The URL can be used to link to this page

Home My WebLink AboutAgenda Packet - EVWD Board of Directors - 02/25/2015LEGISLATIVE PLATFORM 2015 LEGISLATIVE PLATFORM TABLE OF CONTENTS ABOUT EAST VALLEY WATER DISTRICT........................................................................................................ 3 Service Area and Population ..................................................................................................................... 3 Exhibit 1: East Valley Water District Service Area ................................................................................ 4 Exhibit 2: East Valley Water District Customer Base* .......................................................................... 5 Disadvantaged Community Status ............................................................................................................ 5 Future Water and Sewer Service Potential ............................................................................................... 6 Exhibit 3: East Valley Water District Service Area Development Activity ............................................ 6 Water Resources ....................................................................................................................................... 7 Recycled Water ......................................................................................................................................... 8 Water Rates .............................................................................................................................................. 8 LEGISLATIVE PLATFORM............................................................................................................................... 9 Exhibit 4: East Valley Water District Roles & Responsibilities .............................................................. 9 Exhibit 5: Legislative & Regulatory Platform ...................................................................................... 10 For more information, please contact: James Morales, Jr., Chairman Ron Coats, Vice Chairman Christopher Carrillo, Director • Benjamin C. Coleman, Director • Nanette Shelton, Director or Mr. John Mura, General Manager/CEO 909-889-9501 2 Leadership • Partnership • Stewardship 3 Leadership • Partnership • Stewardship ABOUT EAST VALLEY WATER DISTRICT East Valley Water District (EVWD or District) is a California Special District that provides water and wastewater service to residents within its 27.7 square mile service area. The vast majority of EVWD water is drawn from local supplies and maintaining local sustainability is a priority of the District. It is governed by a five member Board of Directors elected at-large to four year terms by EVWD constituents. East Valley Water District is a 100% rate-based organization that receives no tax-related revenue and operates in accordance with Division 12 of the California Water Code. The District was formed on January 18, 1954, through an election of local residents, mostly citrus grove operators, to have water service provided by a public water agency. East Valley Water District, known as the East San Bernardino County Water District until 1982, was originally formed to provide domestic water service to the then unincorporated and agriculturally-based community of Highland in southwestern San Bernardino County. Over the years, much of the District’s unincorporated service area has been annexed by the Cities of San Bernardino and Highland respectively, however water service has remained a function of the District. Today, East Valley Water District’s once agriculturally dominated area has become urbanized, with few of the once prominent orange groves remaining. The District is a retail water agency that treats and distributes potable water to customers through 293 miles of water distribution mains and 21,983 service connections. Currently, the District collects wastewater from 19,461 sewer connections throughout the 219 mile system where it is sent to the City of San Bernardino wastewater treatment facility for treatment in accordance with a Joint Powers Agreement between the agencies. Service Area and Population East Valley Water District is located approximately 65 miles east of Los Angeles. The entire service area is within the County of San Bernardino, California, along the foothills of the San Bernardino National Forest, and includes the City of Highland, eastern portion of the City of San Bernardino, and adjacent unincorporated areas. Additionally, the District provides water service to the San Manuel Band of Mission Indians and Patton State Hospital (Exhibit 1). The District’s service area encompasses 27.7 square miles, with a current service population of approximately 100,000 residents. San Bernardino County, including the EVWD service area, experienced many years of steady population growth prior to 2008. Since that point the District, like most of California, has experienced a noticeable reduction in population growth, 4 Leadership • Partnership • Stewardship but retains great growth potential. Of the area conducive to urbanization within the 17,750 acre service area, it is estimated that 70% of this land has already been developed, and roughly 5,200 acres is mountainous area within the San Bernardino National Forest that is unlikely to be developed. The District currently serves water to an area encompassing approximately 6,550 acres; it is estimated that there are an additional 6,000 vacant and