Water Distribution Main LOCATION Pumalo Street between Del Rosa Avenue and Golden Avenue in the City of San Bernardino PROJECT MANAGER Engineering TOTAL PROJECT COST $475,000 PRIOR YEARS BUDGET $95,000 START DATE April 2016 ESTIMATED COMPLETION October 2016 CAPITAL REQUESTS Previously programmed FISCAL YEAR BUDGET 2016-2017page. 142 WATER MAIN REPLACEMENT—PUMALO STREET PROJECT COST PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 95,000 $ - $ - $ - $ - $ - $ 95,000 Land and Land Preparation - - - - - - - Construction (Contract) - 265,000 - - - - 265,000 Project Mgmt/Inspection - 75,000 - - - - 75,000 Equipment/Furnishings - - - - - - - Materials - - - - - - - EVWD Labor - 40,000 - - - - 40,000 Other (Legal) - - - - - - - ANNUAL TOTAL $ 95,000 $ 380,000 $ - $ - $ - $ - $ 475,000 PROJECT FUNDING PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 95,000 $ - $ - $ - $ - $ - $ 95,000 Replacement Reserve - 380,000 - - - - 380,000 Grants/Loans - - - - - - - Bond Proceeds - - - - - - - Development Fees - - - - - - - Other - - - - - - - ANNUAL TOTAL $ 95,000 $ 380,000 $ - $ - $ - $ - $ 475,000 EAST VALLEY WATER DISTRICT page. 143 PROJECT DESCRIPTION Replace approximately 8,400 linear feet of 4-inch and 6-inch mains with new 8-inch mains of pipeline in Glasgow Avenue and Dwight Way from Baseline to Pacific Street and in Elmo Drive, Independent Place, and Bessant Street from Dwight Way to Glasgow Avenue, and in Anson Street, Fisher Street, and Bessant Street from Glasgow Avenue to Del Rosa Drive. OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE Less amount of labor required to repair leaks means that staff will have more time to complete other more important maintenance items throughout the service area. UTILITIES N/A PROJECT TYPE Replacement Water Distribution Main LOCATION Dwight Way and Glasgow Avenue between Pacific and Baseline PROJECT MANAGER Engineering TOTAL PROJECT COST $1,325,000 PRIOR YEARS BUDGET $120,000 START DATE April 2016 ESTIMATED COMPLETION June 2017 CAPITAL REQUESTS New Project WATER MAIN REPLACEMENT—DWIGHT/GLASGOW FISCAL YEAR BUDGET 2016-2017page. 144 WATER MAIN REPLACEMENT—DWIGHT/GLASGOW PROJECT COST PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 120,000 $ - $ - $ - $ - $ - $ 120,000 Land and Land Preparation - - - - - - - Construction (Contract) - 1,030,000 - - - - 1,030,000 Project Mgmt/Inspection - 100,000 - - - - 100,000 Equipment/Furnishings - - - - - - - Materials - - - - - - - EVWD Labor - 75,000 - - - - 75,000 Other (Legal) - - - - - - - ANNUAL TOTAL $ 120,000 $ 1,205,000 $ - $ - $ - $ - $ 1,325,000 PROJECT FUNDING PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 120,000 $ - $ - $ - $ - $ - $ 120,000 Replacement Reserve - 1,205,000 - - - - 1,205,000 Grants/Loans - - - - - - - Bond Proceeds - - - - - - - Development Fees - - - - - - - Other - - - - - - - ANNUAL TOTAL $ 120,000 $ 1,205,000 $ - $ - $ - $ - $ 1,325,000 EAST VALLEY WATER DISTRICT page. 145 NORTH FORK PIPELINE REPLACEMENT PROJECT DESCRIPTION The North Fork water pipeline is jointly owned by the North Fork Water Company (NFWC) and East Valley Water District. It serves as the surface water intake from the Santa Ana River (SAR) and distributes raw water to NFWC irrigators along 7 miles of pipe before reaching the District’s surface water treatment Plant 134. Most of the pipeline is less than 30 years old with the exception of two sections of above ground pipe crossing the SAR and Plunge Creek. These pipes are very old and prone to leak. This project will line or replace these sections of exposed pipe with project costs will be shared evenly with the NFWC. OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A PROJECT TYPE Replacement Surface Water Pipeline LOCATION Santa Ana River crossing near Seven Oaks Dam and Plunge Creek Crossing PROJECT MANAGER Engineering TOTAL PROJECT COST $315,000 PRIOR YEARS BUDGET $30,000 START DATE September 2015 ESTIMATED COMPLETION December 2017 CAPITAL REQUESTS New Project FISCAL YEAR BUDGET 2016-2017page. 146 NORTH FORK PIPELINE REPLACEMENT PROJECT COST PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 30,000 $ 35,000 $ - $ - $ - $ - $ 65,000 Land and Land Preparation - - - - - - - Construction (Contract) - 90,000 160,000 - - - 250,000 Project Mgmt/Inspection - - - - - - - Equipment/Furnishings - - - - - - - Materials - - - - - - - EVWD Labor - - - - - - - Other (Legal) - - - - - - - ANNUAL TOTAL $ 30,000 $ 125,000 $ 160,000 $ - $ - $ - $ 315,000 PROJECT FUNDING PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 30,000 $ - $ 160,000 $ - $ - $ - $ 190,000 Replacement Reserve - 125,000 - - - - 125,000 Grants/Loans - - - - - - - Bond Proceeds - - - - - - - Development Fees - - - - - - - Other - - - - - - - ANNUAL TOTAL $ 30,000 $ 125,000 $ 160,000 $ - $ - $ - $ 315,000 EAST VALLEY WATER DISTRICT page. 147 FACILITIES RELOCATION PROJECT DESCRIPTION The District’s service area covers all of the City of Highland, and portions of the City and County of San Bernardino. When these agencies plan and construct improvements within their jurisdiction, there are occasionally alignment or location conflicts with existing District facilities. When this occurs, the District is frequently obliged to relocate its facilities. OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A PROJECT TYPE Replacement Water Distribution System LOCATION District Wide PROJECT MANAGER Engineering TOTAL PROJECT COST $150,000 PRIOR YEARS BUDGET N/A START DATE July 2016 ESTIMATED COMPLETION June 2017 CAPITAL REQUESTS Perennial Budget Request FISCAL YEAR BUDGET 2016-2017page. 148 FACILITIES RELOCATION PROJECT COST PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 50,000 Land and Land Preparation - - - - - - - Construction (Contract) - 85,000 85,000 85,000 85,000 85,000 425,000 Project Mgmt/Inspection - - - - - - - Equipment/Furnishings - - - - - - - Materials - - - - - - - EVWD Labor - 5,000 5,000 5,000 5,000 5,000 25,000 Other (Legal) - - - - - - - ANNUAL TOTAL $ - $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 PROJECT FUNDING PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 Replacement Reserve - - - - - - - Grants/Loans - - - - - - - Bond Proceeds - - - - - - - Development Fees - - - - - - - Other - - - - - - - ANNUAL TOTAL $ - $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 EAST VALLEY WATER DISTRICT page. 149 PLANT 101 HYDRO TANK REHABILITATION PROJECT DESCRIPTION The Hydro-pneumatic tank at Plant 101 serves 35 homes that are situated at elevations above the facility. These residences cannot be gravity-fed by the Plant’s 1.4 million gallon reservoir. The Hydro tank will be recoated to protect it from the elements. Tubing in the tank will be cleaned or replaced. The tank’s main valve is also outdated. An ASME rated air pressure relief valve will be installed to meet current standards from the Hydro tank manufacturer. OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A PROJECT TYPE Improvement Water Distribution System LOCATION Northeast of Mountain Top Drive PROJECT MANAGER Engineering/Operations TOTAL PROJECT COST $100,000 PRIOR YEARS BUDGET N/A START DATE July 2016 ESTIMATED COMPLETION June 2017 CAPITAL REQUESTS New Project FISCAL YEAR BUDGET 2016-2017page. 150 PLANT 101 HYDRO TANK REHABILITATION PROJECT COST PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ 10,000 $ - $ - $ - $ - $ 10,000 Land and Land Preparation - - - - - - - Construction (Contract) - 85,000 - - - - 85,000 Project Mgmt/Inspection - - - - - - - Equipment/Furnishings - - - - - - - Materials - - - - - - - EVWD Labor - 5,000 - - - - 5,000 Other (Legal) - - - - - - - ANNUAL TOTAL $ - $ 100,000 $ - $ - $ - $ - $ 100,000 PROJECT FUNDING PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - $ - Replacement Fund - 100,000 - - - - 100,000 Grants/Loans - - - - - - - Bond Proceeds - - - - - - - Development Fees - - - - - - - Other - - - - - - - ANNUAL TOTAL $ - $ 100,000 $ - $ - $ - $ - $ 100,000 EAST VALLEY WATER DISTRICT page. 151 FACILITY REHABILITATIONS PROJECT DESCRIPTION This project involves improvements to several Plant facilities, including: 1) upgrade Plant 134 laboratory and office area to include new counter tops, new floor and remodel the bathroom; paint exterior doors and trim on the outside of the building; 2) rehabilitate deteriorating asphalt road and replace booster pump building roof at Plant 140; 3) paint exterior vessels at Plant 28; 4) rehabilitate deteriorating road leading to Plant 99; and 5) slurry seal asphalt inside of Plant 129 and replace booster building roof. OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A PROJECT TYPE Improvement Water Pumping and Treatment LOCATIONS Plants 140, 134, 129, 99, 28 PROJECT MANAGER Operations TOTAL PROJECT COST $450, 000 PRIOR YEARS BUDGET N/A START DATE July 2016 ESTIMATED COMPLETION June 2017 CAPITAL REQUESTS New Project FISCAL YEAR BUDGET 2016-2017page. 152 PROJECT COST PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - - Construction (Contract) - 150,000 - 150,000 - 150,000 450,000 Project Mgmt/Inspection - - - - - - - Equipment/Furnishings - - - - - - - Materials - - - - - - - EVWD Labor - - - - - - - Other (Legal) - - - - - - - ANNUAL TOTAL $ - $ 150,000 $ - $ 150,000 $ - $ 150,000 $ 450,000 PROJECT FUNDING PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ 150,000 $ - $ 150,000 $ - $ 150,000 $ 450,000 Replacement Reserve - - - - - - - Grants/Loans - - - - - - - Bond Proceeds - - - - - - - Development Fees - - - - - - - Other - - - - - - - ANNUAL TOTAL $ - $ 150,000 $ - $ 150,000 $ - $ 150,000 $ 450,000 FACILITY REHABILITATIONS EAST VALLEY WATER DISTRICT page. 153 WASTEWATER MAIN REPLACEMENT—PALOMA ROAD PROJECT DESCRIPTION Replace approximately 680 linear feet of 8-inch VCP wastewater main in Paloma Road. This 57 year old trunk wastewater pipe spans between 4 manholes. The mains have 87 structural defects; including cracks, fractures and broken pipe with soil and rocks protruding into the main. This trunk wastewater pipe exclusively serves about 35 homes. OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A PROJECT TYPE Replacement Wastewater Collection Main LOCATION Paloma Rd between Del Rosa Avenue and Golondrina Drive PROJECT MANAGER Engineering TOTAL PROJECT COST $160,000 PRIOR YEARS BUDGET N/A START DATE January 2017 ESTIMATED COMPLETION June 2017 CAPITAL REQUESTS New Project FISCAL YEAR BUDGET 2016-2017page. 154 PROJECT COST PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ 30,000 $ - $ - $ - $ - $ 30,000 Land and Land Preparation - - - - - - - Construction (Contract) - 103,000 - - - - 103,000 Project Mgmt/Inspection - 16,000 - - - - 16,000 Equipment/Furnishings - - - - - - - Materials - - - - - - - EVWD Labor - 11,000 - - - - 11,000 Other (Legal) - - - - - - - ANNUAL TOTAL $ - $ 160,000 $ - $ - $ - $ - $ 160,000 PROJECT FUNDING PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - $ - Replacement Reserve - 160,000 - - - - 160,000 Grants/Loans - - - - - - - Bond Proceeds - - - - - - - Development Fees - - - - - - - Other - - - - - - - ANNUAL TOTAL $ - $ 160,000 $ - $ - $ - $ - $ 160,000 WASTEWATER MAIN REPLACEMENT—PALOMA ROAD EAST VALLEY WATER DISTRICT page. 155 PROJECT DESCRIPTION Replace, re-line or pipe-burst approximately 200 linear feet of wastewater main with offset joints and broken pipe defects. The 200 linear feet of 8-inch VCP is separated in the middle with a 10 foot long piece of cast iron (CI) pipe. This CI is broken with a rock protruding into the pipe and the adjacent vitrified clay pipe is deformed. This pipe is in an easement with an 18-foot +/- deep, drop manhole at the east end on Holly Circle Drive. The back of the property is on a hillside and includes a drainage ravine on the east. This trunk pipe exclusively serves about 20 homes. OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A PROJECT TYPE Replacement Wastewater Collection Main LOCATION In an easement between Orange St. and Holly Circle Drive, 600’ north of Piedmont Dr. PROJECT MANAGER Engineering TOTAL PROJECT COST $75,000 PRIOR YEARS BUDGET N/A START DATE Jan 2017 ESTIMATED COMPLETION June 2017 CAPITAL REQUESTS New Project WASTEWATER MAIN REPLACEMENT—ORANGE STREET FISCAL YEAR BUDGET 2016-2017page. 156 PROJECT COST PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ 13,600 $ - $ - $ - $ - $ 13,600 Land and Land Preparation - - - - - - - Construction (Contract) - 47,900 - - - - 47,900 Project Mgmt/Inspection - 7,500 - - - - 7,500 Equipment/Furnishings - - - - - - - Materials - - - - - - - EVWD Labor - 6,000 - - - - 6,000 Other (Legal) - - - - - - - ANNUAL TOTAL $ - $ 75,000 $ - $ - $ - $ - $ 75,000 PROJECT FUNDING PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - $ - Replacement Reserve - 75,000 - - - - 75,000 Grants/Loans - - - - - - - Bond Proceeds - - - - - - - Development Fees - - - - - - - Other - - - - - - - ANNUAL TOTAL $ - $ 75,000 $ - $ - $ - $ - $ 75,000 WASTEWATER MAIN REPLACEMENT—ORANGE STREET EAST VALLEY WATER DISTRICT page. 157 WASTEWATER MAIN REPLACEMENT—4TH STREET PROJECT DESCRIPTION Remove and replace 810 linear feet of 6-inch Vitrified Clay Pipe (VCP) wastewater main in 4th Street, between Waterman Avenue and the Warm Creek Channel. The existing pipe has cracks, fractures and breaks along the entire stretch between 3 manholes. A new 6-inch VCP main will replace the old. OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A