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Agenda Packet - EVWD Board of Directors - 08/24/2016
REGULAR BOARD MEETING Closed Session Begins at 4:30 PM August 24, 2016 - 5:30 PM 31111 Greenspot Road, Highland, CA 92346 AGENDA "In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors". CALL TO ORDER ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. AGENDA - This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. 1.Approval of Agenda RECESS INTO CLOSED SESSION CLOSED SESSION 2.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 3.CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION [Government Code Section 54956.9(d)(1) Name of Case: City of San Bernardino v. East Valley Water District, et al., San Bernardino County Superior Court Case No. CIVDS1608620 4.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 ACTIONS ITEMS PRESENTATIONS AND CEREMONIAL ITEMS Introduction of Newly Hired Employee - Steven Nix, Director of Engineering & Operations PUBLIC COMMENTS 5.APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. a.Financial Statements for July 2016 b.July 2016 Disbursements: Accounts payable disbursements for the period include check numbers 248105 through 248350, bank drafts, and ACH Payments in the amount of $3,179,371.64 and $616,346.33 for payroll. NEW BUSINESS 6.Patton State Hospital Project 7.Disposition of Surplus Property 8.Plant 134 Hydro Project Easement 9.Refer Kennedy/Jenks Consultants for the SNRC Design-Build Bridging Documents to San Bernardino Valley Municipal Water District 10.Water Quality Update 11.Board Meeting Cancellations REPORTS 12.Board of Directors' Reports 13.General Manager/CEO Report 14.Legal Counsel Report 15.Board of Directors' Comments ADJOURN P LEASE NOT E: Materials related to an item on this agenda s ub mitted to the Board after dis trib utio n of the agenda pac ket are available for p ublic inspec tio n in the Dis tric t's offic e loc ated at 31111 G reens pot Rd., Highland , during no rmal bus iness ho urs. Als o, s uc h d o c uments are availab le o n the District's web s ite at www.eas tvalley.o rg sub ject to s taff's ab ility to post the d o cuments b efo re the meeting. P ursuant to Go vernment Co d e S ectio n 54954.2(a), any reques t fo r a dis ability-related modific ation or ac commod ation, inc luding auxiliary aids or s ervic es , that is s ought in order to participate in the abo ve- agendized p ublic meeting sho uld b e direc ted to the Dis tric t Clerk at (909) 885-4900 at leas t 72 hours prior to said meeting. Recommended by: Jo hn Mura General Manager/CEO Res p ec tfully s ub mitted : Brian To mpkins Chief Financial Offic er BOARD AGENDA STAFF REPORT Agenda Item #5.a. Meeting Date: Augus t 24, 2016 Co nsent Item To: Governing Bo ard Memb ers From: General Manager/CEO Subject: F inanc ial S tatements for July 2016 RECOMMENDATION: Staff rec o mmend s that the Board of Directo rs acc ept and file the attac hed financial s tatements as o f, and for the p eriod end ed , July 31, 2016. BACKGROUND / ANALYSIS: Includ ed herewith fo r the Board ’s review is a s ummary o f East Valley Water Dis tric t’s financ ial res ults, as o f July 31, 2016. AGENCY IDEALS AND ENDEAVORS: Ideals and Endeavor II - Maintain An Enviro nment Committed To Elevated P ublic Servic e (E) - Practice transparent & acc o untab le fis cal management FISCAL IMPACT : T here is no fis c al imp ac t as s o c iated with this agenda item. ATTACHMENTS: Description Type July 20 16 Financial Statement Monthly Review Backup Material July 20 16 Financial Statements Backup Material FINANCIAL STATEMENTS MONTHLY REVIEW JULY 31, 2016 page | 1 The following is a highlight summary of the District’s financial results as of July 31, 2016. Statement of Net Position Total assets at July 31, 2016 are $183.6 million. CLASSIFICATION WATER WASTEWATER DISTRICT TOTAL Cash and Investments $ 12,514,788 $ 4,329,414 $ 16,844,202 Utility Plant, Net 108,036,744 19,336,898 127,373,641 Other Assets 27,149,906 12,304,958 39,454,865 Current Liabilities 5,818,360 401,428 6,219,787 Long Term Liabilities 51,697,617 6,729,475 58,427,092 Beginning Net Position 89,455,748 28,728,588 118,184,335 Change in Equity 729,714 111,780 841,494 Total Net Position $ 90,185,462 $ 28,840,367 $ 119,025,829 Below is a summary of the District’s net position as of July 31, 2016. FINANCIAL STATEMENTS MONTHLY REVIEW JULY 31, 2016 page | 2 Cash and Investments are $16.8 million for the month of July, a decease $0.9 million from the prior month. $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 CASH & INVESTMENTS Restricted Unrestricted Comparing current assets to current liabilities, the District has a current ratio at July 31, 2016 of 2.56 to 1, with 2 to 1 being an indication of sound financial condition. Statement of Revenues & Expenses Operating results are presented in three ways in the attached financial statements for the ten months ending July 31, 2016. First, is a one-page summary with monthly and year-to- date totals for revenue, and expenses presented by Expense Category. Second is a one- page summary with monthly and year-to-date totals for revenues and Expense by Program. Third is a Budget to Actual presentation of program expense detail. WATER WASTEWATER DISTRICT TOTAL Revenue $ 2,147,724 $ 1,072,872 $ 3,220,596 Expense 1,418,010 961,093 2,379,102 FINANCIAL STATEMENTS MONTHLY REVIEW JULY 31, 2016 page | 3 Water Sales for July were $1,415,174, -$40,826 (-3%) under staff’s projections for the month. The billing periods during the month of July experienced an average temperature of 79 degrees, additionally the average Evapotranspiration Rates (ETo) for the period was 7.88 which is was 0.45 higher than last year. Water sales year to date are under projections ($40,826). $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 Water Sale by Tier Tier 1 Tier 2 Tier 3 FY 2016-17 Projection FINANCIAL STATEMENTS MONTHLY REVIEW JULY 31, 2016 page | 4 The chart below is a comparative illustration of current Water Revenue compared to last year’s Water Revenue. As noted in the graph Water Sales and Meter Charges increase over last year by 255,000 (14%). $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 1 year ago Current Comparative Water Revenue (Water Sales & Meter Charge) Meter Tier 1 Tier 2 Tier 3 FINANCIAL STATEMENTS MONTHLY REVIEW JULY 31, 2016 page | 5 Water Fund Activities by Cost Center The graph below provides a Year-To-Date comparison of the Water Fund operating cost centers for FY 2015-16 and FY 2016-17. The largest change is in Source of Supply. Source of Supply increased $162K primarily due to the North Fork Water Company Annual Assessment increased. FINANCIAL STATEMENTS MONTHLY REVIEW JULY 31, 2016 page | 6 Wastewater Fund Activities by Cost Center The graph below provides a Year-To-Date comparison of the Wastewater Fund operating cost centers for FY 2015-16 and FY 2016-17. The largest increase is in Treatment which increased $49K compared to last year due the new Wastewater Treatment rate increases imposed by the City of San Bernardino effective July 1, 2016. WATER WASTEWATER DISTRICT TOTAL Assets: Current Assets: 01 Cash and Cash Equivalents 4,399,199.90$ 1,590,249.71$ 5,989,449.61$ 02 Investments 2,763,103.35 2,207,065.00 4,970,168.35 03 Accounts Receivable, Net 3,679,411.24 246,815.66 3,926,226.90 04 ‐Interest Receivable 5,951.06 3,377.19 9,328.25 05 Other Receivables 605,234.72 - 605,234.72 06 Due from other Governments 24,224.21 - 24,224.21 08 Inventory 292,909.79 6,721.16 299,630.95 09 Prepaid Expenses 67,942.94 17,679.45 85,622.39 11,837,977.21 4,071,908.17 15,909,885.38 Non-Current Assets: 10 Restricted Cash and Cash Equivalents 5,352,485.12 532,099.15 5,884,584.27 11 Capital Assets not being Depreciated 21,727,218.29 11,863,785.41 33,591,003.70 13 Capital Assets, Net 108,036,743.84 19,336,897.59 127,373,641.43 135,116,447.25 31,732,782.15 166,849,229.40 Total Assets:146,954,424.46 35,804,690.32 182,759,114.78 Deferred Outflow Of Resources yables Deferred Charge on Refunding 156,417.49 - 156,417.49 25 Deferred Outflows - Pensions 590,596.65 166,579.24 757,175.89 147,701,438.60 35,971,269.56 183,672,708.16 Current Liabilities: 22 Accounts Payable and Accrued Expenses 1,070,540.87 49,444.93 1,119,985.80$ 23 Accrued Payroll and Benefits 317,904.23 85,834.82 403,739.05 15 Customer Service Deposits 1,618,435.16 - 1,618,435.16 16 Construction Advances and Retentions 114,227.93 3,500.00 117,727.93 17 Accrued Interest Payable 430,093.03 55,881.25 485,974.28 18 Current Portion of Compensated Absences 258,472.59 93,808.69 352,281.28 19 Current Portion of Long-Term Debt 2,008,685.80 112,958.00 2,121,643.80 5,818,359.61 401,427.69 6,219,787.30 Non-Current Liabilities: 20 Compensated Absences, less current portion 346,653.01 69,599.34 416,252.35 21 Long Term Debt, Less Current Portion 50,082,664.33 6,304,161.50 56,386,825.83 27 Other Liabilities 7,135.80 - 7,135.80 Deferred Inflows Of Resources 26 Deferred Inflows - Pensions 1,261,164.29 355,713.71 1,616,878.00 51,697,617.43 6,729,474.55 58,427,091.98 57,515,977.04 7,130,902.24 64,646,879.28 31 Equity 89,455,747.55 28,728,587.62 118,184,335.17 89,455,747.55 28,728,587.62 118,184,335.17 Tot Total Revenue 2,147,723.63 1,072,872.34 3,220,595.97 Tot Total Expense 1,418,009.62 961,092.64 2,379,102.26 729,714.01 111,779.70 841,493.71 90,185,461.56 28,840,367.32 119,025,828.88 147,701,438.60$ 35,971,269.56$ 183,672,708.16$ Total Liabilities, Equity and Current Surplus (Deficit): Total Total Beginning Equity: Equity: Revenues Over/Under Expenses Total Current Liabilities: Total Non-Current and Deferred Inflows of Resources: Total Liabilities and Deferred Inflows of Resources: Unaudited As of July 31, 2016 Combining Schedule of Net Position Total Equity and Current Surplus (Deficit): Total Assets and Deferred Outflows of Resources: Total Current Assets: Total Non-Current Assets: Page 1 of 8 ADOPTED AMENDED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 1,415,173.61$ 1,415,173.61$ 13,500,000.00$ -$ -$ -$ 13,500,000.00$ 12,084,826.39$ 42 Meter Charges 680,151.36 680,151.36 8,960,000.00 - - - 8,960,000.00 8,279,848.64 43 Penalties 41,075.85 41,075.85 635,000.00 2,661.42 2,661.42 50,000.00 685,000.00 641,262.73 44 Wastewater System Charges - - - 378,890.38 378,890.38 4,460,000.00 4,460,000.00 4,081,109.62 45 Wastewater Treatment Charges - - - 637,556.58 637,556.58 7,610,000.00 7,610,000.00 6,972,443.42 46 Other Operating Revenue 9,062.85 9,062.85 170,000.00 53,763.96 53,763.96 190,000.00 360,000.00 297,173.19 47 Non Operating Revenue 2,259.96 2,259.96 120,000.00 - - 22,000.00 142,000.00 139,740.04 48 Gain or Loss on Disposition - - - - - - - - Revenue Total: 2,147,723.63 2,147,723.63 23,385,000.00 1,072,872.34 1,072,872.34 12,332,000.00 35,717,000.00 32,496,404.03 - - - - - Expense by Category 51 Labor 507,882.96 507,882.96 4,520,900.00 129,332.66 129,332.66 1,325,100.00 5,846,000.00 5,208,784.38 56 Benefits 299,234.66 299,234.66 1,874,300.00 91,446.36 91,446.36 566,700.00 2,441,000.00 2,050,318.98 63 Contract Services 96,441.08 96,441.08 3,390,800.00 664,442.52 664,442.52 8,600,200.00 11,991,000.00 11,230,116.40 65 Professional Development 18,720.83 18,720.83 266,900.00 8,151.09 8,151.09 102,100.00 369,000.00 342,128.08 53 Overtime 41,215.94 41,215.94 260,800.00 3,433.86 3,433.86 18,200.00 279,000.00 234,350.20 62 Materials and Supplies 48,183.26 48,183.26 1,460,600.00 875.74 875.74 154,400.00 1,615,000.00 1,565,941.00 64 Utilities 5,874.45 5,874.45 2,365,700.00 2,096.25 2,096.25 175,300.00 2,541,000.00 2,533,029.30 52 Temporary Labor 6,253.97 6,253.97 20,300.00 1,840.27 1,840.27 8,700.00 29,000.00 20,905.76 67 Other 136,785.40 136,785.40 208,900.00 58,617.89 58,617.89 89,100.00 298,000.00 102,596.71 54 Standby 3,524.00 3,524.00 33,000.00 856.00 856.00 2,000.00 35,000.00 30,620.00 61 Water Supply 253,893.07 253,893.07 1,245,000.00 - - - 1,245,000.00 991,106.93 71 -Debt Service - - 4,007,000.00 - - 317,000.00 4,324,000.00 4,324,000.00 81 -Capital Improvement - - 1,070,000.00 - - 210,000.00 1,280,000.00 1,280,000.00 82 -Capital Outlay - - 239,500.00 - - 70,000.00 309,500.00 309,500.00 83 -Accounting Income Add back - - - - - - - - Expense Total: 1,418,009.62 1,418,009.62 20,963,700.00 961,092.64 961,092.64 11,638,800.00 32,602,500.00 30,223,397.74 Total Surplus (Deficit): 729,714.01$ 729,714.01$ -$ 111,779.70$ 111,779.70$ -$ -$ -$ Unaudited Revenue and Expense Budget-to-Actual by Category Month Ended July 31, 2016 WATER WASTEWATER DISTRICT WIDE Page 2 of 8 ADOPTED AMENDED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 1,415,173.61$ 1,415,173.61$ 13,500,000.00$ -$ -$ -$ 13,500,000.00$ 12,084,826.39$ 42 Meter Charges 680,151.36 680,151.36 8,960,000.00 - - - 8,960,000.00 8,279,848.64 43 Penalties 41,075.85 41,075.85 635,000.00 2,661.42 2,661.42 50,000.00 685,000.00 641,262.73 44 Wastewater System Charges - - - 378,890.38 378,890.38 4,460,000.00 4,460,000.00 4,081,109.62 45 Wastewater Treatment Charges - - - 637,556.58 637,556.58 7,610,000.00 7,610,000.00 6,972,443.42 46 Other Operating Revenue 9,062.85 9,062.85 170,000.00 53,763.96 53,763.96 190,000.00 360,000.00 297,173.19 47 Non Operating Revenue 2,259.96 2,259.96 120,000.00 - - 22,000.00 142,000.00 139,740.04 48 Gain or Loss on Disposition - - - - - - - - Revenue Total: 2,147,723.63 2,147,723.63 23,385,000.00 1,072,872.34 1,072,872.34 12,332,000.00 35,717,000.00 32,496,404.03 Progra 1000 - Board of Directors 7,169.23 7,169.23 148,400.00 3,030.45 3,030.45 63,600.00 212,000.00 201,800.32 Progra 2000 - General Administration 82,845.95 82,845.95 944,300.00 33,718.33 33,718.33 404,700.00 1,349,000.00 1,232,435.72 Progra 2100 - Human Resources 167,543.51 167,543.51 514,500.00 71,462.32 71,462.32 220,500.00 735,000.00 495,994.17 Progra 2200 - Public Affairs 37,415.03 37,415.03 509,100.00 17,708.48 17,708.48 508,900.00 1,018,000.00 962,876.49 Progra 2300 - Conservation 35,523.72 35,523.72 1,021,000.00 - - - 1,021,000.00 985,476.28 Progra 3000 - Finance 95,721.49 95,721.49 761,900.00 40,609.87 40,609.87 326,100.00 1,088,000.00 951,668.64 Progra 3200 - Information Technology 30,833.18 30,833.18 541,800.00 19,493.43 19,493.43 232,200.00 774,000.00 723,673.39 Progra 3300 - Customer Service 85,956.20 85,956.20 1,324,700.00 49,281.26 49,281.26 405,300.00 1,730,000.00 1,594,762.54 Progra 3400 - Meter Service 37,246.89 37,246.89 348,000.00 5,930.97 5,930.97 - 