developable acres in the service area. Parcels being currently served by the District consist of 73% single-family residential properties, 10% significant commercial land use and the remaining 17% in other types of land uses (Exhibit 2). Exhibit 1: East Valley Water District Service Area 5 Leadership • Partnership • Stewardship Exhibit 2: East Valley Water District Customer Base* METER TYPE NUMBER OF METERS ESTIMATED WATER USAGE (AFY) % OF CUSTOMERS VS. USAGE COMMENTS Residential 19,081 12,000 86.8%/58.5% Includes single- and multi-family properties. Commercial 2,589 6,000 11.8%/29.3% Includes retail, services, restaurants, schools, public buildings and fire service meters. Landscape 313 2,500 1.4%/12.2% Includes parks, large commercial, community and institutional landscape areas, and schools. Agricultural 0 0 0%/0% Agricultural customers are not metered by East Valley Water District. They receive water deliveries from the North Fork Water Company based shares and water availability. TOTAL 21,983 20,500 100%/100% *Adopted Fiscal Year 2014-15 Budget Disadvantaged Community Status EVWD provides services to residents within the City of Highland, portions of the City of San Bernardino and unincorporated County of San Bernardino. A large percentage of customers within the EVWD service area are considered to be a Disadvantaged Community (DAC). California defines a DAC as “a community with a median household income less than 80 percent of the statewide average.” Using GIS software and data provided by the American Community Survey for years 2006 to 2010, it is estimated that 49 percent of the population served by EVWD currently qualifies as a DAC. 6 Leadership • Partnership • Stewardship The District takes an active role in providing outreach material and services to all customers. One example of addressing the needs of DAC customers is the recent implementation of off-site payment kiosks. After careful review of customer payment habits, the District identified a high percentage of cash paying customers on the west end of the service area. With the recent relocation to the new headquarters location and an on-going commitment to providing world class customer service, the District deployed two custom cash-accepting payment kiosks at local markets and a drop box for checks in convenient locations. Due to the effectiveness of these efforts, the District is considering further payment option expansions. Future Water and Sewer Service Potential According to the 2010 San Bernardino Regional Urban Water Management Plan (RUWMP), East Valley Water District’s service area has great growth potential over the next 15 years. Development activity has resumed within the service area, with proposed projects such as the Harmony Development, Arnott Development, Highland Hills Development, and the Greenspot Village and Marketplace Development all in various stages of planning (Exhibit 3). Per existing zoning, undeveloped parcels consist of 63% single-family residential parcels with one-third acre or larger lot sizes, 17% smaller lot single-family residential, 7% commercial, 4% multi-family residential, with the remaining 9% in other types of land uses. Exhibit 3: East Valley Water District Service Area Development Activity 7 Leadership • Partnership • Stewardship Water Resources Overall, East Valley Water District has long strived to maximize sustainable use of local water supplies. Currently, East Valley Water District utilizes a mix of groundwater, local surface water, and minimal amounts of imported water. Since 2005, groundwater has made up approximately 80% of EVWD’s annual water supply, surface water from the Santa Ana River has made up between 15%, and imported water, purchased from San Bernardino Valley Municipal District, has been no more than 5% in any year. The District’s primary source of supply, groundwater, comes from the Bunker Hill Basin which is an adjudicated basin. Nine other public water agencies and a variety of mutual water companies also have active wells in the Basin, and collaborative through the Basin Technical Advisory Committee (BTAC) which is facilitated by San Bernardino Valley Municipal Water District in cooperation with Western Municipal Water District. Member agencies of the Bunker Hill Basin, including East Valley Water District, are actively participating in regional efforts to continue sustainable groundwater management practices. Surface water from the Santa Ana River is made available through shares of the North Fork Water Company. This mutual water company has been operational since 1885, and has surface water rights to the Santa Ana River. East Valley Water District owns 82% of the outstanding shares and manages the day-to-day operations, including holding annual shareholders meetings. EVWD has access to the State Water Project through San Bernardino Valley Municipal Water District and treats this source at the Philip A. Disch Surface Water Treatment Plant. This location was expanded in 2013 from four million gallon per day (MGD) to 8 million MGD capacity and transitioned to state-of-the-art ultra-filtration technology. The upgrade and expansion of this facility was made possible through $8 million in grants and loans from the California Department of Public Health. Having access to three sources of water allows the District greater system flexibility to meet water demands as the various supplies are available. However, in light if the need to serve future residents, EVWD is looking to forge a path of future local sustainability through the development of recycled water. 