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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 02/28/2024BOARD OF DIRECTORS FEBRUARY 28, 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 February 28, 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.MARCOM Award Recognition  b.​Recognizing a World Class Customer Service Team 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 January 24, 2024 Regular Board Meeting Minutes b.Accept and File Financial Statements for December 2023 3.INFORMATIONAL ITEMS a.​Capital Improvement Program Update 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Approval of Fiscal Year 2023­24 Mid­Year Budget Revisions b.Consider Approval of Revised Reserve Funds Policy 7.2 c.Consider Approval of Contract with Trussell Technologies for Sterling Natural Resource Center Reporting Support 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSFEBRUARY 28, 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 February 28, 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.MARCOM Award Recognition  b.​Recognizing a World Class Customer Service Team 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 January 24, 2024 Regular Board Meeting Minutes b.Accept and File Financial Statements for December 2023 3.INFORMATIONAL ITEMS a.​Capital Improvement Program Update 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Approval of Fiscal Year 2023­24 Mid­Year Budget Revisions b.Consider Approval of Revised Reserve Funds Policy 7.2 c.Consider Approval of Contract with Trussell Technologies for Sterling Natural Resource Center Reporting Support 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSFEBRUARY 28, 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 MeetingFebruary 28, 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.MARCOM Award Recognition  b.​Recognizing a World Class Customer Service Team 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 January 24, 2024 Regular Board Meeting Minutes b.Accept and File Financial Statements for December 2023 3.INFORMATIONAL ITEMS a.​Capital Improvement Program Update 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Approval of Fiscal Year 2023­24 Mid­Year Budget Revisions b.Consider Approval of Revised Reserve Funds Policy 7.2 c.Consider Approval of Contract with Trussell Technologies for Sterling Natural Resource Center Reporting Support 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSFEBRUARY 28, 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 MeetingFebruary 28, 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.MARCOM Award Recognition b.​Recognizing a World Class Customer Service TeamROLL 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 January 24, 2024 Regular Board Meeting Minutes b.Accept and File Financial Statements for December 2023 3.INFORMATIONAL ITEMS a.​Capital Improvement Program Update 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Approval of Fiscal Year 2023­24 Mid­Year Budget Revisions b.Consider Approval of Revised Reserve Funds Policy 7.2 c.Consider Approval of Contract with Trussell Technologies for Sterling Natural Resource Center Reporting Support 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN Kerrie Bryan, Director of Administrative Services RECOGNIZING A WORLD CLASS CUSTOMER SERVICE TEAM February 28, 2024 2 "I've learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel." —Maya Angelou 3 THE CUSTOMER SERVICE TEAM •Customer Service is the first point of contact with customers, and the “face” of the District Customer Service Supervisor Headquarters SNRC Meter Tech II/ Field Service Representative 4 CUSTOMER SERVICE: GOALS ACHIEVED 716 Walk-ins Handled Monthly 2,148 Calls Handled Monthly 1,092 bills Processed monthly Customer Survey 85% of respondents stated representatives were courteous and knowledgeable CUSTOMER ENGAGEMENT: CALL WAIT TIME - 10 20 30 40 50 60 70 80 90 2022-23 2021-22 2020-21 2019-20 Se c o n d s Fiscal Year AWWA Target 6 CUSTOMER SATISFACTION SURVEY: CUSTOMER SERVICE REPRESENTATIVE’S PERFORMANCE 66.5 59.7 59.1 18.3 20.3 19.2 4 8.3 8.8 5.8 3.4 5.5 4.8 8.3 6.9 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% The courtesy of the service representative Your ability to reach a service representative The knowledge and expertise of the service representative Not Sure Very Dissatisfied Somewhat Dissatisfied Somewhat Satisfied Very Satisfied Service Representative’s Performance % R e s p o n d e n t s w i t h D i s t r i c t co n t a c t i n t h e p a s t 6 m o n t h s 7 “Thank you, Manuela, for offering AMAZING assistance with efficiency in getting my water connected.” -Customer Compliment ACCOLADES FOR THE TEAM 8 “Manuela and Matt were AMAZING. Manuela was so great assisting me and was quick at getting me connected with Matt regarding an issue at my property, and Matt explained everything so well.” -Customer Compliment ACCOLADES FOR THE TEAM 9 An elderly lady came into the HQ when it was cold and pouring down rain. Sheila helped her with her concerns. The customer began to explain how she has been a widow for 25 years and said she was lonely and tired of staying in the house. Sheila invited her to sit by the fireplace and brought her a cup of coffee and a donut from the break room to enjoy. ACCOLADES FOR THE TEAM 10 Nikki had been helping a customer with her account for a few months. Right before the holidays, the customer came in to see Nikki and tell her how grateful she was for all her help and how she appreciates her kindness and patience. She then gave Nikki a beautiful homemade Christmas gift basket. ACCOLADES FOR THE TEAM 11 CUSTOMER SERVICE APPRECIATION WEEK •Celebrated annually the first full week of October •Celebratory decorations •Special recognition dinner •Gifts and awards 12 TEAM BONDING Thank you for providing world-class customer service! DISCUSSION Agenda Item #2a February 28, 20241 Meeting Date: February 28, 2024 Agenda Item #2a Consent Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Approve the January 24, 2024 Regular Board Meeting Minutes RECOMMENDATION That the Board of Directors approve the January 24, 2024 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 January 24, 2024 Regular Board Meeting Minutes Regular Board Meeting Meeting Date: January 24, 2024 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; William Ringland, Public Affairs/Conservation Manager; Kerrie Bryan, Director of Administrative