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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 03/13/2024BOARD OF DIRECTORS MARCH 13, 2024 East Valley Water District was formed in 1954 and provides water and wastewater services to 107,000 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 James Morales, Jr. Chairman of the Board Michael Moore General Manager/CEO Ronald L. Coats Vice­Chairman Brian W. Tompkins Chief Financial Officer Chris Carrillo Governing Board Member Jeff Noelte Director of Engineering & Operations David E. Smith Governing Board Member Kerrie Bryan Director of Administrative Services Phillip R. Goodrich Governing Board Member Patrick Milroy  Operations Manager Rocky Welborn  Water Reclamation Manager Justine Hendricksen District Clerk Board of Directors Regular Meeting March 13, 2024 ­ 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 PRESENTATIONS AND CEREMONIAL ITEMS a.Recognition of National Groundwater Appreciation Week 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 Directors' Fees and Expenses for February 2024 3.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Scheduling a Public Hearing for May 15, 2024, to Consider the Adoption of Water and Wastewater Rate Adjustments Pursuant to Article XIII D of the California Constitution b.Consider Approval of Cancellation of the May 8, 2024 Regular Board Meeting 4.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report Water Supply Dashboard c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSMARCH 13, 2024East Valley Water District was formed in 1954 and provides water and wastewater services to107,000 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 MANAGEMENTJames Morales, Jr.Chairman of the Board Michael MooreGeneral Manager/CEORonald L. CoatsVice­Chairman Brian W. TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsDavid E. SmithGoverning Board Member Kerrie BryanDirector of Administrative ServicesPhillip R. GoodrichGoverning Board Member Patrick Milroy Operations ManagerRocky Welborn Water Reclamation ManagerJustine Hendricksen District Clerk Board of Directors Regular Meeting March 13, 2024 ­ 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 PRESENTATIONS AND CEREMONIAL ITEMS a.Recognition of National Groundwater Appreciation Week 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 Directors' Fees and Expenses for February 2024 3.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Scheduling a Public Hearing for May 15, 2024, to Consider the Adoption of Water and Wastewater Rate Adjustments Pursuant to Article XIII D of the California Constitution b.Consider Approval of Cancellation of the May 8, 2024 Regular Board Meeting 4.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report Water Supply Dashboard c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSMARCH 13, 2024East Valley Water District was formed in 1954 and provides water and wastewater services to107,000 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 MANAGEMENTJames Morales, Jr.Chairman of the Board Michael MooreGeneral Manager/CEORonald L. CoatsVice­Chairman Brian W. TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsDavid E. SmithGoverning Board Member Kerrie BryanDirector of Administrative ServicesPhillip R. GoodrichGoverning Board Member Patrick Milroy Operations ManagerRocky Welborn Water Reclamation ManagerJustine HendricksenDistrict ClerkBoard of Directors Regular MeetingMarch 13, 2024 ­ 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 PRESENTATIONS AND CEREMONIAL ITEMS a.Recognition of National Groundwater Appreciation Week 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 Directors' Fees and Expenses for February 2024 3.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Scheduling a Public Hearing for May 15, 2024, to Consider the Adoption of Water and Wastewater Rate Adjustments Pursuant to Article XIII D of the California Constitution b.Consider Approval of Cancellation of the May 8, 2024 Regular Board Meeting 4.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report Water Supply Dashboard c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSMARCH 13, 2024East Valley Water District was formed in 1954 and provides water and wastewater services to107,000 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 MANAGEMENTJames Morales, Jr.Chairman of the Board Michael MooreGeneral Manager/CEORonald L. CoatsVice­Chairman Brian W. TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsDavid E. SmithGoverning Board Member Kerrie BryanDirector of Administrative ServicesPhillip R. GoodrichGoverning Board Member Patrick Milroy Operations ManagerRocky Welborn Water Reclamation ManagerJustine HendricksenDistrict ClerkBoard of Directors Regular MeetingMarch 13, 2024 ­ 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 ALLEGIANCEPRESENTATIONS AND CEREMONIAL ITEMSa.Recognition of National Groundwater Appreciation WeekROLL 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 Directors' Fees and Expenses for February 20243.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Scheduling a Public Hearing for May 15, 2024, to Consider the Adoption of Water and Wastewater Rate Adjustments Pursuant to Article XIII D of the California Constitution b.Consider Approval of Cancellation of the May 8, 2024 Regular Board Meeting 4.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report Water Supply Dashboard c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN Agenda Item #2a March 13, 20241 Meeting Date: March 13, 2024 Agenda Item #2a Consent Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Approve Directors' Fees and Expenses for February 2024 RECOMMENDATION That the Board of Directors approve the Directors' Fees and Expenses for February 2024 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 $9,901.00 which is included in the current fiscal year budget. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Justine Hendricksen District Clerk ATTACHMENTS February 2024 Director Expense Reports Name: Month / Year:2024 Meeting No.Stipend Written Oral 1 2 /12 236.25 2 2 /13 236.25 3 2 /14 236.25 4 2 /21 236.25 5 2 /22 236.25 6 2 /26 236.25 7 2 /28 236.25 8 2 /29 236.25 9 10 11 12 13 14 15 16 17 18 19 20 Meetings 0.67/mi No. 1 2 3 4 5 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval Chris Carrillo February / 55.00 X 8 55.00 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 Meeting with General Manager/CEO or Designee Inland Action Meeting Regular Board Meeting $1,926.85 $1,890.00 $36.85 Reimbursement Mileage Miscellaneous Reimbursement Description LAFCO San Bernardino VWC District Meeting with General Manager/CEO or Designee Regular Board Meeting IEEP State of the Region Event Expense Type $0.00 DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2024 1 2 3 4 5 Event Description:San Bernardino VWC District Brief Description of Meeting/Event Value to EVWD Attended 70th Anniversary Celebration Event. Brief Description of Meeting/Event Value to EVWD Attend Regular Board meeting. See agenda. Meeting Date:2 / 21 / 2024 Event Description:LAFCO Brief Description of Meeting/Event Value to EVWD Attended Local Agency Formation Commission of San Bernardino County meeting. Meeting Date:2 / 22 / 2024 Meeting Date:2 / 13 / 2024 Event Description:Inland Action Meeting Brief Description of Meeting/Event Value to EVWD Meeting Date:2 / 14 / 2024 Event Description:Regular Board Meeting Attend Special Board meeting. See agenda. Chris Carrillo February / 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: Call with CEO Moore regarding District business. 2 / 12 / 2024 Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 2 Name: Month / Year:2024 6 7 8 9 10 Chris Carrillo February / 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:IEEP State of the Region Event Brief Description of Meeting/Event Value to EVWD Attended Inland Empire Economic Partnership State of the Region event. Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Call with CEO Moore regarding District business. Meeting Date:2 / 28 / 2024 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Attend Regular Board meeting. See agenda. Meeting Date:2 / 29 / 2024 Meeting Date:2 / 26 / 2024 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 3 Name: Month / Year:2023 Meeting No.Stipend Written Oral 1 2 /01 236.25 2 2 /02 236.25 3 2 /08 0.00 4 2 /08 236.25 5 2 /13 0.00 6 2 /13 236.25 7 2 /14 236.25 8 2 /19 0.00 9 2 /21 236.25 10 2 /22 236.25 11 2 /22 0.00 12 2 /26 0.00 13 2 /26 236.25 14 2 /27 0.00 15 2 /27 0.00 16 2 /27 236.25 17 2 /28 236.25 18 19 20 Meetings 0.67/mi No. 1 2 /01 2 2 /02 3 2 /02 4 5 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval $94.82 Lyft airport to hotel Breakfast in Sacramento ONT 27.00 Mileage 27.00 Miscellaneous Reimbursement Description Agenda Review San Bernardino Valley MWD 70th Anniversary SNRC Tour ASBCSD Legislative & Public Affairs Committee Meeting San Bernardino Board of Water Commissioners Finance & Human Resources Committee Meeting Regular Board Meeting ASBCSD Board Meeting Expense Type $2,362.50 $83.08 Reimbursement 30.35 Meals Parking 28.47 36.00 Misc. - Other Administration Signature I certify that the above is correct and accurate to the best of my knowledge. Ronald L. Coats Date Meeting / Event Description Highland Chamber of Commerce Finance & Human Resources Committee Meeting Regular Board Meeting Date Travel to Sacramento for CSDA Cmte Meetings CSDA Cmte Meetings Agenda Review $2,540.40 Ronald L. Coats February / 124.00 X 10 70.00 Report Provided Subtotal Meetings' Stipend Mileage San Bernardino Board of Water Commissioners Meeting with General Manager/CEO or Designee DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2023 1 2 3 4 5 Ronald L. Coats February / 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: Traveled to Sacramento to attend CSDA Professional Development and Member Services committee meetings 2 / 1 / 2023 Travel to Sacramento for CSDA Cmte Meetings Brief Description of Meeting/Event Value to EVWD Meeting Date:2 / 2 / 2023 Event Description:CSDA Cmte Meetings Brief Description of Meeting/Event Value to EVWD Meeting Date:2 / 8 / 2023 Event Description:Agenda Review Traveled to Sacramento to attend CSDA Professional Development and Member Services committee meetings Brief Description of Meeting/Event Value to EVWD Reviewed tonight agenda and other district business with Chairman Morales and CEO Moore Meeting Date:2 / 8 / 2023 Event Description:Legislative & Public Affairs Committee Meeting Brief Description of Meeting/Event Value to EVWD We had updates on Public Outreach and Conservation; we reviewed the draft contract with Resolute for Legislation Advocacy Services Meeting Date:2 / 13 / 2023 Event Description:San Bernardino Board of Water Commissioners Brief Description of Meeting/Event Value to EVWD They approved various contracts including phase 1 of 3 phases for a new 22,000 square foot administration building in the amount of $23.9 million. Ultimately they will have all of their facilities under one roof. They anticipate completion of phase 1 in 2025. DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 2 Name: Month / Year:2023 6 7 8 9 10 Meeting Date:2 / 13 / 2023 Event Description:Finance & Human Resources Committee Meeting Brief Description of Meeting/Event Value to EVWD Had a presentation of the proposed rate study; possible revisions to the reserve policy; current finance activities and current human resources activities; staffing at SNRC; and our Pathways programs Meeting Date:2 / 14 / 2023 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD See official board meeting minutes Meeting Date:2 / 19 / 2023 Event Description:ASBCSD Board Meeting Brief Description of Meeting/Event Value to EVWD Attended our monthly Board Meeting to discuss association business and our upcoming monthly general meeting. Meeting Date:2 / 21 / 2023 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD Met with CEO Michael Moore to discussed district business Meeting Date:2 / 22 / 2023 Event Description:Agenda Review Brief Description of Meeting/Event Value to EVWD Met with CEO Moore and Chairman Morales to review tonight's agenda and other district business Ronald L. Coats February / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 3 Name: Month / Year:2023 11 12 13 14 15 Meeting Date:2 / 22 / 2023 Event Description:San Bernardino Valley MWD 70th Anniversary Brief Description of Meeting/Event Value to EVWD Attended their 70th Anniversary event Meeting Date:2 / 26 / 2023 Event Description:SNRC Tour Brief Description of Meeting/Event Value to EVWD Spent time with Jeff Noelte touring the entire SNRC operation to see the plant in operation. Meeting Date:2 / 26 / 2023 Event Description:ASBCSD Brief Description of Meeting/Event Value to EVWD Attended our