348,000.00 304,822.14 Progra 4000 - Engineering 70,638.34 70,638.34 846,200.00 34,149.82 34,149.82 372,800.00 1,219,000.00 1,114,211.84 Progra 5000 - Water Production 382,990.68 382,990.68 4,404,000.00 - - - 4,404,000.00 4,021,009.32 Progra 5100 - Water Treatment 41,437.33 41,437.33 827,000.00 - - - 827,000.00 785,562.67 Progra 5200 - Water Quality 53,337.92 53,337.92 407,000.00 - - - 407,000.00 353,662.08 Progra 6000 - Field Maintenance Administration 12,658.60 12,658.60 194,400.00 8,275.34 8,275.34 21,600.00 216,000.00 195,066.06 Progra 6100 - Water Maintenance 225,936.64 225,936.64 1,759,000.00 - - - 1,759,000.00 1,533,063.36 Progra 6200 - Wastewater Maintenance - - - 659,926.03 659,926.03 8,233,000.00 8,233,000.00 7,573,073.97 Progra 7000 - Facilities Maintenance 23,585.32 23,585.32 605,400.00 9,406.11 9,406.11 198,600.00 804,000.00 771,008.57 Progra 7100 - Fleet Maintenance 27,169.59 27,169.59 490,500.00 8,100.23 8,100.23 54,500.00 545,000.00 509,730.18 Progra 8000 - Capital - - 5,316,500.00 - - 597,000.00 5,913,500.00 5,913,500.00 Total Surplus (Deficit):729,714.01$ 729,714.01$ -$ 111,779.70$ 111,779.70$ -$ -$ -$ Revenue and Expense Budget-to-Actual by Program Month Ended July 31, 2016 Unaudited WATER WASTEWATER DISTRICT WIDE Page 3 of 8 ADOPTED AMENDED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 1,415,173.61$ 1,415,173.61$ 13,500,000.00$ -$ -$ -$ 13,500,000.00$ 12,084,826.39$ 42 Meter Charges 680,151.36 680,151.36 8,960,000.00 - - - 8,960,000.00 8,279,848.64 43 Penalties 41,075.85 41,075.85 635,000.00 2,661.42 2,661.42 50,000.00 685,000.00 641,262.73 44 Wastewater System Charges - - - 378,890.38 378,890.38 4,460,000.00 4,460,000.00 4,081,109.62 45 Wastewater Treatment Charges - - - 637,556.58 637,556.58 7,610,000.00 7,610,000.00 6,972,443.42 46 Other Operating Revenue 9,062.85 9,062.85 170,000.00 53,763.96 53,763.96 190,000.00 360,000.00 297,173.19 47 Non Operating Revenue 2,259.96 2,259.96 120,000.00 - - 22,000.00 142,000.00 139,740.04 48 Gain or Loss on Disposition - - - - - - - - 56 Benefits 14.52 14.52 - 6.22 6.22 - - (20.74) 68 Depreciation - - - - - - - Revenue Total: 2,147,723.63 2,147,723.63 23,385,000.00 1,072,872.34 1,072,872.34 12,332,000.00 35,717,000.00 32,496,404.03 Program: 1000 - Board of Directors - - - 51 Labor 6,715.72$ 6,715.72$ 73,500.00$ 2,878.17$ 2,878.17$ 31,500.00$ 105,000.00$ 95,406.11$ 56 Benefits 372.55 372.55 28,700.00 143.28 143.28 12,300.00 41,000.00 40,484.17 63 Contract Services - - 7,700.00 - - 3,300.00 11,000.00 11,000.00 65 Professional Development 80.96 80.96 38,500.00 9.00 9.00 16,500.00 55,000.00 54,910.04 Program: 1000 - Board of Directors Total: 7,169.23 7,169.23 148,400.00 3,030.45 3,030.45 63,600.00 212,000.00 201,800.32 Program: 2000 - General Administration - - - 51 Labor 45,029.52 45,029.52 455,700.00 19,298.38 19,298.38 195,300.00 651,000.00 586,672.10 53 Overtime 125.56 125.56 - 53.80 53.80 - - (179.36) 56 Benefits 23,575.97 23,575.97 186,200.00 8,256.91 8,256.91 79,800.00 266,000.00 234,167.12 62 Materials and Supplies 114.90 114.90 7,000.00 109.24 109.24 3,000.00 10,000.00 9,775.86 63 Contract Services - - 210,000.00 - - 90,000.00 300,000.00 300,000.00 64 Utilities - - 3,500.00 - - 1,500.00 5,000.00 5,000.00 65 Professional Development 14,000.00 14,000.00 81,900.00 6,000.00 6,000.00 35,100.00 117,000.00 97,000.00 Program: 2000 - General Administration Total: 82,845.95 82,845.95 944,300.00 33,718.33 33,718.33 404,700.00 1,349,000.00 1,232,435.72 Program: 2100 - Human Resources - - - - 51 Labor 15,519.89 15,519.89 140,700.00 6,651.35 6,651.35 60,300.00 201,000.00 178,828.76 52 Temporary Labor 1,420.05 1,420.05 8,400.00 608.59 608.59 3,600.00 12,000.00 9,971.36 53 Overtime 445.33 445.33 2,100.00 190.86 190.86 900.00 3,000.00 2,363.81 56 Benefits 10,194.54 10,194.54 58,800.00 4,027.06 4,027.06 25,200.00 84,000.00 69,778.40 62 Materials and Supplies - - 4,900.00 - - 2,100.00 7,000.00 7,000.00 63 Contract Services 651.15 651.15 67,200.00 279.07 279.07 28,800.00 96,000.00 95,069.78 64 Utilities - - 700.00 - - 300.00 1,000.00 1,000.00 65 Professional Development 2,537.50 2,537.50 23,800.00 1,087.50 1,087.50 10,200.00 34,000.00 30,375.00 67 Other 136,775.05 136,775.05 207,900.00 58,617.89 58,617.89 89,100.00 297,000.00 101,607.06 Program: 2100 - Human Resources Total: 167,543.51 167,543.51 514,500.00 71,462.32 71,462.32 220,500.00 735,000.00 495,994.17 Program: 2200 - Public Affairs - - - - 51 Labor 18,782.52 18,782.52 148,000.00 10,206.88 10,206.88 148,000.00 296,000.00 267,010.60 52 Temporary Labor 478.80 478.80 - 205.20 205.20 - - (684.00) 53 Overtime 623.47 623.47 3,500.00 267.20 267.20 3,500.00 7,000.00 6,109.33 Month Ended July 31, 2016 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Page 4 of 8 ADOPTED AMENDED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended July 31, 2016 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE 56 Benefits 10,770.96 10,770.96 53,000.00 4,313.43 4,313.43 53,000.00 106,000.00 90,915.61 62 Materials and Supplies 27.75 27.75 82,500.00 27.75 27.75 82,500.00 165,000.00 164,944.50 63 Contract Services 6,029.03 6,029.03 200,600.00 2,235.52 2,235.52 200,400.00 401,000.00 392,735.45 64 Utilities - - 11,500.00 - - 11,500.00 23,000.00 23,000.00 65 Professional Development 702.50 702.50 10,000.00 452.50 452.50 10,000.00 20,000.00 18,845.00 Program: 2200 - Public Affairs Total: 37,415.03 37,415.03 509,100.00 17,708.48 17,708.48 508,900.00 1,018,000.00 962,876.49 Program: 2300 - Conservation - - - - 51 Labor 24,014.11 24,014.11 102,000.00 - - - 102,000.00 77,985.89 52 Temporary Labor 1,960.00 1,960.00 - - - - - (1,960.00) 53 Overtime 454.58 454.58 8,000.00 - - - 8,000.00 7,545.42 56 Benefits 6,395.03 6,395.03 31,000.00 - - - 31,000.00 24,604.97 62 Materials and Supplies 2,700.00 2,700.00 524,000.00 - - - 524,000.00 521,300.00 63 Contract Services - - 303,000.00 - - - 303,000.00 303,000.00 64 Utilities - - 41,000.00 - - - 41,000.00 41,000.00 65 Professional Development - - 12,000.00 - - - 12,000.00 12,000.00 Program: 2300 - Conservation Total: 35,523.72 35,523.72 1,021,000.00 - - - 1,021,000.00 985,476.28 Program: 3000 - Finance - - - - 51 Labor 46,664.64 46,664.64 448,000.00 19,972.14 19,972.14 192,000.00 640,000.00 573,363.22 52 Temporary Labor 2,395.12 2,395.12 9,800.00 1,026.48 1,026.48 4,200.00 14,000.00 10,578.40 53 Overtime 789.17 789.17 2,100.00 - - 900.00 3,000.00 2,210.83 56 Benefits 28,472.58 28,472.58 178,500.00 12,158.56 12,158.56 76,500.00 255,000.00 214,368.86 62 Materials and Supplies - - 4,200.00 - - 1,800.00 6,000.00 6,000.00 63 Contract Services 17,228.63 17,228.63 98,700.00 7,383.69 7,383.69 42,300.00 141,000.00 116,387.68 64 Utilities - - 2,800.00 - - 1,200.00 4,000.00 4,000.00 65 Professional Development 161.00 161.00 16,800.00 69.00 69.00 7,200.00 24,000.00 23,770.00 67 Other 10.35 10.35 1,000.00 - - - 1,000.00 989.65 Program: 3000 - Finance Total: 95,721.49 95,721.49 761,900.00 40,609.87 40,609.87 326,100.00 1,088,000.00 951,668.64 Program: 3200 - Information Technology - - - - 51 Labor 20,022.54 20,022.54 203,000.00 11,527.10 11,527.10 87,000.00 290,000.00 258,450.36 52 Temporary Labor - - - - - - - - 53 Overtime - - - - - - - - 56 Benefits 9,250.15 9,250.15 72,800.00 7,297.54 7,297.54 31,200.00 104,000.00 87,452.31 62 Materials and Supplies 88.81 88.81 21,000.00 38.06 38.06 9,000.00 30,000.00 29,873.13 63 Contract Services 367.81 367.81 225,400.00 157.64 157.64 96,600.00 322,000.00 321,474.55 64 Utilities - - 3,500.00 - - 1,500.00 5,000.00 5,000.00 65 Professional Development 1,103.87 1,103.87 16,100.00 473.09 473.09 6,900.00 23,000.00 21,423.04 Program: 3200 - Information Technology Total: 30,833.18 30,833.18 541,800.00 19,493.43 19,493.43 232,200.00 774,000.00 723,673.39 Program: 3300 - Customer Service - - - - 51 Labor 29,250.18 29,250.18 338,100.00 17,192.23 17,192.23 144,900.00 483,000.00 436,557.59 52 Temporary Labor - - 2,100.00 - - 900.00 3,000.00 3,000.00 53 Overtime 196.04 196.04 3,500.00 84.01 84.01 1,500.00 5,000.00 4,719.95 56 Benefits 23,141.94 23,141.94 163,800.00 17,704.44 17,704.44 70,200.00 234,000.00 193,153.62 Page 5 of 8 ADOPTED AMENDED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended July 31, 2016 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE 62 Materials and Supplies - - 4,200.00 - - 1,800.00 6,000.00 6,000.00 63 Contract Services 33,188.87 33,188.87 693,000.00 14,223.79 14,223.79 135,000.00 828,000.00 780,587.34 64 Utilities 179.17 179.17 107,100.00 76.79 76.79 45,900.00 153,000.00 152,744.04 65 Professional Development - - 12,900.00 - - 5,100.00 18,000.00 18,000.00 67 Other - - - - - - - - Program: 3300 - Customer Service Total: 85,956.20 85,956.20 1,324,700.00 49,281.26 49,281.26 405,300.00 1,730,000.00 1,594,762.54 Program: 3400 - Meter Service - - - - 51 Labor 25,136.03 25,136.03 210,000.00 - - - 210,000.00 184,863.97 53 Overtime 534.74 534.74 20,000.00 - - - 20,000.00 19,465.26 56 Benefits 11,221.39 11,221.39 104,000.00 5,930.97 5,930.97 - 104,000.00 86,847.64 62 Materials and Supplies 145.03 145.03 4,000.00 - - - 4,000.00 3,854.97 63 Contract Services 209.70 209.70 8,000.00 - - - 8,000.00 7,790.30 64 Utilities - - 2,000.00 - - - 2,000.00 2,000.00 65 Professional Development - - - - - - - - Program: 3400 - Meter Service Total: 37,246.89 37,246.89 348,000.00 5,930.97 5,930.97 - 348,000.00 304,822.14 Program: 4000 - Engineering - - - - 51 Labor 39,355.25 39,355.25 377,200.00 21,199.71 21,199.71 171,800.00 549,000.00 488,445.04 52 Temporary Labor - - - - - - - - 53 Overtime 707.21 707.21 1,400.00 303.08 303.08 600.00 2,000.00 989.71 56 Benefits 25,596.39 25,596.39 190,400.00 11,893.63 11,893.63 81,600.00 272,000.00 234,509.98 62 Materials and Supplies - - 16,100.00 - - 6,900.00 23,000.00 23,000.00 63 Contract Services 3,997.61 3,997.61 156,100.00 405.86 405.86 66,900.00 223,000.00 218,596.53 64 Utilities 981.88 981.88 86,100.00 287.54 287.54 36,900.00 123,000.00 121,730.58 65 Professional Development - - 18,900.00 60.00 60.00 8,100.00 27,000.00 26,940.00 Program: 4000 - Engineering Surplus Total: 70,638.34 70,638.34 846,200.00 34,149.82 34,149.82 372,800.00 1,219,000.00 1,114,211.84 Program: 5000 - Water Production - - - - 51 Labor 70,180.66 70,180.66 626,000.00 - - - 626,000.00 555,819.34 53 Overtime 5,722.52 5,722.52 36,000.00 - - - 36,000.00 30,277.48 54 Standby 1,720.00 1,720.00 15,000.00 - - - 15,000.00 13,280.00 56 Benefits 42,266.92 42,266.92 239,000.00 - - - 239,000.00 196,733.08 61 Water Supply 253,893.07 253,893.07 1,245,000.00 - - - 1,245,000.00 991,106.93 62 Materials and Supplies 6,549.42 6,549.42 279,000.00 - - - 279,000.00 272,450.58 63 Contract Services 2,472.84 2,472.84 341,000.00 - - - 341,000.00 338,527.16 64 Utilities 50.25 50.25 1,614,000.00 - - - 1,614,000.00 1,613,949.75 65 Professional Development 135.00 135.00 9,000.00 - - - 9,000.00 8,865.00 Program: 5000 - Water Production Total: 382,990.68 382,990.68 4,404,000.00 - - - 4,404,000.00 4,021,009.32 Program: 5100 - Water Treatment - - - - 51 Labor 23,976.87 23,976.87 217,000.00 - - - 217,000.00 193,023.13 53 Overtime 1,975.30 1,975.30 10,000.00 - - - 10,000.00 8,024.70 56 Benefits 13,650.26 13,650.26 69,000.00 - - - 69,000.00 55,349.74 62 Materials and Supplies 1,112.08 1,112.08 165,000.00 - - - 165,000.00 163,887.92 63 Contract Services 57.86 57.86 166,000.00 - - - 166,000.00 165,942.14 64 Utilities 664.96 664.96 200,000.00 - - - 200,000.00 199,335.04 Page 6 of 8 ADOPTED AMENDED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended July 31, 2016 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 5100 - Water Treatment Total: 41,437.33 41,437.33 827,000.00 - - - 827,000.00 785,562.67 Program: 5200 - Water Quality - - - - 51 Labor 17,876.56 17,876.56 162,000.00 - - - 162,000.00 144,123.44 53 Overtime 1,666.95 1,666.95 4,000.00 - - - 4,000.00 2,333.05 56 Benefits 10,819.04 10,819.04 60,000.00 - - - 60,000.00 49,180.96 62 Materials and Supplies - - 18,000.00 - - - 18,000.00 18,000.00 63 Contract Services 22,975.37 22,975.37 161,000.00 - - - 161,000.00 138,024.63 64 Utilities - - 2,000.00 - - - 2,000.00 2,000.00 65 Professional Development - - - - - - - - Program: 5200 - Water Quality Total: 53,337.92 53,337.92 407,000.00 - - - 407,000.00 353,662.08 Program: 6000 - Field Maintenance Administration - - - - 51 Labor 7,249.59 7,249.59 94,500.00 4,265.11 4,265.11 10,500.00 105,000.00 93,485.30 52 Temporary Labor - - - - - - - - 53 Overtime - - - - - - - - 54 Standby 1,804.00 1,804.00 18,000.00 856.00 856.00 2,000.00 20,000.00 17,340.00 56 Benefits 3,605.01 3,605.01 37,800.00 3,154.23 3,154.23 4,200.00 42,000.00 35,240.76 62 Materials and Supplies - - 2,700.00 - - 300.00 3,000.00 3,000.00 63 Contract Services - - - - - - - - 64 Utilities - - 18,900.00 - - 2,100.00 21,000.00 21,000.00 65 Professional Development - - 22,500.00 - - 2,500.00 25,000.00 25,000.00 Program: 6000 - Field Maintenance Administration Tota 12,658.60 12,658.60 194,400.00 8,275.34 8,275.34 21,600.00 216,000.00 195,066.06 Program: 6100 - Water Maintenance - - - - 51 Labor 98,115.29 98,115.29 727,000.00 - - - 727,000.00 628,884.71 53 Overtime 25,699.78 25,699.78 150,000.00 - - - 150,000.00 124,300.22 56 Benefits 67,034.25 67,034.25 316,000.00 - - - 316,000.00 248,965.75 62 Materials and Supplies 34,671.97 34,671.97 232,000.00 - - - 232,000.00 197,328.03 63 Contract Services 415.35 415.35 334,000.00 - - - 334,000.00 333,584.65 64 Utilities - - - - - - - - Program: 6100 - Water Maintenance Total: 225,936.64 225,936.64 1,759,000.00 - - - 1,759,000.00 1,533,063.36 Program: 6200 - Wastewater Maintenance - - - - 51 Labor - - - 9,743.48 9,743.48 242,000.00 242,000.00 232,256.52 53 Overtime - - - 1,592.72 1,592.72 3,000.00 3,000.00 1,407.28 56 Benefits - - - 10,988.33 10,988.33 115,000.00 115,000.00 104,011.67 62 Materials and Supplies - - - - - 32,000.00 32,000.00 32,000.00 Wastewater Treatment - - - 637,556.58 637,556.58 6,861,600.00 6,861,600.00 6,224,043.42 63 Contract Services - - - 44.92 44.92 979,400.00 979,400.00 979,355.08 Program: 6200 - Wastewater Maintenance Total:- - - 659,926.03 659,926.03 8,233,000.00 8,233,000.00 7,573,073.97 Page 7 of 8 ADOPTED AMENDED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended July 31, 2016 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 7000 - Facilities Maintenance - - - - 51 Labor 7,131.86 7,131.86 62,300.00 2,545.69 2,545.69 26,700.00 89,000.00 79,322.45 53 Overtime 2,019.51 2,019.51 17,500.00 832.57 