Services; Patrick Milroy, Operations Manager; Jason Wolf, Senior Engineer; Justine Hendricksen, District Clerk; Shayla Antrim, Administrative Specialist LEGAL COUNSEL Jean Cihigoyenetche GUESTS Members of the public PUBLIC COMMENTS Chairman Morales 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 4 1 1 1.APPROVAL OF AGENDA a.Approval of Agenda A motion was made by Vice Chairman Coats, seconded by Director Carrillo, that the Board approve the January 24, 2024 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 54956.9(b) to discuss the items listed on the agenda. RECONVENE THE MEETING The Board reconvened the meeting at 5:30 p.m. PLEDGE OF ALLEGIANCE Director Smith 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 #2.a., legal counsel stated that a claim for damages was considered, filed by Jodi Silsbee, alleging damages based on trespass and nuisance; the Board discussed and unanimously voted 5-0 to reject the claim. PUBLIC COMMENTS Chairman Morales 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. 3.APPROVAL OF CONSENT CALENDAR a.Approve the January 2, 2024 Special Board Meeting Minutes b.Accept and File Financial Statements for November 2023 1 4 1 1 c.Approve December 2023 Disbursements: Accounts payable disbursements for the period include check numbers 262327 through 263434, bank drafts, and ACH payments in the amount of $17,217,505.92 and $507,918.67 for payroll d.Accept and File Investment Transaction Report for Quarter Ended December 31, 2023 A motion was made by Director Smith, seconded by Vice Chairman Coats, 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. Update on Inland Valley Development Agency The Senior Engineer provided an overview of the Inland Valley Development Agency. He explained their purpose and introduced Ms. Kaitly Dodson-Hamilton, Vice President- Environmental Specialist from Tom Dodson & Associates. Ms. Dodson-Hamilton gave a presentation on the Inland Valley Infrastructure Corridor Project. She provided a project overview, which included but was not limited to projects taking place within the corridor, infrastructure improvements such as water, sewer, roadways, and stormwater drainage, and future new development. Information only. 5.DISCUSSION AND POSSIBLE ACTION ITEMS a. Consider Approval of Fleet Maintenance Agreement with Managed Mobile The Operations Manager provided information regarding a fleet maintenance contract with Managed Mobile. He stated that the District currently has one employee working in the Fleet Department. The District has utilized Managed Mobile for the past five years and has been satisfied with their services. A Request for Proposal was posted on the District’s website and two vendors submitted proposals. They were reviewed and Managed Mobile was determined to be the most qualified and best value for the District. A motion was made by Director Goodrich, seconded by Director Carrillo, that the Board of Directors authorize the General Manager/CEO to enter into an agreement with Managed Mobile for Fleet Maintenance for three years, with two optional one-year extensions, up to $100,000 per year and authorize di minimis changes to the terms and conditions of the agreement if necessary. The motion was carried by the following vote: 1 4 1 1 Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Abstain: None Absent: None b. Consider Rescission of Administrative Policy – Section 9 – COVID Policies and Protocols and Adoption of Policy 6.13 – COVID-19 Prevention Program The Director of Administrative Services discussed proposed changes to the District’s COVID-19 policies and protocols. She provided an overview of the history of the pandemic and the policies and procedures that were established during the past few years. She also reviewed non-emergency regulations that recently went into effect. The Director of Administrative Services stated that, with the new regulations and the pandemic officially over, staff evaluated the current District COVID policies and found them to be excessive in comparison to the more current non-emergency regulations. After careful consideration, staff determined that a COVID-19 Prevention Program that incorporated all elements of the non-emergency regulations would be better suited for the District moving forward. If adopted, Policy 6.13, COVID-19 Prevention Program, will replace Section 9: COVID-19 and all of the section’s related policies. A motion was made by Director Goodrich, seconded by Vice Chairman Coats, that the Board approve the removal of Section 9: COVID-19 Policies and Protocols from the Administrative Policies & Programs Manual; and adopt Policy 6.13 COVID-19 Prevention Program under Section 6: Workplace and Building Standards. The motion was carried by the following vote: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None 6.REPORTS a.Board of Directors’ Reports Vice Chairman Coats reported the following: January 14 he watched the first drop of recycled water from the Sterling Natural Resource Center (SNRC) arrive and spread for recharge at the Weaver Basin; January 15 he attended the Association of San Bernardino County Special Districts meeting where they discussed Association business; January 16 he attended the San Bernardino Valley Municipal Water District Board meeting with nothing to report; January 17 he met with the General Manager/CEO to discuss District business; January 18 he met with the General Manager/CEO and Chairman to review the agenda and discuss District business; January 19 he attended a Town Hall meeting with State Senator Ochoa-Bogh on infrastructure needs for the Inland Empire, where Michael Moore was one of the panel speakers; January 22 he attended the Association of San Bernardino County Special Districts Membership 1 4 1 1 meeting where the guest speaker was the San Bernardino County Sheriff Shannon Dicus; January 23 he attended the City of San Bernardino Water Department meeting where they announced that the Santa Ana Regional Water Quality Board has told them that they are shooting to have their recycled water discharge permit ready by June of 2024; and January 23 he attended the Highland Chamber of Commerce monthly meeting where the guest speaker was Third District Supervisor Dawn Rowe. Director Carrillo reported on the following: January 17 he attended the Local Agency Formation Commission of San Bernardino County meeting with nothing to report; January 19 he met with the General