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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 10/11/2023BOARD OF DIRECTORS OCTOBER 11, 2023 East Valley Water District was formed in 1954 and provides water and wastewater services to 104,000 residents within the cities of San Bernardino and Highland, and portions of San Bernardino County. EVWD operates under the direction of a 5­member elected Board. GOVERNING BOARD EXECUTIVE MANAGEMENT Phillip R. Goodrich Chairman of the Board Michael Moore General Manager/CEO James Morales, Jr. Vice­Chairman Brian W. Tompkins Chief Financial Officer Chris Carrillo Governing Board Member Jeff Noelte Director of Engineering & Operations Ronald L. Coats Governing Board Member Kerrie Bryan Director of Administrative Services David E. Smith Governing Board Member Patrick Milroy  Operations Manager Rocky Welborn  Water Reclamation Manager Justine Hendricksen District Clerk Board of Directors Regular Meeting & Public Hearing October 11, 2023 ­ 5:30 PM 31111 Greenspot Road, Highland, CA 92346 www.eastvalley.org PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection in the District’s office located at 31111 Greenspot Rd., Highland, during normal business hours. Also, such documents are available on the District’s website at eastvalley.org and are subject to staff’s ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability­related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above agendized public meeting should be directed to the District Clerk at (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. 1.AGENDA This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. a.Approval of Agenda 2.APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. a.Approve the September 18, 2023 Special Board Meeting Minutes b.Approve the September 27, 2023 Regular Board Meeting Minutes c.Approval of Directors' Fees and Expenses for September 2023 d.Adopt Resolution 2023.14 Recognizing Matthew Armitage's 25 Years of Service 3.DISCUSSION AND POSSIBLE ACTION ITEMS a.Reject Proposal and Consider Approval of Laboratory Services for Wastewater Analysis Agreement with Eurofins Eaton Analytical, LLC b.Consider Adoption of Resolution 2023.15 ­ Updating Water Capacity Fees, Public Hearing 4.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report Water Supply Update c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSOCTOBER 11, 2023East Valley Water District was formed in 1954 and provides water and wastewater services to104,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.GOVERNING BOARD EXECUTIVE MANAGEMENTPhillip R. GoodrichChairman of the Board Michael MooreGeneral Manager/CEOJames Morales, Jr.Vice­Chairman Brian W. TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsRonald L. CoatsGoverning Board Member Kerrie BryanDirector of Administrative ServicesDavid E. SmithGoverning Board Member Patrick Milroy Operations ManagerRocky Welborn Water Reclamation ManagerJustine Hendricksen District Clerk Board of Directors Regular Meeting & Public Hearing October 11, 2023 ­ 5:30 PM 31111 Greenspot Road, Highland, CA 92346 www.eastvalley.org PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection in the District’s office located at 31111 Greenspot Rd., Highland, during normal business hours. Also, such documents are available on the District’s website at eastvalley.org and are subject to staff’s ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability­related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above agendized public meeting should be directed to the District Clerk at (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. 1.AGENDA This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. a.Approval of Agenda 2.APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. a.Approve the September 18, 2023 Special Board Meeting Minutes b.Approve the September 27, 2023 Regular Board Meeting Minutes c.Approval of Directors' Fees and Expenses for September 2023 d.Adopt Resolution 2023.14 Recognizing Matthew Armitage's 25 Years of Service 3.DISCUSSION AND POSSIBLE ACTION ITEMS a.Reject Proposal and Consider Approval of Laboratory Services for Wastewater Analysis Agreement with Eurofins Eaton Analytical, LLC b.Consider Adoption of Resolution 2023.15 ­ Updating Water Capacity Fees, Public Hearing 4.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report Water Supply Update c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSOCTOBER 11, 2023East Valley Water District was formed in 1954 and provides water and wastewater services to104,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.GOVERNING BOARD EXECUTIVE MANAGEMENTPhillip R. GoodrichChairman of the Board Michael MooreGeneral Manager/CEOJames Morales, Jr.Vice­Chairman Brian W. TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsRonald L. CoatsGoverning Board Member Kerrie BryanDirector of Administrative ServicesDavid E. SmithGoverning Board Member Patrick Milroy Operations ManagerRocky Welborn Water Reclamation ManagerJustine HendricksenDistrict ClerkBoard of Directors Regular Meeting & Public HearingOctober 11, 2023 ­ 5:30 PM31111 Greenspot Road, Highland, CA 92346www.eastvalley.orgPLEASE NOTE:Materials related to an item on this agenda submitted to the Board after distribution of theagenda packet are available for public inspection in the District’s office located at 31111Greenspot Rd., Highland, during normal business hours. Also, such documents are availableon the District’s website at eastvalley.org and are subject to staff’s ability to post thedocuments before the meeting.Pursuant to Government Code Section 54954.2(a), any request for a disability­relatedmodification or accommodation, including auxiliary aids or services, that is sought in orderto participate in the above agendized public meeting should be directed to the District Clerkat (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. 1.AGENDA This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. a.Approval of Agenda 2.APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. a.Approve the September 18, 2023 Special Board Meeting Minutes b.Approve the September 27, 2023 Regular Board Meeting Minutes c.Approval of Directors' Fees and Expenses for September 2023 d.Adopt Resolution 2023.14 Recognizing Matthew Armitage's 25 Years of Service 3.DISCUSSION AND POSSIBLE ACTION ITEMS a.Reject Proposal and Consider Approval of Laboratory Services for Wastewater Analysis Agreement with Eurofins Eaton Analytical, LLC b.Consider Adoption of Resolution 2023.15 ­ Updating Water Capacity Fees, Public Hearing 4.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report Water Supply Update c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSOCTOBER 11, 2023East Valley Water District was formed in 1954 and provides water and wastewater services to104,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.GOVERNING BOARD EXECUTIVE MANAGEMENTPhillip R. GoodrichChairman of the Board Michael MooreGeneral Manager/CEOJames Morales, Jr.Vice­Chairman Brian W. TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsRonald L. CoatsGoverning Board Member Kerrie BryanDirector of Administrative ServicesDavid E. SmithGoverning Board Member Patrick Milroy Operations ManagerRocky Welborn Water Reclamation ManagerJustine HendricksenDistrict ClerkBoard of Directors Regular Meeting & Public HearingOctober 11, 2023 ­ 5:30 PM31111 Greenspot Road, Highland, CA 92346www.eastvalley.orgPLEASE NOTE:Materials related to an item on this agenda submitted to the Board after distribution of theagenda packet are available for public inspection in the District’s office located at 31111Greenspot Rd., Highland, during normal business hours. Also, such documents are availableon the District’s website at eastvalley.org and are subject to staff’s ability to post thedocuments before the meeting.Pursuant to Government Code Section 54954.2(a), any request for a disability­relatedmodification or accommodation, including auxiliary aids or services, that is sought in orderto participate in the above agendized public meeting should be directed to the District Clerkat (909) 885­4900 at least 72 hours prior to said meeting.In order to comply with legal requirements for posting of agenda, only those items filedwith the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesdaymeeting not requiring departmental investigation, will be considered by the Board ofDirectors.CALL TO ORDERPLEDGE OF ALLEGIANCEROLL CALL OF BOARD MEMBERSPUBLIC COMMENTSAny person wishing to speak to the Board of Directors is asked to complete a SpeakerCard and submit it to the District Clerk prior to the start of the meeting. Each speaker islimited to three (3) minutes, unless waived by the Chairman of the Board. Under the Stateof California Brown Act, the Board of Directors is prohibited from discussing or takingaction on any item not listed on the posted agenda. The matter will automatically bereferred to staff for an appropriate response or action and may appear on the agenda at afuture meeting.1.AGENDAThis agenda contains a brief general description of each item to be considered.Except as otherwise provided by law, no action shall be taken on any item notappearing on the following agenda unless the Board of Directors makes adetermination that an emergency exists or that a need to take immediate action onthe item came to the attention of the District subsequent to the posting of theagenda.a.Approval of Agenda2.APPROVAL OF CONSENT CALENDARAll matters listed under the Consent Calendar are considered by the Board ofDirectors to be routine and will be enacted in one motion. There will be nodiscussion of these items prior to the time the board considers the motion unlessmembers of the board, the administrative staff, or the public request specific itemsto be discussed and/or removed from the Consent Calendar.a.Approve the September 18, 2023 Special Board Meeting Minutesb.Approve the September 27, 2023 Regular Board Meeting Minutesc.Approval of Directors' Fees and Expenses for September 2023d.Adopt Resolution 2023.14 Recognizing Matthew Armitage's 25 Years of Service 3.DISCUSSION AND POSSIBLE ACTION ITEMS a.Reject Proposal and Consider Approval of Laboratory Services for Wastewater Analysis Agreement with Eurofins Eaton Analytical, LLC b.Consider Adoption of Resolution 2023.15 ­ Updating Water Capacity Fees, Public Hearing 4.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report Water Supply Update c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN Agenda Item #2a October 11, 20231 Meeting Date: October 11, 2023 Agenda Item #2a Consent Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Approve the September 18, 2023 Special Board Meeting Minutes RECOMMENDATION That the Board of Directors approve the September 18, 2023 special Board meeting minutes as submitted. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability B. Utilize Effective Communication Methods REVIEW BY OTHERS This agenda item has been reviewed by Administration. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Justine Hendricksen District Clerk ATTACHMENTS Draft September 18, 2023 Special Board Meeting Minutes Strategic Planning Workshop Special Board Meeting Meeting Date: September 18, 2023 CALL TO ORDER The Chairman of the Board called the meeting to order at 5:01 p.m. PLEDGE OF ALLEGIANCE Director Coats led the flag salute. ROLL CALL OF BOARD MEMBERS PRESENT Directors: Carrillo, Coats, Goodrich, Morales, Smith ABSENT None STAFF Michael Moore, General Manager/CEO; William Ringland, Public Affairs/Conservation Manager; Justine Hendricksen, District Clerk LEGAL COUNSEL None GUESTS Amy Stevens, Water Systems Consulting (WSC); Ash Dhingra, AKD Consulting PUBLIC COMMENTS Chairman Goodrich declared the public participation section of the meeting open at 5:31 p.m. There being no written or verbal comments, the public participation section was closed. Subject to approval 1 2 0 1 1. Informational Items a.Strategic Planning Workshop The General Manager/CEO stated that the District will be conducting a comprehensive review of the current strategic plan to identify what needs to be updated/changed based on challenges the District has faced over the past few years, including the pandemic, new development, and drought conditions in California. He stated that this will be a collaborative process, and the District will be holding several planning sessions with the Board, stakeholders, and staff. The Public Affairs/Conservation Manager provided an overview of the Strategic Planning process and introduced Amy Stevens from WSC and sub-consultant Ash Dhingra from AKD Consulting. Ms. Stevens and Mr. Dhingra will help facilitate the discussion and work through the framework of the strategic planning efforts. Ms. Stevens reviewed the agenda for the meeting and asked the Board to review the existing core values to see if they are still relevant and to ensure they align with the District’s objectives, and reflect any shifts in priorities or values. She described the project scope and stated that there are several components of the District’s Strategic Plan, including: Mission, Vision, Values, Strategies and Goals. She stated that we will evaluate the current plan and develop a new strategic plan which will be actionable, measurable, and include key performance indicators. She stated that the plan should be flexible and adaptable, allowing the District to respond effectively to changing circumstances and challenges. She reviewed comments received from the Community Advisory Committee regarding the District’s Vision and whether a Mission Statement is needed. Ms. Stevens provided in-depth details of the planning process, building blocks, long- term vision, implementation, and timeline. Ms. Stevens responded to several questions from the Board. 2. Reports a. Board of Directors’ Comments Director Coats appreciates the collaboration process. Director Carrillo stated that he appreciates the free-flowing conversation and exchanging ideas in a way that there is no judgment. Vice Chairman Morales stated that he enjoys the relaxed nature of these types of meetings. He agrees with several comments and likes the idea that this is custom tailored to where we are going and where we have been. 1 2 0 1 Director Smith stated that this was a very enlightening meeting, he appreciates that we will be filling in the needed gaps and that these meetings make the process very interesting. Chairman Goodrich stated that he looks forward to the next meeting. For information only. ADJOURN Chairman Goodrich adjourned the meeting at 7:44 p.m. Phillip R. Goodrich, Board President Michael Moore, Board Secretary Agenda Item #2b October 11, 20231 Meeting Date: October 11, 2023 Agenda Item #2b Consent Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Approve the September 27, 2023 Regular Board Meeting Minutes RECOMMENDATION That the Board of Directors approve the September 27, 2023 regular Board meeting minutes as submitted. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability B. Utilize Effective Communication Methods REVIEW BY OTHERS This agenda item has been reviewed by Administration. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Justine Hendricksen District Clerk ATTACHMENTS Draft September 27, 2023 Regular Board Meeting Minutes Regular Board Meeting Meeting Date: September 27, 2023 CALL TO ORDER The Chairman of the Board called the meeting to order at 4:30 p.m. ROLL CALL OF BOARD MEMBERS PRESENT Directors: Carrillo, Coats, Goodrich, Morales, Smith ABSENT None STAFF Michael Moore, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Jeff Noelte, Director of Engineering and Operations; Kerrie Bryan, Director of Administrative Services; Patrick Milroy, Operations Manager; Rocky Welborn, Water Reclamation Manager; William Ringland, Public Affairs/Conservation Manager; Justine Hendricksen, District Clerk; Shayla Antrim, Administrative Specialist LEGAL COUNSEL Jean Cihigoyenetche GUESTS Members of the public PUBLIC COMMENTS Chairman Goodrich declared the public participation section of the meeting open at 4:31 p.m. There being no written or verbal comments, the public participation section was closed. Draft pending approval 1 2 7 8 1.APPROVAL OF AGENDA a.Approval of Agenda A motion was made by Director Smith, seconded by Vice Chairman Morales, that the Board approve the September 27, 2023 agenda as submitted. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None 2.RECESS INTO CLOSED SESSION The Board entered into Closed Session at 4:31 p.m. as provided in the Ralph M. Brown Act Government Code Section 54957 to discuss the item listed on the agenda. RECONVENE THE MEETING The Board reconvened the meeting at 5:30 p.m. PLEDGE OF ALLEGIANCE Director Carrillo led the flag salute. ROLL CALL OF BOARD MEMBERS PRESENT Directors: Carrillo, Coats, Goodrich, Morales, Smith ABSENT None ANNOUNCEMENT OF CLOSED SESSION ACTIONS With respect to Item #2a: Legal Counsel stated that no reportable action was taken. PRESENTATIONS AND CEREMONIAL ITEMS •Introduction of Newly Hired Employee o Joseph Tejada, Field Service Worker I The General Manager/CEO introduced and welcomed the newly hired employee to the Board. Information only. PUBLIC COMMENTS Chairman Goodrich declared the public participation section of the meeting open at 5:33 p.m. 1 2 7 8 Susan Silveria made a public comment in opposition to work being performed by the District on her property. She stated that she’d like the record to reflect that the trees of concern are not adjacent to her property, but are on her property. The General Manager/CEO responded to the Board regarding Ms. Silveria’s comments. There being no further written or verbal comments, the public participation section was closed at 5:39 p.m. 3.APPROVAL OF CONSENT CALENDAR a.Approve the September 13, 2023 Regular Board Meeting Minutes b.Investment Transaction Report for Month Ended August 31, 2023 c.August 2023 Disbursements: Accounts payable disbursements for the period include check numbers 261670 through 261826, bank drafts, and ACH payments in the amount of $8,432,544.04 and $461,036.31 for payroll A motion was made by Director Coats, seconded by Director Smith, that the Board approve the Consent Calendar items as submitted. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None 4.INFORMATIONAL ITEMS a. Regional Recycled Water Facilities Update The Director of Engineering and Operations provided an update on the last phases of the regional recycled water facilities project. Information presented included, but not limited to the construction of the Regional Recycled Water Pipeline where 2,000 feet remain to be constructed, interagency collaboration with San Bernardino Valley Municipal Water District, and Weaver Basin's site improvements. The General Manager/CEO stated that now that the pipeline is near completion, staff will begin putting together a schedule of the startup plan for the project and will bring the plan to the Board in late October. For information only. 5.DISCUSSION AND POSSIBLE ACTION ITEMS a. Consider Approval of Extension of Contract with HORNE LLP to Receive Low Income Household Water Assistance Program (LIHWAP) Payments The Chief Financial Officer provided information regarding an extension of the District’s contract with HORNE LLP for the Low Income Household Water Assistance Program (Program). He stated that in November 2022 the Board authorized the District's 1 2 7 8 enrollment in the Program and executed a contract with HORNE LLP to disburse funds to LIHWAP participating agencies on behalf of eligible households. The Program was designed to assist low-income households who are delinquent on their water bills, by paying up to $2,000 of their delinquent balance. The LIHWAP program was revised in March 2023, making up to $15,000 per household available (one time), and allowed LIHWAP funds to cover current and future bills. The District's contract with HORNE LLP can be extended through May 31, 2024, or as long as funds are available. The Chief Financial Officer stated that the District’s local service provider of the Program is the Community Action Partnership of San Bernardino County. He stated that the District doesn’t have any part in determining the eligibility of our customers participating in the program and customers are directed to contact the Community Action Partnership to apply. He stated that from December 2022 to September 2023, District customers have been provided $93,251 in bill payment assistance, distributed among 157 customers. He added that the contract extension was not included in the agenda packet because it was received today; and that it is a one-page memo extending the contract with HORNE LLP to May 2024. A motion was made by Director Carrillo, seconded by Director Coats, that the Board of Directors authorize the General Manager/CEO to execute a contract extension with HORNE LLP. The motion was carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None b. Consider Approval of Contracts with Logicalis and Wirenet for an Enhanced Security Camera System at Plant 134 The Information Technology Manager discussed the need for enhanced security equipment at Plant 134. He described some of the security challenges and problems in the area, and discussed the features of the enhanced security system. The IT Manager stated that two quotes were received for the installation of the cameras and one for the purchase of the cameras. He recommends that the District award a contract to Logicalis for Meraki cameras and to Wirenet for the installation. A motion was made by Director Coats, seconded by Vice Chairman Morales, that the Board of Directors authorize the General Manager/CEO to enter into contracts with Logicalis and Wirenet for the purchase and installation of an enhanced security camera system at Plant 134 as submitted. The motion was carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None 1 2 7 8 c. Consider Approval of Water Quality Permitting Services Contract Amendment No. 3 with Woodard & Curran for the Sterling Natural Resource Center The Director