monthly meeting where our guest speaker was Chief Dave Williams of the Chino Valley Fire District Meeting Date:2 / 27 / 2023 Event Description:San Bernardino Board of Water Commissioners Brief Description of Meeting/Event Value to EVWD They received their 2022-2023 annual audit report and they received a un-modified report from their auditors. Meeting Date:2 / 27 / 2023 Event Description:Highland Chamber of Commerce Brief Description of Meeting/Event Value to EVWD Guest speaker was Eric Rivas from the San Bernardino County Workforce Development Ronald L. Coats February / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 4 Name: Month / Year:2023 16 17 18 19 20 Meeting Date:2 / 27 / 2023 Event Description:Finance & Human Resources Committee Meeting Brief Description of Meeting/Event Value to EVWD This was our second of two meeting to review the rate survey and proposal from our consultant. There will be a final presentation to the full board next month for consideration. Meeting Date:2 / 28 / 2023 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD See official board meeting minutes Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Event Description: Brief Description of Meeting/Event Value to EVWD Ronald L. Coats February / 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 Meeting Date: DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 5 Name: Month / Year:2024 Meeting No.Stipend Written Oral 1 2 /13 236.25 2 2 /14 236.25 3 2 /20 236.25 4 2 /22 236.25 5 2 /26 236.25 6 2 /27 0.00 7 2 /27 236.25 8 2 /28 236.25 9 2 /29 236.25 10 11 12 13 14 15 16 17 18 19 20 Meetings 0.67/mi No. 1 2 3 4 5 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval Phillip R. Goodrich February / 0.00 X 8 Report Provided Subtotal Meetings' Stipend Mileage Chamber of Commerce Event 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 City of Highland Council Meeting Regular Board Meeting Meeting with General Manager/CEO or Designee $1,890.00 $1,890.00 $0.00 Reimbursement Mileage Miscellaneous Reimbursement Description San Bernardino Valley MWD 70th ASBCSD Meeting with General Manager/CEO or Designee Chamber of Commerce Event Regular Board Meeting Expense Type $0.00 DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2024 1 2 3 4 5 Event Description:ASBCSD Brief Description of Meeting/Event Value to EVWD Monthly chapter meeting Special Districts... Legislative updates Guest speaker D Williams Chino Fire Brief Description of Meeting/Event Value to EVWD Monthly mtg. with CEO updated on district business Meeting Date:2 / 22 / 2024 Event Description:San Bernardino Valley MWD 70th Brief Description of Meeting/Event Value to EVWD Represent District with staff at SBVMWD 70th Aniversary Meeting Date:2 / 26 / 2024 Meeting Date:2 / 14 / 2024 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Meeting Date:2 / 20 / 2024 Event Description:Meeting with General Manager/CEO or Designee Attend Regular board mtg, ref. Mins. This day Phillip R. Goodrich February / 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: Represent District at Council meeting Ref. Mins. This day 2 / 13 / 2024 City of Highland Council Meeting Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 2 Name: Month / Year:2024 6 7 8 9 10 Phillip R. Goodrich February / 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. Represent District at Chamber instalation event Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Attend Reg. board mtg. Ref. Mins. This day Meeting Date:2 / 29 / 2024 Event Description:Chamber of Commerce Event Brief Description of Meeting/Event Value to EVWD Meeting with CEO and County Sheriff Dicus for further development of this regional relationship Meeting Date:2 / 27 / 2024 Event Description:Chamber of Commerce Event Brief Description of Meeting/Event Value to EVWD Attend MonthlyChamber luncheon representing District presentation from Eric Rivas of the County Work Force Development Dept. Meeting Date:2 / 28 / 2024 Meeting Date:2 / 27 / 2024 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 3 Name: Month / Year:2024 Meeting No.Stipend Written Oral 1 2 /01 236.25 2 2 /06 236.25 3 2 /08 0.00 4 2 /08 236.25 5 2 /09 236.25 6 2 /14 236.25 7 2 /22 236.25 8 2 /22 0.00 9 2 /28 236.25 10 11 12 13 14 15 16 17 18 19 20 Meetings 0.67/mi No. 1 2 3 4 5 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval James Morales, Jr.February / 0.00 X 7 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. James Morales, Jr. Date Meeting / Event Description Date San Bernardino Valley MWD San Bernardino Valley MWD Meeting with General Manager/CEO or Designee $1,653.75 $1,653.75 $0.00 Reimbursement Mileage Miscellaneous Reimbursement Description Legislative & Public Affairs Committee Meeting East Valley Association of Realtors Regular Board Meeting Meeting with General Manager/CEO or Designee San Bernardino Valley MWD Expense Type $0.00 DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2024 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 update/business. No charge, no more than 1 per diem. Meeting Date:2 / 8 / 2024 Event Description:Legislative & Public Affairs Committee Meeting Brief Description of Meeting/Event Value to EVWD Please refer to public agenda. Meeting Date:2 / 9 / 2024 Meeting Date:2 / 6 / 2024 Event Description:San Bernardino Valley MWD Brief Description of Meeting/Event Value to EVWD Meeting Date:2 / 8 / 2024 Event Description:Meeting with General Manager/CEO or Designee Regular board meeting. Board report assignment. Draft legislative principles. James Morales, Jr.February / 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: Policy/Administration Workshop. Board report assignment. Investment update. Legislative update. 2 / 1 / 2024 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:2024 6 7 8 9 10 James Morales, Jr.February / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Please refer to public agenda. Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Event Description:San Bernardino Valley MWD Brief Description of Meeting/Event Value to EVWD District event. No charge, no more than 1 meeting per diem. Meeting Date:2 / 28 / 2024 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Please refer to public agenda. Meeting Date:2 / 22 / 2024 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD District update. Meeting Date:2 / 22 / 2024 Meeting Date:2 / 14 / 2024 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 3 Agenda Item #3a March 13, 20241 Meeting Date: March 13, 2024 Agenda Item #3a Discussion Item 1 5 1 8 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Scheduling a Public Hearing for May 15, 2024, to Consider the Adoption of Water and Wastewater Rate Adjustments Pursuant to Article XIII D of the California Constitution RECOMMENDATION That the Board of Directors schedule a public hearing for May 15, 2024, to consider the adoption of water and wastewater rate adjustments pursuant to Article XIII D of the California Constitution. BACKGROUND / ANALYSIS All water/wastewater agencies are required to only charge customers the actual cost for delivering these services. The last review of cost and revenue was performed by the East Valley Water District (District) over three years ago. A new 5-year analysis has been completed and staff is recommending increasing water and wastewater rates over the next three years. The proposed rate increases vary depending on customer type. The average residential customer increase would be 6.7% each year over the next three years. The District, like other rate setting public agencies in the State of California, must regularly conduct a Cost of Service Analysis (COSA) to evaluate whether rates are sufficient to maintain public services. The results of this study then produce recommendations for consideration as to the necessary rates to meet operational needs with rates adopted for no more than a five-year period, at which point the organization must refresh the COSA. The District’s last COSA was completed in February 2021, with rates presented to, and adopted by the Board on May 12, 2021. The District contracted IB Consulting (IBC) to start the process of updating the Cost of Service Analysis’ completed in 2021, to determine revenue requirements and possible rate adjustments to the District’s water and wastewater utility rates. IBC has progressed with the development of their models and financial plans for the District’s three enterprises (Water, Wastewater Collection, and Reclamation). The revenue and expenses projected in 2021 have significantly changed over the past three years. Revenues are lower due to a 15% reduction in water usage and expenses have increased more than anticipated due to high inflation over the past three years. These changes in revenues and expenses have caused the District to reduce capital spending and utilize reserve funds. Agenda Item #3a March 13, 20242 Meeting Date: March 13, 2024 Agenda Item #3a Discussion Item 1 5 1 8 The COSA allows the District to reset revenue and expense assumptions for the next five years. The District’s Five-Year Work Plan identifies goals and objectives that are included in the financial plan. Staff have worked closely with IBC to account for strategic initiatives and changing operational needs. The five key drivers of the financial plan are described below: •Water Sales / Consumption - The District has experienced more than a 15% drop in water demand in the last three years. Sales in 2022-23 were just 15,340 acre feet, the lowest level since 2015-16, during the middle of a severe drought, and right after the District adopted budget based rates. Prior to that drought, customer demand ranged between 18,000 and 21,000 annually. This unusual decrease in water sales reduced revenue for both the Water and Wastewater Funds. Water sales over the next five years are assumed to slightly increase with relatively modest development. •Inflation - Consumer Price Index (CPI) for San Bernardino ranged from 5%-10% over the past three years. Price increases have affected the costs of materials, services, labor, and construction costs. Over the next five years, general inflation rates are assumed to be in the range of 3% to 5% annually. However, labor and construction costs are assumed to be higher due to inflation. •Staffing levels - The District has added eight staff to operate the new Sterling Natural Resource Center (SNRC). Staffing levels remain low relative to the industry benchmark of similar agencies. Three new staff positions are anticipated over the next three years to meet operational and regulatory needs. •Power costs - Power costs have increased more than general inflation and are assumed to continue to rise 7% annually over the next five years. Additionally, the SNRC power cost will be partially offset by on-site generation. SNRC power costs will be higher than originally anticipated due to larger electric loading of equipment and less on-site generation than previously assumed over the next five years. •Capital Improvement Program - The District has primarily invested in the SNRC over the past eight years. Capital Improvements in water storage, groundwater wells and pipelines will require increased funding levels of $5 to $7 million annually. Special projects above this level will be added where grants become available. IB Consulting has now completed the COSA for all three enterprises. They presented their work at two committee meetings in February. The first included a presentation of the financial plans for all three enterprises, and the second the Cost of Service and Rate Design for all three enterprises. Agenda Item #3a March 13, 20243 Meeting Date: March 13, 2024 Agenda Item #3a Discussion Item 1 5 1 8 The District has determined that rate adjustments are warranted and a recommendation for adoption of the adjusted rates be considered by the Governing Board at a public hearing conducted pursuant to Article XIII D of the California Constitution. Staff recommends that this public hearing be scheduled for May 15, 2024. The District has developed Proposition 218 notices and that will be mailed to all ratepayers, if the May 15th hearing is authorized. A draft copy of the notice is attached. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department and Finance and Human Resources Committee. 