Manager/CEO to review the agenda and discuss District business; and January 22 he attended the Engineering & Operations Committee meeting. Director Smith reported on the following: January 12 and 14 he was in attendance to view the first drops of recycled water from the Sterling Natural Resource Center into the Weaver Basin; January 16 he met with the General Manager/CEO to discuss District business; January 22 he attended the Association of San Bernardino County Special Districts Membership meeting where the guest speaker Sheriff Shannon Dicus discussed SB47 legislation; and January 23 he attended the Highland Chamber of Commerce monthly meeting. Director Goodrich reported on the following: January 12 and 14 he was in attendance to view the Sterling Natural Resource Center startup event; January 16 he met with the General Manager/CEO to discuss District business; January 22 he attended the Engineering & Operations Committee meeting; January 22 he attended the Association of San Bernardino County Special Districts Membership meeting where Sheriff Dicus spoke on law enforcement challenges with Sacramento; and January 23 he attended the Highland Chamber of Commerce monthly meeting where Supervisor Rowe provided an update on her campaign activities. Chairman Morales reported on the following: January 12 and 14 he was in attendance to view the first drops of recycled water from the Sterling Natural Resource Center (SNRC) into the Weaver Basin; January 16 he attended the San Bernardino Valley Municipal Water District Finance Workshop and Board meeting; January 18 he met with the General Manager/CEO to review the agenda and discuss District business; January 19 he attended a Town Hall meeting with State Senator Ochoa-Bogh spoke on infrastructure and legislative matters; January 19 he attended the East Valley Association of Realtors meeting where they held their Board installation at the SNRC; and January 22 he attended a preparatory session with the Southern California Water Coalition for an upcoming panel where East Valley Water District will be represented to discuss community engagement in regards to large scale projects. For information only. 1 4 1 1 b. General Manager/CEO Report The General Manager/CEO announced the following: •January 23 the Community Action Partnership was at the Sterling Natural Resource Center to assist customers with applying for the Low-Income Household Water Assistance Program. Eight customers qualified for the program and approved for payment assistance in the amount of $4,423.00. •January 28, the District will host a booth at the annual Highland YMCA Run and will keep race participants hydrated with EVWD’s water fountain. •February 10 the District will host a Conservation Workshop at the Sterling Natural Resource Center. The workshop will provide tips for creating a healthy and attractive landscape while maximizing water efficiency all year long. •On January 19, the District hosted an Infrastructure Forum consisting of a panel of representatives of other water agencies and Senator Ochoa Bogh. The panel discussed legislative matters related to water issues in the State. The General Manager/CEO added that as a panel member, he shared some of the legislative issues directly related to East Valley Water District projects with Senator Ochoa Bogh. •Sterling Natural Resource Center update: Tomorrow night around midnight staff will be transitioning over the second transmission of wastewater to the Sterling Natural Resource Center that is currently going to the City of San Bernardino treatment plant. There are about six transitions that will be taking place over the next month and a half, transitions should be complete by early March. For information only. c. Legal Counsel Report No report at this time. Legal Counsel stated that he is happy to see the Sterling Natural Resource Center up and running. d. Board of Directors’ Comments Vice Chairman Coats recalled the moment when he witnessed the inaugural flow of recycled water from the Sterling Natural Center through the regional pipeline. He praised the efforts of Mr. Noelte, Mr. Welborn, the SNRC staff, and all other personnel involved in bringing this project to fruition. He emphasized that their dedication and hard work reflect positively on the organization and benefit all of our ratepayers. He stated that the achievement the District has attained is one of which we can all take great pride in, knowing that each of us contributed to its success. 1 4 1 1 Director Carrillo echoed Vice Chairman Coats comments. He stated that this is a proud moment and he thanked staff for their time to put the Sterling Natural Resource Center online. Director Smith stated that he looks forward to moving on and reflected on how he felt watching the water flow into the Weaver Basin. Director Goodrich made a positive comment regarding Sheriff Dicus’ efforts to support legislation strengthening laws against crime in the area and that the Sheriff is working with local representatives to support projects that benefit those who live within this region. He acknowledged the Sterling Natural Resource Center startup crew. Chairman Morales invited the Board to attend the Association of California Water Agencies Region 9 Board meeting and tour of the infrastructure at Desert Water Agency event on January 30. He stated that the Association of California Water Agencies newsletter contained the Sterling Natural Resource Center press release. He acknowledged Sterling Natural Resource Center staff for getting it online. He added that he appreciates the personal investment of each member of staff for getting us to where we are and he is proud to be a part of this organization. For information only. ADJOURN Chairman Morales adjourned the meeting at 6:32 p.m. James Morales, Jr., Board President Michael Moore, Board Secretary Agenda Item #2b February 28, 20241 Meeting Date: February 28, 2024 Agenda Item #2b Consent Item 1 0 4 3 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Accept and File Financial Statements for December 2023 RECOMMENDATION That the Board of Directors accept and file the attached financial statements as of, and for the period ended, December 31, 2023. BACKGROUND / ANALYSIS The East Valley Water District adopted an annual budget on June 28, 2023 for fiscal year 2023-24. In accordance with District Administrative Policy 7.7, the Chief Financial Officer provides regular budget updates to the Board of Directors (Board). Included herewith for the Board’s review is a summary of the District’s financial results, as of December 31, 2023. 