of Engineering and Operations stated that the Sterling Natural Resource Center (SNRC) requires extensive water quality analysis and monitoring to obtain permits for the groundwater recharge project. The Woodard & Curran consulting firm has been involved in the project since 2015, providing engineering documents, modeling, and other services. Amendments No. 1 and No. 2 were executed to reflect changes in the project, including the anaerobic digestion system and the discharge location. The regulators have accepted the engineering documents, and now the focus is on completing the monitoring requirements before the operation of the SNRC can begin. Staff recommends amending Woodard & Curran's scope of services with Amendment No. 3 for $336,322, bringing the total contract amount to $938,635. A motion was made by Vice Chairman Morales, seconded by Director Carrillo, that the Board of Directors authorize the General Manager/CEO to execute contract amendment No. 3 with Woodard & Curran to provide additional Water Quality Permitting Services for the Sterling Natural Resource Center project for a not-to-exceed amount of $336,322 as submitted. The motion was carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None d. Review General Manager/CEO Achievement of Goals and Objectives, Determination of Performance Award (first half of item) Legal Counsel stated that pursuant to the General Manager/CEO’s employment contract, he is entitled to an annual review of his performance by the Board of Directors to determine if his Goals and Objectives have been met for the preceding year, and to determine the overall performance of his work. He stated that in closed session matters were discussed and considered by the Board. Pursuant to section 3.d. of his employment agreement the Board is charged with determining if the General Manager/CEO is entitled to his performance award of up to 10% of his base annual salary. The Board praised the General Manager/CEO for his performance and leadership during the past year. A motion was made by Director Coats, seconded by Vice-Chairman Morales, that the Board approve the General Manager/CEO’s pay for performance award in the amount of 10% of his base salary, totaling approximately $30,000. The motion was carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith 1 2 7 8 Noes: None Absent: None d. Consider Approval of Amendments to General Manager/CEO Employment Agreement (second half of item) Legal Counsel stated that the second item of discussion is a proposed contract amendment to Section 3.g. of the General Manager/CEO’s employment agreement. He provided details regarding the proposed amendment. Legal Counsel presented the proposed amendment to the General Manager/CEO’s contract as follows: increase the contribution to the General Manager/CEO’s supplemental retirement 401(a) plan from $20,000 to $40,000 annually. A motion was made by Director Coats, seconded by Vice Chairman Morales, that the Board approve the amendment to the General Manager/CEO’s Employment Agreement as presented. The motion was carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None e. Consider Approval of General Manager/CEO's 2023-24 Goals and Objectives The Chairman of the Board stated that as part of the General Manager/CEO’s annual performance evaluation, the Board of Directors develop goals and objectives to provide direction and measure degrees of organizational success. The General Manager/CEO’s FY 2023-24 Goals and Objectives have been developed to reflect the priorities laid out in the Agency's Goals and Objectives and the District’s Five-Year Plan. He read each of the proposed FY 2023-24 goals and objectives to the Board. Director Smith stated that he looks forward to working with the General Manager/CEO on his goals and objectives. Director Coats stated that the General Manager/CEO has a lofty set of goals. Vice Chairman Morales stated that he likes how the General Manager/CEO’s goals align with the agency’s goals and objectives. A motion was made by Director Carrillo, seconded by Director Coats, that the Board approve the 2023-24 General Manager/CEO’s Goals and Objectives as submitted. The motion carried by the following roll call vote: Ayes: Coats, Goodrich, Carrillo, Morales, Smith Noes: None Absent: None 1 2 7 8 6.REPORTS a.Board of Directors’ Reports Director Coats reported on the following: September 9 he participated in the California Special Districts Association webinar Preparing for Fiscal Year 2025 Congressional Earmarks; September 11 he attended the Finance & Human Resources Committee meeting where they discussed LIHWAP and the Summer Internship Program; September 11 he attended the Association of San Bernardino County Special Districts Board meeting where they discussed their upcoming monthly membership meeting; September 12-15 he attended the Water Education Foundation’s Eastern Sierra Tour; September 18 he attended the District’s Strategic Planning Session; September 20 he met with the General Manager/CEO to discuss District business; September 26 he attended the San Bernardino Valley Municipal Water District’s Workshop where they discussed their Director Handbook; and September 26 he attended the Highland Chamber of Commerce meeting where the guest speaker was former State Senator Mike Morrell. Director Carrillo reported on the following: September 14 he attended the Highland State of the City event where the mayor provided a report on the State of the City; September 18 he attended the District’s Strategic Planning Session; and September 26 he met with the General Manager/CEO to discuss District business. Director Smith reported on the following: September 14 he attended the Highland State of the City event where the mayor provided a report on the State of the City; September 18 he attended the District’s Strategic Planning Session; September 19 he met with the General Manager/CEO to discuss District business; September 25 he attended the Local Agency Formation Commission for San Bernardino County meeting with nothing to report; and September 26 he attended the Highland Chamber of Commerce meeting where former Senator Mike Morrell discussed the U.S. Constitution. Vice Chairman Morales reported on the following: September 18 he attended the District’s Strategic Planning Workshop; September 19 he attended the San Bernardino Valley Municipal Water District meeting where they discussed the State Water Project; September 21 he met with the General Manager/CEO to review the agenda and to discuss District business; September 25 he attended the Engineering & Operations Committee meeting; and September 26 he attended the City of San Bernardino Water Department meeting. Chairman Goodrich reported on the following: September 14 he attended the Highland State of the City event where the mayor provided a summary of the status of the City; September 18 he attended the District’s Strategic Planning Session; September 21 he met with the General Manager/CEO to review the agenda and to discuss District business; September 25 he attended the Engineering & Operations Committee meeting where they provided updates on the Sterling Natural Resource Center and Plant 134; 1 2 7 8 and September 26 he attended the Highland Chamber of Commerce meeting where former Senator Mike Morrell was the speaker. For information only. a.General Manager/CEO Report The General Manager/CEO thanked the Board for his incentive and thanked staff for their positive attitude during the transition over the past year. The General Manager/CEO announced the following: •Today he met with the Highland Police Captain, Chief and Lieutenant to discuss the Emergency Operations Center and to prepare for future emergency operations. •September 28 the District will be hosting its annual Health Benefits Fair for staff. Several vendors will be available to answer questions regarding health benefit selections and supplemental plans, as well as representatives from local businesses providing information on their services. •October 2 staff will be participating in a Strategic Planning Workshop to discuss possible changes/modifications to the District’s Goals & Objectives. •October 9 District’s offices and customer service lines will be closed due to the holiday. Customers may pay their bill online, by phone, or at any 7-Eleven location. To report a water emergency, residents can call (909) 889-9501 and on-call staff will provide assistance. •The District hosted a Conservation Workshop at the Sterling Natural Resource Center with the topic of Overcoming Common Landscaping Challenges. This was an opportunity to invite members of the community to learn about different tactics and techniques in creating a water-efficient outdoor space. We had about 60 community members attend and have the next workshop scheduled for October 21. •East Valley Water District engages with schools in our community to highlight the career opportunities available within the water industry. Last week, a member of our wastewater treatment team, Ryan Cerros, visited San Gorgonio High School and showcased the different job pathways to almost 400 students. •Director Coats and the District’s Public Affairs/Conservation Manager participated in the Water Education Foundation’s tour of the Eastern Sierras. This tour showcased the important water infrastructure across the State and highlighted the value of making investments needed to maintain a safe and reliable water supply. 1 2 7 8 •The District started the repairs of the North Fork pipeline on Highland Avenue yesterday. So far, the repair work involves accessing the pipe just off the edge of the road within the North Fork property and removing large roots that have blocked the flow of water in the pipeline. The pipeline is a critical facility to the District that supplies water from the Santa Ana River to the District’s surface water treatment plant, Plant 134. He stated that he is hopeful that we can complete the repair operation within a couple of weeks and restore the water supply to the treatment plant which supplies about 25% of our customers' water. For information only. b.Legal Counsel Report No report at this time. c.Board of Directors’ Comments Director Smith congratulated the General Manager/CEO on his success. Director Coats commended staff for the work they do each and every day and added that he looks forward to the future with the General Manager/CEO. Vice Chairman Morales provided an update on the Association of California Water Agencies (ACWA) election results, as follows: ACWA Board for 2024-25 Term Cathy Green, President Ernie Avila, Vice President ACWA Region 9 for 2024-25 Term Patrick O’Dowd, Chair Carol Lee Gonzales-Brady, Vice Chair Brenda Dennstedt, Governing Board Member Gina Dockstader, Governing Board Member James Morales Jr., Governing Board Member Paul Ortega, Governing Board Member Harvey Ryan, Governing Board Member Chairman Goodrich stated that he appreciates staff and all that they do. For information only. ADJOURN 1 2 7 8 Chairman Goodrich adjourned the meeting at 7:03 p.m. Phillip R. Goodrich, Board President Michael Moore, Board Secretary Agenda Item #2c October 11, 20231 Meeting Date: October 11, 2023 Agenda Item #2c Consent Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Approval of Directors' Fees and Expenses for September 2023 RECOMMENDATION That the Board of Directors approve the Directors' Fees and Expenses for September 2023 as submitted. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by Administration. FISCAL IMPACT The fiscal impact associated with this agenda item is $10,894.41 which is included in the current fiscal year budget. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Justine Hendricksen District Clerk ATTACHMENTS September 2023 Director Expense Reports Name: Month / Year:2023 Meeting No.Stipend Written Oral 1 9 /06 236.25 2 9 /08 236.25 3 9 /13 236.25 4 9 /14 236.25 5 9 /18 236.25 6 9 /26 236.25 7 9 /27 236.25 8 9 10 11 12 13 14 15 16 17 18 19 20 Meetings 0.655/mi No. 1 2 3 4 5 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval Chris Carrillo September / 0.00 X 7 Report Provided Subtotal Meetings' Stipend Mileage Administration Signature I certify that the above is correct and accurate to the best of my knowledge. Chris Carrillo Date Meeting / Event Description Date City of San Bernardino Council Meeting Agenda Review Regular Board Meeting $1,653.75 $1,653.75 $0.00 Reimbursement Mileage Miscellaneous Reimbursement Description Highland State of the City Special Board Meeting Agenda Review Regular Board Meeting Expense Type $0.00 DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2023 1 2 3 4 5 Event Description:Special Board Meeting Brief Description of Meeting/Event Value to EVWD Attend special board meeting regarding strategic planning session. Brief Description of Meeting/Event Value to EVWD Attend regular board meeting. Meeting Date:9 / 14 / 2023 Event Description:Highland State of the City Brief Description of Meeting/Event Value to EVWD Attend Highland State of the City event. Meeting Date:9 / 18 / 2023 Meeting Date:9 / 8 / 2023 Event Description:Agenda Review Brief Description of Meeting/Event Value to EVWD Meeting Date:9 / 13 / 2023 Event Description:Regular Board Meeting Conference call with CEO Moore regarding agenda review. Chris Carrillo September / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Meeting Date: Event Description: Attend via Zoom City Council meeting. 9 / 6 / 2023 City of San Bernardino Council Meeting Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 2 Name: Month / Year:2023 6 7 8 9 10 Chris Carrillo September / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Event Description: Brief Description of Meeting/Event Value to EVWD Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Conference call with CEO Moore regarding agenda review. Meeting Date:9 / 27 / 2023 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Attend regular board meeting. Meeting Date: Meeting Date:9 / 26 / 2023 Event Description:Agenda Review Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 3 Name: Month / Year:2023 Meeting No.Stipend Written Oral 1 9 /06 236.25$ 2 9 /11 236.25$ 3 9 /11 -$ 4 9 /12 236.25$ 5 9 /13 236.25$ 6 9 /14 236.25$ 7 9 /15 236.25$ 8 9 /18 236.25$ 9 9 /20 236.25$ 10 9 /26 -$ 11 9 /26 -$ 12 9 /27 236.25$ 13 9 /28 236.25$ 14 15 16 17 18 19 20 Meetings 0.655/mi No. 1 9 /15 2 3 4 5 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval Ronald L. Coats September / 54.00 X 10 Report Provided Subtotal Meetings' Stipend Mileage Meeting with General Manager/CEO or Designee Administration Signature I certify that the above is correct and accurate to the best of my knowledge. Ronald L. Coats Date Meeting / Event Description Date CSDA Webinar/Earmarks Finance & Human Resources Committee Meeting ASBCSD Board Meeting $2,469.87 $2,362.50 $35.37 Reimbursement 72.00Parking Mileage 27.00 27.00 Miscellaneous Reimbursement Description San Bernardino Valley MWD Workshop Highland Chamber of Commerce Regular Board Meeting San Bernardino Valley MWD Div 3 Fourm Water Education Foundation Tour Water Education Foundation Tour Water Education Foundation Tour Water Education Foundation Tour Strategic Planning Session Expense Type $72.00 Parking at ONT DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2023 1 2 3 4 5 Event Description:Water Education Foundation Tour Brief Description of Meeting/Event Value to EVWD Attended a Water Education Foundation tour of the Eastern Sierra Mountains, Mono Lake, Owens Valley, Los Angeles Aqueduct and other water related places of educational interest. Brief Description of Meeting/Event Value to EVWD Attended our monthly board meeting to discuss association business and our monthly general meeting the following week. Meeting Date:9 / 12 / 2023 Event Description:Water Education Foundation Tour Brief Description of Meeting/Event Value to EVWD Attended a Water Education Foundation tour of the Eastern Sierra Mountains, Mono Lake, Owens Valley, Los Angeles Aqueduct and other water related places of educational interest. Meeting Date:9 / 13 / 2023 Meeting Date:9 / 11 / 2023 Event Description:Finance & Human Resources Committee Meeting Brief Description of Meeting/Event Value to EVWD Meeting Date:9 / 11 / 2023 Event Description:ASBCSD Board Meeting Received updates on Low Income Household Water Assistance Program; Summer Internship and Education Partnerships; Successful Pathway Year 2023 with Arroyo Valley High School; Finance and Human Resources Activities Ronald L. Coats September / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Meeting Date: Event Description: Attended a webinar on the process for FY 2025 federal earmarks and possible funding we could apply for. 9 / 6 / 2023 CSDA Webinar/Earmarks Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 2 Name: Month / Year:2023 6 7 8 9 10 Ronald L. Coats September / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Had a meeting with Michael Moore to discuss district business and my recent Water Education Tour of the Eastern Sierras. Meeting Date:9 / 26 / 2023 Event Description:San Bernardino Valley MWD Workshop Brief Description of Meeting/Event Value to EVWD Attended a workshop where they made revisions to update their director handbook and discussed their current investment policy Event Description:Strategic Planning Session Brief Description of Meeting/Event Value to EVWD Attended our first strategic planning meeting for the district. Meeting Date:9 / 20 / 2023 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD Attended a Water Education Foundation tour of the Eastern Sierra Mountains, Mono Lake, Owens Valley, Los Angeles Aqueduct and other water related places of educational interest. Meeting Date:9 / 15 / 2023 Event Description:Water Education Foundation Tour Brief Description of Meeting/Event Value to EVWD Attended a Water Education Foundation tour of the Eastern Sierra Mountains, Mono Lake, Owens Valley, Los Angeles Aqueduct and other water related places of educational interest. Meeting Date:9 / 18 / 2023 Meeting Date:9 / 14 / 2023 Event Description:Water Education Foundation Tour Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 3 Name: Month / Year:2023 11 12 13 14 15 Ronald L. Coats September / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Event Description: Brief Description of Meeting/Event Value to EVWD Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD See official Board Meeting Minutes Meeting Date:9 / 28 / 2023 Event Description:San Bernardino Valley MWD Div 3 Fourm Brief Description of Meeting/Event Value to EVWD Attended at water forum meeting entitled "Climate Resilience: Moving from Ideas to Action" Meeting Date: Event Description:Highland Chamber of Commerce Brief Description of Meeting/Event Value to EVWD Guest speaker was former State Senator Mike Morrell who spoke about his new book entitled "The Road Back to Restoring the Family" Meeting Date:9 / 27 / 2023 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Meeting Date:9 / 26 / 2023 DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 4 Name: Month / Year:2023 Meeting No.Stipend Written Oral 1 9 /07 236.25 2 9 /12 236.25 3 9 /13 236.25 4 9 /14 236.25 5 9 /18 236.25 6 9 /21 236.25 7 9 /25 236.25 8 9 /26 236.25 9 9 /27 236.25 10 11 12 13 14 15 16 17 18 19 20 Meetings 0.655/mi No. 1 2 3 4 5 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval Phillip R. Goodrich September / 0.00 X 9 Report Provided Subtotal Meetings' Stipend Mileage Regular Board Meeting Administration Signature I certify that the above is correct and accurate to the best of my knowledge. Phillip R. Goodrich Date Meeting / Event Description Date Agenda Review City of Highland Council Meeting Regular Board Meeting $2,126.25 $2,126.25 $0.00 Reimbursement Mileage Miscellaneous Reimbursement Description Highland State of the City Special Board Meeting Agenda Review Engineering & Operations Committee Meeting Chamber of Commerce Event Expense Type $0.00 DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2023 1 2 3 4 5 Event Description:Special Board Meeting Brief Description of Meeting/Event Value to EVWD Session 1 concept and development of Strategic Plan Brief Description of Meeting/Event Value to EVWD Attend Reg. Board Mtg. Ref. Mins. this Day Meeting Date:9 / 14 / 2023 Event Description:Highland State of the City Brief Description of Meeting/Event Value to EVWD Attend State of the City where Mayor Mccallon addressed the room with updates on City Development and Fiscal Health and future plans Meeting Date:9 / 18 / 2023 Meeting Date:9 / 12 / 2023 Event Description:City of Highland Council Meeting Brief Description of Meeting/Event Value to EVWD Meeting Date:9 / 13 / 2023 Event Description:Regular Board Meeting Attend Monthly City Council Mtg. updates on City Impact fee increases Phillip R. Goodrich September / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Meeting Date: Event Description: With CEO and Vice Chair for review of current agenda and discuss District business 9 / 7 / 2023 Agenda Review Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 2 Name: Month / Year:2023 6 7 8 9 10 Phillip R. Goodrich September / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Attend Regular board mtg. Ref. Mins. This day Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Event Description:Chamber of Commerce Event Brief Description of Meeting/Event Value to EVWD Attend Monthly Chamber Networking Meeting keynote speaker Sen. Mike Morrel spoke on state Government and federal level legislative conditions Meeting Date:9 / 27 / 2023 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD With CEO and Vice Chair for review of current agenda also updates on District Business Meeting Date:9 / 25 / 2023 Event Description:Engineering & Operations Committee Meeting Brief Description of Meeting/Event Value to EVWD Attend E and O Committee where we were updated on all Dept.activities and some future plans Meeting Date:9 / 26 / 2023 Meeting Date:9 / 21 / 2023 Event Description:Agenda Review Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 3 Name: Month / Year:2023 Meeting No.Stipend Written Oral 1 9 /05 0.00 2 9 /06 0.00 3 9 /07 236.25 4 9 /07 0.00 5 9 /08 236.25 6 9 /13 236.25 7 9 /18 236.25 8 9 /19 236.25 9 9 /21 236.25 10 9 /25 236.25 11 9 /26 0.00 12 9 /27 236.25 13 9 /28 236.25 14 9 /29 236.25 15 16 17 18 19 20 Meetings 0.655/mi No. 1 9 /28 2 9 /28 3 9 /29 4 9 /29 5 9 /29 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval James Morales, Jr.September / 60.00 X 10 30.00 30.00 Report Provided Subtotal Meetings' Stipend Mileage ACWA Event Meeting with General Manager/CEO or Designee Administration Signature I certify that the above is correct and accurate to the best of my knowledge. James Morales, Jr. Date Meeting / Event Description Date San Bernardino Valley MWD ACWA Event Meeting with General Manager/CEO or Designee $2,754.54 21.98 40.00 $2,362.50 $39.30 Reimbursement 249.83 Travel Travel 23.96 16.97 Travel Parking Lodging Mileage Miscellaneous Reimbursement Description Engineering & Operations Committee Meeting San Bernardino Board of Water Commissioners Regular Board Meeting ACWA Event San Bernardino Valley MWD East Valley Association of Realtors Regular Board Meeting Special Board Meeting San Bernardino Valley MWD Expense Type $352.74 ACWA State Executive Committee ACWA Transportation Uber ACWATransportation Uber ACWATransportation Uber ACWA Parking DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2023 1 2 3 4 5 Event Description:East Valley Association of Realtors Brief Description of Meeting/Event Value to EVWD District update. Drought update. Board Report Assignment. Brief Description of Meeting/Event Value to EVWD District operational update. SNRC update. Meeting Date:9 / 7 / 2023 Event Description:San Bernardino Valley MWD Brief Description of Meeting/Event Value to EVWD No charge, more than 10 per reporting period. Policy Committee. Board report assignment. Meeting Date:9 / 8 / 2023 Meeting Date:9 / 6 / 2023 Event Description:ACWA Event Brief Description of Meeting/Event Value to EVWD Meeting Date:9 / 7 / 2023 Event Description:Meeting with General Manager/CEO or Designee No charge, more than 10 per reporting period. State legislative committee special meeting. Review of amendments for Bill AB 755. James Morales, Jr.September / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Meeting Date: Event Description: No charge, more than 10 per reporting period. United States Geological Survey funding agreements data collection and water science. Board report assignmenmt. 