832.57 7,500.00 25,000.00 22,147.92 56 Benefits 5,091.11 5,091.11 25,900.00 2,471.16 2,471.16 11,100.00 37,000.00 29,437.73 62 Materials and Supplies 184.06 184.06 33,900.00 78.89 78.89 8,100.00 42,000.00 41,737.05 63 Contract Services 5,160.59 5,160.59 306,600.00 1,745.88 1,745.88 83,400.00 390,000.00 383,093.53 64 Utilities 3,998.19 3,998.19 159,200.00 1,731.92 1,731.92 61,800.00 221,000.00 215,269.89 65 Professional Development - - - - - - - - Program: 7000 - Facilities Maintenance Total: 23,585.32 23,585.32 605,400.00 9,406.11 9,406.11 198,600.00 804,000.00 771,008.57 Program: 7100 - Fleet Maintenance - - - - 51 Labor 12,861.73 12,861.73 135,900.00 3,852.42 3,852.42 15,100.00 151,000.00 134,285.85 53 Overtime 255.78 255.78 2,700.00 109.62 109.62 300.00 3,000.00 2,634.60 56 Benefits 7,776.57 7,776.57 59,400.00 3,106.82 3,106.82 6,600.00 66,000.00 55,116.61 62 Materials and Supplies 2,589.24 2,589.24 62,100.00 621.80 621.80 6,900.00 69,000.00 65,788.96 63 Contract Services 3,686.27 3,686.27 112,500.00 409.57 409.57 12,500.00 125,000.00 120,904.16 64 Utilities - - 113,400.00 - - 12,600.00 126,000.00 126,000.00 65 Professional Development - - 4,500.00 - - 500.00 5,000.00 5,000.00 Program: 7100 - Fleet Maintenance Total: 27,169.59 27,169.59 490,500.00 8,100.23 8,100.23 54,500.00 545,000.00 509,730.18 Program: 8000 - Capital - - - 71 -Debt Service - - 4,007,000.00 - - 317,000.00 4,324,000.00 4,324,000.00 81 -Capital Improvement - - 1,070,000.00 - - 210,000.00 1,280,000.00 1,280,000.00 82 -Capital Outlay - - 239,500.00 - - 70,000.00 309,500.00 309,500.00 83 -Accounting Income Add back - - - - - - - - Program: 8000 - Capital Total:- - 5,316,500.00 - - 597,000.00 5,913,500.00 5,913,500.00 Total Surplus (Deficit): 729,714.01$ 729,714.01$ -$ 111,779.70$ 111,779.70$ -$ -$ -$ Page 8 of 8 BOARD AGENDA STAFF REPORT Agend a Item #5.b. Meeting Date: Augus t 24, 2016 Co nsent Item To: Governing Bo ard Memb ers From: General Manager/CEO Subject: July 2016 Disburs ements : Ac counts p ayab le dis b urs ements fo r the period includ e check numb ers 248105 thro ugh 248350, b ank drafts, and ACH Payments in the amount of $3,179,371.64 and $616,346.33 for p ayro ll. RECOMMENDATION: Staff rec o mmend s that the Board of Directo rs review and approve the District’s expense d is b urs ements fo r the p eriod July 1, 2016 through July 31, 2016 in the amount of $3,795,717.97. BACKGROUND / ANALYSIS: In the c o ntinued effort to be fisc ally trans p arent, the payment register fo r s upplies , materials , servic es , and p ayro ll fo r July 2016 is attached for review and approval. This proc ess provid es the Board and the p ub lic an o pportunity to review the exp ens es of the Dis tric t. Acc o unts P ayab le is p roc es s ed weekly, while payroll is p roc es s ed b i-weekly. Information to justify eac h exp enditure is availab le thro ugh the Finance Dep artment. Acc o unts payable d is b urs ements fo r the perio d inc lude c hec k numbers 248105 through 248350, bank drafts , and ACH Payments in the amount o f $3,179,371.64 and $616,346.33 for payroll. Significant exp ens es greater than o r equal to $50,000 are further explained b elo w: Recommended by: Jo hn Mura General Manager/CEO Res p ec tfully s ub mitted : Brian To mpkins Chief Financial Offic er AGENCY IDEALS AND ENDEAVORS: Ideals and Endeavor II - Maintain An Enviro nment Committed To Elevated P ublic Servic e (E) - Practice transparent & acc o untab le fis cal management FISCAL IMPACT : Sufficient funds have been budgeted in the adopted FY 2016-17 Budget. ATTACHMENTS: Description Type July 20 16 Payment Register Backup Material BOARD AGENDA STAFF REPORT Agend a Item #6. Meeting Date: Augus t 24, 2016 Dis cus s io n Item To: Governing Bo ard Memb ers From: General Manager/CEO Subject: P atton S tate Hos pital Project RECOMMENDATION: T his repo rt is pro vided to the Board for information o nly. BACKGROUND / ANALYSIS: Eas t Valley Water Dis tric t has maintained a go o d neighbor working relatio nship with Patton State Hos p ital fo r many years . It has been the s tandard prac tice to aid Patton when they exp erienced major is s ues with their s ys tem. In January 2016, the Dis tric t entered into an agreement with P atton S tate Hos pital to p rovid e maintenanc e and repairs to the ho s pital’s wastewater s ys tem. Patton s taff p rovid ed an AutoCAD b as e map of the s ite and s ewer s ys tem that encompas s ed 17,325 linear feet (3.3 miles ) o f s ewer mains and 105 manholes. Between January 2016 and July 2016, Dis tric t s taff c o llec ted and doc umented imp o rtant info rmatio n relating to the was tewater sys tem, p ipe s izes , pipe loc ation, and manho le information. Patto n’s entire site was s erved b y an on-s ite septic sys tem until 1960. T hat year P atto n entered into an agreement with the Dis trict and the City of San Bernard ino, by fo rming a joint-p o wers agreement for was tewater d isc harge. Patto n installed an 8” trunk main in Highland Avenue from the ho s pital site extend ing Wes t to Victo ria Street. This sewer pipeline c o nnec ted with the Distric t’s existing s ewer main and conveyed the wastewater to San Bernardino Was tewater Treatment center. T his created a complex s ystem that was b eyo nd what Patton and their staff could maintain witho ut help from an o utside sourc e. T he District was as ked to evaluate, repair, and make recommendatio ns about Patto n’s was tewater s ystem. Dis tric t staff coord inated their efforts to p rovid e the maintenanc e needed to collect valuab le d ata about P atton’s was tewater sys tem. Staff worked with P atto n to es tablish a fee s c hedule and coo rd inate d ays for the p ro jec t. Eq uipment was a key comp o nent to s uc c es s ful c o mpletio n of this project. T he Dis trict mad e good us e o f their CCTV video truck, whic h us es GraniteNet software. T his program allo wed the Dis tric t to grad e eac h main line ac cording to d efect and doc ument the details of the conditio n and maintenanc e is s ues . S taff ’s video of the p ipes p ro vid ed EVWD with info rmation that b ecame us eful as Engineering s taff worked to p ro vid e a lis t o f rec o mmend ations for s ystem improvement. In ad d ition, the video allo wed the Dis tric t to d oc ument p ip e loc ations and s izes whic h have been mapp ed using Geo grap hic Information Systems (GIS ). Patto n s taff was grateful to have the information gathered and is considering EVWD’s rec o mmend ations to ens ure their p ip es and s ewage sys tems are d esigned to meet the needs o f their facility. Recommended by: Jo hn Mura General Manager/CEO Res p ec tfully s ub mitted : Patric k Milroy Operatio ns Manager Investigation of the p ip es yielded a wealth of info rmatio n includ ing a pipe that was b ro ken at a manhole s truc ture. Work was comp leted on the Patto n Pro ject in July 2016. The Dis trict perfo rmed the follo wing: Jetted and c leaned wastewater mains Inspected manho les Verified the size and c ap ac ity of exis ting pipes Id entified upgrade opportunities Performed video o n 3.8 miles of sewer main (19,986 feet of p ipeline) Wo rked with a c o ntrac tor to repair a b ro ken p ip e Replaced a pip e that was b roken at a manhole s truc ture Wo rked with a c o ntrac tor to rais e a b uried manho le c o ver Removed o vergrown roots inside of p ip es T he P atton Projec t provided the Dis tric t with a uniq ue opportunity to work with a State Ho s pital and c o llect valuable data that will b e useful in maintaining water flo w and was tewater maintenanc e going fo rward . Staff antic ip ates that the c oordinated effo rts b etween Patton and Dis tric t staff will continue to p ro ve benefic ial to the p arties involved as we wo rk toward s a maintenanc e and emergenc y on-c all agreement to manage P atton’s s ys tem. AGENCY IDEALS AND ENDEAVORS: Ideals and Endeavor I - Enc o urage Innovative Investments To Pro mo te Sustainab le Benefits (A) - Develop p rojec ts and pro grams to ens ure safe and reliab le s ervic es (D) - Ded icate effo rt toward s ys tem maintenance and modernization REVIEW BY OTHERS: T his agend a item has b een reviewed b y Op eratio ns , Engineering, and Public Affairs s taff. FISCAL IMPACT : T he Dis tric t c ap tured all of the d irec t c o s t for this p ro jec t in Cityworks . The Dis trict s ubmitted invo ic es fo r reimburs ement to P atto n State Hospital and all of the invo ic es were p aid p romptly. The to tal amo unt invoic ed was $107,156.66. ATTACHMENTS: Description Type Patton P roject P resentation Presentation •State of California Forensic Treatment Facility •In Operation Since 1893 •Private Wastewater System •Limited Staff Resources for System Maintenance •Located within EVWD Service Area E A S T V A L L E Y W A T E R D I S T R I C T PATTON STATE HOSPITAL E A S T V A L L E Y W A T E R D I S T R I C T PATTON PROJECT DETAILS January 2016 Fee Schedule and Total Projected Cost Established Staff Dedicated 2 Days/Week to Complete Project Followed On-Site Security Requirements July 2016 •Opportunity to Identify and Evaluate Important Information Beneficial to the District and Patton Hospital: −Jetted and Cleaned Wastewater Mains −Inspected Manholes −Performed Video Onsite for the Entire System using CCTV Camera Truck −Discovered, Evaluated, and rated Repairs During Inspection −Verified Capacity of Existing Pipes −Updated GIS Data on District Map −Provided recommendations for future upgrades and improvements E A S T V A L L E Y W A T E R D I S T R I C T EVWD –PATTON PROJECT PARTNERSHIP Patton State Hospital EVWD Expertise & Equipment Documented sewer system using state-of- the-art equipment Planning for future upgrades and improvements Coordinated scheduling to ensure safety and productivity E A S T V A L L E Y W A T E R D I S T R I C T PATTON PROJECT RESULTS 3.8 Miles of Sewer Main Video (19,986 feet of pipeline) 92 Manholes Inspected 25 Miscellaneous Structures Inspected System Data Entered into GIS System (Pictures, Size of Pipes and Location) 3 System Repairs Recommendations EVWD BENEFITS Continued Coordinated Efforts Video, Location and Pipe Measurement Data Collected Ability to Better Respond to Emergencies Potential Future Coordination Effective Partnership E A S T V A L L E Y W A T E R D I S T R I C T •The Patton Project Created an Effective Partnership Between Patton Hospital and EVWD •Enhanced Ability to Respond to On- Site Emergencies •Accurate Understanding of the Private System •Additional Opportunities to Coordinate with Other On-Site Systems •Created a potential for a new revenue stream based on this model •Opened doors for new opportunities with customers like San Manuel BOARD AGENDA STAFF REPORT Agenda Item #7. Meeting Date: August 24, 2016 Discuss ion Item To: Go verning Bo ard Members From: General Manager/CEO Subject: Disp os itio n of S urplus Pro perty RECOMMENDATION: S taff rec ommends that the Bo ard of Direc tors autho rize the disp osition of s urp lus property. BACKGROUND / ANALYSIS: In fisc al year 2015-16 Dis tric t s taff c ond uc ted an evaluatio n o f the vehic les in servic e and found a numb er that have exc eed ed their useful life. Five vehic les and two p iec es of equipment within the Dis trict’s fleet have been id entified for s urplus due to mec hanical is s ues and/or the age of the vehicles /equipment. One eq uip ment trailer has b een identified for s urplus due to Department of Transp ortation requirement (DOT) requiring extensive brake system repairs. Ad ditionally, one trailer mounted boo s ter pump has been identified for s urplus due to ho urs us ed and new air q uality regulatio ns. DISCUSSION The following vehic les have been identified for s urplus : No.Vehicle Details Miles Reason for Surplus 46 1997 Ford Vactor, VIN 1FDYS80E4VVA29224 91,246 Auxiliary motor out of compliance with Emission Standards. 139 1998 Ford Explorer VIN 1FMZU35P4WZC28635 96,117 Unit is 18 years old and needs extensive engine repairs. 204 2005 Ford F-250 Super Duty Vin 1FTNF205X5EB70047 250,170 Vehicle is 11 years old and has high mileage. 144 2004 Chevy Silverado 1500 210,310 Vehicle is 12 years old and has high mileage. 173 2005 Chevy 2500 HD VIN 1GBHC24025E277864 120,331 Vehicle is 11 years old and needs extensive engine repairs. 13 1988 Eager Beaver Equipment Trailer ID #112HBD2065A90625 N/A Requires extensive brake system repairs to meet DOT requirements. 