8 Leadership • Partnership • Stewardship Recycled Water EVWD provides sewage collection and conveyance service to its customers. Treatment is provided by the San Bernardino Water Department at their wastewater treatment plant, located downstream and outside of the District’s sphere of influence. A Joint Powers Agreement (JPA) formed in 1957 between East Valley Water District and the neighboring City of San Bernardino authorized the City to treat all sewage generated within the EVWD service area. As a result, EVWD is currently not responsible for the disposal of treated wastewater. However, in 2014, the District conducted a Water Reclamation Feasibility Study, to evaluate whether the District should continue sending all wastewater to the City of San Bernardino, send a portion and begin treating the remaining flows, or construct and operate a water recycling facility that would treat all of the District’s flows. The results from the study concluded that the best option for the community served by EVWD, in terms of both economic benefit and opportunities for enhanced local and regional sustainability, would be to activate the latent water treatment authority, as allowed by the California Water Code. The Board of Directors took action in October 2014 to move forward with the necessary process to construct and ultimately operate a water recycling center that would treat all wastewater flows created by East Valley Water District customers. This project is currently in the environmental and planning stage. EVWD is currently working with others in the region to discuss the pursuit of recycled water development in a manner that will maximize cost-effectiveness, sustainability, and potential environmental benefits. Water Rates East Valley Water District is dedicated to providing high-quality water and exceptional service. Currently, the District utilizes a uniform commodity rate structure. The District is currently looking for ways to partner with its customers to help them use water efficiently, and is currently considering a transition to budget based rates. This structure allows the lowest-cost water to be utilized for essentially use indoors. Efficient outdoor use would be charged at the next lowest cost with inefficient water use assigned the highest cost, rewarding customers that use water efficiently. Budget based rates are an industry best practice and are proven to a certain level of long-term financial stability while encouraging water conservation. 9 Leadership • Partnership • Stewardship LEGISLATIVE PLATFORM The East Valley Water District 2015/16 Legislative Platform summarizes the Board of Directors positions regarding legislative and regulatory issues of concern without limiting the consideration of additional legislative issues should they arise. Staff will seek the Board’s guidance on issues that are not contained within the adopted Legislative Platform. Maintaining this document allows for the timely response to issues identified as important and consistent with the District’s Legislative Platform, including letters to key stakeholders and delegates in Sacramento, Washington D.C., and other public officials (Exhibit 4). Exhibit 4: East Valley Water District Roles & Responsibilities Role Responsibilities Board of Directors  Review, advise and adopt annual Legislative Platform.  Participate in meetings with legislators, staff and other public officials, as needed.  Testify on behalf of the District, as needed.  Refrain from lobbying, advocating or taking a position contrary to the Board’s adopted position. Board Members may, as allowed by law, take positions as an individual citizen so long as the correspondence clearly identifies that it is the position of the individual rather than the District. General Manager/Staff  Monitor legislation and regulations that impact the District.  Coordinate advocacy efforts with the Board of Directors to promote the interests of EVWD to decision makers at all levels of government.  Participate in meetings with legislators, Board of Directors and other public officials, as needed.  Prepare and present testimonies on behalf of the District, as needed.  Update the Legislative Platform, as approved by the Board of Directors.  Work with Legislative Advocates and Consultants to maintain Legislative Platform, as needed.  The General Manager and designated staff may participate in legislative advocacy on behalf of the Board of Directors, so long as it is consistent with the Strategic Initiatives and Legislative Platform. 10 Leadership • Partnership • Stewardship The Legislative Platform reflects the Board of Directors Strategic Initiatives and is designed to serve as a guide to for East Valley Water District’s legislative advocacy efforts (Exhibit 5). Exhibit 5: Legislative & Regulatory Platform Consider Supporting  State legislation that would examine water use efficiency, not building size or acreage, when determining whether a water supply assessment is needed for commercial or industrial projects.  Federal and State development of funding programs for water supply development, including new surface and groundwater storage, water quality, recycled water, and conservation-related programs.  Federal and State legislation and regulations that work to reduce the cost of electricity for EVWD core functions.  Federal and State efforts to encourage Endangered Species Act implementing resource agencies to implement a more integrated and diversified approach to species recovery efforts.  