PROJECT TYPE Replacement Wastewater Collection Main LOCATION 4th Street, between Waterman Avenue and Warm Creek Channel PROJECT MANAGER Engineering TOTAL PROJECT COST $200,000 PRIOR YEARS BUDGET N/A START DATE January, 2017 ESTIMATED COMPLETION June 2017 CAPITAL REQUESTS New Project FISCAL YEAR BUDGET 2016-2017page. 158 PROJECT COST PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ 35,000 $ - $ - $ - $ - $ 35,000 Land and Land Preparation - - - - - - - Construction (Contract) - 130,000 - - - - 130,000 Project Mgmt/Inspection - 20,000 - - - - 20,000 Equipment/Furnishings - - - - - - - Materials - - - - - - - EVWD Labor - 15,000 - - - - 15,000 Other (Legal) - - - - - - - ANNUAL TOTAL $ - $ 200,000 $ - $ - $ - $ - $ 200,000 PROJECT FUNDING PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - $ - Replacement Reserve - 200,000 - - - - 200,000 Grants/Loans - - - - - - - Bond Proceeds - - - - - - - Development Fees - - - - - - - Other - - - - - - - ANNUAL TOTAL $ - $ 200,000 $ - $ - $ - $ - $ 200,000 WASTEWATER MAIN REPLACEMENT—4TH STREET EAST VALLEY WATER DISTRICT page. 159 CITY CREEK MANHOLE RELOCATION PROJECT DESCRIPTION A wastewater manhole previously located to the north of the flow of City Creek is now exposed in the middle of the creek bed. This is due to realignment of the creek caused by flooding in 2010. In addition, the ground over the attached 18-inch wastewater main running under the creek, has eroded to a cover of only 6 feet. This project will evaluate options for either protecting the wastewater facilities in place, relocating them, or completely eliminating the need for the wastewater facilities to cross the creek at this location. Project costs include implementation of the final solution. OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A PROJECT TYPE Replacement Wastewater Collection Manhole LOCATION City Creek between Baseline Road and Greenspot Road PROJECT MANAGER Engineering TOTAL PROJECT COST $970,000 PRIOR YEARS BUDGET $100,000 START DATE July 2015 ESTIMATED COMPLETION June 2017 CAPITAL REQUESTS Previously Programmed Project FISCAL YEAR BUDGET 2016-2017page. 160 PROJECT COST PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ 30,000 $ - $ - $ - $ - $ 30,000 Land and Land Preparation - 50,000 - - - - 50,000 Construction (Contract) - - 800,000 - - - 800,000 Project Mgmt/Inspection - - 70,000 - - - 70,000 Equipment/Furnishings - - - - - - - Materials - - - - - - - EVWD Labor - 20,000 40,000 - - - 60,000 Other (Legal) - - - - - - - ANNUAL TOTAL $ - $ 100,000 $ 910,000 $ - $ - $ - $ 1,010,000 PROJECT FUNDING PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ 100,000 $ 910,000 $ - $ - $ - $ 1,010,000 Replacement Reserve - - - - - - - Grants/Loans - - - - - - - Bond Proceeds - - - - - - - Development Fees - - - - - - - Other - - - - - - - ANNUAL TOTAL $ - $ 100,000 $ 910,000 $ - $ - $ - $ 1,010,000 CITY CREEK MANHOLE RELOCATION EAST VALLEY WATER DISTRICT page. 161 STERLING NATURAL RESOURCE CENTER (SNRC) PROJECT DESCRIPTION In response to the drought and SBX7-7 which mandates EVWD to cut 20 percent of its use by the year 2020, the District is planning and constructing a water reclamation facility. The facility will allow the EVWD to treat wastewater to a point that it can be recharged back into the groundwater basin and reused for domestic purpose. Initially the facility will treat approximately 6 MGD and will expand to be able to treat ultimate build-out at 10 MGD. OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES $600,000 DEBT SERVICE $4,625,000 annually on a low interest, State Revolving Fund loan MAINTENANCE $1,250,000 (estimated) for contract services and supplies. Contracted treatment paid to a third party of $7,610,000 would be eliminated UTILITIES $725,000 (estimated) for additional electrical energy, natural gas, water, wastewater, and telephone/data communications will be required. PROJECT TYPE New Wastewater Treatment LOCATION Southwest Corner of 5th Street and Del Rosa Drive PROJECT MANAGER Engineering TOTAL PROJECT COST $97,900,000 PRIOR YEARS BUDGET N/A START DATE January 2014 ESTIMATED COMPLETION June 2018 CAPITAL REQUESTS Previously Programmed Project FISCAL YEAR BUDGET 2016-2017page. 162 PROJECT COST PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ 10,000,000 $ - $ - $ - $ - $ 10,000,000 Land and Land Preparation - 4,900,000 - - - - 4,900,000 Construction (Contract) - 42,000,000 33,800,000 - - - 