7163847 1975 Berkley 6-cylinder pump N/A Does not meet air quality requirements. Reco mmend ed by: Jo hn Mura General Manager/C EO Res pec tfully sub mitted : Patrick Milroy Op erations Manager S taff reco mmend s the vehicles and eq uipment above b e so ld at auc tion. In the pas t, EVWD has do nated vehicles to c haritable organizatio ns . Two o f the vehic les lis ted ab ove (204 and 144) should be c ons id ered as c andid ates for po tential d onatio n. AGENCY IDEALS AND ENDEAVORS: Ideals and Endeavor IV - Fully Und erstand C hallenges To Cultivate Effective Solutions (E) - Cond uc t p os t-imp lementation evaluatio ns and make impro vements as nec essary. REVIEW BY OTHERS: This agenda item has b een reviewed by Operations, Adminis tration, and Public Affairs staff. FISCAL IMPACT : F unds have been b udgeted for replacement vehicles and equip ment in fis cal year 2016-17. F inal value of surp lus vehicles and equipment will be determined at the time of s ale. ATTACHMENTS: Description Type Surplus Property Attachments Exhibit VEHICLE REPLACEMENT/SURPLUS REQUEST FORM Vehicle No Make Model Year Mileage Department 46 Ford Vactor 1997 91,246 Wastewater Maintenance Reason for Replacement/Surplus: Auxiliary motor out of compliance with emission standards. Attachment A VEHICLE REPLACEMENT/SURPLUS REQUEST FORM Reason for Replacement/Surplus: Unit is 18 years old and needs extensive engine repairs. Vehicle No Make Model Year Mileage Department 139 Ford Explorer 1998 96,117 Water Production Attachment B VEHICLE REPLACEMENT/SURPLUS REQUEST FORM Reason for Replacement/Surplus: Vehicle is 11 years old and has high mileage. Vehicle No Make Model Year Mileage Department 204 Ford F250 Super Duty 2005 250,170 Water Maintenance Attachment C VEHICLE REPLACEMENT/SURPLUS REQUEST FORM Reason for Replacement/Surplus: Vehicle is 12 years old and has high mileage. Vehicle No Make Model Year Mileage Department 144 Chevy Silverado 1500 2004 210,310 Water Maintenance Attachment D VEHICLE REPLACEMENT/SURPLUS REQUEST FORM Reason for Replacement/Surplus: Vehicle is 11 years old and needs extensive engine repair. Vehicle No Make Model Year Mileage Department 173 Chevy 2500 HD 2005 120,331 Water Maintenance Attachment E VEHICLE REPLACEMENT/SURPLUS REQUEST FORM Reason for Replacement/Surplus: Requires extensive brake system repairs to meet Department of Transportation requirements. Equipment No. Make Model Year Mileage Department 13 Eager Beaver Equipment Trailer 1988 N/A Water Maintenance Attachment F VEHICLE REPLACEMENT/SURPLUS REQUEST FORM Reason for Replacement/Surplus: Does not meet air quality requirements. Equipment No. Make Model Year Mileage Department 7163847 Berkley Pump N/A 1975 N/A Water Production Attachment G BOARD AGENDA STAFF REPORT Agend a Item #8. Meeting Date: Augus t 24, 2016 Dis cus s io n Item To: Governing Bo ard Memb ers From: General Manager/CEO Subject: P lant 134 Hydro Pro ject Easement RECOMMENDATION: Staff rec o mmend s that the Board of Direc tors autho rize the General Manager to exec ute the Easement P urchas e Agreement with S an Bernardino Co unty Flo o d Co ntro l Dis tric t to p urchas e the required easement in the City Creek Levee fo r the amo unt o f $35,164.00. BACKGROUND / ANALYSIS: In early 2015, the Dis tric t entered into an agreement with San Bernard ino Valley Municipal Water District (SBVMWD) to fund the c o nstructio n o f a turno ut, p ip eline and hyd roelec tric generator p lant for the Distric t at Plant 134. The turno ut and pipeline will allow SBVMWD to sup p ly the Dis trict with up to 8 millio n gallons a day (MGD) of S tate P ro jec t Water direc tly to Plant 134 and the hyd roelec tric plant will be ab le to utilize the high p ressure that the water is being delivered at, to p ro duce elec tric ity to p o wer a p ortio n o f Plant 134’s p o wer need s and reduc e the amount o f power p urchas ed fro m S outhern Califo rnia Ed ison (S CE) fo r the s ite. T his p ro jec t c o ns is ts of three phas es : the turnout, the pipeline from the turno ut to Plant 134, and the hyd ro plant. T he p ipeline from the turno ut to Plant 134 will b e c o ns tructed in the City Creek Levee whic h will require a utility easement fro m San Bernardino Co unty F lo od Co ntrol Dis trict (Floo d Contro l). The Dis trict need s to ac quire 15,322 s .f. from Flood Control fo r the eas ement. An ap p raisal was perfo rmed and valuation was verified by Flo o d C ontrol on the ac q uis ition. T he fair market was determined to b e $35,164. Flo o d Co ntro l also req uires that a d ep osit b e provided to c o ver all c o s ts of review and proc es sing of the easement. Floo d Control c urrently has no adopted fee fo r p ro ces s ing eas ements and as s uc h has req uested a d eposit o f $20,000 whic h will be used on a c o s t recovery b as is . The unused portion o f this depos it will b e refunded to the Dis tric t. AGENCY IDEALS AND ENDEAVORS: Ideals and Endeavor I - Enc o urage Innovative Investments To Pro mo te Sustainab le Benefits (A) - Develop p rojec ts and pro grams to ens ure safe and reliab le s ervic es (C) - Enhanc e emergenc y p reparedness p ro gram Recommended by: Jo hn Mura General Manager/CEO Res p ec tfully s ub mitted : Steve Nix Directo r o f Engineering & Op eratio ns REVIEW BY OTHERS: T he Engineering Department, Financ e Department and the Dis tric ts Legal Co unsel have reviewed this item. FISCAL IMPACT : T he adopted b udget fo r F Y 2016-17 inc ludes an amount of $400,000 fo r the d eb t s ervice p ayment for the aforementio ned agreement with SBVMWD. This p ayment is required o nce construc tio n o f the hyd ro elec tric generato r p lant is c o mplete. Sinc e it is unkno wn at this time whether the construc tion will c o mp lete this fisc al year, the eas ement and d ep osit will b e fund ed fro m this s ourc e and if the debt s ervic e p ayment is required p rio r to end of fisc al year, additio nal funding will b e requested at s uc h time. ATTACHMENTS: Description Type Easement Purchase Agreement Backup Material -1- EASEMENT PURCHASE AGREEMENT This EASEMENT PURCHASE AGREEMENT (this “Agreement”) is dated as of ________________, 2016 (the “Execution Date”) and is entered into by and between the San Bernardino County Flood Control District (“DISTRICT”) and the East Valley Water District (“EVWD”). RECITALS A. DISTRICT is the owner of the fee simple interest in that certain Parcel 341 consisting of approximately 15,322 square feet (a portion of APN 1200-111-01), located in the City of Highland, County of San Bernardino, California, and more particularly described in Exhibit “A”, attached hereto and by this reference incorporated herein (“Easement Area”). B. EVWD desires to acquire an easement for subterranean water pipelines in perpetuity, and more particularly described in the Easement attached hereto as Exhibit “B”, and by this reference incorporated herein (the “Easement”). C. DISTRICT finds that the conveyance of an easement interest is in the public interest, will not substantially conflict or interfere with the use of the property owned by the DISTRICT, the Easement will not impair or diminish existing or probable future requirements for flood prevention and water conservation and the conveyance of the Easement is authorized by the California Water Code, Uncodified Acts, Act 1060, §§ 2 and 6 and California Government Code §25526.6 an County Policy 12-17. D. DISTRICT and EVWD agree that the fair market value of the Easement is Thirty-five Thousand and One Hundred Sixty-four and 00/100 Dollars ($35,164.00). E. The EVWD has agreed to fund additional deposit to pay for DISTRICT’s costs of processing the Easement, as specifically set forth in this Agreement. NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants and obligations contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the DISTRICT and EVWD hereto agree as follows: Section 1. Recitals. The recitals set forth above are true and correct and incorporated herein by this reference. Section 2. Purchase and Sale of Property. Subject to all of the terms, conditions and provisions of this Agreement and for the consideration set forth below, DISTRICT hereby agrees to convey to EVWD and EVWD hereby agrees to acquire the Easement, situated in the City of Highland, County of San Bernardino, State of California. -2- Section 3. Consideration. (a) Purchase Price. The total consideration to be paid for the Easement shall be Thirty- five Thousand and One Hundred Sixty-four 00/100 Dollars ($35,164.00) (the “Purchase Price”). (b) Additional Deposit. In addition, the EVWD shall pay directly to DISTRICT a deposit of Twenty Thousand and 00/100 Dollars ($20,000.00) (“Additional Deposit”), which deposit shall be applied to DISTRICT’s costs of processing the sale of the Easement. If DISTRICT’s costs are less than the amount of the Additional Deposit, DISTRICT shall refund the balance to EVWD within thirty (30) days after the Close of Escrow (as defined below). If the amount of the Additional Deposit is insufficient to pay DISTRICT’s costs of processing the sale of the Easement, EVWD shall pay the outstanding balance to DISTRICT within thirty (30) days of receipt of written demand therefor. (c) Independent Consideration. Within ten (10) days of the full execution of this Agreement, EVWD shall deliver to DISTRICT the sum of One Hundred and 00/100 Dollars ($100.00) (the “Independent Consideration”), as consideration for EVWD’s right to purchase the District Property and to terminate this Agreement prior to the expiration of the Due Diligence Period and for DISTRICT’S execution, delivery and performance of this Agreement. The Independent Consideration is in addition to and independent of any other consideration or payment provided for in this Agreement, is not applicable to the Purchase Price, is non- refundable and shall be retained by DISTRICT notwithstanding any other provision of this Agreement. Section 4. Opening of Escrow. (a) All expenses incurred in the transfer of title, including but not limited to escrow, title policy (if requested by EVWD), documentary stamps and recording fees are to be paid by EVWD. (b) The transfer and sale of the Easement shall take place through an escrow (the “Escrow”); such Escrow shall be administered by Golden State Escrow Company, Inc. (“Escrow Holder”). The Escrow for the Easement shall be deemed open upon the receipt by the Escrow Holder of a copy of this Agreement executed by DISTRICT and EVWD. DISTRICT and EVWD shall open escrow within five (5) days after the execution of this Agreement by both EVWD and DISTRICT. (c) If this Agreement or Escrow is terminated by DISTRICT for any reason except the EVWD’s default, DISTRICT shall be solely responsible to the Escrow Holder for payment of all customary and reasonable escrow cancellation charges to the Escrow Holder without further or separate instruction to the Escrow Holder, and the parties shall each be relieved and discharged from all further responsibility or liability under this Agreement. If this Agreement or Escrow is terminated due to EVWD’s default, then EVWD shall be solely responsible for the payment of the escrow cancellation costs of the Escrow Holder without further or separate instruction, and the parties shall each be relieved and discharged from all further responsibility or liability under this Agreement. If this Agreement or Escrow is terminated due to DISTRICT’s default, then DISTRICT shall be solely responsible for the payment of the escrow cancellation costs of the Escrow Holder without further or separate instruction, and the parties shall each be relieved and discharged from all further responsibility or liability under this Agreement. -3- Section 5. Close of Escrow. As used herein, “Close of Escrow” means and refers to the date on which the conditions set forth in this Agreement for the close of Escrow for the transfer of the Easement have been satisfied, and the Grant of Easement is recorded by the Escrow Holder. The Easement shall be transferred to EVWD at the Close of Escrow, provided that within the periods of time set forth in this Agreement: (i) EVWD has not terminated this Agreement, (ii) EVWD has accepted the Easement Deed, and (iii) all other conditions of the Close of Escrow set forth in this Agreement have been met and EVWD has paid, or caused to be paid, to the Escrow Holder all applicable escrow costs relating to such closing. The Close of Escrow shall occur on a date no later than ninety (90) days following the full execution of this Agreement by DISTRICT and EVWD. Section 6. Escrow Instructions. DISTRICT and EVWD each agree to execute and deliver to the Escrow Holder the customary supplemental written escrow instructions (consistent with the terms of this Agreement) of the Escrow Holder. In the event of a conflict between the additional terms of such customary supplemental escrow instructions of the Escrow Holder and the provisions of this Agreement, this Agreement shall supersede and be controlling. Except as otherwise provided in Section 4(c) above, upon any termination of this Agreement or cancellation of the Escrow, EVWD shall be solely responsible for the payment of the escrow cancellation costs of the Escrow Holder. Section 7. Conveyance of Title. (a) On or before the Close of Escrow, DISTRICT shall deliver to the Escrow Holder a grant of easement, in substantially the forms attached hereto as Exhibit “B” (“Grant of Easement”) duly executed and acknowledged by DISTRICT. On or before the Close of Escrow EVWD shall deliver to Escrow Holder an easement acceptance for the Easement executed by an authorized officer of EVWD. The Escrow Holder shall be instructed to record the Grant of Easement in the Official Records of the County of San Bernardino, California, if and when the Escrow Holder holds the funds for the DISTRICT as set forth herein. (b) Within five (5) days following the Execution Date, EVWD may order a current preliminary report from a title company of EVWD’s choice (the “Title Company”) covering the Easement Area, together with full and legible copies of all supporting documents (collectively, “Preliminary Report”). The Title Company shall issue an CLTA Owner’s policy (“Title Policy”) at the Close of Escrow with a liability in an amount equal to the Purchase Price together with such endorsements as may be reasonably requested by EVWD, insuring that the easement interests to the Easement Area is vested in EVWD, free and clear of options, rights of first refusal or other interest rights, leases or other possessory interests, lis pendens and subject only to the following matters: (1) a lien for real property taxes, bond, or assessments not then delinquent; (2) matters of the Easement’s title not disapproved by EVWD in writing; -4- (3) matters affecting the condition of the Easement Area’s title created by or with the consent of the EVWD or EVWD’s officers, employees or agents. (4) such other title exceptions, if any, resulting from documents being recorded or delivered through Escrow. Section 8. Inspections and Review. (a) During the period commencing on the date of full execution by both parties of this Agreement and terminating on the date occurring sixty (60) days thereafter (“Feasibility Period”), EVWD shall undertake at EVWD's expense an inspection of the Easement Area; a review of the physical condition of the Easement Area, including but not limited to, inspection and examination of soils, environmental factors, Hazardous Substances, if any, and archeological information relating to the Easement Area; and a review and investigation of the effect of any zoning, maps, permits, reports, engineering data, regulations, ordinances, and laws affecting the Easement Area. EVWD’s inspection of the Easement Area shall be conducted during normal business hours upon forty-eight (48) hours’ prior notice to DISTRICT. Within ten (10) business days following the full execution of this Agreement by both parties, DISTRICT shall deliver to EVWD copies of all plans, surveys, specifications, and other documents pertaining to the physical, geological, or environmental condition of the Easement Area that are owned by or in the possession of DISTRICT. (b) If EVWD disapproves of the results of the inspection and review, or its investigation of the condition of the title, EVWD may elect to terminate this Agreement