9 / 5 / 2023 San Bernardino Valley MWD Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 2 Name: Month / Year:2023 6 7 8 9 10 James Morales, Jr.September / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. District operational update. SNRC update. Meeting Date:9 / 25 / 2023 Event Description:Engineering & Operations Committee Meeting Brief Description of Meeting/Event Value to EVWD Please refer to public agenda. Event Description:San Bernardino Valley MWD Brief Description of Meeting/Event Value to EVWD Leadership and Professional Development Training Program. Update on Recharge in the Cactus Basins Project. State Water Project Report. Board report assignment. Meeting Date:9 / 21 / 2023 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD Please refer to public agenda. Meeting Date:9 / 18 / 2023 Event Description:Special Board Meeting Brief Description of Meeting/Event Value to EVWD Please refer to public agenda. Meeting Date:9 / 19 / 2023 Meeting Date:9 / 13 / 2023 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 3 Name: Month / Year:2023 11 12 13 14 15 James Morales, Jr.September / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Event Description:ACWA Event Brief Description of Meeting/Event Value to EVWD State Board Meeting. Finance report. Code of conduct. Board policy revisions. Federal affairs. State Legislative update. Various updates. Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Pleaes refer to public agenda. Meeting Date:9 / 28 / 2023 Event Description:ACWA Event Brief Description of Meeting/Event Value to EVWD Board and Executive Committee premeeting. SNRC update. Meeting Date:9 / 29 / 2023 Event Description:San Bernardino Board of Water Commissioners Brief Description of Meeting/Event Value to EVWD No charge, more than ten per reporting period. Side letter agreements, premium pay for water for water dept employees. Board report assignment. Meeting Date:9 / 27 / 2023 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Meeting Date:9 / 26 / 2023 DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 4 1 2 6 4 RESOLUTION 2023.14 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT IN RECOGNITION OF MATTHEW ARMITAGE’S TWENTY-FIVE YEARS OF SERVICE BE IT HEREBY RESOLVED, by the Board of Directors of the East Valley Water District as follows: WHEREAS, MATTHEW ARMITAGE has been employed by the East Valley Water District since October 5, 1998, and WHEREAS, MATTHEW ARMITAGE has in those twenty-five years, performed in an outstanding and honorable capacity in the positions of Water Service Worker I, Water Service Worker II , Meter Service Worker, Meter Reader II, Meter Technician III, and WHEREAS, MATTHEW ARMITAGE has been dedicated and conscientious, and has displayed a high sense of duty, sincere interest and personal competence in the performance of his duties which have been for the benefit of all staff members and customers of the East Valley Water District, and WHEREAS, MATTHEW ARMITAGE has served the District for twenty-five years, through his untiring efforts, personal growth, and cooperation with staff and customers, contributed greatly to the successful operation of the East Valley Water District. NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of the East Valley Water District, and each of them on behalf of the Board, staff and citizens of the District, hereby express to MATTHEW ARMITAGE their sincere appreciation for his twenty-five years of dedicated service. BE IT FURTHER RESOLVED, that this Resolution be placed in the minutes of the East Valley Water District and the original of this Resolution be signed by all members of the Board of Directors and presented to MATTHEW ARMITAGE, after being suitably framed. DATED: October 11, 2023 ________________________________ ________________________________ PHILLIP R. GOODRICH JAMES MORALES JR. 1 2 6 4 President Vice President ________________________________ ________________________________ CHRISTOPHER CARRILLO RONALD L. COATS Director Director ________________________________ Attest: ________________________________ DAVID E. SMITH MICHAEL MOORE Director General Manager/CEO/Board Secretary Agenda Item #3a October 11, 20231 Meeting Date: October 11, 2023 Agenda Item #3a Discussion Item 1 2 8 6 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Reject Proposal and Consider Approval of Laboratory Services for Wastewater Analysis Agreement with Eurofins Eaton Analytical, LLC RECOMMENDATION That the Board of Directors reject the proposal received in June of 2023; approve a Professional Services Agreement for Wastewater Analysis up to $300,000 per year for 3 years, plus 2 optional one-year extensions; and authorize the General Manager/CEO to negotiate and execute the Agreement and related documents as necessary. BACKGROUND / ANALYSIS Regulations associated with the operations of the Sterling Natural Resource Center (SNRC) require the sampling and analysis of various water quality parameters at certain points in the process to demonstrate compliance with Waste Discharge Requirements and the Master Recycling Permit. The analytical work must be done by an appropriately certified Laboratory. Although SNRC has some limited laboratory equipment, the outside laboratory analysis provides all the required permit testing and data to make process adjustments of the treatment plant. The District has been coordinating with the State Water Resources Control Board- Division of Drinking Water and the Regional Water Quality Control Board to determine the necessary permit requirements. The development of these permit requirements is an intensive process that considers the California Environmental Quality Act, Water Reclamation Statute, Santa Ana Water Board’s Water Quality Control Plan for the Santa Ana River Basin, the State Water Resources Control Board Recycled Water Policy, Antidegradation Policy, Indirect Potable Reuse Regulations, Water Rights and Wastewater Change Petition, Endangered Species Act, Clean Water Act, disadvantaged and tribal community Water Quality Objectives, and several local/regional plans, policies, regulations and objectives. In anticipation of permit requirements, staff issued a Request for Proposals (RFP) in May of 2023 and received one proposal. Staff reviewed the proposal and determined it was not responsive to the RFP requirements because it excluded all influent sampling analysis. On August 1, 2023, The District received a Conditional Acceptance Letter for SNRC from the State Water Resources Control Board-Division of Drinking Water which specified Agenda Item #3a October 11, 20232 Meeting Date: October 11, 2023 Agenda Item #3a Discussion Item 1 2 8 6 different requirements for the required laboratory activities for SNRC than identified in the previous RFP. The RFP was modified and posted on the District’s website in accordance with District Policy 7.1. Two proposals were received. Both proposals meet the requirements and were evaluated by a selection committee that considered the Laboratories’ qualifications, references, the quality of the proposal and costs. The selection committee determined that Eurofins Eaton Analytical proposal provided the best value to the District. Ranking Laboratory 1 Eurofins Eaton Analytical, LLC 2 Babcock Laboratories, Inc. Eurofins is a State Certified laboratory with facilities in Pomona. They have provided drinking water laboratories services for the District in the past. Eurofins also provides similar services for treatment plants including City of Glendale, Golden State Water Company and Santa Clarita Valley Water. The draft agreement is attached to this staff report for reference. AGENCY GOALS AND OBJECTIVES IV - Promote Planning, Maintenance and Preservation of District Resources A. Develop Projects and Programs to Ensure Safe and Reliable Services C. Dedicate Efforts Toward System Maintenance and Modernization REVIEW BY OTHERS This agenda item has been reviewed by the Executive Team FISCAL IMPACT The first-year contract costs are included in the current fiscal year budget. Funding for subsequent years will be subject to Board’s approval of future fiscal year budgets. Recommended by: ________________ Michael Moore Respectfully submitted: ________________ Rocky Welborn Agenda Item #3a October 11, 20233 Meeting Date: October 11, 2023 Agenda Item #3a Discussion Item 1 2 8 6 General Manager/CEO Water Reclamation Manager ATTACHMENTS Draft Agreement 1 1 2 7 5 EAST VALLEY WATER DISTRICT AGREEMENT NO. 2023.13 FOR LABORATORY SERVICES WITH EUROFINS EATON ANALYTICAL, LLC THIS AGREEMENT is made this 11 day of October 2023, by and between the EAST VALLEY WATER DISTRICT, a County Water District organized and operating pursuant to California Water Code Section 30000 et seq. (hereinafter referred to as the “DISTRICT”), and Eurofins Eaton Analytical, LLC, a limited Liability Corporation (hereinafter referred to as “CONTRACTOR”). RECITALS WHEREAS, the DISTRICT desires to contract with CONTRACTOR to provide services for Laboratory Services for Wastewater Analysis also per Exhibit “A” (hereinafter referred to as “Project”); and WHEREAS, CONTRACTOR is willing to contract with the DISTRICT to provide such services; and WHEREAS, CONTRACTOR holds itself as duly licensed, qualified, and capable of performing said services; and WHEREAS, this Agreement establishes the terms and conditions for the DISTRICT to retain CONTRACTOR to provide the services described herein for the Project. COVENANTS NOW, THEREFORE, in consideration of the faithful performance of the terms and conditions set forth herein, the parties hereto agree as follows: ARTICLE I ENGAGEMENT OF CONTRACTOR AND AUTHORIZATION TO PROCEED 1.1 ENGAGEMENT: The DISTRICT hereby engages CONTRACTOR, and CONTRACTOR hereby accepts the engagement, to perform certain services described in Section 2.1 of this Agreement for the term set forth in Section 6.7 of this Agreement. 1.2 AUTHORIZATION TO PROCEED: Authorization for CONTRACTOR to proceed with all or a portion of the work described in Section 2.1 of this Agreement will be granted in writing by the DISTRICT as soon as both parties sign the Agreement and all applicable insurance and Agreement for Laboratory Services October 11, 2023 2 other security documents required pursuant to Section 6.3 of this Agreement are received and approved by the DISTRICT. CONTRACTOR shall not proceed with said work until so authorized by the DISTRICT, and shall commence work immediately upon receipt of the Notice to Proceed. 1.3 NO EMPLOYEE RELATIONSHIP: CONTRACTOR shall perform the services provided for herein as an independent CONTRACTOR, and not as an employee of the DISTRICT. The DISTRICT shall have ultimate control over the work performed for the Project. CONTRACTOR is not to be considered an agent or employee of the DISTRICT for any purpose, and shall not be entitled to participate in any pension plans, insurance coverage, bonus, stock, or similar benefits that the DISTRICT provides for its employees. CONTRACTOR shall indemnify the DISTRICT for any tax, retirement contribution, social security, overtime payment, or workers’ compensation payment, which the DISTRICT may be required to make on behalf of CONTRACTOR or any employee of CONTRACTOR for work performed under this Agreement. ARTICLE II SERVICES OF CONTRACTOR 2.1 SCOPE OF SERVICES: The scope of services to be performed by the CONTRACTOR under this Agreement are described in the Scope of Work attached hereto as Exhibit “A” and incorporated herein by this reference (“Scope of Work”), and shall, where not specifically addressed, include all related services ordinarily provided by the CONTRACTOR under same or similar circumstances and/or otherwise necessary to satisfy the requirements of Section 3.3 of this Agreement. In case of conflict between the terms of this Agreement and the provisions of the Scope of Work, this Agreement shall govern. 2.2 PREVAILING WAGES: In accordance with the provisions of the California Labor Code, CONTRACTOR shall secure the payment of compensation to employees. To the extent required by the California Labor Code, CONTRACTOR shall pay not less than the prevailing rate of per diem wages as determined by the Director, Department of Industrial Relations, and State of California. Copies of such prevailing rate of per diem wages are on file at the DISTRICT’s office, which copies will be made available to any interested party upon request. CONTRACTOR shall post a copy of such determination at each job site. If applicable, CONTRACTOR shall forfeit to the DISTRICT the amount of the penalty set forth in Labor Code Section 1777.7(b), or any subsequent amendments thereto, for each calendar day, or portion thereof, for each worker paid less than the specified prevailing rates for such work or craft in which such worker is employed, whether paid by CONTRACTOR or by any SUBCONTRACTOR. 2.3 HOURS AND WORKING CONDITIONS: The DISTRICT is a public entity in the State of California and is subject to the provisions of the Government Code and the Labor Code of the State. It is stipulated and agreed that all provisions of law applicable Agreement for Laboratory Services October 11, 2023 3 to public contracts are a part of this Agreement to the same extent as though set forth herein and will be complied with by CONTRACTOR. CONTRACTOR shall comply with all applicable provisions of the California Labor Code relating to working hours and the employment of apprentices on public works projects. CONTRACTOR shall, as a penalty to the DISTRICT, forfeit $25.00 for each worker employed in the execution of this Agreement by CONTRACTOR or by any SUBCONTRACTOR, for each calendar day during which such worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week, unless such worker received compensation for all hours worked in excess of 8 hours at not less than 1½ times the basic rate of pay. ARTICLE III RESPONSIBILITIES OF THE DISTRICT AND OF CONTRACTOR 3.1 DUTIES OF THE DISTRICT: The DISTRICT, without cost to CONTRACTOR, will provide all pertinent information necessary for CONTRACTOR’S performance of its obligations under this Agreement that is reasonably available to the DISTRICT unless otherwise specified in the Scope of Work, in which case the CONTRACTOR is to acquire such information. The DISTRICT does not guarantee or ensure the accuracy of any reports, information, and/or data so provided. To the extent that any reports, information, and/or other data so provided was supplied to the DISTRICT by persons who are not employees of the DISTRICT, any liability resulting from inaccuracies and/or omissions contained in said information shall be limited to liability on behalf of the party who prepared the information for the DISTRICT. 3.2 REPRESENTATIVE OF DISTRICT: The DISTRICT will designate Rocky Welborn or the Water Reclamation Manager as the person to act as the DISTRICT's representative with respect to the work to be performed under this Agreement. Such person will have complete authority to transmit instructions, receive information, and interpret and define the DISTRICT's policies and decisions pertinent to the work. In the event the DISTRICT wishes to make a change in the DISTRICT's representative, the DISTRICT shall notify the CONTRACTOR of the change in writing. 3.3 DUTIES OF CONTRACTOR: CONTRACTOR shall perform the Project work in such a manner as to fully comply with all applicable professional standards of care, including professional quality, technical accuracy, timely completion, and other services furnished and/or work undertaken by CONTRACTOR pursuant to this Agreement. The CONTRACTOR shall cause all work and deliverables to conform to all applicable federal, state, and local laws and regulations. 3.4 APPROVAL OF WORK: The DISTRICT's approval of work or materials furnished hereunder shall not in any way relieve CONTRACTOR of responsibility for the technical adequacy of its work. Neither the DISTRICT's review, approval or acceptance of, nor payment for any of the services shall be construed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement. Where approval Agreement for Laboratory Services October 11, 2023 4 by the DISTRICT is indicated in this Agreement, it is understood to be conceptual approval only and does not relieve the CONTRACTOR of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of the CONTRACTOR or its SUBCONTRACTORs. CONTRACTOR’S obligation to defend, indemnify, and hold harmless the DISTRICT, and its directors, officers, employees and agents as set forth in Section 6.9 of this Agreement also applies to the actions or omissions of the CONTRACTOR or its SUBCONTRACTORs as set forth above in this paragraph. ARTICLE IV PAYMENTS TO CONTRACTOR 4.1 PAYMENT: The DISTRICT will pay CONTRACTOR for work performed under this Agreement, which work can be verified by the DISTRICT, on the basis of the following: CONTRACTOR shall exercise its good faith best efforts to facilitate a full and clear definition of the scope of all assigned work so that the amount set forth in Section 4.3 of this Agreement will cover all tasks necessary to complete the work. The amount set forth in Section 4.3 of this Agreement is the maximum compensation to which CONTRACTOR may be entitled for the performance of services to complete the work for the Project, unless the Scope of Work or time to complete the work is changed by the DISTRICT in writing in advance of the work to be performed there under. Adjustments in the total payment amount shall only be allowed pursuant to Section 6.4 of this Agreement. In no event shall CONTRACTOR be entitled to compensation greater than the amount set forth in Section 4.3 of this Agreement where changes in the Scope of Work or the time for performance are necessitated by the negligence of CONTRACTOR or any SUBCONTRACTOR performing work on the Project. 4.2 PAYMENT TO CONTRACTOR: Payment will be made by the DISTRICT within thirty (30) calendar days after receipt of an invoice from CONTRACTOR, provided that all invoices are complete and product and services are determined to be of sufficient quality by the DISTRICT. CONTRACTOR shall invoice DISTRICT monthly for services performed under this Agreement. In the event that a payment dispute arises between the parties, CONTRACTOR shall provide to the DISTRICT full and complete access to CONTRACTOR'S labor cost records and other direct cost data, and copies thereof if requested by the DISTRICT. 4.3 ESTIMATED CHARGES: The total estimated charges for all work under this Agreement are $300,000 annually. The total estimated charges stated herein constitute the total amount estimated annually and charges will reflect the unit pricing of laboratory analysis requested based on unit pricing included in Exhibit “A”. 4.4 COST FOR REWORK: CONTRACTOR shall, at no cost to the DISTRICT, prepare any necessary rework occasioned by CONTRACTOR'S negligent act or omission or otherwise due substantially to CONTRACTOR'S fault. Agreement for Laboratory Services October 11, 2023 5 ARTICLE V TERM 5.1 DURATION: The duration of the services to be provided is to be for a period of 3 years with 2 optional one-year extensions. 5.2 TIME OF ESSENCE: CONTRACTOR shall perform all services required by this Agreement in a prompt, timely, and professional manner in accordance with the above schedule. Time is of the essence in this Agreement. ARTICLE VI GENERAL PROVISIONS 6.1 COMPLIANCE WITH FEDERAL, STATE, AND LOCAL LAWS: CONTRACTOR shall at all times observe all applicable provisions of Federal, State, and Local laws and regulations including, but not limited to, those related to Equal Opportunity Employment. 