75,800,000 Project Mgmt/Inspection - 4,000,000 3,000,000 - - - 7,000,000 Equipment/Furnishings - - - - - - - Materials - - - - - - - EVWD Labor - 100,000 100,000 - - - 200,000 Other (Legal) - - - - - - - ANNUAL TOTAL $ - $ 61,000,000 $ 36,900,000 $ - $ - $ - $ 97,900,000 PROJECT FUNDING PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - $ - Replacement Reserve - - - - - - - Grants/Loans - 61,000,000 36,900,000 - - - 97,900,000 Bond Proceeds - - - - - - - Development Fees - - - - - - - Other - - - - - - - ANNUAL TOTAL $ - $ 61,000,000 $ 36,900,000 $ - $ - $ - $97,900,000 STERLING NATURAL RESOURCE CENTER EAST VALLEY WATER DISTRICT page. 163 5TH STREET WASTEWATER TRUNK LINE (SNRC) PROJECT DESCRIPTION Construct 7,600 linear feet of 21-inch diameter wastewater main in 5th Street from Victoria Avenue to Del Rosa Drive. This line will intercept flows from the 6th Street trunk line and convey it directly to the new SNRC. In addition, this trunk line will provide mains to an area currently without wastewater service thereby eliminating the use of septic tanks. The undeveloped land in this area will already have wastewater service available when development occurs. OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A PROJECT TYPE New Wastewater Collection Trunk Line LOCATION 5th Street from Victoria Avenue to Del Rosa Drive PROJECT MANAGER Engineering TOTAL PROJECT COST $3,500,000 PRIOR YEARS BUDGET N/A START DATE January 2017 ESTIMATED COMPLETION June 2018 CAPITAL REQUESTS New Project FISCAL YEAR BUDGET 2016-2017page. 164 PROJECT COST PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ 300,000 $ - $ - $ - $ - $ 300,000 Land and Land Preparation - - - - - - - Construction (Contract) - - 2,800,000 - - - 2,800,000 Project Mgmt/Inspection - - 300,000 - - - 300,000 Equipment/Furnishings - - - - - - - Materials - - - - - - - EVWD Labor - 50,000 50,000 - - - 100,000 Other (Legal) - - - - - - - ANNUAL TOTAL $ - $ 350,000 $ 3,150,000 $ - $ - $ - $ 3,500,000 PROJECT FUNDING PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - $ - Replacement Reserve - - - - - - - Grants/Loans - 350,000 3,150,000 - - - 3,500,000 Bond Proceeds - - - - - - - Development Fees - - - - - - - Other - - - - - - - ANNUAL TOTAL $ - $ 350,000 $ 3,150,000 $ - $ - $ - $ 3,500,000 5TH STREET TRUNK WASTEWATER LINE EAST VALLEY WATER DISTRICT page. 165 DEL ROSA DRIVE WASTEWATER TRUNK LINE (SNRC) PROJECT DESCRIPTION This project involves installing 4,500 linear feet of 24-inch diameter wastewater main in Del Rosa Drive from Baseline Street to 6th Street. The purpose of this new pipeline is to intercept flows from the Baseline Street and 9th Street trunk lines, and reroute the flows south to the site of the new SNRC. Intercepting wastewater flows at these two locations will allow the flows to reach the SNRC by gravitational force; instead of flowing further east and pumped back to the SNRC by a lift station. OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE This project is ancillary to the SNRC and will be funded by a low interest State Revolving Fund loan. The debt service for this project is included in the discussion for the SNRC. MAINTENANCE N/A UTILITIES N/A PROJECT TYPE New Wastewater Collection Trunk Line LOCATION Del Rosa Drive from Baseline Street to 6th Street PROJECT MANAGER Engineering TOTAL PROJECT COST $4,100,000 PRIOR YEARS BUDGET N/A START DATE January 2017 ESTIMATED COMPLETION June 2018 CAPITAL REQUESTS New Project FISCAL YEAR BUDGET 2016-2017page. 166 PROJECT COST PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ 350,000 $ - $ - $ - $ - $ 350,000 Land and Land Preparation - - - - - - - Construction (Contract) - - 3,300,000 - - - 3,300,000 Project Mgmt/Inspection - - 350,000 - - - 350,000 Equipment/Furnishings - - - - - - - Materials - - - - - - - EVWD Labor - 50,000 50,000 - - - 100,000 Other (Legal) - - - - - - - ANNUAL TOTAL $ - $ 400,000 $ 3,700,000 $ - $ - $ - $ 4,100,000 PROJECT FUNDING PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - $ - Replacement Reserve - - - - - - - Grants/Loans - 400,000 3,700,000 - - - 4,100,000 Bond Proceeds - - - - - - - Development Fees - - - - - - - Other - - - - - - - ANNUAL TOTAL $ - $ 400,000 $ 3,700,000 $ - $ - $ - $ 4,100,000 DEL ROSA DRIVE TRUNK WASTEWATER (SNRC) EAST VALLEY WATER DISTRICT page. 167 6TH STREET LIFT STATION & FORCE MAIN (SNRC) PROJECT DESCRIPTION Construct a lift station and 4,700 linear feet of force main (size is yet to be