by giving DISTRICT written notification prior to the last day of the Feasibility Period. If EVWD fails to properly notify DISTRICT of the intent to terminate this Agreement due to EVWD’s disapproval of the results of the inspection and review, EVWD shall be deemed to be satisfied with the results of the inspection. (c) EVWD shall accept the delivery of possession of the Easement Area (including but not limited to, subterranean structures and soil conditions), in an "AS IS," "WHERE IS" and ‘SUBJECT TO ALL FAULTS" condition. EVWD hereby acknowledges that it has relied solely upon its own investigation of the Easement Area and its own review of such information and documentation as it deems appropriate. EVWD is not relying on any statement or representation by DISTRICT, any employee, official or consultant of DISTRICT relating to the condition of the Easement Area. DISTRICT makes no representations or warranties as to whether the Easement Area presently complies with environmental laws or whether the Easement Area contains any hazardous substance. Furthermore, to the extent that DISTRICT has provided EVWD with information relating to the condition of the Easement Area, DISTRICT makes no representation or warranty with respect to the accuracy, completeness or methodology or content of such reports or information. (d) As of the Close of Escrow, EVWD, on behalf of itself and its successors, waives and releases DISTRICT and its successors and assigns from any and all costs or expenses whatsoever (including, without limitation, attorneys’ fees and costs), whether direct or indirect, known or unknown, foreseen or unforeseen, arising from or relating to any of the following matters and conditions relating to the Easement Area which exist as of the date of the applicable Close of Escrow: the physical condition of the Easement Area or any above ground or underground improvements thereon, the condition of the soils, the suitability of the soils for the improvement of any proposed project, or any law or regulation applicable thereto. Notwithstanding the preceding, the foregoing released claims shall specifically exclude any -5- claims or other matters based upon (i) breach of any of DISTRICT's representations and warranties set forth in this Agreement or based upon DISTRICT's intentional fraudulent acts or omissions; (ii) breach of any of DISTRICT's obligations specifically provided in this Agreement to be performed after the Close of Escrow; and (iii) any Hazardous Materials deposited or placed in, at or under the Easement Area by DISTRICT in violation of applicable environmental laws. (e) EVWD expressly waives any rights or benefits available to it with respect to the foregoing release under any provision of applicable law which generally provides that a general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time the release is agreed to, which, if known to such creditor, would materially affect a settlement. By execution of this Agreement, EVWD acknowledges that it fully understands the foregoing, and with this understanding, nonetheless elects to and does assume all risk for claims known or unknown, described in this Section 8 without limiting the generality of the foregoing: The undersigned acknowledges that it has been advised by legal counsel and is familiar with the provisions of California Civil Code Section 1542, which provides as follows: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR." The undersigned, being aware of this Code section, hereby expressly waives any rights it may have thereunder, as well as under any other statutes or Common law principles of similar effect. Initials of EVWD authorized officer: ________ (f) The provisions of this Section 8 shall survive the Close of Escrow, and shall be binding upon EVWD. (g) DISTRICT shall assist and cooperate with EVWD in endeavoring to remove title exceptions unacceptable to EVWD, but DISTRICT shall have no obligation to cause such objections to be removed or to expend any sums in such endeavor, except that DISTRICT shall remove all monetary liens and encumbrances created by or as a result of DISTRICT’s activities. (h) DISTRICT covenants not to further encumber and not to place any further liens or encumbrances on the Easement Area, including, but not limited to, covenants, conditions, restrictions, easements, liens, options to purchase, rights of first offer, options to lease, leases, tenancies, or other possessory interests. (i) DISTRICT also covenants not to authorize others to take any action that adversely affects the physical condition of the Easement Area or its soils to any material extent. -6- Section 9. Closing Costs, Possession. (a) EVWD shall pay the premium for any title policy, including any requested ALTA extended coverage title policy, cost of any survey and all requested ALTA survey policy endorsements, the cost of recording the Grant of Easement and any documentary or other transfer taxes payable on account of the conveyance of the Easement to EVWD. (b) EVWD shall pay 100% of the Escrow Holder’s charges and fees which may be charged by the Escrow Holder in connection with the Close of Escrow. (c) EVWD shall be entitled to possession of the Easement Area immediately upon the Close of Escrow. Section 10. Representations and Warranties. (a) DISTRICT hereby makes the following representations, covenants and warranties and acknowledges that the execution of this Agreement by EVWD has been made in material reliance by EVWD on such covenants, representations and warranties: (1) Power and Authority. DISTRICT has the legal power, right and authority to enter into this Agreement and to execute the instruments and documents referenced herein, and to consummate the transaction contemplated hereby. (2) Requisite Action. DISTRICT has taken all requisite action and obtained all requisite consents in connection with entering into this Agreement and the instruments and documents referenced herein and the consummation of the transactions contemplated hereby, and no consent of any other party is required. (3) Enforceability of Agreement. The persons executing this Agreement and any instrument or document referenced herein for or on behalf of DISTRICT have been duly authorized to so act on behalf of DISTRICT and this Agreement and any such instrument or document is valid and legally binding on DISTRICT and enforceable against DISTRICT in accordance with their respective terms. (4) No Litigation. There is no pending or, to the best of DISTRICT’s knowledge, threatened claims, action, allegations or lawsuit of any kind, whether for personal injury, property damage, property taxes, or otherwise, that could affect the Easement Area or the Easement. (5) No Violation. Neither the execution of this Agreement or the other instruments and documents referenced herein nor the performance by DISTRICT of its obligations hereunder and thereunder shall result in a breach or constitute a default under any agreement, document, instrument or other obligation to which DISTRICT is a party or by which DISTRICT may be bound or under law, statute, ordinance, rule, governmental regulation, state constitution, or any writ, injunction, order or decree of any court or governmental body applicable to DISTRICT. (6) Operation and Condition Pending Closing. Between the date of this Agreement and the Close of Escrow hereunder, DISTRICT will continue to manage, -7- operate and maintain the Easement Area in the same manner as existed prior to the execution of this Agreement. All representations and warranties contained in this Section 10(a) are true and correct on the date hereof and on the date of the Close of Escrow and shall survive the Close of Escrow. (b) Warranties and Representations by EVWD. EVWD hereby makes the following representations, covenants and warranties and acknowledges that the execution of this Agreement by DISTRICT has been made in material reliance by DISTRICT on such covenants, representations and warranties: (1) EVWD has the legal right, power and authority to enter into this Agreement and the instruments and documents referenced herein and to consummate the transactions contemplated hereby. (2) EVWD has taken all requisite action and obtained all requisite consents in connection with entering into this Agreement and the instruments and documents referenced herein and the consummation of the transactions contemplated hereby, and no consent of any other party is required. (3) This Agreement is, and all instruments and documents to be executed by EVWD pursuant to this Agreement shall be, duly executed by and are or shall be valid and legally binding upon EVWD and enforceable against EVWD in accordance with their respective terms. (4) Neither the execution of this Agreement nor the consummation of the transaction contemplated hereby shall result in a breach of or constitute a default under any other agreement, document, instrument or other obligation to which EVWD is a party or by which EVWD may be bound, or under law, statute, ordinance, rule governmental regulation or any writ, injunction, order or decree of any court or governmental body applicable to EVWD. All representations and warranties contained in this Section 10(b) are true and correct on the date hereof and on the date of the Close of Escrow and shall survive the Close of Escrow. Section 11. Covenants by EVWD. EVWD covenants to fully comply with the mitigation measures as set forth below in connection with any construction and/or installation to be performed in the Easement Area. MITIGATION MEASURES: MM-BI0-01 SBKR Protection Measures - SBKR Protection Measures -EVWD would implement the following measures as identified by the USFWS to protect the SBKR: • Construction would occur during daylight hours only. No nighttime work would occur. -8- • All of the pipeline trench would be backfilled at the end of the day leaving no amount of trench open over night or leaving no side-casted soil available for burrowing. • Any soil that may need to be stockpiled for use as backfill would be completely enclosed with exclusionary fencing. • A qualified biological monitor, familiar with SBKR, shall inspect the site on an as needed basis. • A qualified biologist, familiar with SBKR, will prepare and administer an environmental awareness class that is approved by the USFWS. MM-BI0-02 Avian Species Protection Measures - Pre-construction surveys for nesting birds and raptors: If construction begins during bird nesting season, February 1 - September 15, preconstruction surveys for nesting birds will be conducted no more than 10 days prior to the start of construction. Surveying will be conducted according to COFW protocols for all avian species listed in Table 4. This includes surveying all potential Swainson's hawk nesting sites and active nests within 0.5 mile of the proposed area of disturbance and surveying potential nesting areas within X mile of the Project for other raptors including Cooper's hawk, golden eagle, and white- tailed kite. If no active nests are located, then no further mitigation will be required. Per CDFW recommendations, SBVMWD will establish a 500-foot no-disturbance buffer for non- listed raptor species and a 1/2 mile no-disturbance buffer from listed or fully protected species. If an active nest exists, the location will be recorded and reported to the CDFW to determine appropriate buffers and any additional mitigation requirements which may include establishing appropriate no-disturbance buffers from nesting sites. MM-BIO-03 Avoid disturbances to sensitive habitats, and habitats that support special status species. Prior to construction activities, a qualified biologist will identify sensitive areas for avoidance fencing. The aquatic habitat of City Creek Wash and Cook Creek W ash will be avoided with a 25-foot buffer (as measured from the ordinary high water mark) to minimize disturbances resulting from construction activity. This buffer boundary will be clearly marked prior to the start of construction and high visibility fencing material will be installed where work would occur in close proximity to aquatic habitat. Erosion and sediment controls will follow provisions of the municipal codes of the city of Highland and San Bernardino. MM-BIO-04 Biological Monitoring EVWD will provide a qualified biologist to regularly monitor the site during construction activity to ensure all appropriate BMPs are in place and to make sure biological mitigation measures are being followed. This will include monitoring protected wetlands, riparian areas and other resources. The biologist will have the authority to contact the EVWD Project Manager and stop work if any mitigation measures are not in place or are otherwise not being followed. The monitor shall act in advisory capacity first, working with the construction foreman to ensure mitigation is in place. -9- MM-BIO-05 Environmental Awareness Training: Prior to construction, EVWD will hold an environmental resources briefing onsite using a qualified biologist to explain where sensitive resources are onsite and discuss the regulations associated with sensitive biological resources. • The briefing will be attended by the EVWD Project Manager, and any foreman. At least foreman can brief all other construction personnel. • The briefing will include information related to state and federal Endangered Species Act (ESA) regulations and the potential species and habitats nearby • In addition, the location of areas designated for avoidance onsite or adjacent will be clearly communicated. • The briefing will be completed prior to any ground disturbing work onsite. MM-CR-1 EVWD shall ensure that an archaeological sensitivity training program is developed in consultation with a qualified professional archaeologist, meeting the Secretary of Interior’s Professional Qualification Standards for prehistoric and historic archaeologist. The sensitivity training program will provide information about notification procedures when potential archaeological material is discovered, procedures for coordination between construction personal and monitoring personnel, and information about other treatment or issues that may arise if cultural resources (including human remains) are discovered during project construction. The training will be conducted by a qualified project archaeologist in coordination with a representative