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. 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 #2b February 28, 20242 Meeting Date: February 28, 2024 Agenda Item #2b Consent Item 1 0 4 3 ATTACHMENTS 1. December 2023 Financial Statement Monthly Review 2. December 2023 Financial Statements FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING DECEMBER 31, 2023 page | 1 The following is a highlight summary of the District’s financial results as of December 31, 2023. Please note all values presented are in millions (unless otherwise noted). Statement of Net Position Total assets at December 31, 2023 are $403.22 million. CLASSIFICATION WATER WASTEWATER RECLAMATION DISTRICT TOTAL Cash and Investments $ 25.33 $ 6.37 $ 2.75 $ 34.45 Utility Plant, Net 96.95 17.00 - 113.95 Other Assets 42.67 31.95 180.21 254.83 Current Liabilities 7.65 7.15 24.56 39.36 Long Term Liabilities 44.46 8.13 156.36 208.95 Beginning Net Position 105.34 38.68 3.01 147.03 Change in Equity 5.91 1.03 (0.98) 5.96 TOTAL NET $ 111.25 $ 39.71 $ 2.03 $ 152.99 Cash and Investments Cash and Investments are $34.46 million for the month of December, an increase of $7.07 million from the prior month. In December the District received $8.44 million reimbursement for construction costs incurred during FY2022-23 and paid $2.53 million for construction of the recycled water pipeline in July, September and October 2023. The District’s Due from Other Governments includes a receivable for work performed on the Recycled Water Pipeline from October through December and Grants Receivable from the State of California bringing the ending balance as of December 31, 2023 to $13.16 million. $0 $5 $10 $15 $20 $25 $30 $35 $40 Mi l l i o n s CASH & INVESTMENTS Restricted Unrestricted FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING DECEMBER 31, 2023 page | 2 Statement of Revenues & Expenses Total Revenues & Expenses through December 31, 2023 are summarized below (in millions): Column1 WATER WASTEWATER RECLAMATION DISTRICT TOTAL Revenue $ 15.95 $ 3.36 $ 5.24 $ 24.55 Expense 10.04 2.33 6.22 18.59 The Reclamation Fund expenses continue to exceed revenues as the SNRC facility has yet to begin operations. The District is incurring Contract Service Expenses for Treatment as well as plant expenses such as Salaries and Benefits, Uti lities, Materials and Supplies but has yet to begin collecting any offsetting revenues anticipated from operation such as Tipping Fees, etc. Water Sales by Tier Water Sales for the month ending December 31, 2023 were $978K; $256K under staff projections for the month and $761K under projections year-to-date. $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 Mi l l i o n s WATER SALES BY TIER Tier 1 Tier 2 Tier 3 FY 2023-24 Projection For a more detailed presentation, operating results are presented in three ways on pages 2 through 6 of the attached financial statements for the period ending December 31, 2023. First is a one-page summary with monthly and year-to-date totals for revenue and expenses, presented by Expense Category. Second is a one-page summary with monthly and year-to-date totals for Revenues and Expense by Program. Third is a Budget -to- Actual presentation of program expense detail. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING DECEMBER 31, 2023 page | 3 Water Sales by Customer Class The table below shows the District’s water sales for the month of December 2023 by customer class. The following icons are to compliment the graph below: positive change, no change, negative change when comparing actuals versus projections. CUSTOMER CLASS ACTUAL PROJECTION $ VARIANCE % VARIANCE Residential 547,039$ 680,000$ (132,961)$ -20% Multi-Family 196,055 325,000 (128,945) -40% Commercial 95,097 114,000 (18,903) -17% Irrigation 139,876 115,000 24,876 22% TOTAL $ 978,067 $ 1,234,000 $ (255,933)-21% The following table displays customer class by tier for the month of December 2023: CUSTOMER CLASS TIER ACTUAL PROJECTION $ VARIANCE % VARIANCE Residential Tier 1 249,850$ 326,000$ (76,150)$ -23% Residential Tier 2 123,048 131,000 (7,952) -6% Residential Tier 3 174,141 223,000 (48,859) -22% Multi-Family Tier 1 97,896 151,000 (53,104) -35% Multi-Family Tier 2 28,985 45,000 (16,015) -36% Multi-Family Tier 3 69,174 129,000 (59,826) -46% Commercial Tier 1 66,380 80,000 (13,620) -17% Commercial Tier 2 5,620 8,000 (2,380) -30% Commercial Tier 3 23,097 26,000 (2,903) -11% Irrigation Tier 2 37,626 42,000 (4,374) -10% Irrigation Tier 3 102,250 73,000 29,250 40% TOTAL $ 978,067 $ 1,234,000 $ (255,933)-21% Legend - Positive Change in Actuals - Neutral Change in Actuals - Negative Change in Actuals FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING DECEMBER 31, 2023 page | 4 The chart below is a comparative illustration of Water Revenue year -to-date compared to last year’s Water Revenue year-to-date as of December. As noted in the graph, Water Revenue experienced a minor decrease over last year. Water consumption decreased 146.83 million gallons (196.3K HCF) compared to December of 2022 and water sales were down $206K for all three tiers combined. $0 $2 $4 $6 $8 $10 $12 $14 $16 12/31/2022 12/31/2023 Mi l l i o n s COMPARATIVE MONTHLY WATER REVENUE (WATER SALES & METER CHARGES) Meter Tier 1 Tier 2 Tier 3 Total -$15,186,466 Total -$15,128,078 FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING DECEMBER 31, 2023 page | 5 Water Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Water Fund operating cost centers for FY 2022-23 and FY 2023-24. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING DECEMBER 31, 2023 page | 6 Wastewater Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Wastewater Fund operating cost centers for FY 2022-23 and FY 2023-24. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING DECEMBER 31, 2023 page | 7 Water Reclamation Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Water Reclamation Fund operating cost centers for FY 2022-23 and FY 2023-24. WATER WASTEWATER RECLAMATION DISTRICT TOTAL Assets: Current Assets: 01 Cash and Cash Equivalents 9,632,093.75$ 1,052,742.68$ 2,750,000.00$ 13,434,836.43$ 02 Investments 7,467,668.36 1,765,115.56 - 9,232,783.92 03 Accounts Receivable, Net 4,205,111.49 311,471.64 548,409.10 5,064,992.23 04 - Interest Receivable - - - - 14*05 Other Receivables 2,283,158.81 - - 2,283,158.81 07 Due from Sewer Fund 3,770,000.00 12,161,751.67 - 15,931,751.67 07. Due from Reclamation Fund 3,952,631.27 - - 3,952,631.27 06 Due from Other Governments (49,361.45) - 13,206,978.69 13,157,617.24 08 Inventory 1,266,345.49 6,721.16 - 1,273,066.65 09 Prepaid Expenses 212,514.89 32,079.63 - 244,594.52 32,740,162.61 15,329,882.34 16,505,387.79 64,575,432.74 Non-Current Assets: 10 Restricted Cash and Cash Equivalents 8,235,014.03 3,555,502.92 - 11,790,516.95 11 Capital Assets not being Depreciated 21,489,037.90 17,615,778.29 166,451,625.74 205,556,441.93 13 Capital Assets, Net 96,948,239.29 16,997,047.78 - 113,945,287.07 126,672,291.22 38,168,328.99 166,451,625.74 331,292,245.95 Total Assets:159,412,453.83 53,498,211.33 182,957,013.53 395,867,678.69 Deferred Outflow Of Resources 24*Deferred Charge on Refunding 581,826.53 272,820.05 - 854,646.58 25 Deferred Outflows - Pensions 4,954,821.80 1,546,575.07 - 6,501,396.87 164,949,102.16 55,317,606.45 182,957,013.53 403,223,722.14 Current Liabilities: 22 Accounts Payable and Accrued Expenses 3,258,955.28 29,842.00 - 3,288,797.28 29 Due to Water Fund (210.00) 3,770,000.00 3,952,631.27 7,722,421.27 29. Due to Sewer Fund - - 12,161,751.67 12,161,751.67 23 Accrued Payroll and Benefits - - - - 15 Customer Service Deposits 1,450,277.78 - - 1,450,277.78 16 Construction Advances and Retentions 111,825.21 3,010,696.98 8,382,421.33 11,504,943.52 17 Accrued Interest Payable 239,066.72 24,710.75 - 263,777.47 18 Current Portion of Compensated Absences 449,527.20 137,616.80 65,033.00 652,177.00 19 Current Portion of Long-Term Debt 2,140,008.61 175,000.00 - 2,315,008.61 7,649,450.80 7,147,866.53 24,561,837.27 39,359,154.60 Non-Current Liabilities: 20 Compensated Absences, less current portion 303,032.74 71,487.14 75,006.92 449,526.80 28 Net Pension Liability 10,600,994.28 3,254,141.95 - 13,855,136.23 21 Long Term Debt, Less Current Portion 33,555,886.89 4,800,908.00 156,289,569.00 194,646,363.89 27 Other Liabilities 1,173.64 - - 1,173.64 44,461,087.55 8,126,537.09 156,364,575.92 208,952,200.56 Total Liabilities:52,110,538.35 15,274,403.62 180,926,413.19 248,311,355.16 Deferred Inflows Of Resources 26 Deferred Inflows - Pensions 1,589,671.06 336,902.07 - 1,926,573.13 53,700,209.41 15,611,305.69 180,926,413.19 250,237,928.29 31 Equity 105,340,469.37 38,679,547.28 3,008,522.25 147,028,538.90 105,340,469.37 38,679,547.28 3,008,522.25 147,028,538.90 Tot Total Revenue 15,949,148.63 3,359,403.39 5,242,767.52 24,551,319.54 Tot Total Expense 10,040,725.25 2,332,649.91 6,220,689.43 18,594,064.59 5,908,423.38 1,026,753.48 (977,921.91) 5,957,254.95 111,248,892.75 39,706,300.76 2,030,600.34 152,985,793.85 164,949,102.16$ 55,317,606.45$ 182,957,013.53$ 403,223,722.14$ Unaudited As of December 31, 2023 Combining Schedule of Net Position Total Equity and Current Surplus (Deficit): Total Assets and Deferred Outflows of Resources: Total Current Assets: Total Non-Current Assets: Total Liabilities, Equity and Current Surplus (Deficit): Total Beginning Equity: Equity: Revenues Over/Under Expenses Total Current Liabilities: Total Liabilities and Deferred Inflows of Resources: Total Non-Current Liabilities: Page 1 of 6 AMENDED AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 978,067.69$ 10,130,889.60$ 18,345,000.00$ -$ -$ -$ -$ -$ 692,000.00$ 19,037,000.00$ 8,906,110.40$ 42 Meter Charges 646,258.49 4,997,500.82 9,996,000.00 - - - - - - 9,996,000.00 4,998,499.18 43 Penalties 37,562.83 273,406.49 450,000.00 4,262.70 30,651.45 60,000.00 - - - 510,000.00 205,942.06 44 Wastewater System Charges - - - 367,368.92 2,936,533.67 5,968,000.00 - - - 5,968,000.00 3,031,466.33 45 Wastewater Treatment Charges - - - - - - 639,436.60 5,211,419.66 10,279,000.00 10,279,000.00 5,067,580.34 46 Other Operating Revenue 124,820.01 505,958.39 42,000.00 118,014.00 287,292.45 - - - 1,252,000.00 1,294,000.00 500,749.16 47 Non Operating Revenue (22,800.22) 41,393.33 220,000.00 50,697.89 104,925.82 20,000.00 - 31,347.86 100,000.00 340,000.00 162,332.99 48 Gain or Loss on Disposition - - - - - - - - - - - 56 Benefits - - - - - - - - - - - 68 Depreciation - - - - - - - - - - - Revenue Total:1,763,908.80 15,949,148.63 29,053,000.00 540,343.51 3,359,403.39 6,048,000.00 639,436.60 5,242,767.52 12,323,000.00 47,424,000.00 22,872,680.46 - - - - - - - - Expense by Category 51 Labor 430,544.87 2,600,433.24 5,596,200.00 118,303.05 714,398.75 1,627,100.00 61,087.55 365,973.22 1,004,700.00 8,228,000.00 4,547,194.79 52 Temporary Labor 970.20 10,049.82 32,900.00 415.80 4,307.06 14,100.00 - - - 47,000.00 32,643.12 56 Benefits 140,417.14 1,648,983.63 2,915,800.00 36,445.02 402,546.49 756,300.00 21,399.20 244,819.16 492,900.00 4,165,000.00 1,868,650.72 63 Contract Services 374,427.32 1,730,542.78 5,048,000.00 126,816.13 615,726.61 1,582,100.00 793,660.35 4,772,023.81 6,018,900.00 12,649,000.00 5,530,706.80 65 Professional Development 18,672.47 128,047.96 291,000.00 4,042.11 37,234.15 104,000.00 520.84 6,643.20 21,000.00 416,000.00 244,074.69 53 Overtime 31,452.26 241,193.13 371,000.00 784.18 8,634.14 25,800.00 72.31 4,350.51 29,200.00 426,000.00 171,822.22 62 Materials and Supplies 151,882.60 795,614.54 1,331,500.00 20,296.17 66,718.49 133,100.00 34,169.44 55,998.15 751,400.00 2,216,000.00 1,297,668.82 64 Utilities 642,738.01 1,851,416.65 4,013,800.00 42,124.05 91,028.57 250,300.00 72,546.24 222,411.11 2,129,900.00 6,394,000.00 4,229,143.67 52 Temporary Labor 970.20 10,049.82 32,900.00 415.80 4,307.06 14,100.00 - - - 47,000.00 32,643.12 67 Other 12,398.86 757,538.22 1,300,900.00 3,478.41 201,071.44 341,100.00 - 468,536.07 590,000.00 2,232,000.00 804,854.27 54 Standby 6,794.46 36,369.73 33,000.00 290.85 1,269.39 2,000.00 - - 55,000.00 90,000.00 52,360.88 61 Water Supply - 271.39 768,000.00 - - - - - - 768,000.00 767,728.61 71 - Debt Service - 5,314.36 3,103,000.00 - - 273,000.00 - - - 3,376,000.00 3,370,685.64 81 - Capital Improvement 248,719.52 415,412.62 3,425,000.00 - - 300,000.00 - - - 3,725,000.00 3,309,587.38 82 - Capital Outlay 54,862.95 224,899.98 695,000.00 100,533.31 185,407.76 260,000.00 52,690.17 79,934.20 210,000.00 1,165,000.00 674,758.06 83 - Accounting Income Add back (248,719.52) (415,412.62) - - - - - - - - 415,412.62 88 - Transfer to Reserves - - 95,000.00 - - 365,000.00 - - 1,020,000.00 1,480,000.00 1,480,000.00 99 - Transfer from Reserves - - - - - - - - - - - Expense