6.2 SUBCONTRACTORS AND OUTSIDE CONTRACTORS: No subcontract shall be awarded by CONTRACTOR if not identified as a SUBCONTRACTOR in its Proposal unless prior written approval is obtained from the DISTRICT. CONTRACTOR shall be responsible for payment to SUBCONTRACTORs used by them to perform the services under this Agreement. If CONTRACTOR subcontracts any of the work to be performed, CONTRACTOR shall be as fully responsible to the DISTRICT for the performance of the work, including errors and omissions of CONTRACTOR’S SUBCONTRACTORs and of the persons employed by the SUBCONTRACTOR, as CONTRACTOR is for the acts and omissions of persons directly employed by the CONTRACTOR. Nothing contained in this Agreement shall create any contractual relationship between any SUBCONTRACTOR of CONTRACTOR and the DISTRICT. CONTRACTOR shall bind every SUBCONTRACTOR and every SUBCONTRACTOR of a SUBCONTRACTOR to the terms of this Agreement that are applicable to CONTRACTOR’S work unless specifically noted to the contrary in the subcontract in question and approved in writing by the DISTRICT. 6.3 INSURANCE: CONTRACTOR shall secure and maintain in full force and effect, until the satisfactory completion and acceptance of the Project by DISTRICT, such insurance as will protect it and the DISTRICT in such a manner and in such amounts as set forth below. The premiums for said insurance coverage shall be paid by the CONTRACTOR. The failure to comply with these insurance requirements may constitute a material breach of this Agreement, at the sole discretion of the DISTRICT. (a) Certificates of Insurance: Prior to commencing services under this Agreement, and in any event no later than ten (10) calendar days after execution of this Agreement, CONTRACTOR shall furnish DISTRICT with Certificates of Insurance and endorsements verifying the insurance coverage required by this Agreement is in full force and effect. The DISTRICT reserves the right to require complete and accurate copies of all insurance policies required under this Agreement. (b) Required Provisions: The insurance policies required by this Agreement shall include Agreement for Laboratory Services October 11, 2023 6 the following provisions or have them incorporated by endorsement(s): (1) Primary Coverage: The insurance policies provided by CONTRACTOR shall be primary insurance and any self-insured retention and/or insurance carried by or available to the DISTRICT or its employees shall be excess and non-contributory coverage so that any self-insured retention and/or insurance carried by or available to the DISTRICT shall not contribute to any loss or expense under CONTRACTOR’S insurance. (2) Additional Insured: The policies of insurance provided by CONTRACTOR, except Workers' Compensation and Professional Liability, shall include as additional insureds: the DISTRICT, its directors, officers, employees, and agents when acting in their capacity as such in conjunction with the performance of this Agreement. Such policies shall contain a "severability of interests" provision, also known as "Cross liability" or "separation of insured". (3) Cancellation: Each certificate of insurance and insurance policy shall provide that the policy may not be non-renewed, canceled (for reasons other than non- payment of premium) or materially changed without first giving thirty (30) days advance written notice to the DISTRICT, or ten (10) days advance written notice in the event of cancellation due to non-payment of premium. (4) Waiver of Subrogation: The insurance policies provided by CONTRACTOR shall contain a waiver of subrogation against DISTRICT, its directors, officers, employees and agents for any claims arising out of the services performed under this Agreement by CONTRACTOR. (5) Claim Reporting: CONTRACTOR shall not fail to comply with the claim reporting provisions or cause any breach of a policy condition or warranty of the insurance policies required by this Agreement that would affect the coverage afforded under the policies to the DISTRICT. (6) Deductible/Retention: If the insurance policies provided by CONTRACTOR contain deductibles or self-insured retentions, any such deductible or self-insured retention shall not be applicable with respect to the coverage provided to DISTRICT under such policies. CONTRACTOR shall be solely responsible for any such deductible or self-insured retention and the DISTRICT, in its sole discretion, may require CONTRACTOR to secure the payment of any such deductible or self- insured retention by a surety bond or an irrevocable and unconditional letter of credit. (7) CONTRACTOR’S SUBCONTRACTORs: CONTRACTOR shall include all SUBCONTRACTORs as additional insureds under the insurance policies required by this Agreement to the same extent as the DISTRICT or shall furnish separate certificates of insurance and policy endorsements for each SUBCONTRACTOR verifying that the insurance for each SUBCONTRACTOR complies with the same insurance requirements applicable to CONTRACTOR under this Agreement. Agreement for Laboratory Services October 11, 2023 7 (c) Insurance Company Requirements: CONTRACTOR shall provide insurance coverage through insurers that have at least an "A" Financial Strength Rating and a "VII" Financial Size Category in accordance with the current ratings by the A. M. Best Company, Inc. as published in Best's Key Rating Guide or on said company’s web site. In addition, any and all insurers must be admitted and authorized to conduct business in the State of California and be a participant in the California Insurance Guaranty Association, as evidenced by a listing in the appropriate publication of the California Department of Insurance. (d) Policy Requirements: The insurance required under this Agreement shall meet or exceed the minimum requirements as set forth below: (1) Workers' Compensation: CONTRACTOR shall maintain Workers' Compensation insurance as required by law in the State of California to cover CONTRACTOR’S obligations as imposed by federal and state law having jurisdiction over CONTRACTOR’S employees and Employers' Liability insurance, including disease coverage, of not less than $1,000,000. (2) General Liability: CONTRACTOR shall maintain Comprehensive General Liability insurance with a combined single limit of not less than $1,000,000 per occurrence or claim and $1,000,000 aggregate. The policy shall include, but not be limited to, coverage for bodily injury, property damage, personal injury, products, completed operations and blanket contractual to cover, but not be limited to, the liability assumed under the indemnification provisions of this Agreement. In the event the Comprehensive General Liability insurance policy is written on a "claims made" basis, coverage shall extend for two years after the satisfactory completion and acceptance of the Project by DISTRICT. (3) Automobile Liability: CONTRACTOR shall maintain Commercial Automobile Liability insurance with a combined single limit for bodily injury and property damage of not less than $1,000,000 each occurrence for any owned, hired, or non-owned vehicles. 6.4 CHANGES IN SCOPE OR TIME: If the DISTRICT requests a change in the Scope of Work or time of completion by either adding to or deleting from the original scope or time of completion, an equitable adjustment shall be made and this Agreement shall be modified in writing accordingly. CONTRACTOR must assert any claim for adjustment under this clause in writing within thirty-(30) calendar days from the date of receipt from CONTRACTOR of the notification of change unless the DISTRICT grants a further period of time before the date of final payment under this Agreement. 6.5 NOTICES: All notices to either party by the other shall be made in writing and delivered or mailed to such party at their respective addresses as follows, or to other such address as either party may designate, and said notices shall be deemed to have been made when delivered or, if mailed, five (5) days after mailing. To DISTRICT: East Valley Water District Agreement for Laboratory Services October 11, 2023 8 31111 Greenspot Road Highland, CA 92346 Attn: Michael Moore, General Manager/CEO To CONTRACTOR: Eurofins Eaton Analytical, LLC 941 Corporate Center Drive Pomona, CA 91768 Attn: Rick Zimmer, Sales Director 6.6 CONTRACTOR'S ASSIGNED PERSONNEL: CONTRACTOR designates Rosalynn Dang to have immediate responsibility for the performance of the work and for all matters relating to performance under this Agreement. Substitution of any assigned personnel shall require the prior written approval of the DISTRICT. If the DISTRICT determines that a proposed substitution is not acceptable, then, at the request of the DISTRICT, CONTRACTOR shall substitute with a person acceptable to the DISTRICT. 6.7 TERMINATION: (a) If the engagement of CONTRACTOR is not extended by the mutual written consent of the DISTRICT and CONTRACTOR, then this Agreement shall expire on the latest date set forth in the schedule contained in the Scope of Work for completion of tasks for the Project. (b) Notwithstanding the above, the DISTRICT may terminate this Agreement or abandon any portion of the Project by giving ten (10) days written notice thereof to CONTRACTOR. CONTRACTOR may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days written notice only in the event of substantial failure by the DISTRICT to perform in accordance with the terms of this Agreement through no fault of the CONTRACTOR. (c) In the event of termination of this Agreement or abandonment of any portion of the Project, the DISTRICT shall be immediately given title and possession of all original drawings and other documents developed for the Project, if any, and the sole right and remedy of CONTRACTOR shall be to receive payment for all amounts due and not previously paid to CONTRACTOR for services completed or in progress in accordance with the Agreement prior to such date of termination. If termination occurs prior to completion of any task for which payment has not been made, the fee for services performed during such task shall be based on an amount mutually agreed to by the DISTRICT and CONTRACTOR. Such payments available to the CONTRACTOR under this paragraph shall not include costs related to lost profit associated with the expected completion of the work or other such payments relating to the benefit of this Agreement. 6.8 ATTORNEYS’ FEES: In the event that either the DISTRICT or CONTRACTOR brings an action or proceeding for damages for an alleged breach of any provision of this Agreement, to Agreement for Laboratory Services October 11, 2023 9 interpret this Agreement or determine the rights of and duties of either party in relation thereto, the prevailing party shall be entitled to recover as part of such action or proceeding all litigation, arbitration, mediation and collection expenses, including witness fees, court costs, and reasonable attorneys' fees. Such fees shall be determined by the Court in such litigation or in a separate action brought for that purpose. Mediation will be attempted if both parties mutually agree before, during, or after any such action or proceeding has begun. INDEMNITY: (a) CONTRACTOR shall defend, indemnify and hold DISTRICT, including its directors, officers, employees and agents, harmless from and against any and all claims, demands, causes of action, suits, debts, obligations, liabilities, losses, damages, costs, expenses, attorney’s fees, awards, fines, settlements, judgments or losses of whatever nature, character, and description, with respect to or arising out of the work to be performed under this Agreement, including without limitation, any and all such claims, demands, causes of action, suits, debts, obligations, liabilities, losses, damages, costs, expenses, attorney’s fees, awards, fines, settlements, judgments or losses of whatever nature, character, and description, arising by reason of death or bodily injury to one or more persons, including the employees of CONTRACTOR; injury to property of any kind, including loss of use; or economic damages of any kind, caused by, or arising out of, any alleged or actual act or omission, regardless of whether such act or omission is active or passive, by CONTRACTOR, any of CONTRACTOR’S SUBCONTRACTORs or DISTRICT, including their respective directors, officers, employees, agents and assigns, excepting only such matters arising from the sole negligence or willful misconduct of the DISTRICT. (b) CONTRACTOR shall defend, indemnify and hold DISTRICT, including its directors, officers, employees and agents, harmless from and against any and all claims, demands, causes of action, suits, debts, obligations, liabilities, losses, damages, costs, expenses, attorney’s fees, awards, fines, settlements, judgments or losses of whatever nature, character, and description, with respect to or arising out of any infringement or alleged infringement of any patent, copyright or trademark and arising out of the use of any equipment or materials furnished under this Agreement by the CONTRACTOR or CONTRACTOR’S SUBCONTRACTORs, including their respective directors, officers, employees, agents and assigns, or out of the processes or actions employed by, or on behalf of, the CONTRACTOR or CONTRACTOR’S SUBCONTRACTORs, including their respective directors, officers, employees, agents and assigns, in connection with the performance of services under this Agreement. CONTRACTOR shall have the right, in order to avoid such claims or actions, to substitute at its expense non-infringing equipment, materials or processes, or to modify at its expense such infringing equipment, materials, and processes so they become non-infringing, provided that such substituted and modified equipment, materials, and processes shall meet all the requirements and be subject to all the Agreement for Laboratory Services October 11, 2023 10 provisions of this Agreement. (c) CONTRACTOR shall defend, indemnify and hold DISTRICT, including its directors, officers, employees and agents, harmless from and against any and all claims, demands, causes of action, suits, debts, obligations, liabilities, losses, damages, costs, expenses, attorney’s fees, awards, fines, settlements, judgments or losses of whatever nature, character, and description, with respect to or arising out of any breach by CONTRACTOR or CONTRACTOR’S SUBCONTRACTORs, including their respective directors, officers, employees, agents and assigns, of the aforesaid obligations and covenants, and any other provision or covenant of this Agreement. (d) It is the intent of the parties to this Agreement that the defense, indemnity and hold harmless obligation of CONTRACTOR under this Agreement shall be as broad and inclusive as may be allowed under California Civil Code §§ 2778 through 2784.5, or other similar state or federal law. 6.9 SAFETY: CONTRACTOR shall perform the work in full compliance with applicable State and Federal safety requirements including, but not limited to, Occupational Safety and Health Administration requirements. (a) CONTRACTOR shall take all precautions necessary for the safety of, and prevention of damage to, property on or adjacent to the Project site, and for the safety of, and prevention of injury to, persons, including DISTRICT’s employees, CONTRACTOR’S employees, and third persons. All work shall be performed entirely at CONTRACTOR'S risk. CONTRACTOR shall comply with the insurance requirements set forth in Section 6.3 of this Agreement. (b) CONTRACTOR shall also furnish the DISTRICT with a copy of any injury prevention program established for the CONTRACTOR’S employees pursuant to Labor Code Section 6401.7, including any necessary documentation regarding implementation of the program. CONTRACTOR hereby certifies that its employees have been trained in the program, and procedures are in place to train employees whenever new substances, processes, procedures, or equipment are introduced. CONTRACTOR shall demonstrate compliance with Labor Code Section 6401.7 by maintaining a copy of its Injury and Illness Prevention Plan at the Project site and making it available to the DISTRICT. 6.10 EXAMINATION OF RECORDS: All original drawings, specifications, reports, calculations, and other documents or electronic data developed by CONTRACTOR for the Project shall be furnished to and become the property of the DISTRICT. CONTRACTOR agrees that the DISTRICT will have access to and the right to examine any directly pertinent books, documents, papers, and records of any and all of the transactions relating to this Agreement. 6.11 INTEGRATION AND AMENDMENT: This Agreement contains the entire understanding between the DISTRICT and CONTRACTOR as to those matters contained herein. No other representations, covenants, undertakings or other prior or contemporaneous agreements, Agreement for Laboratory Services October 11, 2023 11 oral or written, respecting those matters, which are not specifically incorporated herein, may be deemed in any way to exist or to bind any of the parties hereto. Each party acknowledges that it has not executed this Agreement in reliance on any promise, representation or warranty not set forth herein. This Agreement may not be amended except by a writing signed by all parties hereto. 6.12 ASSIGNMENT: Neither party shall sign or transfer its interest in this Agreement without written consent of the other party. All terms, conditions, and provisions of this Agreement shall inure to and shall bind each of the parties hereto, and each of their respective heirs, executors, administrators, successors, and assigns. 6.13 GOVERNING LAW: This Agreement shall be construed as if it was jointly prepared by both parties hereto, and any uncertainty or ambiguity contained herein shall not be interpreted against the party drafting same. This Agreement shall be enforced and governed by the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state court situated in the County of San Bernardino, State of California, or in a federal court within rem jurisdiction over the Project. 6.14 HEADINGS: Article and Section headings in this Agreement are for convenience only and are not intended to be used in interpreting or construing the terms, covenants, and conditions of this Agreement. 6.15 PARTIAL INVALIDITY: If any term, covenant, condition, or provision of this Agreement is found by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect, and shall in no way be affected, impaired, or invalidated thereby. 6.16 EFFECT OF DISTRICT’S WAIVER: Any failure by the DISTRICT to enforce any provision of this Agreement, or any waiver thereof by the DISTRICT, shall not constitute a waiver of its right to enforce subsequent violations of the same or any other terms or conditions herein. 6.17 AUTHORITY: The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to sign this Agreement on behalf of and to so bind their respective legal entities. Agreement for Laboratory Services October 11, 2023 12 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above. CONTRACTOR DISTRICT By:_____________________________ By:_____________________________ Rick Zimmer, Sales Director Michael Moore, General Manager/CEO Eurofins Easton Analytical, LLC East Valley Water District Agreement for Laboratory Services October 11, 2023 13 EXHIBIT A SCOPE OF WORK The CONTRACTOR shall meet the following minimum requirements and provide the following services: •Certification: o Environmental Laboratory Accreditation Program (ELAP) o 95% of the analyses listed in the proposal shall be conducted in-house without sub-contracting (excluding toxicity tests). •Quality: o ELAP-Approved Quality Assurance Manual o Code of Ethics Policy o Method detection limits (MDLs) below the method reporting limits (MRL) o Laboratory Control Samples (LCS) and matrix spike (MS) conducted on each sample batch (for specified tests); and o MRL check conducted for each sample batch (for specified tests) •Capability: o Accreditation – Laboratory license to perform testing. o Audit – most recent 3rd party audit report of quality systems o Proficiency Testing (PT) Results – Most recent 3rd party proficiency test results o Quality Assurance (QA) manual Table of contents will demonstrate depth of policies and procedures. o Standard Operating Procedures (SOPs) – Laboratory procedures for analysis according to approved test methods o MALS – Method acceptance limits for each analytical method to illustrate precision and accuracy. o MDLs – Annual demonstration of capabilities to meet specific reporting limits. o Instrumentation – documentation of laboratory’s investments in and commitment to technological advancements •Capacity: o At least 1 dedicated instrument for each analysis o At least 2 dedicated instruments and 2 dedicated staff members for volatiles, perchlorate, nitrates •Experience: o Lab Overview – summary of history, expertise, and management structure o Sample Experience – illustration of analytical capacity and ability to manage in a production environment. o Staffing – detail of staff education and industry experience o Clients – profile of types of work focus and opportunities to obtain feedback Agreement for Laboratory Services October 11, 2023 14 from 3 clients/references. o Laboratory Director Requirements: ▪Bachelor’s degree in chemistry, Biology, Microbiology and/or environmental Engineering and a minimum of 15-years of experience •Customer Service o Located within 55 miles of the SRNC at: ▪25376 5th Street San Bernardino, CA 92410 o Provide delivery and transportation of samples 7 days a week. o Web-based data reporting system o Provide sample results in EDF format upon request. o Electronic Data Transfer (EDT) (CDX, CLIP and SDWIS) capability o EDD (LIMS and Hach-WIMS) capability o Billing invoices to be received within 30 days of report. •Program Management o Sample kits – provide description of the kits to be used along with ordering information. o Sample Return Method – ease of use, ability to meet analytical hold times and cost implications. o Order login and Acknowledgement – method for organizing