from the San Manuel Band of Mission Indians during a pre-construction meeting for construction supervisors. This training shall be communicated to all new construction personnel during orientation, and on a poster that is placed in a visible location inside the construction job trailer. MM-CR-2 If subsurface deposits believed to be cultural or human in origin are discovered during construction, then all work must halt within a 100-foot radius of the discovery. A qualified professional archaeologist, meeting the Secretary of the Interior’s Professional Qualification Standards for prehistoric archaeologist, shall be retained to evaluate the significance of the find, and shall have the authority to modify the no work radius as appropriate, using professional judgement. If the discovery is reasonably believed to be associated with prehistoric or Native American cultures, then the EVWD shall contact the Morongo Band of Mission Indians and San Manuel Band of Mission Indians to afford the tribes an opportunity to consult on appropriate treatment and mitigation. Work cannot continue within the no work radius until the archaeologist conducts sufficient research and data collection to make a determination that the resource is either 1) not cultural in origin, or 2) not potentially significant or eligible for listing on the NRHP or CRHR. If a potentially eligible resource is encountered, then the archaeologist, lead agency, and project proponent shall arrange for either 1) total avoidance of the resource, if possible, or 2) test excavations to evaluate eligibility and, if eligible, total data recovery as mitigation. The determination shall be formally documented in writing and submitted to the lead agency as verification that the provisions in CEQA for managing unanticipated discoveries have been met. -10- MM-CR-3 In the event that evidence of human remains is discovered, or remains that are potentially human, construction activities within 100-feet of the discovery will be halted or diverted and the requirements of Mitigation Measure #MM-CR-2 will be implemented. In addition, the provisions of Section 7050.5 of the California Health and Safety Code Section 5097.98 of the California Public Resources Code, and Assembly Bill 2641 will be implemented. When human remains are discovered, state law requires that the discovery be reported to the San Bernardino County Coroner (Section 7050.5 of the Health and Safety Code) and that reasonable protection measures be taken during construction to protect the discover from disturbance (AB 2641). If the Coroner determines the remains are Native American, the Coroner notifies the Native American Heritage Commission which then designates a Native American Most Likely Descendant (MLD) for the project (Section 5097.98 of the Public Resources Code). The designated MLD then has 48 hours from the time access to the property is granted to make recommendations concerning treatment of the remains (AB 2641). If the landowner does not agree with the recommendation of the MLD, the NAHC can mediate (Section 5097.94 of the Public Resources Code). If no agreement is reached, the landowner must rebury the remains where they will not be further disturbed (Section 5097.98 of the Public Resources Code). This will also include either recording the site with the NAHC or the appropriate Information Center, using an open space or conservation zoning designation or easement, ore recording a re- interment document with the county in which the property is located (AB 2641). This Section 11 shall survive the Close of Escrow and shall not merge with any deed recorded in connection with this transaction. Section 12. Conflict of Interest. No member, official or employee of either party having any conflict of interest, direct or indirect, related to this Agreement and the use and development of the Easement Area shall participate in any decision relating to the Agreement. The parties represent and warrant that they do not have knowledge of any such conflict of interest. Section 13 Non-liability of Officials and Employees. No officer, official or employee of either party shall be personally liable to the other party, or any successor in interest of such other party, in the event of any default or breach or for any amount which may become due hereunder, or on any obligations under the terms of this Agreement. Section 14. Indemnification. EVWD agrees to indemnify and hold DISTRICT and its officers, employees and agents harmless from and against all damages, judgments, costs, expenses and attorney’s fees arising from or related to any act or omission of EVWD in the course of performing its inspection of the Easement Area. DISTRICT shall give EVWD written notice of the occurrence of a claim, litigation or other matters for which DISTRICT seeks indemnity under this Section as promptly as practicable following DISTRICT’S knowledge of the occurrence of such matter -11- and DISTRICT shall reasonably cooperate with EVWD in the defense of any such claim or matter and shall not take any action that would adversely affect EVWD’s defense of such matter. Section 15. Notices. All notices, requests, demands, and other communications required or permitted under this Agreement shall be in writing and shall be delivered by either (a) personal delivery, (b) reliable courier service that provides a receipt showing date and time of delivery, including federal express, or (c) registered or certified U.S. Mail, postage prepaid, return receipt requested. Notices shall be addressed to the respective parties as set forth below or to such other address and to such other persons as the parties may hereafter designate by written notice to the other party hereto: If to EVWD, to: If to DISTRICT, to: With copy to: If to Escrow, to: Eliseo Ochoa Associate Engineer East Valley Water District 31111 Greenspot Road Highland, CA 92346 Phone: (909) 889-9501 Marilee J. Rendulich, SR/WA Real Estate Services Manager San Bernardino County RESD 385 N. Arrowhead Avenue, 3rd Floor San Bernardino, CA 91415-0180 Phone: (909) 387-5106 Facsimile: (909) 387-5353 Robert F. Messinger Deputy County Counsel Office of County Counsel County of San Bernardino 385 N. Arrowhead Avenue, 4th Floor San Bernardino, CA 91401 Phone: (909) 387-8979 Facsimile: (909) 387-5462 Kevin Blakeslee Deputy Director of Public Works County of San Bernardino 825 E. Third Street, Room 101 San Bernardino, CA 92415-0835 Phone: (909) 387-8979 Kellie Linderman Escrow Officer Golden State Escrow, Inc. 1421 E. Cooley Drive, Suite 1 Colton, CA 92324 Phone: (909) 777-3500 -12- Each notice shall be deemed delivered on the date delivered if by personal delivery or by overnight courier service, or on the date of receipt as disclosed on the return receipt if by mail. By giving to the other parties written notice as provided above, the parties to this Agreement and their respective successors and assigns shall have the right from time to time, and at any time during the term of this Agreement, to change their respective addresses. Section 16. Attorneys’ Fees. If any legal action is instituted to enforce or declare any party’s rights hereunder, each party, including the prevailing party, must bear its own costs and attorneys’ fees. This subsection shall not apply to those costs and attorneys’ fees directly arising from any third party legal action against a party hereto and payable under Section 8. (“Inspections and Review”) and Section 14. (“Indemnification”). Section 17. Miscellaneous. (a) This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and together shall constitute one and the same agreement, with one counterpart being delivered to each party hereto. (b) All periods of time referred to in this Agreement shall include all Saturdays, Sundays and state or national holidays, provided that if the date or last date to perform any act or give any notice with respect to this Agreement shall fall on a Friday, Saturday, Sunday or state or national holiday, such act or notice may be timely performed or given on the next succeeding day which is not a Friday, Saturday, Sunday or state or national holiday. (c) The unenforceability, invalidity, or illegality of any provision of this Agreement shall not render the other provisions hereof unenforceable, invalid or illegal. Section 18. Entire Agreement. (a) This Agreement and the exhibits attached hereto constitute the entire understanding and Agreement of the parties. (b) This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto with respect to the Easement Area. (c) The headings to the paragraphs of this Agreement are for convenience of reference only, do not form a part of this Agreement and shall not in any way affect its interpretation. Section 19. Legislative Body Approval. This Agreement is subject to, and will have no force or effect until and unless first approved by the San Bernardino County Flood Control District Board of Supervisors. -13- IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the dates set forth below. DISTRICT: SAN BERNARDINO COUNTY FLOOD CONTROL DISTRICT By: __________________________________ Date: ____________________ James Ramos, Chairman Board of Supervisors Laura H. Welch, Clerk of the Board of Supervisors Approved as to Legal Form: Jean-Rene Basle, County Counsel County of San Bernardino, California By: ____________________________ By: __________________________ Deputy Robert F. Messinger, Deputy Date: __________________________ Date: ________________________ EVWD: EAST VALLEY WATER DISTRICT By: __________________________________ Date: ____________________ Approved as to Legal Form: By: __________________________ Date: ________________________ -14- -15- EXHIBIT ”B” -16- -17- -18- -19- -20- -21- -22- -23- BOARD AGENDA STAFF REPORT Agend a Item #9. Meeting Date: Augus t 24, 2016 Dis cus s io n Item To: Governing Bo ard Memb ers From: General Manager/CEO Subject: Refer Kenned y/Jenks C o ns ultants fo r the S NRC Des ign-Build Brid ging Do c uments to S an Bernardino Valley Munic ip al Water Dis tric t RECOMMENDATION: Ap p ro ve the content of the p ropos al from Kenned y/Jenks Cons ultants and refer the ac tion to San Bernardino Valley Munic ip al Water Dis tric t as it relates to the S terling Natural Res o urce Center. BACKGROUND / ANALYSIS: In 2015 S an Bernard ino Valley Munic ip al Water Dis trict (Valley Distric t) and Eas t Valley Water Distric t (District) entered into a framework agreement laying the gro und wo rk fo r regio nal recycled water projects . The S terling Natural Res o urce C enter (SNRC ) is a res ult of this agreement, Valley District the lead agenc y of this p rojec t, p erformed in c ooperation with the East Valley Water Distric t. T hro ugho ut the p roc es s , Valley Dis tric t and Eas t Valley Water Distric t have wo rked together to issue an R FQ fo r the Statement of Qualific ations fo r this Des ign-Build Project. The Statement o f Qualifications is d ue on Sep tember 29, 2016. F o llowing the review o f the Qualificatio ns and interview o f firms a sho rt lis t will b e d etermined . Once the gro up o f firms have b een s ho rt lis ted they will b e to send the Req ues t of Prop o s als to identify a lump sum bid for the S NRC. Bridging documents p ro vide the Des ign-Build entities the basic info rmatio n to bas e their bids on, while retaining the flexib ility o f any inno vations that the entities might want to incorporate into their des ign. Kenned y/Jenks C o ns ultants is a full-servic es engineering firm. They spec ialize in water and was tewater ind us try with a foc us on the Design-Build alternative d elivery of p ro jec ts. They were s elec ted thro ugh a c o mp etitive p roc es s b y EVWD in F ebruary 2015 to furnish the s ervic es as a Program Manager for the SNR C and p ro vid ed these s ervices until June 2015 when the Pro gram Manager left their emp lo yment. As a result o f their invo lvement in this p rojec t, they are d is q ualified fro m bidd ing, o r p artnering with any firms that are bidding. Pro viding this level of design detail is mand ated by State legis lation governing des ign-b uild c o ntrac ts . In ac c o rd ance with the framework agreement, Valley Dis tric t is the autho rizing agenc y and East Valley is financ ially res ponsible for all contrac ts relating to the SNRC. Recommended by: Jo hn Mura General Manager/CEO AGENCY IDEALS AND ENDEAVORS: Ideals and Endeavor I - Enc o urage Innovative Investments To Pro mo te Sustainab le Benefits (A) - Develop p rojec ts and pro grams to ens ure safe and reliab le s ervic es REVIEW BY OTHERS: T his agend a item has b een reviewed b y the District's Legal Couns el. FISCAL IMPACT : T his fis c al imp ac t fo r this item is $375,000, whic h is the not-to-exc eed c ontrac t amount. BOARD AGENDA STAFF REPORT Agenda Item #10. Meeting Date: Augus t 24, 2016 Dis cus s io n Item To: Governing Bo ard Memb ers From: General Manager/CEO Subject: Water Quality Up date RECOMMENDATION: T his repo rt is for info rmatio n only. BACKGROUND / ANALYSIS: East Valley Water District’s main source of water for its customers is the Bunker Hill Groundwater Basin. Another source of water is the Santa Ana River, originating from snow-melt and springs high up in the San Bernardino Mountains. T he District has the right to take one quarter of the Santa Ana river flow December through May. During the months of June through November (known as the contract months) the District has an agreement with Bear Valley Water Company to supply water. P er this agreement formed in 1885, Bear Valley has the option to deliver State Water to fulfill their contract. T his action is taken when there is not enough flow in the Santa Ana river or when Bear Valley determines that to release the water out of Big Bear Lake would have a negative effect on their tourism during the summer months. T his supply is known as in-lieu water. T he Dis tric t is c urrently receiving in-lieu water fro m the State Water Project at o ur treatment p lant. Different s ources of water s upply, have d ifferent tas tes , and s ome res id ents may notice this at their tap. T he facility us es s tate-of-the-art treatment techno lo gy, and is regularly monito red to ensure all d rinking water requirements are met. During perio d s of ho t weather, as have been exp erienced in the mo nths o f July and August, State water coming from