Total:1,866,131.34 10,040,725.25 29,053,000.00 453,944.88 2,332,649.91 6,048,000.00 1,036,146.10 6,220,689.43 12,323,000.00 47,424,000.00 28,829,935.41 Total Surplus (Deficit):(102,222.54)$ 5,908,423.38$ -$ 86,398.63$ 1,026,753.48$ -$ (396,709.50)$ (977,921.91)$ -$ -$ (5,957,254.95)$ Unaudited Revenue and Expense Budget-to-Actual by Category Month Ended December 31, 2023 WATER WASTEWATER DISTRICT WIDERECLAMATION Page 2 of 6 AMENDED AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 978,067.69$ 10,130,889.60$ 18,345,000.00$ -$ -$ -$ -$ -$ 692,000.00$ 19,037,000.00$ 8,906,110.40$ 42 Meter Charges 646,258.49 4,997,500.82 9,996,000.00 - - - - - - 9,996,000.00 4,998,499.18 43 Penalties 37,562.83 273,406.49 450,000.00 4,262.70 30,651.45 60,000.00 - - - 510,000.00 205,942.06 44 Wastewater System Charges - - - 367,368.92 2,936,533.67 5,968,000.00 - - - 5,968,000.00 3,031,466.33 45 Wastewater Treatment Charges - - - - - - 639,436.60 5,211,419.66 10,279,000.00 10,279,000.00 5,067,580.34 46 Other Operating Revenue 124,820.01 505,958.39 42,000.00 118,014.00 287,292.45 - - - 1,252,000.00 1,294,000.00 500,749.16 47 Non Operating Revenue (22,800.22) 41,393.33 220,000.00 50,697.89 104,925.82 20,000.00 - 31,347.86 100,000.00 340,000.00 162,332.99 Revenue Total:1,763,908.80 15,949,148.63 29,053,000.00 540,343.51 3,359,403.39 6,048,000.00 639,436.60 5,242,767.52 12,323,000.00 47,424,000.00 22,872,680.46 Program 1000 - Governing Board 14,179.84 111,802.12 254,800.00 4,846.26 45,613.10 109,200.00 - - - 364,000.00 206,584.78 Program 2000 - General Administration 55,513.67 437,247.70 959,000.00 22,889.09 180,525.64 411,000.00 - - - 1,370,000.00 752,226.66 Program 2100 - Human Resources 44,384.39 1,043,065.70 1,702,400.00 16,874.85 310,376.21 564,600.00 - 468,536.07 590,000.00 2,857,000.00 1,035,022.02 Program 2200 - Public Affairs 70,565.92 335,787.45 904,400.00 30,183.52 158,942.89 387,600.00 - - - 1,292,000.00 797,269.66 Program 2300 - Conservation 66,778.49 (117,513.83) 689,000.00 - - - - - - 689,000.00 806,513.83 Program 3000 - Finance & Accounting 68,418.63 354,963.39 940,800.00 29,716.17 152,704.77 403,200.00 - - - 1,344,000.00 836,331.84 Program 3200 - Information Technology 61,771.53 471,969.30 1,205,400.00 26,473.48 202,272.07 516,600.00 - - - 1,722,000.00 1,047,758.63 Program 3300 - Customer Service 128,851.57 759,381.26 1,304,100.00 54,949.90 323,311.17 558,900.00 - - - 1,863,000.00 780,307.57 Program 3400 - Meter Services 17,655.38 127,803.31 292,000.00 - - - - - - 292,000.00 164,196.69 Program 4000 - Engineering 52,907.73 336,931.78 999,600.00 36,826.15 117,394.40 428,400.00 - - - 1,428,000.00 973,673.82 Program 5000 - Water Production 660,851.04 2,354,028.51 5,992,000.00 - - - - - - 5,992,000.00 3,637,971.49 Program 5100 - Water Treatment 120,615.13 680,527.66 1,082,000.00 - - - - - - 1,082,000.00 401,472.34 Program 5200 - Water Quality 30,837.26 200,735.75 546,000.00 - - - - - - 546,000.00 345,264.25 Program 6000 - Maintenance Administration 28,595.63 230,193.13 418,500.00 2,995.56 24,354.48 46,500.00 - - - 465,000.00 210,452.39 Program 6100 - Water Maintenance 243,418.86 1,617,055.83 2,826,000.00 - - - - - - 2,826,000.00 1,208,944.17 Program 6200 - Wastewater Collection - - - 84,820.71 352,695.93 867,000.00 - - - 867,000.00 514,304.07 Program 6300 - Water Reclamation - - - - - - 897,797.01 5,204,100.27 9,896,000.00 9,896,000.00 4,691,899.73 Program 7000 - Facilities Maintenance 84,428.71 551,402.54 1,011,000.00 28,680.44 218,410.71 405,000.00 85,658.92 468,118.89 607,000.00 2,023,000.00 785,067.86 Program 7100 - Fleet Maintenance 61,494.61 315,129.31 608,000.00 14,155.44 60,640.78 152,000.00 - - - 760,000.00 384,229.91 Program 8000 - Capital 54,862.95 230,214.34 7,318,000.00 100,533.31 185,407.76 1,198,000.00 52,690.17 79,934.20 1,230,000.00 9,746,000.00 9,250,443.70 Total Surplus (Deficit):(102,222.54)$ 5,908,423.38$ -$ 86,398.63$ 1,026,753.48$ -$ (396,709.50)$ (977,921.91)$ -$ -$ (5,957,254.95)$ . WATER WASTEWATER DISTRICT WIDE Revenue and Expense Budget-to-Actual by Program Month Ended December 31, 2023 Unaudited RECLAMATION Page 3 of 6 AMENDED AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 978,067.69$ 10,130,889.60$ 18,345,000.00$ -$ -$ -$ -$ -$ 692,000.00$ 19,037,000.00$ 8,906,110.40$ 42 Meter Charges 646,258.49 4,997,500.82 9,996,000.00 - - - - - - 9,996,000.00 4,998,499.18 43 Penalties 37,562.83 273,406.49 450,000.00 4,262.70 30,651.45 60,000.00 - - - 510,000.00 205,942.06 44 Wastewater System Charges - - - 367,368.92 2,936,533.67 5,968,000.00 - - - 5,968,000.00 3,031,466.33 45 Wastewater Treatment Charges - - - - - - 639,436.60 5,211,419.66 10,279,000.00 10,279,000.00 5,067,580.34 46 Other Operating Revenue 124,820.01 505,958.39 42,000.00 118,014.00 287,292.45 - - - 1,252,000.00 1,294,000.00 500,749.16 47 Non Operating Revenue (22,800.22) 41,393.33 220,000.00 50,697.89 104,925.82 20,000.00 - 31,347.86 100,000.00 340,000.00 162,332.99 48 Gain or Loss on Disposition - - - - - - - - - - - 56 Benefits - - - - - - - - - - - 68 Depreciation - - - - - - - - - - - Revenue Total:1,763,908.80 15,949,148.63 29,053,000.00 540,343.51 3,359,403.39 6,048,000.00 639,436.60 5,242,767.52 12,323,000.00 47,424,000.00 22,872,680.46 - - - - - - - - Program: 1000 - Governing Board - - - - - 51 Labor 6,780.40$ 41,186.31$ 98,000.00$ 2,905.85$ 17,651.19$ 42,000.00$ -$ -$ -$ 140,000.00$ 81,162.50$ 56 Benefits 4,146.11 24,915.27 63,000.00 1,776.91 10,677.85 27,000.00 - - - 90,000.00 54,406.88 62 Materials and Supplies - 56.13 2,100.00 - 24.05 900.00 - - - 3,000.00 2,919.82 63 Contract Services - 33,357.45 77,700.00 - 14,296.05 33,300.00 - - - 111,000.00 63,346.50 65 Professional Development 3,253.33 12,286.96 14,000.00 163.50 2,963.96 6,000.00 - - - 20,000.00 4,749.08 Program: 1000 - Governing Board Total:14,179.84 111,802.12 254,800.00 4,846.26 45,613.10 109,200.00 - - - 364,000.00 206,584.78 - - - - - - Program: 2000 - General Administration - - - - - 51 Labor 30,445.66 200,898.27 417,900.00 13,048.14 86,099.33 179,100.00 - - - 597,000.00 310,002.40 52 Temporary Labor - 3,661.62 21,000.00 - 1,569.26 9,000.00 - - - 30,000.00 24,769.12 53 Overtime 100.25 1,403.54 2,800.00 42.97 601.56 1,200.00 - - - 4,000.00 1,994.90 56 Benefits 8,188.86 107,033.47 184,800.00 2,607.02 41,322.65 79,200.00 - - - 264,000.00 115,643.88 62 Materials and Supplies - 1,184.39 4,900.00 - 507.62 2,100.00 - - - 7,000.00 5,307.99 63 Contract Services 