work orders and communicating with the client any issues at the outset of the project. o Project management – specify a main point of contact assisted to the District and provide their resume. o QA/QC – Measure taken to assure accuracy, precision, completeness and correctness of data. o Contingency – plan to work assignments in the event of instrument failure or staff loss. o Reporting – ease of use and documentation of QA/QC o EDD/EDT – ease of use and cost implications for backend data management o Web Access – Ease of use and cost implications for backend data management o Billing – ease of use for management and documentation of costs. The Laboratory shall comply with all applicable Federal, State and Local laws during the performance of work resulting from this RFP. Billing shall be made per analysis performed according to the following table of analysis: Agreement for Laboratory Services October 11, 2023 15 Agenda Item #3a October 11, 20231 Meeting Date: October 11, 2023 Agenda Item #3a Public Hearing 8 8 4 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Adoption of Resolution 2023.15 - Updating Water Capacity Fees, Public Hearing RECOMMENDATION That the Board of Directors adopt Resolution 2023.15 - Updating Water Capacity Fees. BACKGROUND / ANALYSIS The District periodically reviews fees to ensure they are consistent with the policies of the District. At the November 13, 2019 regular Board Meeting, IB Consulting presented their 2019 Water and Wastewater Capacity Fee Study with proposed adjustments to District capacity fees charged to new development. The proposed fees were adopted and became effective January 1, 2020. Capacity fees are for new meter connections only and ensures new development pays for its' fair share to connect to the water system. Since the fee update almost four years ago, the District has finished the AMI implementation for small meters, and has been systematically replacing large meters, defined as meters 2” in diameter or greater. The large replacement meters differ from the legacy meters in that they utilize Ultrasonic technology to gather meter flow data. This technology has fewer moving parts internally, resulting in decreased head loss through the meter, and therefore allowing a greater “gallons per minute” volume capability (capacity ratio). The greater flow capability of the new large meters, which is significant, invalidates flow assumptions used to allocate costs based on meter size and the potential demand placed on the District’s water system calculated in the 2019 Capacity Fee Study. It was therefore necessary for the District to request that IB Consulting revise their calculations from the 2019 study to account for the increased flow capacity for new meters being used by the District. IB Consulting has completed their revised calculations and issued a Technical Memorandum with proposed adjustments to the capacity fees calculated in 2019. The adjusted fees for all meter sizes were then updated for Construction Cost Index increases that have occurred since 2019. It is incumbent on the District to ensure that rates/fees cover reasonable costs associated with providing a service. Updating the capacity fees to accommodate the higher flow capacities through the newer and more reliable meters will address the Agenda Item #3a October 11, 20232 Meeting Date: October 11, 2023 Agenda Item #3a Public Hearing 8 8 4 added capacity each meter now allows; insuring developers are paying their fair share for the higher volumes to meet their project needs. It is important to note that this is not a full capacity fee study as adjustments being proposed only address the increase flow rates of meters 2 inches and larger, and adjustments for Construction Cost Index increases. A comprehensive capacity fee study, which considers the types and cost of new facilities to accommodate new development, will be started in calendar year 2024, after updates to the Water Master Plan are completed. This agenda item requires a public hearing, and notices about this evening’s hearing have been posted in a locally circulated newspaper both 14 days and 7 days in advance of the hearing. In addition, the technical memorandum prepared by IB Consulting supporting the proposed changes to capacity fees, and calculations supporting the recommended miscellaneous fee adjustments, have been made available for public inspection for 10 days prior to the hearing. AGENCY GOALS AND OBJECTIVES IV - Promote Planning, Maintenance and Preservation of District Resources B. Enhance Planning Efforts that Respond to Future Demands C. Dedicate Efforts Toward System Maintenance and Modernization REVIEW BY OTHERS This agenda item has been reviewed by Legal Counsel and the Engineering and Finance Departments. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer Agenda Item #3a October 11, 20233 Meeting Date: October 11, 2023 Agenda Item #3a Public Hearing 8 8 4 ATTACHMENTS 1. Resolution 2023.15 2. Exhibit A - Schedule of Water and Wastewater Rates and Charges 3. IB Consulting 2019 Capacity Fee Study 4. IB Consulting 2023 Technical Memo 5. Public Hearing Notice East Valley Water District Resolution 2023.15 Page 1 of 3 8 7 9 RESOLUTION 2023.15 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ESTABLISHING A SCHEDULE OF RATES AND CHARGES RELATED TO THE PROVISION OF WATER AND WASTEWATER SERVICE AND SUPERSEDING RESOLUTION 2023.05 WHEREAS, East Valley Water District (“District”) is a county water district organized and operating pursuant to California Water Code Section 30000 et seq.; and WHEREAS, pursuant to applicable law, including but not limited to Water Code Sections 31007 and 31025, the District’s Board of Directors is authorized to adopt by resolution such rates and charges for incidental services related to the provision of water service and wastewater service by the District to implement the rules and regulations set forth in District Ordinance No. 403 and 404, and to yield an amount sufficient to pay for the services provided to District ratepayers and the regulatory costs incurred by the District in providing those services; and WHEREAS, Ordinances 403 and 404 provide that Rates and Charges, may be changed from time to time or new rates and charges may be established by resolution of the Board of Directors; and WHEREAS, Section 21080(b) (8) of the Public Resources Code provides that the establishment, modification, structuring, restructuring or approval of rates, tolls, fares, or other charges by public agencies are exempt from the requirements of the California Environmental Quality Act (CEQA) provided that certain findings are made specifying the basis for the claim of exemption; and WHEREAS, the District, in accordance with the requirements of Article XIIID of the Constitution of the State of California, has established rates and fees for property related services including water and wastewater treatment; and WHEREAS, the Board of Directors of the District deems it advisable and finds that it would be in the best interest of the District to amend or establish certain fees and charges, consistent with applicable constitutional and statutory requirements; and WHEREAS, Article XIIIC Section 1 of the Constitution of the State of California, excepts certain levies, fees and charges from the definition of “tax” thereby exempting such levies, fees and charges from the procedural requirements established by Article XIIID of the California Constitution; and WHEREAS, the District now wishes to establish fees and charges incidental and related to the provision of services for water and wastewater treatment, but which fees and charges are not for property related services as defined by Article XIIID of the Constitution of the State of California and which fees and charges may be established by resolution of the Board of Directors of the District; East Valley Water District Resolution 2023.15 Page 2 of 3 8 7 9 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the District as follows: Section 1. It is hereby found and determined that the proposed changes to the Schedule of Water and Wastewater Rates and Charges as set forth in Exhibit “A” are within the purposes set forth in Section 21080(b) of the Public Resources Code, and therefore, that such changes are exempt from CEQA. Section 2. It is hereby found and determined that the capacity fees being increased hereby do not exceed the estimated reasonable cost of providing the service for which they are imposed and that said fees do not constitute a tax pursuant to Article XIIIC Section 1(e) of the California Constitution. Section 3. That the Secretary is hereby ordered and directed to post a certified copy of this Resolution in a public place within the District. This Resolution shall take effect as of the 11th day of October 2023. ADOPTED this 11th day of October 2023. ROLL CALL: Ayes: Noes: Absent: Abstain: Phillip R. Goodrich Board President East Valley Water District Resolution 2023.15 Page 3 of 3 8 7 9 ATTEST: Michael Moore Secretary, Board of Directors October 11, 2023 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2023.15 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held October 11, 2023. Michael Moore Secretary, Board of Directors EXHIBIT “A ” EAST VALLEY WATER DISTRICT SCHEDULE O F WATER AND WASTEWATER RATES AND CHARGES UPDATED OCTOBER 11, 2023 i Table of Contents Section 1: Water Service Charges ................................................................... 4 Monthly Water System Charge ..................................................................... 4 Commodity Charges: Potable Water ............................................................ 4 Private Fire Protection Service ..................................................................... 5 1. Commercial Standby Charge ......................................................................... 5 2. Fire Hydrant Flow Test Fee (per fire hydrant) ................................................. 5 Temporary Water Service Connection .......................................................... 6 Monthly Service Charge .................................................................................. 6 1. Commodity Charge ....................................................................................... 6 2. Meter Deposit ............................................................................................... 6 3. Temporary Service Meter Availability Charge (for reading) .............................. 6 4. Unauthorized Use of Water Charge ................................................................ 6 New Account Fees for Water Services .......................................................... 7 1. Security Deposit ........................................................................................... 7 2. Service Initiation Charge ............................................................................... 7 Miscellaneous Water Service Charges and Fees ........................................... 7 1. AMI Opt-Out Fee .......................................................................................... 7 2. Delinquency Charge ...................................................................................... 7 3. Disconnection Notice Charge ......................................................................... 7 4. Meter Test Charge ........................................................................................ 7 5. Returned Payment Fee ................................................................................. 8 6. Service Reconnect Charge (after hours) ......................................................... 8 7. Service Reconnect Charge (business hours) ................................................... 8 Cross-Connection Control ............................................................................. 9 1. Backflow Installation Fee .............................................................................. 9 2. Backflow Inspection Fee (per inspection) ....................................................... 9 3. Initial Backflow Compliance Test (per device) ................................................. 9 ii 4. Backflow Annual Administration Fee (per device) ............................................ 9 5. Annual Backflow Compliance Test (per device) ............................................... 9 Section 2: Wastewater Service Charges ........................................................ 10 Monthly Wastewater Charge - Current ....................................................... 10 Collection Charges ........................................................................................ 10 Treatment Charges ....................................................................................... 11 Wastewater Charge - SNRC ........................................................................ 12 Section 3: Developer Services ....................................................................... 14 Water Capacity and Connection Fees ......................................................... 14 Water Capacity Fees ..................................................................................... 14 Water Connection Fees ................................................................................. 14 Service Installation Benchmark Costs ......................................................... 15 Wastewater Connection Fees ..................................................................... 16 Fire Service Connection Charges ................................................................ 16 Developer Services’ Charges and Fees ....................................................... 17 1. Availability Letter ........................................................................................ 17 2. Construction Inspection Charge (per day or actual cost) ............................... 17 3. Development Agreement (per agreement or actual cost) .............................. 17 4. Development and Engineering Research Fee ($95 per hr; 4-hr min) .............. 17 5. Development Meeting Fee ........................................................................... 18 6. Easement/Quitclaim Processing (per easement) ........................................... 18 7. Fire Hydrant Installation Charge (actual cost or 5% of estimate) ................... 18 8. General Water/Sewer Service Inquiry .......................................................... 18 9. New Construction Chlorination and Flushing Fee ($355 min to actual cost) .... 18 10. Sewer Manhole and Valve Can Deposit ........................................................ 18 11. Special Facility Charge ................................................................................ 19 12. Water Main Extension Charge ...................................................................... 19 13. Water Quality Sampling Fee (per sample) .................................................... 19 14. Water/Sewer Plan Checking Fee (per sheet) ................................................. 19 15. Water System Design Charge ...................................................................... 19 iii 16. Will Serve Letter ......................................................................................... 20 Section 4: Pretreatment Program ................................................................. 21 Penalties for Enforcement Response Plan Discharge Violations ................ 21 Penalties for Enforcement Response Plan Monitoring Violations .............. 22 Penalties for Enforcement Response Plan Reporting Violations ................ 23 Penalties for Enforcement Response Plan Permit Violations ..................... 24 Penalties for Enforcement Response Plan Miscellaneous Violations ......... 26 History of Revisions ........................................................................................ 27 4 Section 1: Water Service Charges Monthly Water System Charge The water system charge is the monthly availability charge applicable to all metered water services, and shall apply whether or not premises served by the meter are occupied. The charges, which vary by meter size, are established at the amounts listed in the table below. 7/1/2016 1/1/2022 1/1/2023 1/1/2024 5/8"23.06$ 24.01$ 24.74$ 25.49$ 3/4"29.27$ 30.85$ 31.78$ 32.74$ 1"41.71$ 44.52$ 45.86$ 47.24$ 1 1/2" 72.81$ 78.69$ 81.06$ 83.50$ 2"110.13$ 119.70$ 123.30$ 127.00$ 3"228.30$ 229.05$ 235.93$ 243.01$ 4"402.44$ 352.07$ 362.64$ 373.52$ 6"819.14$ 693.79$ 714.61$ 736.05$ 8" 1,503.28$ 1,923.98$ 1,981.70$ 2,041.16$ METER SIZE RATE EFFECTIVE DATE Commodity Charges: Potable Water Commodity Charges are billed on a per unit basis for water consumption registered by the water service meter. One unit is 100 cubic feet (HCF) of water, which is equal to 748 gallons. TIERS 1/1/2020 1/1/2022 1/1/2023 1/1/2024 Tier 1 - Indoor Use $ 1.83 $ 1.98 $ 2.04 $ 2.11 Tier 2 - Outdoor Use $ 2.61 $ 2.54 $ 2.62 $ 2.70 Tier 3 - Inefficient Use $ 3.64 $ 3.93 $ 4.05 $ 4.18 RATE EFFECTIVE DATE 5 The District has three price tiers with increasing rates per unit. The number of units a customer is billed in each tier is determined by their unique water budget. See Section 10 of the District’s Water Regulation and Service Ordinance for an explanation of water budgets. Private Fire Protection Service 1. Commercial Standby Charge The fire service standby charge is the monthly charge assessed per inch diameter of the District fire service meter. Water use through this service is limited to emergency fire requirements only. RATE EFFECTIVE DATE 7/1/2016 1"8.78$ 1 1/2"13.18$ 2"17.57$ 3"26.35$ 4"35.14$ 6"52.70$ 8"70.27$ 10"87.84$ METER SIZE 2. Fire Hydrant Flow Test Fee (per fire hydrant) The fire flow test charge is a flat rate established to cover the District’s time and effort for testing parts of the water system to obtain fire flow test data and calculate results as requested. The District will charge a one-time fee of $270 to administer fire flow tests. 6 Temporary Water Service Connection A temporary service is available through the use of a fire hydrant. A customer deposit for the temporary service will be required, and all other applicable service charges shall apply. Monthly Service Charge Refer to the schedule of Monthly Water System Charges for three inch (3”) meters. 1. Commodity Charge Commodity charges for temporary services shall be billed at the Tier 3 rates based on the Potable Water Commodity Rates. When available, and feasible, recycled water shall be used for temporary construction uses. The Commodity Charge shall be as follows: AREA RATE / 100 CUBIC FEET Potable Tier 3 Rate 2. Meter Deposit A deposit equal to the replacement cost of the construction meter shall be collected at the time of service application. Currently, the replacement cost is estimated to be $2,700. The deposit will be applied to the closing bill and any remaining amount refunded to the customer. Lost meters will result in forfeiture of the deposit. 3. Temporary Service Meter Availability Charge (for reading) If a hydrant/construction meter is not available for a monthly reading as prescribed by the District, a fee of $100 will be charged for each month the meter is not read in order to cover the cost of correcting billing records. 4. Unauthorized Use of Water Charge The unauthorized use of water charge shall be charged to any person, organization or agency for each unauthorized use of District water or for tampering in any manner with any meter belonging to the District where this tampering shall affect the accuracy of such meter. The unauthorized use of water charge is hereby established at the rate of $500 for a first occurrence and $1,000 for each subsequent occurrence. 7 New Account Fees for Water Services The following fees are applicable to all requests for new service, or transfer of an existing account to a new location: 1. Security Deposit A deposit of $150 will be required until a one-year payment history, with fewer than two delinquencies, has been established. The deposit insures payment of minimum District charges. 2. Service Initiation Charge The service initiation charge is a non-refundable charge of $35 per account, which covers the reasonable District costs for initiating water service. Miscellaneous Water Service Charges and Fees 1. AMI Opt-Out Fee This fee covers the cost to manually read the meter and will be charged when a customer requests to Opt-Out; that the District not install an Automated Metering Infrastructure (AMI) meter information unit to serve their property. 2. Delinquency Charge Rates and charges which are not paid on or before the due dates shall be subject to interest charges. Interest will be calculated at a rate of one and one-half percent (1 ½%) on all amounts that remain unpaid at the end of each billing cycle. 3. Disconnection Notice Charge The disconnect notice charge is the charge which covers reasonable District costs to notify customers that their water service is subject to impending termination. 4. Meter Test Charge The meter test charge is the charge which covers the District costs for removing, bench testing, and reinstalling the water meter to be tested. 8 5. Returned Payment Fee A returned payment charge is a charge which covers the reasonable administrative cost and banking charges for processing a returned check, or to respond to a disputed charge where a payment card was fraudulently used to make payment on an account. 6. Service Reconnect Charge (after hours) The service reconnect charge is the charge which covers the reasonable District costs for disconnection and reconnection during non-business hours, of service connections which are in violation of the provisions contained herein. 