determined) from 6th Street and Pedley Road to 6th Street and Del Rosa Drive, where the new SNRC is located. OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A PROJECT TYPE New Wastewater Collection Main LOCATION 6th Street at Pedley Road PROJECT MANAGER Engineering TOTAL PROJECT COST $17,700,000 PRIOR YEARS BUDGET N/A START DATE January 2017 ESTIMATED COMPLETION June 2018 CAPITAL REQUESTS New Project FISCAL YEAR BUDGET 2016-2017page. 168 PROJECT COST PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ 1,750,000 $ - $ - $ - $ - $ 1,750,000 Land and Land Preparation - - - - - - - Construction (Contract) - - 14,100,000 - - - 14,100,000 Project Mgmt/Inspection - - 1,750,000 - - - 1,750,000 Equipment/Furnishings - - - - - - - Materials - - - - - - - EVWD Labor - 50,000 50,000 - - - 100,000 Other (Legal) - - - - - - - ANNUAL TOTAL $ - $ 1,800,000 $ 15,900,000 $ - $ - $ - $ 17,700,000 PROJECT FUNDING PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - $ - Replacement Reserve - - - - - - - Grants/Loans - 1,800,000 15,900,000 - - - 17,700,000 Bond Proceeds - - - - - - - Development Fees - - - - - - - Other - - - - - - - ANNUAL TOTAL $ - $ 1,800,000 $ 15,900,000 $ - $ - $ - $ 17,700,000 6TH STREET LIFT STATION & FORCE MAIN (SNRC) EAST VALLEY WATER DISTRICT page. 169 3RD STREET LIFT STATION & FORCE MAIN (SNRC) PROJECT DESCRIPTION Construct a lift station and 10,000 linear feet of force main (size is yet to be determined) from 3rd Street and Waterman Avenue 6th Street and Del Rosa Drive, where the new SNRC is located. OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A PROJECT TYPE New Wastewater Collection LOCATION 6th Street at Pedley Road PROJECT MANAGER Engineering TOTAL PROJECT COST $2,800,000 PRIOR YEARS BUDGET N/A START DATE January 2017 ESTIMATED COMPLETION June 2018 CAPITAL REQUESTS New Project FISCAL YEAR BUDGET 2016-2017page. 170 PROJECT COST PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ 280,000 $ - $ - $ - $ - $ 280,000 Land and Land Preparation - - - - - - - Construction (Contract) - - 2,200,000 - - - 2,200,000 Project Mgmt/Inspection - - 280,000 - - - 280,000 Equipment/Furnishings - - - - - - - Materials - - - - - - - EVWD Labor - 20,000 20,000 - - - 40,000 Other (Legal) - - - - - - - ANNUAL TOTAL $ - $ 300,000 $ 2,500,000 $ - $ - $ - $ 2,800,000 PROJECT FUNDING PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - $ - Replacement Reserve - - - - - - - Grants/Loans - 300,000 2,500,000 - - - 2,800,000 Bond Proceeds - - - - - - - Development Fees - - - - - - - Other - - - - - - - ANNUAL TOTAL $ - $ 300,000 $ 2,500,000 $ - $ - $ - $ 2,800,000 3RD STREET LIFT STATION AND FORCE MAIN (SNRC) EAST VALLEY WATER DISTRICT page. 171 GREENSPOT EAST WASTEWATER MAIN PROJECT DESCRIPTION Modeling performed during development of the 2013 Wastewater Collection System Master Plan update showed that approximately 2,000 linear feet of 12-inch and 15-inch wastewater pipeline in Greenspot Road surcharge under wet weather conditions. As the majority of wastewater flows from future development in the District will feed into this section of the collection system, it is important that this capacity issue be addressed. The proposed project is to install 21,000 linear feet of 12-inch pipe parallel to the existing pipeline in Greenspot Road to alleviate the threat of surcharging, and to accommodate future growth of between 3,500 and 4,500 equivalent dwelling units (EDUs). OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE This project will be funded by future development capacity fees. MAINTENANCE N/A UTILITIES N/A PROJECT TYPE New Capacity – Wastewater Collection LOCATION Greenspot Road, between the 210 Highway and the District Headquarters complex PROJECT MANAGER Engineering TOTAL PROJECT COST $7,030,000 PRIOR YEARS BUDGET None START DATE January, 2017 ESTIMATED COMPLETION December 2017 CAPITAL REQUESTS New Project FISCAL YEAR BUDGET 2016-2017page. 172 PROJECT COST PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ 650,000 $ 475,000 $ - $ - $ - $ 1,125,000 Land and Land Preparation - - - - - - - Construction (Contract) - - 4,550,000 - - - 4,550,000 Project Mgmt/Inspection - - 1,125,000 - - - 1,125,000 Equipment/Furnishings - - - - - - - Materials - - - - - - - EVWD Labor - 50,000 155,000 - - - 205,000 Other (Legal) - - 25,000 - - - 25,000 ANNUAL TOTAL $ - $ 700,000 $ 6,330,000 $ - $ - $ - $ 7,030,000 PROJECT FUNDING PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - $ - Replacement Reserve - - - - - - - Grants/Loans - - - - - - - Bond Proceeds - - - - - - - Development Fees - 700,000 6,330,000 - - - 7,030,000 Other - - - - - - - ANNUAL TOTAL $ - $ 700,000 $ 6,330,000 $ - $ - $ - $ 7,030,000 GREENSPOT EAST WASTEWATER MAIN EAST VALLEY WATER DISTRICT page. 173 WASTEWATER FLOW MONITORING PROJECT DESCRIPTION The District installed two flow meters at 6th and 3rd Streets east of Waterman Avenue. These two meters measure the total wastewater flow from the District’s service area. These meters verify the flow from the District to the City of San Bernardino Wastewater Treatment Plant compared to the flows calculated based on number of connections. The flow data will be used to design the new SNRC water recycling facility, monitor the impacts of new development, and provide data to calibrate the District’s InfoSewer system model. The meters will remain for a minimum of two more years, at which time the monitoring program will be reassessed. OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A PROJECT TYPE New Wastewater Planning LOCATION 6th Street and 3rd Street, East of Waterman Avenue PROJECT MANAGER Engineering TOTAL PROJECT COST $120,000 PRIOR YEARS BUDGET $30,000 START DATE September 2014 ESTIMATED COMPLETION June 2018 CAPITAL REQUESTS Previously Programmed Project FISCAL YEAR BUDGET 2016-2017page. 174 PROJECT COST PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - - Construction (Contract) - - - - - - - Project Mgmt/Inspection 30,000 30,000 30,000 30,000 - - 120,000 Equipment/Furnishings - - - - - - - Materials - - - - - - - EVWD Labor - - - - - - - Other (Legal) - - - - - - - ANNUAL TOTAL $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ - $ - $ 120,000 PROJECT FUNDING PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ - $ - $ 120,000 Replacement Reserve - - - - - - - Grants/Loans - - - - - - - Bond Proceeds - - - - - - - Development Fees - - - - - - - Other - - - - - - - ANNUAL TOTAL $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ - $ - $ 120,000 WASTEWATER FLOW MONITORING EAST VALLEY WATER DISTRICT page. 175 MULTI-YEAR WASTEWATER RATE STUDY PROJECT DESCRIPTION In order to ensure wastewater rates collected by East Valley Water District are equitable and sufficient to recover costs, a Cost of Service Analysis must be performed in FY 2016-17. Wastewater rates were last considered at a public hearing in FY 2011-12. The analysis will include the District’s wastewater collection system maintenance rates, and wastewater treatment rates that will be effective for the District’s new SNRC scheduled for completion in December 2017. OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A PROJECT TYPE New Wastewater Planning LOCATION District Wide PROJECT MANAGER Finance TOTAL PROJECT COST $80,000 PRIOR YEARS BUDGET N/A START DATE August 2016 ESTIMATED COMPLETION March 2017 CAPITAL REQUESTS New Project FISCAL YEAR BUDGET 2016-2017page. 176 PROJECT COST PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - - Construction (Contract) - 70,000 - - - - 70,000 Project Mgmt/Inspection - - - - - - - Equipment/Furnishings - - - - - - - Materials - - - - - - - EVWD Labor - 10,000 - - - - 10,000 Other (Legal) - - - - - - - ANNUAL TOTAL $ - $ 80,000 $ - $ - $ - $ - $ 80,000 PROJECT FUNDING PRIOR YR CARRYOVER (ACTUAL) YEAR 1 FY 2016-17 YEAR 2 FY 2017-18 YEAR 3 FY 2018-19 YEAR 4 FY 2019-20 YEAR 5 FY 2020-21 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ 80,000 $ - $ - $ - $ - $ 80,000 Replacement Reserve - - - - - - - Grants/Loans - - - - - - - Bond Proceeds - - - - - - - Development Fees - - - - - - - Other - - - - - - - ANNUAL TOTAL $ - $ 80,000 $ - $ - $ - $ - $ 80,000 MULTI-YEAR WASTEWATER RATE STUDY GLOSSARY Definitions for technical terms and acronymns found in the budget document. EAST VALLEY WATER DISTRICT page. 177 GLOSSARY Definitions for technical terms and acronymns found in the budget document. Insert text here>>>> FISCAL YEAR BUDGET 2016-2017page. 178 EAST VALLEY WATER DISTRICT page. 179 CHART OF ACCOUNTS The Chart of Accounts is a list of the different accounts used by the District to define each category of items for which money is spent or received. It is used to organize finances and to separate expenditures, revenues, assets, and liabilities in order to allow for a clear understanding of the District’s financial status. Below is a listing of the District’s Chart of Accounts with a brief description of each