14,680.75 65,841.24 217,000.00 6,291.75 28,217.65 93,000.00 - - - 310,000.00 215,941.11 64 Utilities - 558.51 2,800.00 - 239.35 1,200.00 - - - 4,000.00 3,202.14 65 Professional Development 2,098.15 56,666.66 107,800.00 899.21 21,968.22 46,200.00 - - - 154,000.00 75,365.12 Program: 2000 - General Administration Total:55,513.67 437,247.70 959,000.00 22,889.09 180,525.64 411,000.00 - - - 1,370,000.00 752,226.66 - - - - - - Program: 2100 - Human Resources - - - - - - 51 Labor 17,801.02 105,714.07 230,300.00 7,629.00 45,305.98 98,700.00 - - - 329,000.00 177,979.95 52 Temporary Labor - - - - - - - - - - - 53 Overtime - 950.35 2,100.00 - 407.26 900.00 - - - 3,000.00 1,642.39 56 Benefits 5,209.78 93,419.92 139,300.00 2,232.66 40,036.68 59,700.00 - - - 199,000.00 65,543.40 62 Materials and Supplies 57.45 843.74 4,900.00 24.62 361.59 2,100.00 - - - 7,000.00 5,794.67 63 Contract Services 7,355.80 45,475.13 109,200.00 3,152.48 19,489.26 46,800.00 - - - 156,000.00 91,035.61 64 Utilities 40.08 248.70 700.00 17.17 106.58 300.00 - - - 1,000.00 644.72 65 Professional Development 5,803.99 14,889.81 39,200.00 340.51 3,597.42 16,800.00 - - - 56,000.00 37,512.77 67 Other 8,116.27 781,523.98 1,176,700.00 3,478.41 201,071.44 339,300.00 - 468,536.07 590,000.00 2,106,000.00 654,868.51 Program: 2100 - Human Resources Total:44,384.39 1,043,065.70 1,702,400.00 16,874.85 310,376.21 564,600.00 - 468,536.07 590,000.00 2,857,000.00 1,035,022.02 - - - - - - Program: 2200 - Public Affairs - - - - - - 51 Labor 25,667.05 154,002.37 300,300.00 11,000.16 66,000.93 128,700.00 - - - 429,000.00 208,996.70 52 Temporary Labor - - - - - - - - - - - 53 Overtime 1,293.77 3,165.72 11,900.00 554.48 1,356.70 5,100.00 - - - 17,000.00 12,477.58 56 Benefits 6,516.77 55,623.45 88,900.00 2,792.82 23,837.95 38,100.00 - - - 127,000.00 47,538.60 62 Materials and Supplies 463.61 7,309.64 58,800.00 198.70 3,132.73 25,200.00 - - - 84,000.00 73,557.63 63 Contract Services 35,153.90 110,825.46 385,700.00 15,007.01 62,531.38 165,300.00 - - - 551,000.00 377,643.16 64 Utilities 212.20 1,651.43 33,600.00 90.94 707.73 14,400.00 - - - 48,000.00 45,640.84 65 Professional Development 1,258.62 3,209.38 25,200.00 539.41 1,375.47 10,800.00 - - - 36,000.00 31,415.15 Program: 2200 - Public Affairs Total:70,565.92 335,787.45 904,400.00 30,183.52 158,942.89 387,600.00 - - - 1,292,000.00 797,269.66 - - - - - - Program: 2300 - Conservation - - - - - - 51 Labor 8,512.00 51,072.00 107,000.00 - - - - - - 107,000.00 55,928.00 52 Temporary Labor - - - - - - - - - - - 53 Overtime 159.60 1,436.40 7,000.00 - - - - - - 7,000.00 5,563.60 56 Benefits 2,900.24 15,478.38 42,000.00 - - - - - - 42,000.00 26,521.62 62 Materials and Supplies 55.24 3,445.59 26,000.00 - - - - - - 26,000.00 22,554.41 63 Contract Services 50,853.88 (169,151.40) 346,000.00 - - - - - - 346,000.00 515,151.40 64 Utilities 30.53 180.71 26,000.00 - - - - - - 26,000.00 25,819.29 65 Professional Development - 5,081.13 15,000.00 - - - - - - 15,000.00 9,918.87 67 Other 4,267.00 (25,056.64) 120,000.00 - - - - - - 120,000.00 145,056.64 Program: 2300 - Conservation Total:66,778.49 (117,513.83) 689,000.00 - - - - - - 689,000.00 806,513.83 Program: 3000 - Finance & Accounting - - - - - - 51 Labor 33,776.55 200,993.82 542,500.00 14,475.66 86,124.48 232,500.00 - - - 775,000.00 487,881.70 52 Temporary Labor - - - - - - - - - - - 53 Overtime - 1,495.92 9,100.00 - 641.11 3,900.00 - - - 13,000.00 10,862.97 56 Benefits 10,153.37 143,946.47 261,800.00 4,351.31 61,654.84 112,200.00 - - - 374,000.00 168,398.69 62 Materials and Supplies 7.24 1,238.79 4,900.00 3.10 530.93 2,100.00 - - - 7,000.00 5,230.28 63 Contract Services 20,453.10 (3,169.66) 98,700.00 9,159.65 (693.66) 42,300.00 - - - 141,000.00 144,863.32 64 Utilities 82.38 743.95 2,800.00 35.31 318.83 1,200.00 - - - 4,000.00 2,937.22 65 Professional Development 3,945.99 9,632.57 21,000.00 1,691.14 4,128.24 9,000.00 - - - 30,000.00 16,239.19 67 Other - 81.53 - - - - - - - - (81.53) Program: 3000 - Finance & Accounting Total:68,418.63 354,963.39 940,800.00 29,716.17 152,704.77 403,200.00 - - - 1,344,000.00 836,331.84 - - - - - - Month Ended December 31, 2023 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDERECLAMATION Page 4 of 6 AMENDED AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended December 31, 2023 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDERECLAMATION Program: 3200 - Information Technology - - - - - - 51 Labor 21,412.17 129,374.65 303,100.00 9,176.63 55,446.16 129,900.00 - - - 433,000.00 248,179.19 52 Temporary Labor 970.20 6,388.20 11,900.00 415.80 2,737.80 5,100.00 - - - 17,000.00 7,874.00 53 Overtime - - - - - - - - - - - 56 Benefits 7,016.44 123,933.46 181,300.00 3,007.01 53,113.97 77,700.00 - - - 259,000.00 81,952.57 62 Materials and Supplies 7,056.85 45,243.09 49,000.00 3,024.36 19,389.89 21,000.00 - - - 70,000.00 5,367.02 63 Contract Services 24,280.36 157,851.10 648,200.00 10,405.90 67,650.49 277,800.00 - - - 926,000.00 700,498.41 64 Utilities 968.83 7,411.78 8,400.00 415.21 3,176.47 3,600.00 - - - 12,000.00 1,411.75 65 Professional Development 66.68 1,767.02 3,500.00 28.57 757.29 1,500.00 - - - 5,000.00 2,475.69 Program: 3200 - Information Technology Total:61,771.53 471,969.30 1,205,400.00 26,473.48 202,272.07 516,600.00 - - - 1,722,000.00 1,047,758.63 - - - - - - Program: 3300 - Customer Service - - - - - - 51 Labor 32,438.28 194,201.47 433,300.00 13,902.06 83,228.97 185,700.00 - - - 619,000.00 341,569.56 52 Temporary Labor - - - - - - - - - - - 53 Overtime 292.94 3,969.87 4,900.00 125.54 1,701.39 2,100.00 - - - 7,000.00 1,328.74 56 Benefits 11,452.40 120,762.93 217,000.00 4,907.99 51,754.58 93,000.00 - - - 310,000.00 137,482.49 62 Materials and Supplies 112.40 962.07 4,900.00 48.17 412.31 2,100.00 - - - 7,000.00 5,625.62 63 Contract Services 64,933.95 374,804.39 515,200.00 27,828.85 160,630.44 220,800.00 - - - 736,000.00 200,565.17 64 Utilities 19,592.91 62,940.44 112,700.00 8,131.67 25,261.75 48,300.00 - - - 161,000.00 72,797.81 65 Professional Development 13.10 750.74 11,900.00 5.62 321.73 5,100.00 - - - 17,000.00 15,927.53 67 Other 15.59 989.35 4,200.00 - - 1,800.00 - - - 6,000.00 5,010.65 Program: 3300 - Customer Service Total:128,851.57 759,381.26 1,304,100.00 54,949.90 323,311.17 558,900.00 - - - 1,863,000.00 780,307.57 - - - - - - Program: 3400 - Meter Services - - - - - - 51 Labor 12,790.80 75,494.82 173,000.00 - - - - - - 173,000.00 97,505.18 53 Overtime - 