7. Service Reconnect Charge (business hours) The service reconnect charge is the charge which covers the reasonable District costs for disconnection and reconnection during regular business hours, of service connections which are in violation of the provisions contained herein. Summary of charges/fees for Miscellaneous Water Service: CHARGE OR FEE NAME CHARGE/FEE AMI Opt-Out Fee $13 (per month) Delinquency Charge 1.5% Disconnection Notice Charge $30 Fire Hydrant Flow Test Fee $270 (per fire hydrant) Meter Deposit $2,700 Meter Test Charge $65 Returned Payment Fee $25 Service Initiation Charge $35 (per account) Service Reconnect Charge (after hours)$150 Service Reconnect Charge (business hours)$50 Temporary Service Meter Availability Charge (for reading)$100 Unauthorized Use of Water Charge $500 (first occurrence) Unauthorized Use of Water Charge $1,000 (each subsequent occurrence) 9 Cross-Connection Control In order to prevent water from flowing backward into the District’s water distribution system, a backflow device must be installed by all commercial/irrigation and multi-family customers with four (4) or more units serviced. All backflow devices must be inspected upon installation and tested annually for compliance. Compliance testing may be performed by a certified backflow tester and results shall be submitted to the District. Installation of new backflow prevention assemblies are typically completed by the owner’s contractor, if staff performs the installation, it will be billed at actual cost. 1. Backflow Installation Fee The charge for installation will be based on actual cost to the customer, and will be billed accordingly. 2. Backflow Inspection Fee (per inspection) A fee of $145 will be charged for each standard backflow inspection of newly installed backflow prevention devices, in accordance with District Standards, and inspected by District staff. 3. Initial Backflow Compliance Test (per device) A fee of $60 will be charged to the customer for the initial backflow compliance test performed by certified District staff. 4. Backflow Annual Administration Fee (per device) The District shall appoint at least one person trained in cross-connection control to administer and ensure all District standards are met. This backflow annual administration fee will be assessed annually. 5. Annual Backflow Compliance Test (per device) A fee of $5 per month will be charged to the customer when the annual backflow compliance test is performed by certified District staff. The customer will only be billed as a $60 lump sum when District standards regarding the inspection, testing, and maintenance of customer-owned backflow assemblies are not followed. See Section 9 of the District’s Water Regulation and Service Ordinance for an explanation of Inspection, Testing and Maintenance. 10 Summary of charges/fees for Cross-Connection Control: CHARGE OR FEE NAME CHARGE / FEE Backflow Installation Fee actual cost Backflow Inspection Fee $145 (per inspection) Initial Backflow Compliance Test $60 (per device) Annual Backflow Administration Fee $15 (per device) Annual Backflow Compliance Test $60 (per device) Section 2: Wastewater Service Charges Monthly Wastewater Charge - Current Collection Charges Collection charges were established to maintain the District's wastewater collection lines. A. Residential Customers (1 – 3 units) The collection charge for residential customers is a monthly fixed charge. CUSTOMER CLASS MONTHLY CHARGE Residential 15.36$ B. Commercial Customers The collection charges for commercial customers include a small fixed charge plus a volumetric charge (water usage). CUSTOMER CLASS MONTHLY FIXED CHARGE Commercial/Multi-Family 3.90$ Volumetric Charge per hundred cubic feet (HCF) of water used: 11 COMMERCIAL CUSTOMER TYPE CHARGE PER HCF Multi-Family (4 or more units, Mobile Home Park)0.55$ Commercial/Retail (Non-Office, Bakery, Market)0.55$ Restaurant/Lounge 0.55$ Laundromat 0.55$ Dry Cleaner 0.55$ School/Church (Daycare, Nursery School)0.55$ Office Building/Motel (without a restroom, Municipality)0.55$ Convalescent Home 0.55$ Treatment Charges The District pays treatment charges established by the City of San Bernardino for the operation and maintenance of their wastewater treatment facilities. Any future increases made by the City over the next five years following the previous public hearing, held on January 25, 2017, may be automatically passed through and incorporated herein by this reference, by action of the District’s Board of Directors to the extent authorized by Government Code Section 53756 and any other applicable provision of law. A. Residential Customers Treatment charges for residential customers are a monthly fixed charge. RATE EFFECTIVE DATE 7/1/2017 Residential 21.55$ Multi-Family (2 Units)43.10$ Multi-Family (3 Units)64.64$ CUSTOMER CLASS B. Commercial Customers Treatment charges for commercial customers include a small fixed plus a volumetric charge (water usage) which varies depending on the nature of the commercial entity. Fixed Charges: 7/1/2017 Multi-Family (4+ Units), Mobile Home Parks 1.97$ Non-Residential Customer Classes 3.52$ CUSTOMER CLASS RATE EFFECTIVE DATE 12 Volumetric Charges (per HCF): 7/1/2017 Multi-Family (4+ Units), Mobile Home Parks 1.53$ Commercial / Retail 2.55$ Restaurants / Lounges 3.28$ Laundromats 1.83$ Dry Cleaners 2.55$ Schools / Churches 1.33$ Governments / Municipal 1.83$ Convalescent Homes 1.63$ Hotels (with Restaurants)3.28$ Offices Buildings / Motels 1.83$ Auto Repair / Service Station 1.58$ Car Wash 1.58$ RATE EFFECTIVE DATECUSTOMER CLASS Wastewater Charge - SNRC The commencement of operations at the District’s new Sterling Natural Resource Center Water Reclamation Plant will require that the District transition from charging rates established by the City of San Bernardino, to rates that were adopted as the result of a wastewater Cost of Service Analysis conducted on District operations and facilities. Wastewater charges consist of both a Collection (System) component and a treatment component, and includes both fixed charges, and charges based on water usage. An explanation of how these charges apply to different customer classes is explained below. A. Residential Customers The collection and treatment charges for residential customers is a monthly fixed charge for each dwelling unit. Accounts with 1-3 dwelling units are classified as single- family residential customers; accounts with 4 or more dwelling units are classified as multi-family residential customers. 13 Collection Treatment Collection Treatment Collection Treatment Single-Family Residential Fixed Monthly Charges 14.25$ 23.37$ 15.25$ 25.01$ 16.32$ 26.77$ Multi-Family Residential Fixed Monthly Charges 13.46$ 20.86$ 14.41$ 22.33$ 15.42$ 23.90$ RATE EFFECTIVE DATE 1/1/2023 1/1/20245/1/2022 B. Commercial / Non-Residential Customers The collection and treatment charges for non-residential customers consist of monthly fixed charges, assessed per account, and a volumetric charge assessed for each unit of water (HCF) used for the account during the billing period. The volumetric charge varies based on the strength/concentration factors of the wastewater discharged by commercial customers. Customers are assigned to a strength category based on industry standards. Fixed Monthly Charges: Collection Treatment Collection Treatment Collection Treatment 10.33$ 10.83$ 11.06$ 11.59$ 11.84$ 12.41$ RATE EFFECTIVE DATE 5/1/2022 1/1/2023 1/1/2024 Volumetric Charges per HCF of Water Usage: Collection Treatment Collection Treatment Collection Treatment Low Strength Dischargers 0.35$ 0.96$ 0.38$ 1.03$ 0.41$ 1.11$ Medium Strength Dischargers 0.46$ 1.53$ 0.50$ 1.64$ 0.54$ 1.76$ High Strength Dischargers 0.46$ 3.42$ 0.50$ 3.66$ 0.54$ 3.92$ Patton State Hospital 0.57$ 1.79$ 0.61$ 1.92$ 0.66$ 2.06$ RATE EFFECTIVE DATE 5/1/2022 1/1/2023 1/1/2024 14 Section 3: Developer Services Water Capacity and Connection Fees Water Capacity Fees A “Capacity Charge” is defined within GC 66013 as a charge for public facilities in existence at the time a charge is imposed or charges for new facilities to be constructed in the future that is of benefit to the person or property being charged. Capacity fees ensure new development pays its fair share to connect to the system and does not cause additional burdens to current customers. Capital and infrastructure costs required to meet new demand/connections should be paid by those creating the cost to be incurred. On July 1 of each year Water Capacity Charges will automatically increase in proportion to the published 12-month increase measured in September each year in the Construction Cost Index, unless the EVWD Board of Directors determines that such an increase shall not be effective for the next succeeding fiscal year, or if the index does not increase or change. Water Connection Fees The water meter connection charge is the charge for installation and materials between the service angle stop and customer connection side within the meter box. Such regular charge shall be paid in advance by the applicant. Cost varies for the requested meter size and type. Service line connections to the main are separate from this fee and would be an additional non-regular charge. Where there is a non-regular charge, the District reserves the right to require the applicant to deposit an amount equal to the estimated cost of such service connection. 15 RATE EFFECTIVE DATE 7/1/2023 RATE EFFECTIVE DATE 10/11/2023 3/4" T-10 8,417$ 9,531$ 930$ 3/4" Mach 10 8,417$ 9,531$ 1,035$ 1"14,030$ 15,884$ 1,100$ 1 1/2"28,060$ 31,766$ 1,495$ 2"44,895$ 50,826$ 1,780$ 3"89,790$ 158,832$ 7,515$ 4"140,297$ 397,081$ 10,030$ 6"280,595$ 635,327$ 15,875$ 8"785,667$ 1,270,665$ 17,360$ 10"1,178,500$ 2,064,814$ 22,355$ 12"2,244,790$ 2,541,308$ 2,244,790$ CAPACITY CHARGE METER CONNECTION CHARGE METER SIZE Service Installation Benchmark Costs Installation charges will be estimated by the District based on availability of District staff to complete the work-site specific construction conditions and requirements. The costs in the table shown are benchmarks, or cost references to begin from, for a short or long- side service installation based on requested meter size. Permitting, paving/concrete costs, and non-typical conditions are not included and will need to be assessed per connection, on a case-by-case basis. If the applicant elects not to have District staff complete the installation, then an administrative fee of 5% of the estimate will be charged. Re p l a c e d 15 RATE EFFECTIVE DATE 7/1/2023 RATE EFFECTIVE DATE 10/11/2023 3/4" T-10 8,417$ 8,081$ 930$ 3/4" Mach 10 8,417$ 8,081$ 1,035$ 1"14,030$ 13,468$ 1,100$ 1 1/2"28,060$ 26,935$ 1,495$ 2"44,895$ 43,096$ 1,780$ 3"89,790$ 134,675$ 7,515$ 4"140,297$ 336,687$ 10,030$ 6"280,595$ 538,698$ 15,875$ 8"785,667$ 1,077,396$ 17,360$ 10"1,178,500$ 1,750,768$ 22,355$ 12"2,244,790$ 2,154,791$ 2,244,790$ CAPACITY CHARGE METER CONNECTION CHARGE METER SIZE Service Installation Benchmark Costs Installation charges will be estimated by the District based on availability of District staff to complete the work-site specific construction conditions and requirements. The costs in the table shown are benchmarks, or cost references to begin from, for a short or long- side service installation based on requested meter size. Permitting, paving/concrete costs, and non-typical conditions are not included and will need to be assessed per connection, on a case-by-case basis. If the applicant elects not to have District staff complete the installation, then an administrative fee of 5% of the estimate will be charged. Replaces page 15 on the EVWD Schedule of Water and Wastewater Rates and Charges. 16 METER SIZE SHORT SIDE LATERAL LONG SIDE LATERAL 3/4" T-10 6,005$ 11,030$ 3/4" Mach - 10 6,110$ 11,135$ 1"6,035$ 11,060$ 1 1/2"6,420$ 11,445$ 2"6,640$ 11,665$ 3"14,765$ 22,690$ 4"17,210$ 25,135$ 6"22,985$ 30,915$ 8"24,470$ 32,395$ 10"29,465$ 37,390$ Wastewater Connection Fees The sewer service connection charge is the charge for the type and size of service connection desired. Such regular charge shall be paid in advance by the applicant. Where there is no such regular charge, the District reserves the right to require the applicant to deposit an amount equal to the estimated cost of such service connection. The following charges are hereby established and shall be collected at the time of application for sewer connection: CHARGE OR FEE NAME Permit Charge $ 275 per connection Inspection Charge $ 100 per connection (per visit) Capacity Charge $ 8,803 per EDU or portion thereof CHARGE / FEE On July 1 of each year Wastewater Capacity Charges will automatically increase in proportion to the published 12-month increase measured in September each year in the Construction Cost Index, unless the EVWD Board of Directors determines that such an increase shall not be effective for the next succeeding fiscal year, or if the index does not increase or change. Fire Service Connection Charges The fire service charge is the charge for the type and size of fire service connection desired. Such regular charge shall be paid in advance by the applicant. Where there is no 17 regular charge, the District reserves the right to require the applicant to deposit an amount equal to the estimated cost of such service connection. Installation charges will be estimated by the District based on availability of District staff to complete the work and site-specific construction conditions and requirements. If the applicant elects not to have District staff complete the installation then an administrative fee of 5% of the estimate will be charged. Developer Services’ Charges and Fees 1. Availability Letter A fee of $155 will be charged for a water or sewer verification letter inquiry. 2. Construction Inspection Charge (per day or actual cost) Where a customer service connection or facility requires inspection by District personnel, the customer shall be charged for such inspection at the rate of $905 per day. When District personnel are not available, inspection will be performed by third party inspectors retained by the District. The hourly rate for third-party inspectors will be established at the beginning of each third-party inspection assignment. 3. Development Agreement (per agreement or actual cost) A Development Agreement is required whenever a project will include the design and construction of water or sewer facilities which will be dedicated to the District. This $1,375 minimum fee will cover the cost to initiate and execute a Development Agreement with the District. 4. Development and Engineering Research Fee ($95 per hr; 4-hr min) This fee will provide funding for Engineering staff to conduct research of existing accounts, easements, and other development related materials. This would only apply to obtaining information for Developers that is unique to their development area and not general information, such as fee schedules or District design standards. Utility Requests and providing of As-builts or other locating documentation is not included in this fee. This fee also encompasses the District’s time and effort spent on assisting customers who have a requirement to construct water or sewer facilities, which must meet District needs and conform to District standards. 18 5. Development Meeting Fee (per meeting, after first meeting) This $475 per meeting fee will provide funding for Engineering staff to prepare for and attend, meetings with developers regarding their projects beyond the initial project consultation meeting and set-up. This fee will primarily impact larger, more complex developments which may require multiple coordination meetings with staff. 6. Easement/Quitclaim Processing (per easement) A minimum fee of $975 will be charged for review and recordation of each Easement or Quitclaim document. If complexity of the legal document requires more time, legal counsel, or land surveyor counsel, actual costs beyond the minimum will be collected. 7. Fire Hydrant Installation Charge (actual cost or 5% of estimate) Installation charges will be estimated by the District based on availability of District staff to complete the work and site-specific construction conditions and requirements. If the applicant elects not to have District staff complete the installation, an administrative fee of 5% of the estimate will be charged. 8. General Water/Sewer Service Inquiry A fee of $75 will be charged for a Technician’s time for general inquiries for service to a parcel. This inquiry usually arises from realtors and small developers. 9. New Construction Chlorination and Flushing Fee ($355 min to actual cost) A minimum fee of $355 will be charged for new construction disinfection plan review, inspection, and flushing prior to sampling. 10. Sewer Manhole and Valve Can Deposit A refundable deposit of $1,500 per manhole will be charged for each sewer manhole structure shown on the sewer construction plans. A refundable deposit of $500 per valve can will be charged for each valve can shown on the water construction plans. These deposits will be returned when all manholes and valve cans are constructed to final grade by the Developer’s contractor and verified by the District. As an alternative to the manhole and valve can deposit, a guarantee bond may be provided in the same amount as the deposit. The guarantee bond shall contain covenants that are satisfactory to the District. Such bond shall remain in force until all manholes and valve cans are constructed to final grade by the Developer’s contractor and verified by the District. 19 11. Special Facility Charge A special facility charge shall be required for development of limited service whenever special facilities, including pressure regulators are required. The charge to be made to a developer or owner of land that is considered by the District to be within a limited service area shall be based upon the Developer’s or Landowner’s proportionate share of the cost for the installation of such Special Facility. Such proportionate share to be borne by the developer or landowner shall be based on the percentage of such development to the entire limited service area to be served by the Special Facilities; and the same number of acres or area under normal conditions and the cost of facilities to serve the acreage of area under special conditions at a higher cost. 12. Water Main Extension Charge The water main extension charge is for the construction of a water main extending to the far side of the property to be served. This charge shall be based on the prevailing rates of time and material per District approved plans. The customer shall be responsible to provide the plans and for all applicable Water/Sewer Plan Checking charges described below. 13. Water Quality Sampling Fee (per sample) A fee of $135 will be charged for each water quality sample taken for new construction. 14. Water/Sewer Plan Checking Fee (per sheet) This $800 fee is collected per sheet and is a minimum that will cover up to three in- house plan checks. When District personnel are not available, plan checking will be performed by third-party Engineers retained by the District. The hourly rate and estimate for three plan checks for third-party plan checkers will be established at the beginning of each third-party plan checking assignment. The minimum fee per sheet established can be collected initially to begin plan checking and the Developer will deposit the difference to cover the third-party’s plan check cost to the District. Should more than three plan checks be required, additional funds may be deposited to bill against, and hours will be billed at the Engineering Research Fee or the cost of the third-party Engineer. Plan checking costs shall be paid before plans are returned. 15. Water System Design Charge A water system design charge shall be required for all main extensions, service 20 connections and/or special facilities requiring the preparation of engineering plans and drawings. The water system design charge is hereby established as the fee charged by an Engineering firm of the District’s choosing, plus an additional 10% thereof for the District’s administrative costs. In the event the costs exceed the fees charged, the additional cost will be billed to the customer. 