Silverwo o d Lake exp eriences a c hange in water quality due to algae b looms . The b lue-green algae are c alled mic ro cystin (liver to xin), which is a typ e o f c yano b ac teria (blue bac teria). Water treatment p ro ces s es are effec tive at eliminating the b ac teria, but c an leave behind a mus ty taste and o d o r. Staff has made s ys tem ad jus tments to b lend and c o ntrol the tas te and odor. In additio n, we have reduc ed our water prod uc tion from 6 million gallo ns per d ay to 4 millio n gallo ns p er d ay at the treatment p lant. Staff is c o nsidering long term treatment s o lutions to b etter hand le algae p roblems that occ ur in the future. AGENCY IDEALS AND ENDEAVORS: Ideals and Endeavor I - Enc o urage Innovative Investments To Pro mo te Sustainab le Benefits (A) - Develop projects and programs to ensure safe and reliable services. Recommended by: Jo hn Mura General Manager/CEO Res p ec tfully s ub mitted : Patric k Milroy Operatio ns Manager REVIEW BY OTHERS: T his agend a item has b een reviewed b y Op eratio ns and Adminis tratio n s taff. FISCAL IMPACT : T here is no fis c al imp ac t at this time. ATTACHMENTS: Description Type Water Quality Update Presentation WATER SOURCES EAST VALLEY WATER DISTRICT Bunker Hill Basin Silverwood Lake (State Water Project Storage) Santa Ana River EAST VALLEY WATER DISTRICT BEAR VALLEY CONTRACT OBLIGATION 1232 Total Violations•North Fork 1885 Agreement Month Miner’s Inches MGD (Million Gallons per Day) June 500”6.4 July 600”7.7 August 600”7.7 September 550”7.1 October 450”5.8 November 450”5.8 EAST VALLEY WATER DISTRICT BLUE-GREEN ALGAE 1232 Total Violations •Cyanobacteria (Blue-green Algae) Performs Many Vital Roles in Most Freshwater and Marine Aquatic Ecosystems •Hot Temperatures are Known to Cause Blooms, which May Result in a Musty Taste and Odor •Contact with Untreated Water is Different than Treated Drinking Water •The Cyanobacteria Found in the Water can be Eliminated Through Water Treatment EAST VALLEY WATER DISTRICT WATER TREATMENT PROCESS 1232 Total Violations •Surface Water Treatment Plant uses State-of- the-Art Process to Produce Drinking Water •Taking Steps to Blend Water Sources •Staff is Considering Long-Term Treatment Solutions to Better Handle Seasonal Algae Blooms in the Future BOARD AGENDA STAFF REPORT Agend a Item #11. Meeting Date: Augus t 24, 2016 Dis cus s io n Item To: Governing Bo ard Memb ers From: General Manager/CEO Subject: Board Meeting Canc ellatio ns RECOMMENDATION: Staff is recommending that the Board approve canc ellation o f the following meetings : 1. Octo b er 12, 2016 2. November 23, 2016 3. Dec ember 28, 2016 BACKGROUND / ANALYSIS: Eas t Valley Water Dis trict regular board meetings occ ur on the 2nd and 4th Wednesdays of eac h month. Staff is rec o mmend ing that the Board o f Direc tors appro ve the c anc ellatio n of the Oc tober 12, November 23 and December 28 regular b oard meetings d ue to a s tatewid e c onference and ho lid ay sc hedules. Califo rnia Spec ial Dis tric t’s As s o c iation will be holding its annual conference Octo b er 10-13, and a quorum o f the b o ard will b e attending the event. The Novemb er 23 meeting falls o n the Wednes d ay before Thanksgiving and December 28 is d uring the d is trict office clos ure. T hes e c ancellations will not imp act District o p erations and routine items are b eing s cheduled acc o rd ingly. AGENCY IDEALS AND ENDEAVORS: Ideals and Endeavor II - Maintain An Enviro nment Committed To Elevated P ublic Servic e (E) - Practice transparent and acc o untab le fis cal management FISCAL IMPACT : T here is no fis c al imp ac t as s o c iated with this agenda item. Recommended by: Jo hn Mura General Manager/CEO Three Better World Circle, Suite 200 Temecula, California 92590 951-375-5570 FAX: 951-676-6792 18 August 2016 Mr. Ashok Dhingra San Bernardino Valley Municipal Water District / East Valley Water District 31111 Greenspot Road Highland, CA 92346 Subject: Proposal for Design-build Bridging Documents for the Sterling Natural Resource Center Dear Mr. Dhingra: Kennedy/Jenks Consultants (Kennedy/Jenks) is pleased to submit this proposal to San Bernardino Valley Municipal Water District / East Valley Water District (District) to prepare the bridging documents for the Design-build of the proposed Sterling Natural Resource Center and associated support facilities. The bridging documents will consist of the technical design requirements and preliminary drawings. The bridging documents will be used to present the project layout, and to provide information to prospective Design-builders to support developing their lump sum design-build proposals. The documents will be prepared in a manner to allow innovation by the Design-builders. The bridging documents are intended to be included in the Request for Proposal for the Design-build of the Sterling Natural Resource Center and will be prepared in accordance with the Draft Environmental Impact Report (DEIR) dated December 2015, the Feasibility Study dated March 2015, and the Diversion Evaluation and Conceptual Plan dated November 2015. Program Description The proposed Sterling Natural Resource Center (SNRC) consists of five major components as shown in Exhibit A and described below: 1. Treatment Facility The treatment facility will produce tertiary treated water in compliance with California Code of Regulations Title 22 recycled water quality requirements. The initial rated capacity is 6.0 mgd with a peak design capacity of 7.2 to 7.5 million gallons per day (mgd). The ultimate design capacity is 10 mgd. The treatment facility will be located on an 8-acre District owned parcel in the City of Highland as shown in Exhibit B. The treatment process, as shown in Exhibit C, will consist of primary treatment, a membrane bio-reactor (MBR), ultraviolet (UV) light disinfection, Mr. Ashok Dhingra San Bernardino Valley Municipal Water District / East Valley Water District 18 August 2016 Page 2 and anaerobic solids processing with off-site solids disposal. All treatment processes will either be covered or housed in one of the buildings listed in Table 2-1 of the DEIR and will be equipped with odor control facilities. 2. Administration Center The SNRC Administration Center will be located on a 6-acre parcel west of the Treatment Facility, and west of Del Rosa Drive, as shown in Exhibit B. The Administration Center will consist of administration buildings and pavilions housing administrative offices needed for the treatment plant, surrounded by publicly accessible open space. The administration buildings will be approximately 25,000 square feet equipped with offices, control systems, and meeting rooms. A large meeting room will be available for community functions and will serve as an Emergency Operations Center (EOC) during emergencies. A parking lot with approximately 160 parking spaces will be provided. Ornamental detention ponds (serving as demonstration recharge basins) will be designed on the northern portion of the parcel to capture stormwater runoff from both the treatment facility and the administration center sites. The detention ponds would be capable of storing effluent flow from the treatment facility. This area includes natural landscaping, demonstration gardens, and walking paths. 3. Treated Water Conveyance System The treated water conveyance system is comprised of a pump station at the treatment facility site, and a 24-inch diameter conveyance pipeline to City Creek and the Redlands Basins. For the City Creek discharge pipeline, approximately 4.5 miles of pipeline would be installed within East 6th Street or East 5th Street heading east to the proposed discharge structure. It is noted that East 6th Street is the preferred pipeline alignment from a traffic perspective. Three City Creek discharge location alternatives and several pipeline alignments have been included in the DEIR. For scope purposes, it is assumed the discharge to City Creek will be near the intersection of Boulder Avenue and Jasper Street (Option 1 per Figure 2-7a of DEIR). The discharge structure will consist of a flow control valve, flow meter, telemetry, and concrete energy dissipater structure. Depending upon the selected pipeline route, there would be one to four creek crossings, and a crossing under the 210 freeway requiring trenchless construction. It is assumed the District will retain a geotechnical engineer to perform additional investigations to facilitate preparation of the Bridging Documents and inclusion in the RFP. The Redlands Basins discharge alternative will consist of a 24-inch diameter pipeline within Alabama Street from East 6th Street or East 5th Street for approximately 1.3 miles south to the existing City of Redlands’ basins. An existing 30-inch diameter pipeline located in the Santa Ana River Bridge will be used to cross the Santa Ana River. Trenchless construction methods will be used to cross City Creek. Discharge structures consisting of a flow control valve, meter, and energy dissipater would be constructed at the Redlands Basin that would convey flow into multiple basins. Mr. Ashok Dhingra San Bernardino Valley Municipal Water District / East Valley Water District 18 August 2016 Page 3 4. Wastewater Collection Facilities The wastewater collection facilities will consist of nine interceptor diversion structures, two submersible lift stations (Lift Station C - 0.6 mgd, and Lift Station D - 5.4 mgd), approximately 14,800 linear feet of 8-inch to 27-inch diameter sewer, and approximately 8,900 linear feet of 6- inch/16-inch diameter PVC force mains connecting the lower portion of EVWD’s collection system to the treatment plant. Trenchless construction methods will be required for two creek crossings. 5. Street Improvements Street improvements along the pipeline routes will consist of full street paving restoration, the construction of sidewalks, curbs, and gutters, and approximately 1,200 linear feet of up to 24- inch diameter storm drains. Scope of Services Task 1 – Project Management 1.1 Kick-off Meeting: The kick-off meeting will be scheduled immediately after receipt of a notice-to-proceed. At this kickoff meeting, project reporting/communication protocols will be established, a project schedule will be provided, and key technical issues will be discussed to establish the project guidelines. A detailed discussion of the District’s objectives and the Design-build requirements will be conducted. The kick-off meeting will be attended by four, senior level Kennedy/Jenks engineers to discuss the major components of the project, our overall design approach, and the Design-build RFP. 1.2 Workshops: Kennedy/Jenks will conduct four (4) progress workshops with the District to discuss the development of the bridging documents. It is anticipated that three, senior level Kennedy/Jenks engineers will attend the workshops which will consist of the following: Workshop No. 1 – Wastewater treatment plant design criteria Workshop No. 2 – Admin building design criteria Workshop No. 3 – Lift stations and pipelines design criteria Workshop No. 4 – Present the draft bridging documents 1.3 Conference Calls: Kennedy/Jenks will conduct weekly calls with the District to identify and discuss project issues, coordination efforts, action items, schedule, budget, and other items of concern. For scope purposes, eight (8) conference calls will be conducted. Mr. Ashok Dhingra San Bernardino Valley Municipal Water District / East Valley Water District 18 August 2016 Page 4 1.4 Quality Assurance/Quality Control (QA/QC): Kennedy/Jenks will provide quality assurance and quality control (QA/QC) reviews. Specific QA/QC efforts will include: Development of a Quality Assurance Plan, which will outline how QA/QC reviews will take place during the course of the work. Concept and Criteria Review prior to submittal of the Design Criteria. Review of all notes, design calculations, reports, and design drawings by an appropriate reviewer independent of the project design team prior to each submittal. Review of the documents from a Design-build perspective to confirm suitability of information for the RFP to establish a proposal. 1.5 Management: This task addresses the management responsibilities associated with project setup, proper scheduling, budget control, invoice preparation and coordination with the District’s and the Kennedy/Jenks project team. Deliverable – Kennedy/Jenks will submit all meeting agendas/presentations to the District a minimum of three (3) working days prior to each meeting, and all meeting minutes within five (5) working days following the meeting. District comments will be incorporated and final minutes will be submitted. Task 2 – Data Gathering and Investigations 2.1 Data Gathering and Review: Kennedy/Jenks will collect and review relevant data provided by the District. 2.2 Utility Research: Kennedy/Jenks will contact Underground Service Alert to determine the utility owners within the project limits and send formal requests to each utility owner requesting record drawings and any future utility plans. 2.3 Survey: Kennedy/Jenks will contract with a licensed surveyor to perform a topographical survey of the SNRC treatment facility and administrative sites. The survey will consist of a boundary survey, aerial survey, and preparation of an electronic Base Map. 2.4 Pipeline Alignment Analysis: Kennedy/Jenks will perform an alignment analysis for the treated water pipeline, sewer and force mains based on the previously identified alignments. The alignment analysis will be based on reviewing existing utility record drawings to determine if a viable pipeline corridor is available based on an assumed construction trench width. Meetings with Caltrans and San Bernardino County Flood Control District will be conducted to discuss the alignment options and permitting requirements. The most preferred alignment option for implementation will be recommended. Mr. Ashok Dhingra San Bernardino Valley Municipal Water District / East Valley Water District 18 August 2016 Page 5 2.5 Geotechnical Coordination: It is assumed the District will retain a geotechnical engineer to perform additional geotechnical investigations for the proposed trenchless construction. Kennedy/Jenks will coordinate with the District’s geotechnical engineer and provide exhibits showing the approximate tunnel locations. Kennedy/Jenks will review the findings from the geotechnical investigation. 