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 ATTACHMENTS 1. Presentation-Rate Adjustment 2. Draft Prop 218 Notice PROPOSED RATE ADJUSTMENT Board of Directors March 13, 2024 2 FINANCIAL STRATEGIES Customer Focused Rates System Reliability Cost Recovery Long Term Flexibility DISTRICT RATES 3 WATER RATES: FIXED AND VARIABLE CHARGES Fixed Charges Volumetric (Variable) Charges Budget Based Rates: Tier 1 – Indoor usage Tier 2 – Outdoor usage Tier 3 – Inefficient 4 WASTEWATER COLLECTION AND TREATMENT RATES Residential Commercial •Single-family residential customers are charged a monthly combined fixed rate. •Multi-family customers are charged a fixed charge per dwelling unit and a variable charge based on the concentration of organic materials and suspended solids in the wastewater discharge. •Non-residential/commercial customers are charged a monthly fixed and variable rate. •Low Strength •Medium Strength •High Strength •Patton State Hospital •Schools & Churches 5 WATER RATES: COST-OF-SERVICE FY 2025 Rate Components Fixed Components 37% Variable Components 63% $3.6M Units of Service Total Bills $7.7M Units of Service Meter Equivalents $126k Units of Service Fire Flow Demand Account Services Meter Capacity Fire Flow Demand $2.3M Units of Service Water Usage by Class and Tier $10.6M Units of Service Total Usage $4.9M Units of Service Weighted Peak $1M Units of Service Tier 3 Usage Groundwater Delivery Peaking $346k Units of Service Water Usage by Class and Tier State Water Project $262k Units of Service Water Usage by Class and Tier Surface Water Water Efficiency 6 WASTEWATER COLLECTION: COST-OF-SERVICE FY 2025 Rate Components Account Services Flow 7 WASTEWATER RECLAMATION: COST-OF-SERVICE FY 2025 Rate Components $3.4M Units of Service Total Bills $3.6M Units of Service Flow $2.6M Units of Service Weighted COD $2.6M Units of Service Weighted TSS Variable Components Account Services Flow Chemical Oxygen Demand Total Suspended Solids 8 UTILITY RATE REVENUE Water $29,018,000 62% WW - Collection $6,410,000 13% WW - Treatment $11,659,000 25% Water WW - Collection WW - Treatment 9 RATE DRIVERS Rate Study Water Sales Inflation Power Costs Capital Improvement Projects 10 RATE DRIVERS – INFLATION & POWER Ra t e o f I n f l a t i o n (F Y 2 0 2 3 ) Typical Inflation 15% 12% 5%4% Overall CPI 11 3% 8% RATE DRIVERS – WATER SALES 14,500 15,500 16,500 17,500 18,500 19,500 20,500 21,500 22,500 Ac r e F e e t Water Sales (AF) Water Master Plan Projections 26% 5% 11% 12 RATE DRIVERS – INFRASTRUCTURE INVESTMENT 13 •Construct new reservoir in Foothill and Lower Pressure Zones •Seismic upgrade 7 reservoirs and re-coat 5 reservoirs RATE DRIVERS – 5 YR CAPITAL IMPROVEMENTS 14 RATE DRIVERS – 5 YR CAPITAL IMPROVEMENTS •Drill and construct 2 new wells 0 5 10 15 20 25 2010 Current Operational Wells 10 Wells •Approx 152 water main breaks each year •Replace 5 miles of pipe RATE DRIVERS – 5 YR CAPITAL IMPROVEMENTS 16 PROPOSED RATE CHANGES - WATER Proposed Monthly Fixed Charges Meter Size FY 2025 Proposed Fixed Charge 5/8"$27.52 3/4"$34.62 1"$48.83 1 1/2"$84.35 2"$126.97 3"$368.48 4"$901.23 6"$1,433.98 8"$2,854.65 10"$4,630.48 12"$5,695.98 Proposed Commodity Rates ($/hcf) Customer Class & Tiers FY 2025 Proposed Commodity Rates Budget Based Customers Tier 1 $2.19 Tier 2 $2.84 Tier 3 $4.10 Commercial Tier 1 $2.39 Proposed vs. Existing Existing Commodity Rate Difference ($) $2.11 $0.08 $2.70 $0.14 $4.18 ($0.08) $2.11 $0.28 17 PROPOSED RATE CHANGES – WASTEWATER COLLECTION Proposed Monthly Fixed Charges Cust omer Class Total Monthly Fixed Charge Single Family $16.70 Multi-Family $15.48 Proposed vs. Existing Existing Difference ($) $16.32 $0.38 $15.42 $0.06 Proposed Monthly Fixed Charges Cust omer Class Total Monthly Fixed Charge Non-Residential $10.59 Proposed vs. Existing Existing Difference ($) $11.84 ($1.25) Proposed Variable Rates ($/hcf) Cust omer Class Total Variable Rates ($/hcf) Non-Residential Low Strength $0.77 Medium Strength $0.77 High Strength $0.77 Schools & Churches $0.45 Patton State Hospital $0.44 Proposed vs. Existing Existing Difference ($) $0.41 $0.36 $0.54 $0.23 $0.54 $0.23 $0.41 $0.04 $0.66 ($0.22) 18 PROPOSED RATE CHANGES – WASTEWATER TREATMENT Proposed Monthly Fixed Charges Cust omer Class Total Monthly Fixed Charge Single-Family $29.79 Multi-Family $25.67 Proposed vs. Existing Existing Difference ($) $26.77 $3.02 $23.90 $1.77 Proposed Monthly Fixed Charges Cust omer Class Total Monthly Fixed Charge Non-Residential $9.16 Proposed vs. Existing Existing Difference ($) $12.41 ($3.25) Proposed Variable Rates ($/hcf) Cust omer Class Total Variable Rates ($/hcf) [H] = E + F + GNon-Residential Low Strength $2.19 Medium Strength $2.54 High Strength $3.96 Schools & Churches $1.29 Patton State Hospital $1.46 Proposed vs. Existing Existing Difference ($) $1.11 $1.08 $1.76 $0.78 $3.92 $0.04 $1.11 $0.18 $2.06 ($0.60) 19 PROPOSED 3-YR RATE CHANGES – AVERAGE RESIDENTIAL BILL The average home with four residents and a monthly consumption of 16 HCF 20 CUSTOMER OUTREACH May 15, 2024 Public Hearing March 29, 2024 Printed 218 Notice mailed to all ratepayers March 13, 2024 Vote by Board of Directors calling for Public Hearing 21 DISCUSSION 31 1 1 1 G r e e n s p o t R o a d Hi g h l a n d , C a l i f o r n i a 9 2 3 4 6 Al l m e m b e r s o f t h e p u b l i c a r e i n v i t e d t o p a r t i c i p a t e in a p u b l i c h e a r i n g r e g a r d i n g p r o p o s e d c h a n g e s to y o u r w a t e r a n d w a s t e w a t e r r a t e s , t o b e h e l d on We d n e s d a y , M a y 1 5 , 2 0 2 4 a t 5 : 3 0 p m a t 3 1 1 1 1 Gr e e n s p o t R o a d , H i g h l a n d , C a l i f o r n i a 9 2 3 4 6 . Im p o r t a n t I n f o r m a t i o n E n c l o s e d Ab o u t Yo u r W a t e r a n d W a s t e w a t e r R a t e s Es t e d o c u m e n t o i n c l u y e i n f o r m a c i ó n s o b r e c a m b i o s p r o p u e s t o s p o r Ea s t V a l l e y W a t e r D i s t r i c t a l a s t a r i f a s d e a g u a y a g u a s r e s i d u a l e s . Pa r a m a s i n f o r m a c i ó n s o b r e e s t e a v i s o l l a m e a l ( 9 0 9 ) 8 8 9 - 9 5 0 1 , vi s i t e e a s t v a l l e y . o r g o v i s i t e l a s o f i c i n a s d e l D i s t r i t o . WHY YOU RECEIVED THIS NOTICE The Board of Directors of East Valley Water District (District) will conduct an in-person public hearing to consider implementing a schedule of increases to the District’s water and wastewater rates over the next three years. All members of the public are invited to participate in the public hearing. Wednesday, May 15, 2024 at 5:30pm District Headquarters Board Room 31111 Greenspot Road, Highland, California 92346 The public hearing will be conducted pursuant to Article XIII D of the California Constitution. This notice is being sent to all property owners, who may submit a written protest to the proposed rate changes. East Valley Water District is committed to keeping its