16. Will Serve Letter Once a Developer has compiled or met all the items needed to make the request for a Will Serve Letter, per the Development Guidelines and Procedures Handbook, they may request and pay a minimum fee of $575 to review and evaluate the infrastructure needs for a proposed project within the District’s service area. Should additional time be required for reviewing the project information and to prepare the document, the hourly rate established for the Engineering Research Fee shall be assessed in addition to the minimum fee . Summary of charges/fees for Developer Services: CHARGE OR FEE NAME CHARGE / FEE Availability Letter $155 Construction Inspection Charge $905 (per day) or actual cost Development Agreement $1,375 (per agreement; min to actual cost) Development and Engineering Research Fee $95 (flat rate, per 4-hr min) Development Meeting Fee $475 (per meeting, after first meeting) Easement/Quitclaim Processing $975 (per easement) Fire Hydrant Installation Charge actual cost or 5% of estimate General Water/Sewer Service Inquiry Fee $75 New Construction Chlorination and Flushing Fee $355 (min to actual cost) Sewer Manhole and Valve Can Deposit $1,500 (per manhole); $500 (per valve can) Special Facility Charge Based on proportionate share of Developer or Landowner share of the installation of Special Facility Water Main Extension Charge Based on prevailing rates of time and material per District approved plans Water Quality Sampling Fee $135 (per sample) Water/Sewer Plan Checking Fee $800 (per sheet; 3 plan checks) Water System Design Charge actual cost + 10% for administrative costs Will Serve Letter $575 (min fee) 21 Section 4: Pretreatment Program The District performed permit related activities will include permit processing, inspections and monitoring. The following fees are anticipated to cover the annual costs for each class of dischargers for the Pretreatment Program. Class* Annual Fee I User $2,000 II User $1,000 III User $150 IV User $500 V User $200 VI User $150 *Descriptions of each user type are defined in the East Valley Water District Sewer Regulations and Service Charge Ordinance, definitions section. Penalties for Enforcement Response Plan Discharge Violations The District may assess a penalty against a person or entity in compliance with the requirements of ordinances, and enforcement response plan guidelines. Violation & Circumstances Penalty First Discharge Violation in a 12-month Period - No harm to POTW None Second Discharge Violation in a 12-month Period - No harm to POTW $100 NMP Violation(s) —Does not result in Acute Non- Compliance $100 22 NMP Violation(s) – Acute Non-Compliance $100, $100, $500, $1000, each subsequent violation Any discharge violation(s) that result in Quarterly SNC status $100, $100, $500, each subsequent violation Any discharge violation(s) that result in pass-through, sludge contamination, or interference $1,000 or as determined by District review Dilution of Wastestream — First offense None Dilution of Wastestream — Repeat offense(s) $100 Continuous pH Monitoring indicates noncompliance $100 Septic Waste Discharged at non-authorized site or in noncompliance with limitations at the POTW — First Offense $100 Septic Waste Discharged at non-authorized site or in noncompliance with limitations at the POTW — Repeat Offense(s) $100, $1,000 or as determined by the District Discharge of any prohibited Waste — First Offense $100 Discharge of any prohibited waste — Repeat Offense(s) $100, $100, $1000 or as determined by the District Penalties for Enforcement Response Plan Monitoring Violations The District may assess a penalty against a person or entity in compliance with the requirements of ordinances, and enforcement response plan guidelines. Violation & Circumstances Penalty Failure to sample or resample within required timeframes — Doesn’t result in Acute Non-Compliance None 23 Failure to sample or resample within required timeframes — Results in Acute Non-Compliance $100 Improper Sample Location — First offense None Improper Sample Location — Repeat offense(s) $100, $500 for subsequent violations Improper sample collection or analytical methods — First offense None Improper sample collection or analytical methods — Repeat offense(s) $100, $500 for subsequent violations Failure to monitor for all required pollutants — First offense None Failure to monitor for all required pollutants — Repeat offense(s) $100, $500, $1000 for subsequent violations Failure to properly maintain or operate Flow monitoring or pretreatment equipment — First offense. None Failure to properly maintain or operate Flow monitoring or pretreatment equipment— Repeat offense(s) $100, $500, $1000 for subsequent violations Failure to install required monitoring or flow equipment — First offense. $100 Failure to install required monitoring or flow equipment — Repeat offense(s) $100/day Penalties for Enforcement Response Plan Reporting Violations The District may assess a penalty against a person or entity in compliance with the requirements of ordinances, and enforcement response plan guidelines. Violation & Circumstances Penalty Failure to maintain records or reports as required by permit — First offense None 24 Failure to maintain records or reports as required by permit — Repeat offense(s) $100 Failure to submit records, reports, or correspondence — less than 5 days late None Failure to submit records, reports, or correspondence — between 5 and 45 days late. $100 Failure to submit records, reports, or correspondence — Over 45 days late – Significant Non-Compliance $100, $500, $1000 for subsequent violations Failure to report SMR Discharge violation — First offense None Failure to report SMR Discharge violation — Repeat offense(s) $100 Failure to report Slug Load or spill discharge violation — First offense & no harm None Failure to report Slug Load or spill discharge violation — Repeat offense(s) — No harm $100 Failure to report Slug Load or spill discharge violation – Harm $250, $500, $1000 and $1500 for subsequent violations Failure to submit additional monitoring — First offense None Failure to submit additional monitoringRepeat offense(s) $100 Penalties for Enforcement Response Plan Permit Violations The District may assess a penalty against a person or entity in compliance with the requirements of ordinances, and enforcement response plan guidelines. Violation & Circumstances Penalty 25 Failure to submit permit application or renewal by due date None Failure to submit permit application renewal before current permit expires $100 Failure to submit permit application that results in a permit reclassification $100 Failure to comply with any permit condition of requirement — First offense $100 Failure to comply with any permit condition or requirement — Repeat offense(s) $100, $500, $1000 for subsequent violations Unauthorized or Unpermitted Discharge — first offense — No harm to POTW None Unauthorized or Unpermitted Discharge — Repeat offense(s) — No harm to POTW $100 Unauthorized or Unpermitted Discharge — First offense — Harm to the POTW $100, $500, $1000 depending of severity Unauthorized or Unpermitted Discharge — Repeat offense(s) — Harm to the POTW $100, $500, $1000 or as determined by District review Failure to submit required permit information or any process modification — First offense None Failure to submit required permit information or any process modification — Repeat offense(s) $100 Failure to implement any plan required by the permit (i.e. slug load, spill prevention, TOMP, etc.) — First offense $100 Failure to implement any plan required by the permit (i.e. slug load, spill prevention, TOMP, etc.) — Repeat offense(s) $100, $500, $1000 for subsequent violations 26 Penalties for Enforcement Response Plan Miscellaneous Violations The District may assess a penalty against a person or entity in compliance with the requirements of ordinances, and enforcement response plan guidelines. Violation & Circumstances Penalty Denial of entry to perform monitoring or inspections — first offense None Denial of entry to perform monitoring or inspections — Repeat offense(s) $100, $500, $1000 for subsequent violations Spill containment not present or inadequate — First offense None Spill containment not present or inadequate — Repeat offense(s) $100 Spill containment area not properly maintained — First offense None Spill containment area not properly maintained — Repeat offense(s) $100, $500, $1000 for subsequent violations Illegal water softening equipment installed — First offense None Illegal water softening equipment installed — Repeat offense(s) $100, $500, $1000 for subsequent violations Failure to implement Best Management Practices (BMPs) — First offense None Failure to implement Best Management Practices (BMPs) — Repeat offense(s) $100, $500, $1000 for subsequent violations 27 History of Revisions DATE ADOPTED RESOLUTION UPDATED OR RESCINDED REVISION DATE EFFECTIVE 10/11/23 2023.15 2023.05 Update Water Capacity Fees 10/11/23 Pass-Through N/A N/A Update Capacity Fees (per Cost Construction Index)07/01/23 03/22/23 2023.05 2021.13 Addition of Pretreatment Program Penalties 04/01/23 Pass-Through N/A N/A Update Capacity Fees (per Cost Construction Index)07/01/22 08/11/21 2021.13 2021.07 Update AMI Opt-Out Fee 09/01/21 Pass-Through N/A N/A Update Capacity Fees (per Cost Construction Index)07/01/21 05/12/21 2021.08 2019.19 Update Water and Wastewater Charges 01/01/22 05/12/21 2021.07 2019.19 Update Miscellaneous and Development Fees 06/01/21 Pass-Through N/A N/A Update Capacity Fees (per Cost Construction Index)07/01/20 12/11/19 2019.19 2019.06 Update Miscellaneous and Capacity Fees 01/01/20 05/22/19 2019.06 2017.07 Update Water Charges 01/01/20 07/11/18 2018.12 2017.01 Update Wastewater Charges 08/12/18 05/24/17 2017.07 2017.01 Update Water Charges 07/01/17 01/25/17 2017.01 2016.05 Update Wastewater Treatment Charges and Renew 5-Year Pass-Through Provision 07/01/17 02/24/16 2016.05 2015.04 Update Wastewater Charges and Miscellaneous Fees 04/01/16 03/25/15 2015.04 2014.32 Implement Water Budget Based Rates 06/01/15 03/25/15 2015.04 Ord 391 Update Wastewater Charges 06/01/15 IB Consulting, LLC 31938 Temecula Parkway, Suite A #350 Temecula, CA. 92592 Capacity Fee Study East Valley Water District December 11, 2019 East Valley Water District – Capacity Fee Study Page | 2 TABLE OF CONTENTS Executive Summary ......................................................................................................................... 3 Overview .......................................................................................................................................... 4 Capacity Fee Methodology ............................................................................................................... 5 Existing System Demand and Future Development ......................................................................... 8 Utility Asset Values ........................................................................................................................... 9 Capacity Charge Analysis .............................................................................................................. 12 Updated Capacity Fees .................................................................................................................. 16 TABLES Table 1 - 2019 Master Plan Demand Projections ............................................................................. 8 Table 2– Water Asset Replacement Cost Less Depreciation ......................................................... 10 Table 3– Wastewater Asset Replacement Cost Less Depreciation ............................................... 10 Table 4– Utility Net RCLD .............................................................................................................. 11 Table 5– Existing Water Meter Equivalents .................................................................................... 12 Table 6– Water Buy-In by Asset Category ..................................................................................... 13 Table 7– Wastewater Buy-In by Asset Category ............................................................................ 14 Table 8– Water Incremental Cost Component ............................................................................... 14 Table 9– Wastewater Incremental Cost Component ...................................................................... 15 Table 10– Water Proposed Capacity Fee ...................................................................................... 16 Table 11– Wastewater Proposed Capacity Fee ............................................................................. 16 FIGURES Figure 1 – Capacity Fee Analysis ..................................................................................................... 5 Figure 2 – Asset Valuation ............................................................................................................... 6 East Valley Water District – Capacity Fee Study Page | 3 Executive Summary In June 2019, East Valley Water District (District) engaged IB Consulting, LLC (IBC) to complete a capacity charge nexus study for its water and wastewater enterprises. This Water and Wastewater Capacity Fee Study Report (Report) describes the approach, methodology, and technical analysis used to derive updated capacity charges per California State Government Code, Section 66013 (GC 66013). GC 66013 allows an agency to charge the estimated reasonable cost to serve a new connection for which the charge is imposed. Currently, the District’s water capacity charge is $5,200 for a 3/4” meter, and the wastewater capacity charge is $5,905 for a single-family residential connection, defined as one Equivalent Dwelling Unit (1 EDU). The District’s capacity charges were last updated in 2014 and have not been increased or indexed annually to keep pace with the cost of construction. The updated capacity charge for water includes two primary components: 1) a Buy-In component for existing facilities and 2) an Incremental component for a new water treatment plant. The wastewater capacity charge also includes two components: 1) a Buy-In component for existing collection facilities and 2) an Incremental component for the Sterling Natural Resource Center (SNRC) and the upsizing of specific pipeline facilities required to accommodate additional demand from new development. The analysis contained in this Report justifies modifying the water capacity charges to $7,228 per 3/4” meter, and the wastewater capacity charges to $7,560 per EDU. These updated charges proportionately recover new development’s share of facility costs in existence and new public facilities to be acquired or constructed over a 20-year planning horizon (2040) (Planning Horizon). In addition to new connections, current customers expanding their capacity at an existing connection will also pay for the incremental demand placed on the water and wastewater systems. East Valley Water District – Capacity Fee Study Page | 4 Overview Capacity Fees A “Capacity Charge” is defined within GC 66013 as a charge for public facilities in existence at the time a charge is imposed or charges for new facilities to be constructed in the future that is of benefit to the person or property being charged. Capacity fees ensure new development pays its fair share to connect to the system and does not cause additional burdens to current customers. Capital and infrastructure costs required to meet new demand/connections should be paid by those creating the cost to be incurred. Based on the requirements of GC 66013, capacity charges must be based on the “reasonable cost” to accommodate additional demand from new development or the expansion of existing development. In addition, the State Constitution was amended through the approval of Proposition 26 in 2010, which redefined a “tax” as any levy, charge, or exaction of any kind imposed by a local government. However, seven exemptions are part of Proposition 26, including cost-based charges imposed as a condition of property development (i.e. capacity charges) so long as a reasonable relationship between the charges and cost of facilities are linked. Therefore, the nexus study summarized in this Report connects the proposed charge to the reasonable cost of improvements in compliance with the Proposition 26 exemption. District Background The District is located in the high-desert of San Bernardino County (County) and consists of the entire City of Highland, portions of the City of San Bernardino, and unincorporated areas of the County. The District spans almost 18,000 acres and currently serves a population of approximately 103,000. Since the District’s inception in 1954, it now provides both water and wastewater service to its customers. The District recently completed a new Master Plan for each of the two utility systems (Water Master Plan and Wastewater Master Plan, or collectively Master Plans). Based on the Master Plans, the population is expected to be approximately 142,000 by the year 2040, representing a 37 percent increase in population. This population growth results in increased water demands, water supply requirements, and wastewater capacity needs. Based on the District’s current system assets and planned improvements required to accommodate growth, the proposed capacity charges for water and wastewater include both a Buy-In component and an Incremental component. The Buy-In component is calculated by determining the Replacement Cost of assets Less Depreciation (RCLD). The District has a significant amount of backbone infrastructure available to accommodate growth, and the existing assets serve as a proxy to determine the current facility standards serving existing customers. In addition to existing infrastructure, the Master Plans identify specific capital improvements required to accommodate growth through 2040. The Incremental component of the proposed water capacity fee includes a new eastside water treatment plant. For wastewater, the Incremental component consists of the SNRC and the necessary upsizing of existing facilities. East Valley Water District – Capacity Fee Study Page | 5 Capacity Fee Methodology There are four primary steps in calculating capacity fees: (1) determine demand and define the baseline requirements for a connection, meter equivalent, or equivalent dwelling unit based on planning documents, 2) calculate the capital costs required to serve new or expanding connection, (3) determine any credits or offsets to apply towards the total capital costs, such as grants, existing debt obligations, and available funding through previously collected capacity fees, and (4) apportion the capital costs equitably to various types of connections based on the demand placed on the utility system to ensure a fair share allocation. Figure 1 – Capacity Fee Analysis In addition to the four steps above, the three primary approaches for calculating capacity fees, are the “Buy- In Approach,” “Incremental-Cost Approach,” and “Hybrid Approach.” The Hybrid Approach accounts for both a buy-in component and an incremental component. Additional considerations may be required to allocate costs between existing and new customers appropriately and to ensure no duplication of cost occurs. The selected approach primary depends on the unique circumstances of the utility, such as existing build-out of the service area, expected future growth, exiting infrastructure capacity, and access to up to date planning documents/master plans. East Valley Water District – Capacity Fee Study Page | 6 Buy-In Approach The system Buy-In Approach accounts for the current facility standard that existing customers receive through their service. Using this approach ensures that new development buys-in to the utility system and funds the necessary improvements to maintain and receive the same level of service experienced by today’s customers. Therefore, new development pays an amount equal to their fair share of the system. This approach eliminates any potential funding of existing system deficiencies as the District’s current asset inventory only reflects improvements that are in the ground today. The basis of the Buy-In approach is the value of the existing system. System assets may be valued in a few different ways. Options include using the original cost of the improvements (OC), original cost less depreciation of system assets to account for the time improvements are in service (OCLD), replacement cost of the improvements by bringing the original cost into today’s dollars (RC), and replacement cost less depreciation which brings both the original cost and the accumulated depreciation value into today’s dollars (RCLD). The most common valuation technique is RCLD. Using RCLD generates a system value based on today’s cost of the improvements by indexing the original cost by an appropriate indicator that reflects the change in cost over time, while also accounting for years in service. For this analysis, we calculate RCLD by using the Construction Cost Index (CCI), published by Engineer’s News-Record. Figure 2 – Asset Valuation Once the system value is determined, dividing the total value by total existing demand derives a value per unit of demand. Demand is commonly used for system design. It is a primary driver for the current configuration of the system and how the system expands in the future. Using meter size and the corresponding meter capacity (water flow demand in gallons per minute) provides a means to derive a value per Meter Equivalent (ME). This approach is suited for agencies that 1) have built most of their facilities in advance with only a small portion of facilities needed for build-out, 2) don’t have an adopted long-term capital improvement plan, or 3) the “build-out” date is so far out in the future that it is difficult to project growth accurately and required facilities. East Valley Water District – Capacity Fee Study Page | 7 Incremental Cost Approach The Incremental Cost Approach is based on the principle that new development should pay for improvements required to connect them to the system, including the need for any additional capacity and/or expansions. This approach is typically used when there are specific capital improvements identified within planning documents that are needed for growth to occur. The Incremental Cost Approach uses the District’s most recent Master Plan to determine growth-related improvements. Projects associated with routine repair & replacement are not included, and any improvements identified within the Master Plan that are required to address existing deficiencies are removed. Also, specific projects within the Master Plan may benefit both existing and new development. In these instances, new development only pays its proportionate share based on the demand or capacity taken from these projects. As part of this study, there is one capital project included using the Incremental Cost Approach for water and capital expansions required for wastewater. The District plans to construct a new water treatment plant on the east side of the District’s service area. The treatment plant will treat surface water from the Santa Ana River and serve the additional demand generated by new development. The Eastside Water Treatment Plant is currently sized with a capacity of 3 Million Gallons per Day (MGD). A rate per gallon of capacity will be derived to charge new development based on their proportional share of the capacity in the new plant. The Wastewater Incremental component includes the new SNRC as well as certain upsizing of facilities within the Wastewater Master Plan required for growth to occur. Hybrid Approach The Hybrid Approach is utilized when the existing system has available capacity and/or is substantially built while specific capital improvements are clearly identified and needed to serve new development. Given that the District has a significant amount of backbone infrastructure already built for its water and wastewater systems and has a recently updated master plan that identifies additional improvements needed to serve new development, the Hybrid Approach