2.6 SCE Coordination: Kennedy/Jenks will schedule a meeting with Southern California Edison (SCE) to discuss the program and identify SCE requirements to provide power to the sites. It is assumed the District will prepare the SCE application for power. Task 3 – Bridging Documents 3.1 Design Criteria: Kennedy/Jenks will establish the technical requirements and design criteria for each facility and consisting of the following: SNRC Treatment Facility SNRC Administration Building Recharge Basin Treated Water Conveyance System Wastewater Collection Facilities SCADA Systems and Communications Street Improvements Environmental Compliance and Permitting Deliverable – Kennedy/Jenks will submit three (3) copies of a Draft Technical Memoranda which will include the Design Criteria, and attached notes and calculations, along with an electronic copy (pdf) for the District’s review. District comments will be incorporated into the Final Design Criteria Technical Memoranda. Kennedy/Jenks will submit three (3) copies of the Final Design Criteria Technical Memoranda, including an electronic copy (pdf). 3.2 Preliminary Drawings: Kennedy/Jenks will prepare drawings illustrating to the prospective Design-build teams the District’s intent for the SNRC program and is based on furnishing 35 drawings as listed in Table 1. The SNRC Treatment Facility drawings will consist of piping and instrumentation diagrams with the purpose of showing the minimum required process units, and a site plan reflecting the preliminary facility sizes and locations. The SNRC Administration Center drawings will consist of a site plan and miscellaneous key details, supplemented by architectural renderings already prepared by the District. The purpose of the pipeline drawings is to determine the feasibility of constructing the proposed pipelines within the identified alignment corridors, and identify major constraints. Kennedy/Jenks will plot the existing major utilities (water, sewer, Mr. Ashok Dhingra San Bernardino Valley Municipal Water District / East Valley Water District 18 August 2016 Page 6 storm drain) and the proposed pipeline alignment utilizing the Google Earth aerial base sheets and/or recent record drawings. The design requirements for the facilities will be reflected in the design criteria per Task 3.1. 3.3 Technical Specifications: In conjunction with the design criteria (Task 3.1), Kennedy/Jenks will prepare technical specifications to define specific project requirements (i.e. concrete strength, pump requirements, material of construction, testing requirements, etc.) and serve as functional specifications for construction. 3.4 Opinion of Probable Construction Cost: Kennedy/Jenks will prepare an opinion of probable construction cost presented as an Excel spreadsheet. This will consist of a Class 4 estimate in accordance with the AACE Cost Estimate Classification System dated March 1, 2016. Deliverable – Kennedy/Jenks will submit three (3) sets of plans (half size) and electronic copies (pdf) of the draft and final preliminary drawings, technical specifications, and cost opinion. Task 4 – Permitting Support (Optional) 4.1 Permitting Support: Kennedy/Jenks will identify the permit requirements that will be required for the project and attend a total of four (4) agency meetings. It is assumed the Design-builder will prepare and submit the permit applications, and be responsible to obtain all permits. Our proposal assumes that the District and other parties are addressing the RWQCB and DDW permitting requirements for NPDES, waste discharge requirements, and Title 22 reuse. Task 5 – Services During Bidding (Optional) 5.1 Pre-Bid Meeting: Kennedy/Jenks will attend the pre-proposal meeting and answer questions related to the technical documents from potential bidders. It is assumed the District will facilitate the meeting, and address questions related to the General Conditions and specific bidding requirements. 5.2 Addendum Preparation: Kennedy/Jenks will respond to questions and RFIs from potential bidders via addendum. Kennedy/Jenks will prepare up to four (4) addenda as required. The addenda will be submitted to the District for review and distribution. 5.3 Additional Meetings: Following the pre-proposal meeting, Kennedy/Jenks will attend proprietary meetings with the Design-build teams to answer questions that are specific to their design approach. For scope purposes, three (3) meetings are assumed. 5.4 Proposal/Bid Review: Following District’s receipt of the Design-Build proposals, Kennedy/Jenks will assist with the review of the proposals, with emphasis on the Mr. Ashok Dhingra San Bernardino Valley Municipal Water District / East Valley Water District 18 August 2016 Page 7 Design-Builders’ adherence to the project’s technical requirements and environmental documents. 5.5 Best-and-Final-Offer Process: Kennedy/Jenks will assist the District with clarifications/changes requested by the District regarding the proposals/bids received by the Design-build teams and the review of the revised proposals/bids received. Exclusions and Assumptions The following exclusions and assumptions apply to Kennedy/Jenks’ above-described scope of work: The RFP will be prepared by the District. It is assumed that the RFP will cover: Project Background, Submittal Requirements, Design Build Selection Process, Design Build Scope, Administrative Design Build Processes, General Conditions and Commercial Terms. It is assumed that District comments will be provided within one week of receipt of our deliverables. Geotechnical Investigations are assumed to be provided by the District through contract with a third-party. Permit acquisition is assumed to be provided by the District and/or Design-builder. Surge analysis is assumed to be provided by the District and/or Design-builder. Landscape plans are assumed to be provided by the District and/or Design-builder. Property and easement acquisition is excluded from Kennedy/Jenks’ scope of work. Kennedy/Jenks’ proposal assumes that Design-build services are procured for the SNRC project through a single design-build contract. Development of the design-build agreement between the District and Design-builder is not included in Kennedy/Jenks’ scope of work. Field verification or potholing to determine the horizontal and vertical locations of existing underground utilities is not included in Kennedy/Jenks’ scope of work. Design of offsite utility connections and temporary utility services (water, sewer, storm drain, gas, electricity, etc.) are not included in Kennedy/Jenks’ scope of work. Design of dewatering and shoring systems are not included in Kennedy/Jenks’ scope of work. Traffic control plans are not included in Kennedy/Jenks’ scope of work. Environmental evaluation and mitigation, including contaminated soils or groundwater, are not included in Kennedy/Jenks’ scope of work. Construction support services are not included in Kennedy/Jenks scope of work. Mr. Ashok Dhingra San Bernardino Valley Municipal Water District / East Valley Water District 18 August 2016 Page 8 Budget & Schedule Kennedy/Jenks proposes to perform the base services described above on a time and materials basis in the not-to-exceed amount of $374,981, including a $35,000 contingency, in accordance with the enclosed fee proposal. The contingency would not be utilized by Kennedy/Jenks unless specifically authorized in writing by the District. Kennedy/Jenks will submit the final technical documents within ten weeks following a Notice-to- Proceed. Project Team Mr. Ashok Dhingra San Bernardino Valley Municipal Water District / East Valley Water District 18 August 2016 Page 9 Please feel free to contact me at (951) 375-5562 should you have any questions regarding this proposal. Kennedy/Jenks appreciates the opportunity to work with the District on this very exciting project. Very truly yours, KENNEDY/JENKS CONSULTANTS Harold T. Glaser, P.E. Vice President Enclosure Proposal Fee Estimate Kennedy/Jenks Consultants CLIENT Name: San Bernardino Valley Municipal Water District / East Valley Water District PROJECT Description: SNRC D/B Bridging Documents Proposal/Job Number: Date: 8/18/2016 To t a l La b o r En g - S c i - 5 En g - S c i - 4 De s i g n e r CA D En g - S c i - 3 Pr o j e c t Ad m i n i s t r a t o r En g - S c i - 9 En g - S c i - 8 En g - S c i - 7 En g - S c i - 6 To t a l Su b s To t a l Ex p e n s e s Total Labor + Subs + Expenses January 1, 2015 Rates KJ KJ Sub Total Labor Eng-Sci-5 Eng-Sci-4 Designer CAD Eng-Sci-3 Project Administrator Eng-Sci-9 Eng-Sci-8 Eng-Sci-7 Eng-Sci-6 Total Subs Total Expenses Total Labor + Subs + Expenses Classification:Total Labor ODC Survey Total Labor Eng-Sci-5 Eng-Sci-4 Designer CAD Eng-Sci-3 Project Administrator Eng-Sci-9 Eng-Sci-8 Eng-Sci-7 Eng-Sci-6 Total Subs Total Expenses Total Labor + Subs + Expenses Hourly Rate: $270 $250 $235 $215 $190 $175 $160 $155 $120 $110 Hours Fees Fees Fees Task 1 - Project Management 1.1 Kick-off Meeting 410 14 $3,580 $300 $3,580 $0 $300 $3,880 1.2 Meetings (4)820 4 32 $8,100 $1,500 $8,100 $0 $1,500 $9,600 1.3 Conference Calls (8)8 8 $2,000 $2,000 $0 $0 $2,000 1.4 Quality Assurance/Quality Control 40 40 $10,800 $10,800 $0 $0 $10,800 1.5 Management 20 6 26 $5,660 $5,660 $0 $0 $5,660 Task1 - Subtotal 525840000006120$30,140 $1,800 $0 $30,140 $0 $1,800 $31,940 Task 2 - Data Gathering & Invest. 2.1 Data Gathering and Review 444 4 16 $3,440 $3,440 $0 $0 $3,440 2.2 Utility Research & Review 42840 173 $12,830 $600 $12,830 $0 $600 $13,430 2.3 Survey 1 1 $250 $10,605 $250 $11,666 $0 $11,916 2.4 Pipeline Alignment Analysis 82428 60 $11,040 $11,040 $0 $0 $11,040 2.5 Geotechnical Coordination 1 1 $250 $250 $0 $0 $250 2.6 SCE Coordination 8 8 $1,720 $1,720 $0 $0 $1,720 Task 2 - Subtotal 01841252072001159$29,530 $600 $10,605 $29,530 $11,666 $600 $41,796 Task 3 - Bridging Documents 3.1 Design Criteria 20 80 40 160 60 88 8 456 $95,560 $95,560 $0 $0 $95,560 3.2 Preliminary Drawings (35 sheets) 30 60 60 80 80 24 120 208 0 662 $117,000 $117,000 $0 $0 $117,000 3.3 Technical Specifications 20 16 20 24 46 20 16 162 $32,960 $32,960 $0 $0 $32,960 3.4 Cost Estimate 8 5 10 60 24 107 $20,725 $20,725 $0 $0 $20,725 Task 3 - Subtotal 78 156 125 274 246 0 156 120 208 24 1387 $266,245 $0 $0 $266,245 $0 $0 $266,245 Total (Tasks 1-3)130 232 133 286 298 0 228 120 208 31 1666 $325,915 $2,400 $10,605 $325,915 $11,666 $2,400 $339,981 Contingency (District Controlled)0 $35,000 $0 $35,000 $0 $0 $35,000 TOTAL 130 232 133 286 298 0 228 120 208 31 1666 $360,915 $2,400 $0 $360,915 $0 $2,400 $374,981 J:\East valley Water District\SWRC\Draft Proposal\Revised 8-18-16\SNRC_FEE_(8-18-16) v2.xlsm © 2008 Kennedy/Jenks Consultants, Inc. Sheet No. Sheet Title Remarks 1 Cover Sheet 2 Key Map 3 Hydraulic Grade Line Developed based on Feasibility Study 4 Process Flow Diagram Developed based on Feasibility Study 5 P&ID ‐ Lift Station C & Lift Station D 6 P&ID ‐ Influent Pump Station 7 P&ID ‐ Blowers 8 P&ID ‐ Aeration and MBR Process 9 P&ID ‐ Membrane Tanks 10 P&ID ‐ Chemical Feed 11 P&ID ‐ UV Disinfection 12 P&ID ‐ Effluent Pump Station 13 Diversion Sewers and Force Mains Overall Map Key map for sewer infrastructure including alignment shown with Google aerial image 14 Sections and Profiles Sheet to identify major crossings and potential conflicts. Will be supplemented by record drawings obtained from utility agencies from utility research and made available to Contractor. 15 Lift Station C & D ‐ Site Plan, Mechanical Plan and Typical Section Site plan based on B&V report including mechanical plan of lift station and section. Electrical and Controls data not included. 16 SNRC Adminstration Center Site Plan 17 SNRC Adminstration Center Site Grading, Piping Plan 18 SNRC Treatment Facility Site Plan 19 SNRC Treatment Facility Site Grading, Piping Plan 20 Interpretive Center Floor Plan Architectural floor plan. See Sht 32 and 33 for sections and elevations. No electrical drawings 21 Administrative Offices Floor Plan Architectural floor plan. See Sht 32 and 33 for sections and elevations. No electrical drawings. Use District's renderings as appropriate 22 Influent Pump Station Floor Plan and Typical Section 23 Headworks (Screening and Grit Removal) Plan and Section 24 Blower Building Plan and Typical Section 25 Aeration Tanks and Pipe Galley Plan and Section 26 Water Treatment Building (MBR & UV) Mechanical Plan 27 Water Treatment Building Mechanical Sections 28 Chemical Storage Plan and Section 29 Operations/Computer Center Floor Plan Architectural floor plan. See Sht 32 and 33 for sections and elevations. No electrical drawings 30 Maintenance Offices Plan Architectural floor plan. See Sht 32 and 33 for sections and elevations. No electrical drawings 31 Anaerobic Digesters Plan and Section Other Cogen facilities will be identified on site plan. No electrical drawings 32 Typical Building Section and Elevation 33 Typical Building Section and Elevation 34 TW Conveyance ‐ Overall Map Key map for sewer infrastructure including alignment shown with Google aerial image 35 TW Conveyance ‐ Crossings Sheet to identify major crossings and potential conflicts. Will be supplemented by record drawings obtianed from utility agencies utility research Developed based on Feasibility Study These two sheets will include typical building elevations and typical structural sections for all buildings in the project 2 sheets to show the MBR and UV process plan and one sections sheet to show mechanical sections through the two processes. No electrical drawings Table 1 Preliminary Drawing List !(") ") No r t h D e l R o s a D r Marshall Blvd UV210 §¨¦10 §¨¦215 East 6th St SAN BERNARDINO INTERNATIONAL AIRPORT Santa An a R i v e r SOURCE: ESRI Sterling Natural Resource Center Redlands Basins Treated Water Conveyance Pipeline City Creek Extension Sterling Natural Resource Center . 150005 Figure 2-1 Proposed Project and Treated Water Conveyance Alternatives Force Main Lift Station Lift Station SBWRP Bypass SBWRP Existing Discharge SAR Pipeline East Twin Creek Spreading Grounds Treated Water Conveyance Pipeline 08,000 Feet Exhibit A Sterling Natural Resource Center . 150005 Figure 2-4a Conceptual Layout of SNRC SOURCE: Valley District Exhibit B Sterling Natural Resource Center . 150005 Figure 2-4b Process Flow Diagram SOURCE: Valley District Exhibit C