customers well informed throughout the process. More information about the rates included in this document and how to participate is available online at eastvalley.org/RateUpdate. pu b l i c he a r i n g n o t i c e PROPOSED CHANGES TO WATER AND WASTEWATER RATES You have received this document because the District has completed an independent Cost of Service Analysis Rate Study Report and is considering making changes to the current water and wastewater rates. This notice also notifies you of adjustments to indoor water allocations based on the passage of Senate Bill 1157 (SB 1157). Find Out More Online East Valley Water District has created a dedicated online resource page to provide you with additional information. Visit the website to access: •Digital copy of this public notice •Review the independent rate study •Submit a question online •Learn how you can participate in the process For more information about the cost of service analysis, visit eastvalley.org/RateUpdate or scan the QR code. WHAT IS INCLUDED IN THESE RATES The average residential monthly bill includes a bundle of three services: 1) Meter Charges, 2) Water Charges, and 3) Wastewater Charges. Rates directly support operations, maintenance, system enhancements, and cover the costs associated with providing reliable water and wastewater services. NEW RATES IN ACTION East Valley Water District is committed to a long-term approach focusing on a resilient local water supply. Updating rates would ensure that the District can meet regulatory requirements and operate critical infrastructure of the water and wastewater system, while maintaining financial stability. These updated rates will allow the District to address the continued needs of our community. @eastvalleywater Over $30 million in 3 years will be invested in replacing aging water infrastructure in our community. HOW YOU CAN PARTICIPATE If you have any questions or comments about the proposed rates you may participate in the following ways: Members of the public are welcome to attend the in-person public hearing on Wednesday, May 15, 2024 at 5:30pm at 31111 Greenspot Road, Highland, California 92346. Property owners may submit written protests which must be submitted by the close of the hearing. You will have an opportunity to speak, but verbal comments alone do not qualify as a formal protest. Public Hearing Participation If you are a property owner who receives water and/or wastewater services from the District, you have the right to file a formal written protest. These written comments may be mailed to East Valley Water District, Attention: District Clerk, 31111 Greenspot Road, Highland, California 92346 prior to the public hearing. Protests must specify the rate or charge being protested and must include: your name, parcel number and/or service address, and your signature. Email protests will not be included in the formal tally. Written protests may be left at the District’s payment drop off located at the District’s headquarters. Write At the time of the Public Hearing, the Board of Directors will tally and consider all written protests and objections. If a majority of the property owners directly liable for paying water bills submit written protests in opposition to the proposed rate increases, the increases will not be imposed. If a majority protest is not received, East Valley Water District’s Board of Directors may vote to modify the rates in consideration. DRAFT RESIDENTIAL VARIABLE CHARGES TIERS CURRENT RATES JAN. 1, 2025 JAN. 1, 2026 JAN. 1, 2027 Tier 1 $ $ $ $ Tier 2 Tier 3 FIRE SERVICE CHARGES METER SIZE CURRENT RATES RATE METER SIZE CURRENT RATES RATE 5/8”$4”$ 3/4”6” 1”8” 1.5”10” 2”12” 3” 2025–2027 PROPOSED WATER RATE CHARGES Water rates fund the costs of providing safe and reliable water services, including system maintenance, repairs, enhancements, and the treatment of water. Proposed rates would take effect on January 1, 2025. MONTHLY METER CHARGES METER SIZE CURRENT RATES JAN. 1, 2025 JAN. 1, 2026 JAN. 1, 2027 5/8”$ $ $ $ 3/4” 1” 1 1/2” 2” 3” 4” 6” 8” 10” 12”$ $ $ HCF — The unit of measure used for water billing equal to 748 gallons. Most residential customers fall into one of these meter sizes. Fixed and Variable Water Rate Charges Your water service includes two types of charges: fixed and variable. Monthly fixed water service charges are based on the size of your meter and do not change based on the amount of water delivered. This charge supports the operations and maintenance costs of things like groundwater wells, the surface water treatment plant, and water reservoirs. Infrastructure enhancements and replacements are also directly supported these fees. Residential variable charges are based on the amount of water used monthly. How much you pay per unit, equivalent to 748 gallons of water (HCF), depends on your water budget. There are three separate tiers and the cost of each is based on the actual cost of service. 2024–2027 PROPOSED WASTEWATER COLLECTION CHARGES Wastewater fees fund operations and maintenance of the wastewater system. These fees apply to customers that are connected to the District’s wastewater system. Proposed rates would take effect on July 1, 2024. 2024–2027 PROPOSED WASTEWATER TREATMENT CHARGES Wastewater treatment fees fund operations and maintenance of the wastewater treatment facility. These fees apply to customers that are connected to the District’s wastewater system. Proposed rates would take effect on July 1, 2024. SINGLE-FAMILY FIXED RESIDENTIAL CHARGES DWELLING SIZE CURRENT RATE JULY 1, 2024 JAN. 1, 2026 JAN. 1, 2027 1-3 Units $ $ $ SINGLE-FAMILY FIXED RESIDENTIAL CHARGES DWELLING SIZE CURRENT RATE JULY 1, 2024 JAN. 1, 2026 JAN. 1, 2027 1-3 Units $ $ $ MULTI-FAMILY FIXED RESIDENTIAL CHARGES DWELLING SIZE CURRENT RATE JULY 1, 2024 JAN. 1, 2026 JAN. 1, 2027 4 or More Units $ $ $ MULTI-FAMILY FIXED RESIDENTIAL CHARGES DWELLING SIZE CURRENT RATE JULY 1, 2024 JAN. 1, 2026 JAN. 1, 2027 4 or More Units $ $ $ NON-RESIDENTIAL/COMMERCIAL COLLECTION CATEGORIES Non-residential customers are separated into three primary categories based on the concentration of organic materials and suspended solids in the wastewater they discharge. Non-residential properties are charged a fixed and a variable collection rate. NON-RESIDENTIAL/COMMERCIAL TREATMENT CATEGORIES Non-residential properties are charged a fixed and a variable treatment rate. Low