was used for updating the District’s capacity fees. East Valley Water District – Capacity Fee Study Page | 8 Existing System Demand and Future Development Water System Demand Based on growth forecasts developed within the 2019 Water Master Plan, the population within the District’s service area is expected to grow to approximately 142,000 by 2040. This population growth results in increased water demands and water supply requirements. The Water Master Plan projected total water demand through 2040 by using a combination of population projections, land use development, and the 175 Gallons Per Capacity Per Day (GPCD) compliance target from the Regional Water Urban Management Plan. The 175 GPCD translates to 609 gallons per day for 1 ME (3.48 persons per household x 175 GPCD). Over the Planning Horizon, projections yielded a total water demand of 27.69 MGD (2040 Water Demand). Wastewater System Demand The existing wastewater system consists of approximately 213 miles of pipeline, 4,400 wastewater manholes, 7 siphons, and 5 diversion structures. The existing wastewater system conveys flows into San Bernardino Municipal Water Department’s (SBMWD) East Trunk Sewer, which outlets to the San Bernardino Water Reclamation Plant (SBWRP). The District’s wastewater collection system is substantially built, and effluent is conveyed to the City of San Bernardino regional treatment plant. The District’s collection system includes approximately 213 miles of pipeline ranging in size from 4 inches to 24 inches in diameter. The wastewater system does not include any lift stations or force mains, and all flow is conveyed by gravity to the East Trunk Sewer pipeline. Similar to the Water Master Plan, total demand over the Planning Horizon was estimated using population projections, and future land use data to yield an aggregate demand of 11.79 MGD (2040 Wastewater Demand). The Wastewater Master Plan also identifies a near-term demand, through 2025, equal to 10.1 MGD (2025 Wastewater Demand). These projections result in an incremental increase in demand of 2.87MGD by 2025 and an additional increase in demand from 2025 to 2040 of 1.69MGD. Table 1 provides a summary of existing and future demands. Table 1 - 2019 Master Plan Demand Projections Utility Existing [A] 2025 Demand [B] 2025 Incremental Demand B - A = [C] 2040 Demand [D] 2040 Incremental Demand D - B = [E] Water System 20.29 MGD 25.34 MGD 5.05 MGD 27.69 MGD 2.35 MGD Wastewater System 7.23 MGD 10.1 MGD 2.87 MGD 11.79 MGD 1.69 MGD East Valley Water District – Capacity Fee Study Page | 9 Utility Asset Values Asset Value The first step in determining the buy-in facilities development charge is to determine the value of the existing system. As mentioned above, there are several methods of determining the current value of assets, but, for this study, RCLD was used. RCLD valuation was thought to be the most equitable and reasonable approach since it takes into consideration the time value of money and factors in the remaining useful life of each asset. To accomplish this, the District provided fixed asset records containing the original cost of each asset. Replacement cost was estimated by bringing forward the original costs to today’s dollars to reflect the estimated cost if a similar asset were constructed today. This original cost for each asset was indexed by the annual percentage change of the Construction Cost Index for 20-cities (CCI), published by the Engineer’s News Record. For 2018, the CCI value is 11,062. Accumulated depreciation was also indexed by CCI to maintain consistency with 2019 dollars. Subtracting the accumulated depreciation from the replacement cost yields the updated RCLD of each utility and reflects facility standards in 2019 dollars. Table 2 and Table 3 show the water assets and wastewater assets, respectively. Each table summarizes original cost, replacement cost in 2019 dollars, accumulated depreciation in 2019 dollars, and assets adjusted for the 2019 depreciation (RCLD). With the asset listings, Land values do not depreciate, and the replacement value is estimated by increasing the original acquisition costs by a 2% inflation limit in-line with Proposition 13 constraints on assessed values. In addition, Water Rights also do not depreciate, and since water rights do not go away, the replacement cost is equivalent to the original acquisition cost of North Fork Mutual Water Company shares owned by the District. Detailed asset listings are on file with the District. East Valley Water District – Capacity Fee Study Page | 10 Table 2– Water Asset Replacement Cost Less Depreciation Asset Category Original Cost [A] Replacement Cost (2019 $) [B] Accumulated Depreciation [C] Accumulated Depreciation (2019 $) [D] RCLD B - D = [E] General $15,399,082 $18,230,814 $2,992,456 $4,245,444 $13,985,370 Hydrants $51,701 $84,394 $35,710 $58,328 $26,066 Land $2,583,057 $4,162,252 $- $- $4,162,252 Meters $87,231 $131,829 $53,159 $82,629 $49,200 Pumping $14,422,349 $27,767,017 $6,190,302 $17,179,912 $10,587,105 Storage $19,837,173 $38,660,328 $6,730,702 $17,394,540 $21,265,788 Transmission/Distribution $71,171,257 $159,620,760 $23,078,956 $80,372,865 $79,247,895 Treatment $28,074,591 $39,003,730 $9,867,870 $14,808,909 $24,194,821 Water Rights $1,934,473 $1,934,473 $- $- $1,934,473 Wells $16,004,293 $26,416,665 $5,914,995 $12,810,768 $13,605,897 Total $169,565,204 $316,012,263 $54,864,150 $146,953,395 $169,058,867 Table 3– Wastewater Asset Replacement Cost Less Depreciation Asset Category Original Cost [A] Replacement Cost (2019 $) [B] Accumulated Depreciation [C] Accumulated Depreciation (2019 $) [D] RCLD B - D = [E] Collection $27,510,245 $105,695,787 $10,788,676 $66,436,784 $39,259,002 General $8,127,597 $9,785,547 $1,994,319 $2,836,188 $6,949,358 Land $713,940 $1,295,735 $- $- $1,295,735 Total $36,351,783 $116,777,068 $12,782,995 $69,272,973 $47,504,096 East Valley Water District – Capacity Fee Study Page | 11 Asset Value Adjustments With the Buy-In Approach, any outstanding debt obligations are subtracted from the RCLD to reduce the value of the system as these liabilities funded improvements within the asset listings. The remaining debt obligations will be paid through rates, and if the Buy-In component disregard debt, a customer would end up paying twice for improvements funded through debt. Table 4 summarized the final net RCLD asset values for water and wastewater. Table 4– Utility Net RCLD Assets/Liabilities Water System Wastewater System RCLD $169,058,867 $47,504,096 Debt Obligations Water System Wastewater System 2010 Bonds (-) ($23,000,000) ($215,000) 2013 Bonds (-) ($7,875,000) ($4,210,000) SB Valley Turnout (-) ($3,494,341) SRF Plant 134 (-) (6,068,369) Net RCLD $128,621,157 $43,079,096 East Valley Water District – Capacity Fee Study Page | 12 Capacity Charge Analysis Water Buy-In Component The potential demand on the water system is proportional to the potential flow through each meter. The American Water Works Association (AWWA) publishes the safe maximum operating capacity of each meter type in Gallons Per Minute (GPM) of flow. Using the AWWA capacity information, an equivalency for each meter size is set based on a 3/4” meter’s GPM. Table 5 provides a summary of the total MEs within the District. Table 5– Existing Water Meter Equivalents Meter Size Number of Accounts [A] AWWA Capacity (gpm) [B] AWWA Ratio B ÷ 30 = [C] Equivalent Meter Units A × C = [D] 5/8" 1,624 20 0.67 1,083 3/4" 14,834 30 1.00 14,834 1" 4,138 50 1.67 6,897 1 1/2" 261 100 3.33 870 2" 286 160 5.33 1,525 3" 65 320 10.67 693 4" 23 500 16.67 383 6" 14 1,000 33.33 467 8" 10 1,800 93.33 933 Total 21,255 N/A N/A 27,685 East Valley Water District – Capacity Fee Study Page | 13 The net RCLD asset value of the Water Utility is divided by total MEs to derive the updated Capacity Fee per 3/4” meter. However, through our evaluation, certain assets are apportioned over total 2040 Demand. This ensures new development is not overcharged as these assets will serve both existing and new connections. These assets include: 1) the existing Treatment Plant that treats groundwater that can serve all connections, 2) Water Rights as these rights are now owned by the District in perpetuity, and 3) Wells which will serve all customers. Table 6 provides a summary for determining the buy-in component by Asset Category, including adjustments for outstanding debt to derive the Buy-In Component of the Water Capacity Fee. Table 6– Water Buy-In by Asset Category Asset Category RCLD [A] Allocation Basis [B] Units of Service [C] Unit Rate A ÷ C [D] Conversion Factor [E] $ per ME D x E = [F] General $13,985,370 MEs 27,685 $505.15 1 ME $505.15 Hydrants $26,066 MEs 27,685 $0.94 1 ME $0.94 Land $4,162,252 MEs 27,685 $150.34 1 ME $150.34 Meters $49,200 MEs 27,685 $1.78 1 ME $1.78 Pumping $10,587,105 MEs 27,685 $382.41 1 ME $382.41 Storage $21,265,788 MEs 27,685 $768.12 1 ME $768.12 Transmission/ Distribution $79,247,895 MEs 27,685 $2,862.45 1 ME $2,862.45 Treatment $24,194,821 2040 Demand 27.69 MGD $0.87 609 gallons $532.13 Water Rights $1,934,473 2040 Demand 27.69 MGD $0.07 609 gallons $42.55 Wells $13,605,897 2040 Demand 27.69 MGD $0.49 609 gallons $299.24 Adjustments Debt (-) $40,437,710 2040 Demand 27.69 MGD ($1.46) 609 gallons ($889.37) Total $4,655.75 Wastewater Buy-In Component For wastewater, existing demand is reflected by total Equivalent Dwelling Units (EDUs), where 1 EDU reflects a single-family residential customer with an average daily flow of 245 gallons per day. Existing customers are assigned EDUs based on their average daily flow. Based on the District’s billing data, there are a total of 29,500 wastewater EDUs, which reflects exiting flow demand. East Valley Water District – Capacity Fee Study Page | 14 The net RCLD asset value of the Wastewater Utility is divided by the total EDUs to derive the updated Capacity Fees. Table 7 provides a summary for determining the buy-in component by Asset Category, including adjustments for outstanding debt to calculate the Buy-In Component of the Wastewater Capacity Fee. Table 7– Wastewater Buy-In by Asset Category Asset Category RCLD [A] Allocation Basis [B] Units of Service [C] Unit Rate A ÷ C [D] Conversion Factor [E] $ per ME D x E = [F] Collection $13,985,370 EDUs 29,500 $1,330.81 1 EDU $1,330.81 General $26,066 EDUs 29,500 $235.57 1 EDU $235.57 Land $4,162,252 EDUs 29,500 $43.92 1 EDU $43.92 Adjustments Debt (-) $4,425,000 2040 Demand 11.79 MGD ($0.38) 245 gallons ($91.95) Total $1,518.36 Water Incremental Cost Component As part of the Hybrid Approach, the water capacity fee also includes the eastside water treatment plant within the Water Master Plan. The cost estimate of the plant is $12,672,000, which includes the transmission line connecting the new plant to the water system. The Eastside Treatment Plant cost estimate reflects a 3MGD facility, which equates to a cost of $4.22 per gallon. Utilizing the gallons per ME equal to 609 gallons , as shown in Table 8, the Incremental Cost Component equals $2,572.42. Table 8– Water Incremental Cost Component Projects Cost Estimate [A] Allocation Basis [B] Units of Service [C] Unit Rate A ÷ C [D] Conversion Factor [E] $ per EDU D x E = [F] Eastside Treatment Plant $12,672,000 Plant Capacity 3 MGD $4.22 609 gallons $2,572.42 Total $2,572.42 East Valley Water District – Capacity Fee Study Page | 15 Wastewater Incremental Cost Component The wastewater capacity fee also includes an Incremental Cost Component to account for the new SNRC and specific upsizing projects required to accommodate future growth. Table 9 provides a summary of the Master Plan cost estimates associated with the 10 MGD SNRC and the upsizing of improvements. N -1 improvements are not included because this upsizing is directly related to the San Manual Casino expansion and funded through a development agreement between the District and the San Manual Casino. Also, B-2 is not included because the construction of the SNRC may eliminate the need for these improvements and should be revisited after the SNRC is online. Table 9– Wastewater Incremental Cost Component Projects Cost Estimate [A] Allocation Basis [B] Units of Service [C] Unit Rate A ÷ C [D] Conversion Factor [E] $ per EDU D x E = [F] SNRC $155,398,672 Plant Capacity 10 MGD $15.54 245 gallons $3,807.27 N-1 $4,414,500 N/A - - - $- N-2 $17,472,000 2025 Incremental Demand 2.87 MGD $6.09 245 gallons $1,491.51 N-3 $6,949,500 2025 Incremental Demand 2.87 MGD $2.42 245 gallons $593.25 B-1 $1,030,500 2040 Incremental Demand 1.69 MGD $0.61 245 gallons $149.39 B-2 $1,764,000 N/A - - - $- Total $6,041.42 East Valley Water District – Capacity Fee Study Page | 16 Updated Capacity Fees Table 10 summarized the proposed water capacity charges by meter size, with the 3/4” meter set as 1 ME and all remaining meter size capacity fees based on the calculated capacity ratios from AWWA as identified within Table 5. Table 11 summarizes the proposed wastewater capacity charges, for an equivalent single-family residential dwelling unit or 1 EDU. Non-residential connections will be assigned EDUs on a case-by-case basis to account for total flow and strength loading in relation to a single-family residential unit. Table 10– Water Proposed Capacity Fee Meter Size AWWA Capacity Ratio [A] Buy-In Component [B] Incremental Component [C] Total Water Capacity Fee [D] 5/8" 0.67 $3,104 $1,715 $4,819 3/4" 1.00 $4,656 $2,572 $7,228 1" 1.67 $7,760 $4,287 $12,047 1 1/2" 3.33 $15,519 $8,575 $24,094 2" 5.33 $24,831 $13,720 $38,550 3" 10.67 $49,661 $27,439 $77,100 4" 16.67 $77,596 $42,874 $120,469 6" 33.33 $155,192 $85,747 $240,939 8" 93.33 $434,536 $240,092 $674,629 Table 11– Wastewater Proposed Capacity Fee Single- Family Residential Buy-In Component [B] Incremental Component [C] Total Wastewater Capacity Fee [D] 1 EDU $1,460 $6,041 $7,502 In conjunction with adopting updated water and wastewater capacity fees, the District should adjust the capacity fees each year by applying the annual percentage change in the Engineering News Record Construction Cost Index (CCI) to keep pace with inflation, coupled with a comprehensive update every 5 years. 31938 Temecula Parkway, Suite A #350, Temecula, CA 92592 1 Technical Memorandum Regarding 2019 Capacity Fee Revisions to Meter Capacity Ratios Agency: East Valley Water District Date: September 27, 2023 ______________________________________________________________________________ 2019 Capacity Fee Study In 2019, IB Consulting LLC (IB Consulting) assisted the East Valley Water District (District) with updating its capacity fees for water (2019 Capacity Fee Study). Since then, the District has implemented a meter replacement program for new Advanced Metering Infrastructure (AMI) meters. These AMI meters allow integration between the District’s communication network, data systems, and individual meters. The direct communication between the AMI meters and the District’s data systems provides more accurate, efficient meter reads. The 2019 Capacity Fee Study derived water capacity fees for new connections that varied based on the meter size, with bigger-sized meters paying more for the additional capacity taken based on each meter's safe maximum operating flow as defined in gallons per minute (gpm) of flow. The new AMI meters have different safe maximum operating flow specifications than those used during the 2019 Capacity Fee Study. Therefore, this technical memorandum identifies the adjustments to the District’s capacity fee schedule resulting from the change in meter types. Existing Capacity Ratios The 2019 Capacity Fee Study identified the meter capacity ratios for each meter size based on the safe maximum operating flow in gpm, with the baseline meter reflecting a 3/4” meter. The safe maximum operating flow capacity for each meter size was divided by the 3/4” meters’ safe operating flow capacity of 30 gpm to determine the equivalent meter ratio. In other words, the calculations convert all larger- sized meters to an equivalent number of 3/4" meters based on the safe operating flow capacity of 30 gpm (Meter Equivalents or ME). The capacity ratio represents the potential flow through each meter size compared to the flow through the base 3/4” meter to establish parity between meter sizes. Table 1 identifies the capacity ratios and total Meter Equivalents used in the 2019 Capacity Fee Study. 2 Table 1: 2019 Meter Equivalents Meter Size Number of Accounts [A] AWWA Capacity (gpm) [B] AWWA Ratio B ÷ 30 = [C] Meter Equivalents A × C = [D] 5/8" 1,624 20 0.67 1,083 3/4" 14,834 30 1.00 14,834 1" 4,138 50 1.67 6,897 1 1/2" 261 100 3.33 870 2" 286 160 5.33 1,525 3" 65 320 10.67 693 4" 23 500 16.67 383 6" 14 1,000 33.33 467 8" 10 1,800 93.33 933 Total 21,255 N/A N/A 27,685 Updated Capacity Ratios The capacity ratios and total Meter Equivalents have been updated using the same approach from the 2019 Capacity Fee Study but reflecting the new AMI meter specifications, as shown in Table 2. To maintain consistency with the 2019 Capacity Fee Study, the number of accounts remained intact to show how the water capacity fee schedule changes from updating the meter capacity ratios. The result is an increase in total Meter Equivalents (27,685 versus the previous amount of 21,255). The District is currently updating its water and wastewater master plans, and once those are completed, a comprehensive update to the District’s capacity fees will be performed. In addition, the new AMI meters that may be issued include 10” and 12” meter sizes, which were added to the fee schedule shown in Table 2. 3 Table 2: 2023 AMI Meter Equivalents Meter Size Number of Accounts [A] District AMI Capacity (gpm) [B] District AMI Capacity Ratios B ÷ 30 = [C] Meter Equivalents A × C = [D] 5/8" 1,624 20 0.67 1,083 3/4" 14,834 30 1.00 14,834 1" 4,138 50 1.67 6,897 1 1/2" 261 100 3.33 870 2" 286 160 5.33 1,525 3" 65 500 16.67 1,083 4" 23 1,250 41.67 958 6" 14 2,000 66.67 933 8" 10 4,000 133.33 1,333 10" - 6,500 216.67 - 12" - 8,000 266.67 - Total 21,255 N/A N/A 29,517 Facility Costs Related to Capacity Fees The 2019 Capacity Fee Study included both a Buy-In and Incremental component. The Buy-In component included the District’s 2019 water system asset values by category, with an adjustment for the remaining outstanding debt principal. The reduction in asset value ensures customers don’t pay twice for facilities funded by debt because debt is covered by water rates. Table 3 identifies the Buy-In component calculated using the Updated Meter Equivalents. Table 4 identifies the Incremental component of the 2019 Capacity Fee Study related to the Eastside Water Treatment Plant. The unit rate remains the same and is based on the plant’s capacity, equal to 3 Million Gallons per Day (MGD). 4 Table 3: Water 2019 Buy-In Component by Asset Category with AMI Meters Asset Category RCLD [A] Allocation Basis [B] Units of Service [C] Unit Rate A ÷ C [D] Conversion Factor [E] $ per ME D x E = [F] General $13,985,370 MEs 29,517 $473.81 1 ME $473.81 Hydrants $26,066 MEs 29,517 $0.88 1 ME $0.88 Land $4,162,252 MEs 29,517 $141.01 1 ME $141.01 Meters $49,200 MEs 29,517 $1.67 1 ME $1.67 Pumping $10,587,105 MEs 29,517 $358.68 1 ME $358.68 Storage $21,265,788 MEs 29,517 $720.46 1 ME $720.46 Transmission/ Distribution $79,247,895 MEs 29,517 $2,684.82 1 ME $2,684.82 Treatment $24,194,821 2040 Demand 27.69 MGD $0.87 609 gallons $532.13 Water Rights $1,934,473 2040 Demand 27.69 MGD $0.07 609 gallons $42.55 Wells $13,605,897 2040 Demand 27.69 MGD $0.49 609 gallons $299.24 Adjustments Debt (-) $40,437,710 2040 Demand 27.69 MGD ($1.46) 609 gallons ($889.37) Total $4,365.88 Table 4: Water 2019 Incremental Component Project Cost Estimate [A] Allocation Basis [B] Units of Service [C] Unit Rate A ÷ C [D] Conversion Factor [E] $ per ME D x E = [F] Eastside Treatment Plant $12,672,000 Plant Capacity 3 MGD $4.22 609 gallons $2,572.42 Updated Capacity Fees Combining the revised Buy-In component with the AMI capacity ratios and the Incremental component generates a new 2019 capacity fee equal to $6,938 for a 3/4” Meter Equivalent. The District’s capacity fees are adjusted annually based on the annual change in the Engineer’s New Record Construction Cost Index (ENR – CCI) for September. Table 5 summarizes the revised 2019 capacity fee by meter size and increases the fee schedule to 2023 dollars based on the ENR – CCI index change from September 2019 (11,311) to September 2023 (13,173). 5 Table 5: 2023 Water Capacity Fee Schedule Meter Size AMI Capacity Ratio [A] Buy-In Component [B] ENR – CCI Adjustment 13,173 / 11,311 = 116.46% [C] Total Water Capacity Fee [D] = B x C 5/8" 0.67 $4,626 116.46% $5,387 3/4" 1.00 $6,938 116.46% $8,081 1" 1.67 $11,564 116.46% $13,468 1 1/2" 3.33 $23,128 116.46% $26,935 2" 5.33 $37,004 116.46% $43,096 3" 16.67 $115,638 116.46% $134,675 4" 41.67 $289,096 116.46% $336,687 6" 66.67 $462,553 116.46% $538,698 8" 133.33 $925,106 116.46% $1,077,396 10" 216.67 $1,503,297 116.46% $1,750,768 12" 266.67 $1,850,212 116.46% $2,154,791 These revisions should be accompanied by the 2019 Capacity Fee Study. A comprehensive update to the District capacity fees will occur once the updated master plans are completed and adopted by the Board. Water Supply Update Northern California 8 Station 66.6 inches Updated 9/30/23 Big Bear 44.13 inches Updated 9/11/23 Annual Average: 16.8'' WATER YEAR Highland October 1- September 30 24.2 inches Updated 9/30/23 ACRONYMS CFS = cubic feet per second mAF = million Acre-Feet WATER SHORTAGE STAGE STATE WATER PROJECT Lake Mead & Powell Updated 8/31/23 DISTRICT WATER SUPPLIES Annual Average: 53.2'' GROUNDWATER SURFACE COLORADO RIVER STORAGE OTHER INDICATORS RAINFALL 100% Annual Average: 11.9'' 38% of Capacity STATE WATER PROJECT ALLOCATION Current Available CapacityAvailable Capacity Current 4.9 mAF 82% of Capacity Bunker Hill Basin 2.59 mAF 73% of Capacity Lake Oroville Updated 10/1/23 126.1 107.4 247.1 217.1 256.2 154.1 92.1 181.3 164.1 Santa Ana River (CFS) Total SAR Inflow Updated 10/1/23 Last YearLast Year 20 mAF Historic Avg 2010-2022 Monthly Average 2023-Monthly Flow Average