Federal and State efforts that ease the path to development of recycled water resources.  State legislation and administrative actions regarding efficient and fair implementation of the water bond programs. Consider Opposing  State legislation that seeks to limit or alter the authority and fiduciary role of the Board of Directors to manage the water and wastewater collection systems, impose unfunded state mandated programs, or increase fees, property-related charges or taxes on EVWD customers.  State legislation that would inappropriately assert the authority of the Legislature to alter or condition existing authority to construct, operate and maintain State Water Project facilities in order to convey water across the Sacramento-San Joaquin Delta.  State legislation that would hinder the exercise of existing EVWD authority in the area of public contracts, procurement, financial administration, public records, and human resources.  Federal and State legislation and regulations that hinder the ability of EVWD to protect and secure critical infrastructure from cyber or physical threats and damages.  Federal and State legislation to establish Public Health Goals and Maximum Contaminant Levels outside of the procedures set forth in the Federal and California Safe Drinking Water Acts.  The expansion of water conservation and water use efficiency program mandates that remove or reduce the authority of the Board of Directors to design and implement at the local level.  State legislation that would establish a statewide water fee. Table of Contents FY 2014-15 Mid-Year Budget Review Overview •Financial Summary of Revenues & Expenditures •Year to Date Accomplishments and Performance Measures •Capital Expenses •Ongoing Goals & Objectives Financial Operating Summary OPERATING BUDGET FY 2014‐15 BUDGET YEAR TO DATE ACTIVITY FY 2014‐15 PROJECTED Revenues 31,061,600 17,173,006 31,436,600 Expenses 31,061,600 15,574,731 33,036,600 $‐ $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 JUL AUG SEP OCT NOV DEC Expense Revenue Operational Summary AMOUNT OF WATER PRODUCED FY 2014 12,000 AF FY 2015 10,300 AF % Change ‐14% NUMBER OF CUSTOMER ACCOUNTS FY 2014 20,400 FY 2015 21,000 Change in Customers 600 Water Fund Revenues $‐ $0.50 $1.00 $1.50 $2.00 July Aug Sept Oct Nov Dec Mi l l i o n s Water Sales Actual Sales Projected Sales Mid‐Year Projections Mid‐Year Actuals +/‐ $ 8,700,000 $ 8,300,000 $ ‐400,000 Revenue Summary Water Sales 61% Meter Charges 17% WW Collection Charges 17% Revenues Year to Date Operating Expenses 70% Utilities 18% Capital 12% Expenses Year to Date FY 2015 Mid-Year Adjustments PROJECT/DESCRIPTION ADJUSTMENT Virtualization – increase backup, storage, & recovery 250,000 Meter Replacement Program –Install automated meters 500,000 Sewer Manhole Relocation – Relocated/Repair manhole located in City Creek 200,000 Sewer Capacity Improvements – Planning & Design of sewer system to increase capacity 175,000 Recycled Water Facility – Planning & Design of treatment facility 1,600,000 Sub‐total 2,725,000 Re‐prioritize Programs and Projects $ ‐1,125,000 RESERVE TRANSFERS $ 1,600,000 Accomplishments & Performance Measures Operational Accomplishments & Measures Policy Handbook Policy Handbook Water Recycling Feasibility Study Water Recycling Feasibility Study Cost of Service & Water Rate Study Cost of Service & Water Rate Study 3 3 3 Governing Board Operational Accomplishments & Measures Capital Improvement Projects North Fork Water Company Water Budget Based Rates Rate Committee Meetings 6 Landscape Verifications 85 Community Outreach Meetings 8 Prop 218 Notices Mailed 45,000 •Hosted 2014 Summer Series Water Conservation Workshop •Implemented State Drought Regulations •Implemented enhanced Conservation Programs •Completed Recycled Water Feasibility Study $0$0 $20K$20K $40K$40K Conservation Rebates Disbursed Drought Regulation Compliance 00 100100 Water Use Evaluations 00 5050 Operational Accomplishments & Measures 15,100 Work Orders Completed Hosted 23 Community Events at the new District Head Quarters 3 Private Events = $900 Rental Fee Operational Accomplishments & Measures 136 Main Leak Repairs Average Time to Complete a Ticket: 3 Days Average Help Requests 21 per week Live Applications •Incode Financials •Utility Billing •Cityworks •GIS/Inframap •Cisco Phones •Granite Net Help Desk Network GIS Special Projects 0 100 200 300 400 IT Tickets Completed by Type Operational Accomplishments & Measures Accomplishments •Submitted Financial documents for National Awards •Update Capacity Fees •Customer Service Training Program •Payroll conversion in‐house •Completion of the IT Strategic Plan •Received McMurchie Excellence in Safety Award from SDRMA Accomplishments •Renegotiated 3 year Employee MOU –Performance Based Program –Increased employee retirement contribution •Increased Energy Incentive Rebates by $100,000 with Edison •Implemented automated customer courtesy calls •Deployed 2 payment kiosks •HQ is available for community use. Accomplishments •Continued active participation in Habitat Conservation Plan effort •Manage In‐Lieu Program to address Regional Water Supply shortages •Multiple Industry Awards for the HQ Construction Project •Implemented electronic vendor payment solution Continuing Forward 01 RECYCLED WATER TREATMENT FACILITY 02 IMPLEMENTWATER BUDGET BASED RATES 03 STRATEGIC PLANNING EFFORTS 04 NORTH FORK WATER COMPANY 05 BOARD OF DIRECTORS ELECTIONS Questions