Strength Includes retail shops, schools, churches, and other services. Medium Strength Includes laundromats, auto repair/service stations and convalescent homes. High Strength Include restaurants, hotels, and supermarkets. Patton State Hospital Schools and Churches Collection and Treatment Wastewater Charges Wastewater collection charges support the maintenance of the underground pipeline system from the customer’s property to the wastewater treatment facility. This includes operations and maintenance activities, pipeline replacements, and regulatory compliance activities. Residential customers are charged a fixed rate based on the number of dwelling units on the property. Non- residential properties are charged two components, a fixed and a variable collection rate. Wastewater treatment is the process of removing contaminants from sewer flows to where the remaining water can safely be used for community benefit. Wastewater treatment fees are used for operations and maintenance costs of the treatment facility. This tier covers water used above the total budget and is charged at the highest rate. TierThree Tier One Tier Two This tier covers ecient outdoor water use and is charged at a slightly higher rate. This tier covers ecient indoor water use and is charged at the lowest rate. Water Allocation East Valley Water District follows States guidelines for allocating indoor water usage standards for each person in a household. Under current law, each person is allocated 55 gallons per day for essential indoor use such as bathing, cooking, and laundry. Beginning January 1, 2025, Senate Bill 1157 (SB 1157) mandates water agencies to adjust indoor water use standards to 47 gallons per person, per day. The adjustment will be reflected on your utility bill following this new State standard. Non-Residential/Commercial Collection Charges CATEGORY CURRENT RATE JULY 1, 2024 JAN. 1, 2026 JAN. 1, 2027 Monthly Fixed Charge $ $ $ Monthly Variable Charge Low Strength*$ $ $ Medium Strength* High Strength* Patton State Hospital* Schools and Churches* COMMERCIAL FIXED RATE TIERS JAN. 1, 2025 JAN. 1, 2026 JAN. 1, 2027 Tier 1 $ $ $ As part of the District’s cost of service analysis, it was determined the variable charge for non-residential/commercial customers should be eliminated. The proposed meter rates and fixed tier rate above, and fire service charges below will no longer include a variable rate for this group of customers. *Charged per billing unit. Billing Unit = 1 Hundred Cubit Feet (HCF). 1 HCF is 748 gallons *Charged per billing unit. Billing Unit = 1 Hundred Cubit Feet (HCF). 1 HCF is 748 gallons East Valley Water District actively pursues grants to help fund infrastructure and improvement projects. This allows the District to make significant system enhancements without imposing additional financial requirements on our community. In 2023, the District was awarded $848,000 in State grants. So far this year, the District has secured $19.5 million dollars in grant funding to seismic retrofit mainlines and reservoirs. As a government agency, the District is required by law to only charge its customers the costs associated with providing services. Non-Residential/Commercial Treatment Charges CATEGORY CURRENT RATE JULY 1, 2024 JAN. 1, 2026 JAN. 1, 2027 Monthly Fixed Charge $ $ $ Monthly Variable Charge Low Strength*$ $ $ Medium Strength* High Strength* Patton State Hospital* Schools and Churches* 25.49 134.59 10.59 48.83 51.76 736.05 2,041.16 2,041.16 2,041.16 1,433.89 27.52 30.94 32.74 34.62 36.70 38.91 16.32 16.70 17.21 17.73 26.77 29.79 32.77 36.05 47.24 54.87 83.50 84.35 89.42 94.79 127.00 126.97 15.42 15.48 15.95 16.43 23.90 25.67 28.24 31.07 243.01 368.48 390.59 414.03 373.52 901.23 955.31 1012.63 1,520.02 1,611.23 2,854.65 3,025.93 3,207.49 4,630.48 4,908.31 5,202.81 5,695.98 6,037.74 6,400.01 12.41 9.16 10.08 11.09 11.84 10.91 11.24 1.11 2.19 2.41 2.662.11 2.19 2.33 2.47 0.41 0.77 0.80 0.83 1.76 2.54 2.80 3.082.70 2.84 3.02 3.21 0.54 0.77 0.80 0.83 3.92 3.96 4.36 4.80 4.18 4.10 4.35 4.62 0.54 0.77 0.80 0.83 2.06 1.46 1.61 1.78 0.66 0.44 0.46 0.48 1.11 1.29 1.42 1.57 0.41 0.45 0.47 0.492.39 2.54 2.70 8.78 14.01 13.18 14.36 52.70 17.51 17.57 14.71 70.27 18.91 26.35 15.41 87.84 20.31 29.18 8.78 13.75 35.14 16.11 142.67 8.78 13.84 87.84 21.71 Agenda Item #3b March 13, 20241 Meeting Date: March 13, 2024 Agenda Item #3b Discussion Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Approval of Cancellation of the May 8, 2024 Regular Board Meeting RECOMMENDATION That the Board of Directors approve the cancellation of the May 8, 2024 regular Board meeting. BACKGROUND / ANALYSIS East Valley Water District’s regular Board meetings occur on the 2nd and 4th Wednesdays of each month. In the month of May, these meetings fall on the 8th and 22nd. The Board of Directors is being asked to consider canceling the May 8th regular Board meeting due to it falling during the Association of California Water Agencies’ Spring Conference, and several Board members and staff will be attending the conference. The cancellation will not impact District operations, and routine items will be scheduled accordingly. AGENCY GOALS AND OBJECTIVES I - Implement Effective Solutions Through Visionary Leadership C. Strengthen Regional, State and National Partnerships 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. Agenda Item #3b March 13, 20242 Meeting Date: March 13, 2024 Agenda Item #3b Discussion Item Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Justine Hendricksen District Clerk ATTACHMENTS No attachments East Valley Water District Regular Board Meeting Supplemental Information March 13, 2024 at 5:30 p.m. The following items are supplemental information that was presented to the Board of Directors and was not included in the posted Agenda Packet. PRESENTATIONS AND CEREMONIAL ITEMS a. Recognition of National Groundwater Appreciation Week 3. DISCUSSION AND POSSIBLE ACTION ITEMS a. Consider Scheduling a Public Hearing for May 15, 2024, to Consider the Adoption of Water and Wastewater Rate Adjustments Pursuant to Article XIII D of the California Constitution (slides 5 and 13 were corrected) 4. REPORTS b. General Manager/CEO Report • Water Supply Dashboard 1 2 Groundwater History in San Bernardino •First municipal wells drilled in valley in 1880’s •Over 500 groundwater wells supply 95% of drinking water to San Bernardino Valley •Bunker Hill Groundwater basin holds more water than Lake Shasta •The United States uses 82.3 billion gallons per day of groundwater 3 Groundwater is an Important Part of Water Supply 4 EVWD Water Production Team PROPOSED RATE ADJUSTMENT Board of Directors March 13, 2024 2 FINANCIAL STRATEGIES Customer Focused Rates System Reliability Cost Recovery Long Term Flexibility DISTRICT RATES 3 WATER RATES: FIXED AND VARIABLE CHARGES Fixed Charges Volumetric (Variable) Charges Budget Based Rates: Tier 1 – Indoor usage Tier 2 – Outdoor usage Tier 3 – Inefficient 4 WASTEWATER COLLECTION AND TREATMENT RATES Residential Commercial •Single-family residential customers are charged a monthly combined fixed rate per account. •Multi-family customers are charged a monthly combined fixed rate per dwelling unit. •Non-residential/commercial customers are charged a monthly fixed and variable charge, based on flows and concentration of organic materials and suspended solids in the wastewater discharge. •Low Strength •Medium Strength •High Strength •Patton State Hospital •Schools & Churches 5 WATER RATES: COST-OF-SERVICE FY 2025 Rate Components Fixed Components 37% Variable Components 63% $3.6M Units of Service Total Bills $7.7M Units of Service Meter Equivalents $126k Units of Service Fire Flow Demand Account Services Meter Capacity Fire Flow Demand $2.3M Units of Service Water Usage by Class and Tier $10.6M Units of Service Total Usage $4.9M Units of Service Weighted Peak $1M Units of Service Tier 3 Usage Groundwater Delivery Peaking $346k Units of Service Water Usage by Class and Tier State Water Project $262k Units of Service Water Usage by Class and Tier Surface Water Water Efficiency 6 WASTEWATER COLLECTION: COST-OF-SERVICE FY 2025 Rate Components Account Services Flow 7 WASTEWATER RECLAMATION: COST-OF-SERVICE FY 2025 Rate Components $3.4M Units of Service Total Bills $3.6M Units of Service Flow $2.6M Units of Service Weighted COD $2.6M Units of Service Weighted TSS Variable Components Account Services Flow Chemical Oxygen Demand Total Suspended Solids 8 UTILITY RATE REVENUE Water $29,018,000 62% WW - Collection $6,410,000 13% WW - Treatment $11,659,000 25% Water WW - Collection WW - Treatment 9 RATE DRIVERS Rate Study Water Sales Inflation Power Costs Capital Improvement Projects 10 RATE DRIVERS – INFLATION & POWER Ra t e o f I n f l a t i o n (F Y 2 0 2 3 ) Typical Inflation 15% 12% 5%4% Overall CPI 11 3% 8% RATE DRIVERS – WATER SALES 14,500 15,500 16,500 17,500 18,500 19,500 20,500 21,500 22,500 Ac r e F e e t Water Sales (AF) Water Master Plan Projections 26% 5% 11% 12 RATE DRIVERS – INFRASTRUCTURE INVESTMENT 13 $0 $5 $10 $15 $20 $25 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Mi l l i o n s Capital Funding Sources Capacity Fees Debt Grants Rates/Reserves $7.6 $20.3 $21.4 $13.6 $10.2 $7.1 •Construct new reservoir in Foothill and Lower Pressure Zones •Seismic upgrade 7 reservoirs and re-coat 5 reservoirs RATE DRIVERS – 5 YR CAPITAL IMPROVEMENTS 14 RATE DRIVERS – 5 YR CAPITAL IMPROVEMENTS •Drill and construct 2 new wells 0 5 10 15 20 25 2010 Current Operational Wells 10 Wells •Approx 152 water main breaks each year •Replace 5 miles of pipe RATE DRIVERS – 5 YR CAPITAL IMPROVEMENTS 16 PROPOSED RATE CHANGES - WATER Proposed Monthly Fixed Charges Meter Size FY 2025 Proposed Fixed Charge 5/8"$27.52 3/4"$34.62 1"$48.83 1 1/2"$84.35 2"$126.97 3"$368.48 4"$901.23 6"$1,433.98 8"$2,854.65 10"$4,630.48 12"$5,695.98 Proposed Commodity Rates ($/hcf) Customer Class & Tiers FY 2025 Proposed Commodity Rates Budget Based Customers Tier 1 $2.19 Tier 2 $2.84 Tier 3 $4.10 Commercial Tier 1 $2.39 Proposed vs. Existing Existing Commodity Rate Difference ($) $2.11 $0.08 $2.70 $0.14 $4.18 ($0.08) $2.11 $0.28 17 PROPOSED RATE CHANGES – WASTEWATER COLLECTION Proposed Monthly Fixed Charges Cust omer Class Total Monthly Fixed Charge Single Family $16.70 Multi-Family $15.48 Proposed vs. Existing Existing Difference ($) $16.32 $0.38 $15.42 $0.06 Proposed Monthly Fixed Charges Cust omer Class Total Monthly Fixed Charge Non-Residential $10.59 Proposed vs. Existing Existing Difference ($) $11.84 ($1.25) Proposed Variable Rates ($/hcf) Cust omer Class Total Variable Rates ($/hcf) Non-Residential Low Strength $0.77 Medium Strength $0.77 High Strength $0.77 Schools & Churches $0.45 Patton State Hospital $0.44 Proposed vs. Existing Existing Difference ($) $0.41 $0.36 $0.54 $0.23 $0.54 $0.23 $0.41 $0.04 $0.66 ($0.22) 18 PROPOSED RATE CHANGES – WASTEWATER TREATMENT Proposed Monthly Fixed Charges Cust omer Class Total Monthly Fixed Charge Single-Family $29.79 Multi-Family $25.67 Proposed vs. Existing Existing Difference ($) $26.77 $3.02 $23.90 $1.77 Proposed Monthly Fixed Charges Cust omer Class Total Monthly Fixed Charge Non-Residential $9.16 Proposed vs. Existing Existing Difference ($) $12.41 ($3.25) Proposed Variable Rates ($/hcf) Cust omer Class Total Variable Rates ($/hcf) [H] = E + F + GNon-Residential Low Strength $2.19 Medium Strength $2.54 High Strength $3.96 Schools & Churches $1.29 Patton State Hospital $1.46 Proposed vs. Existing Existing Difference ($) $1.11 $1.08 $1.76 $0.78 $3.92 $0.04 $1.11 $0.18 $2.06 ($0.60) 19 PROPOSED 3-YR RATE CHANGES – AVERAGE RESIDENTIAL BILL The average home with four residents and a monthly consumption of 16 HCF 20 CUSTOMER OUTREACH May 15, 2024 Public Hearing March 29, 2024 Printed 218 Notice mailed to all ratepayers March 13, 2024 Vote by Board of Directors calling for Public Hearing 21 DISCUSSION Water Supply Update Northern California 8 Station 37.8 inches Updated 3/6/24 Big Bear 4.51 inches Updated 2/8/24 Annual Average: 16.8'' WATER YEAR Highland October 1- September 30 11.36 inches Updated 3/6/24 ACRONYMS CFS = cubic feet per second mAF = million Acre-Feet WATER SHORTAGE STAGE STATE WATER PROJECT Lake Mead & Powell Updated 3/12/24 DISTRICT WATER SUPPLIES Annual Average: 53.2'' GROUNDWATER SURFACE COLORADO RIVER STORAGE OTHER INDICATORS RAINFALL 10% ⇨ 15% Annual Average: 11.9'' 33% of Capacity STATE WATER PROJECT ALLOCATION Current Available CapacityAvailable Capacity Current 4.9 mAF 82% of Capacity Bunker Hill Basin 2.96 mAF 84% of Capacity Lake Oroville Updated 3/5/24 50.3 142.7 Santa Ana River (CFS) Total SAR Inflow Updated 3/6/24 Last YearLast Year 17.5 mAF Historic Avg 2010-2023 Monthly Average 2024-Monthly Flow Average Expecting update to SBVMWD Change In Groundwater Storage Report in March