account. • 5101 - Regular Labor: Regular salaries and wages for permanent full-time and part-time employees • 5102 - Temporary Labor: Costs for labor not permanently employed by the District • 5103 - Overtime: Employees that work more than their regular 40 hours per week • 5104 - Standby: Employees that are on call for emergencies during non-business hours, weekends, and holidays • 5200 - Benefits: Medical, dental, vision, retirement, and related benefits offered by the District • 6101 - Purchased Water: Cost to purchase imported water • 6102 - Groundwater Replenishment: Cost to pump groundwater from the basin • 6103 - Water Assessment: Cost of water shares directly related to North Fork • 6201 - Materials & Supplies: Items used in daily operations, repair, and maintenance • 6202 - Tools: Items used to perform repair and maintenance activities • 6203 - Office Supplies: Items such as pens, paper and other related desk accessories • 6204 - Chemicals: Used for the treatment of water and cleaning equipment and tools • 6205 - Conservation Rebates: Costs to reimburse customers for eligible conservation efforts • 6301 - Contract Services: Services rendered by consultants and contractors • 6302 - Banking Services: Services fees charged by financial institutions, merchant banks, and payment processors • 6303 - Printing & Publishing: Costs for printing and producing District publications • 6304 - Legal Services: Costs for legal advice, consultation, contract review, and litigation • 6305 - Treatment Services: Outside treatment services for wastewater • 6306 - Rents & Leases: Rental and lease costs for buildings and equipment that are not owned by the District • 6307 - Uniforms: Costs for the purchase, rental and laundering of uniforms, and other sundries for employees • 6308 - Billing Services: Costs associated with printing and mailing customer utility bills • 6309 - Shut Off Notice Services: Costs associated with the printing and delivery of 48 Hour Notices; these costs are charged back to customers through a fee • 6310 - Street Services: Costs associated with street restoration after District performs repairs and maintenance to existing infrastructure • 6311 - Landscape Services: Costs to maintain landscape, sprinklers, and weed abatement throughout the District • 6312 - Janitorial Services: Costs to clean and maintain District facilities • 6313 - Facilities Repair: Tracking of minor repairs for District facilities • 6401 - Utilities: Cable, gas, and other utilities not including telephone and electricity • 6402 - Telephone: Land lines, cellular phones, and internet services • 6403 - Electricity: Electricity usage costs • 6404 - Fuel: Fuel costs for vehicles and generators • 6405 - Permits: Permit costs required by federal, state, and local regulatory agencies • 6406 - Postage: Costs for mailing bills, publications, and special deliveries • 6501 - Memberships & Dues: Subscriptions and memberships for associations and special groups • 6502 - Professional Development: Seminars, conferences, and travel costs for employee development • 6503 - Education Assistance: Tuition reimbursement for employees who attend school for a degree or certificate • 6504 - Meetings: Costs such as meals, parking, and registration that are not related to professional development FISCAL YEAR BUDGET 2016-2017page. 180 • 6505 - Employee Recognition: Employee recognition costs to recognize excellent performance throughout the year • 6701 - General Insurance: General liability insurance for the District’s facilities and infrastructure development • 6702 - Insurance Claims: Cost of insurance claims paid during the fiscal year • 6703 - Cash Over/Short: Accounts for customer payment processing discrepancies • 6704 - Bad Debt: Account used to write off uncollectible customer unpaid water or wastewater charges • 6705 - Retiree Benefits: Other post- employment benefits reimbursed to District retirees LONG-STANDING FINANCIAL PRINCIPLES AND PRACTICES REFLECT A SOLID FOUNDATION THAT HAS ENABLED THE DISTRICT TO MAINTAIN ITS FINANCIAL STABILITY. ENHANCE AND PRESERVE THE QUALITY OF LIFE FOR OUR COMMUNITY THROUGH INNOVATIVE LEADERSHIP AND WORLD CLASS PUBLIC SERVICE. HEADQUARTERS 31111 Greenspot Road Highland, California 92346 (909) 889-9501 www.eastvalley.org Follow us on Social Media: @eastvalleywater Published June 30, 2016 DISTRICT BOARD MEETINGS Second and fourth Wednesday of each month District Headquarters Board Room, 5:30pm