308.63 6,000.00 - - - - - - 6,000.00 5,691.37 56 Benefits 4,671.45 50,793.51 101,000.00 - - - - - - 101,000.00 50,206.49 62 Materials and Supplies - - 4,000.00 - - - - - - 4,000.00 4,000.00 63 Contract Services 72.93 724.41 7,000.00 - - - - - - 7,000.00 6,275.59 64 Utilities 120.20 481.94 1,000.00 - - - - - - 1,000.00 518.06 65 Professional Development - - - - - - - - - - - Program: 3400 - Meter Services Total:17,655.38 127,803.31 292,000.00 - - - - - - 292,000.00 164,196.69 - - - - - - Program: 4000 - Engineering - - - - - - 51 Labor 31,007.76 185,871.56 438,900.00 13,289.04 79,659.24 188,100.00 - - - 627,000.00 361,469.20 52 Temporary Labor - - - - - - - - - - - 53 Overtime - - 2,100.00 - - 900.00 - - - 3,000.00 3,000.00 56 Benefits 6,488.02 37,642.42 107,100.00 2,780.40 16,131.94 45,900.00 - - - 153,000.00 99,225.64 62 Materials and Supplies 5,662.71 6,164.53 13,300.00 - 215.04 5,700.00 - - - 19,000.00 12,620.43 63 Contract Services 1,862.61 59,275.50 296,100.00 325.50 (653.50) 126,900.00 - - - 423,000.00 364,378.00 64 Utilities 7,753.63 47,539.53 131,600.00 20,153.21 21,632.87 56,400.00 - - - 188,000.00 118,827.60 65 Professional Development 133.00 438.24 10,500.00 278.00 408.81 4,500.00 - - - 15,000.00 14,152.95 Program: 4000 - Engineering Total:52,907.73 336,931.78 999,600.00 36,826.15 117,394.40 428,400.00 - - - 1,428,000.00 973,673.82 - - - - - - Program: 5000 - Water Production - - - - - - 51 Labor 59,462.21 356,690.45 790,000.00 - - - - - - 790,000.00 433,309.55 53 Overtime 3,357.32 25,963.06 46,000.00 - - - - - - 46,000.00 20,036.94 54 Standby 3,108.46 17,939.53 15,000.00 - - - - - - 15,000.00 (2,939.53) 56 Benefits 17,640.20 244,560.82 400,000.00 - - - - - - 400,000.00 155,439.18 61 Water Supply - 271.39 768,000.00 - - - - - - 768,000.00 767,728.61 62 Materials and Supplies 14,642.93 122,734.91 335,000.00 - - - - - - 335,000.00 212,265.09 63 Contract Services 15,494.37 159,380.32 528,000.00 - - - - - - 528,000.00 368,619.68 64 Utilities 546,976.11 1,421,248.42 3,099,000.00 - - - - - - 3,099,000.00 1,677,751.58 65 Professional Development 169.44 5,239.61 11,000.00 - - - - - - 11,000.00 5,760.39 Program: 5000 - Water Production Total:660,851.04 2,354,028.51 5,992,000.00 - - - - - - 5,992,000.00 3,637,971.49 - - - - - - Program: 5100 - Water Treatment - - - - - - 51 Labor 21,145.80 126,249.80 273,000.00 - - - - - - 273,000.00 146,750.20 53 Overtime 3,497.15 15,292.84 39,000.00 - - - - - - 39,000.00 23,707.16 56 Benefits 6,492.42 114,451.46 164,000.00 - - - - - - 164,000.00 49,548.54 62 Materials and Supplies 36,068.65 170,025.21 200,000.00 - - - - - - 200,000.00 29,974.79 63 Contract Services 34,440.58 168,235.02 224,000.00 - - - - - - 224,000.00 55,764.98 64 Utilities 18,970.53 86,273.33 182,000.00 - - - - - - 182,000.00 95,726.67 Program: 5100 - Water Treatment Total:120,615.13 680,527.66 1,082,000.00 - - - - - - 1,082,000.00 401,472.34 - - - - - - Program: 5200 - Water Quality - - - - - - 51 Labor 16,022.40 92,958.00 223,000.00 - - - - - - 223,000.00 130,042.00 53 Overtime - 820.26 12,000.00 - - - - - - 12,000.00 11,179.74 56 Benefits 2,903.41 52,127.99 107,000.00 - - - - - - 107,000.00 54,872.01 62 Materials and Supplies 238.60 4,522.03 25,000.00 - - - - - - 25,000.00 20,477.97 63 Contract Services 11,293.06 49,742.68 170,000.00 - - - - - - 170,000.00 120,257.32 64 Utilities - - 2,000.00 - - - - - - 2,000.00 2,000.00 65 Professional Development 379.79 564.79 7,000.00 - - - - - - 7,000.00 6,435.21 Program: 5200 - Water Quality Total:30,837.26 200,735.75 546,000.00 - - - - - - 546,000.00 345,264.25 - - - - - - Page 5 of 6 AMENDED AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended December 31, 2023 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDERECLAMATION Program: 6000 - Maintenance Administration - - - - - - 51 Labor 14,858.68 88,568.07 195,300.00 1,673.95 9,794.27 21,700.00 - - - 217,000.00 118,637.66 52 Temporary Labor - - - - - - - - - - - 53 Overtime - - 1,800.00 - - 200.00 - - - 2,000.00 2,000.00 54 Standby 3,686.00 18,430.20 18,000.00 290.85 1,269.39 2,000.00 - - - 20,000.00 300.41 56 Benefits 6,267.41 91,244.41 142,200.00 686.49 9,974.71 15,800.00 - - - 158,000.00 56,780.88 62 Materials and Supplies - 73.86 2,700.00 - 8.21 300.00 - - - 3,000.00 2,917.93 63 Contract Services 29.01 705.19 900.00 3.21 78.28 100.00 - - - 1,000.00 216.53 64 Utilities 2,204.15 13,650.35 36,900.00 244.91 1,516.61 4,100.00 - - - 41,000.00 25,833.04 65 Professional Development 1,550.38 17,521.05 20,700.00 96.15 1,713.01 2,300.00 - - - 23,000.00 3,765.94 Program: 6000 - Maintenance Administration Total:28,595.63 230,193.13 418,500.00 2,995.56 24,354.48 46,500.00 - - - 465,000.00 210,452.39 - - - - - - Program: 6100 - Water Maintenance - - - - - - 51 Labor 84,833.94 520,470.24 914,000.00 - - - - - - 914,000.00 393,529.76 53 Overtime 22,513.78 181,969.60 219,000.00 - - - - - - 219,000.00 37,030.40 56 Benefits 34,916.66 324,164.57 620,000.00 - - - - - - 620,000.00 295,835.43 62 Materials and Supplies 69,753.87 322,627.76 471,000.00 - - - - - - 471,000.00 148,372.24 63 Contract Services 31,400.61 267,823.66 602,000.00 - - - - - - 602,000.00 334,176.34 64 Utilities - - - - - - - - - - - Program: 6100 - Water Maintenance Total:243,418.86 1,617,055.83 2,826,000.00 - - - - - - 2,826,000.00 1,208,944.17 - - - - - - Program: 6200 - Wastewater Collection - - - - - - 51 Labor - - - 27,595.94 165,510.74 371,000.00 - - - 371,000.00 205,489.26 53 Overtime - - - - 2,912.80 9,000.00 - - - 9,000.00 6,087.20 56 Benefits - - - 9,819.37 78,156.44 174,000.00 - - - 174,000.00 95,843.56 62 Materials and Supplies - - - 12,322.32 17,512.93 36,000.00 - - - 36,000.00 18,487.07 Wastewater Treatment - - - - - 7,610,000.00 - - - 7,610,000.00 7,610,000.00 63 Contract Services - - - 35,083.08 88,603.02 (7,333,000.00) - - - (7,333,000.00) (7,421,603.02) Program: 6200 - Wastewater Collection Total:- - - 84,820.71 352,695.93 867,000.00 - - - 867,000.00 514,304.07 - - - - - - Program: 6300 - Water Reclamation - - - - - - 51 Labor - - - - - - 56,093.38 336,383.25 939,000.00 939,000.00 602,616.75 53 Overtime - - - - - - - 2,638.69 25,000.00 25,000.00 22,361.31 54 Standby - - - - - - - - 55,000.00 55,000.00 55,000.00 56 Benefits - - - - - - 19,577.64 223,735.67 456,000.00 456,000.00 232,264.33 62 Materials and Supplies - - - - - - 31,577.02 38,382.56 734,000.00 734,000.00 695,617.44 63 Contract Services - - - - - - 732,554.51 4,430,456.67 5,646,000.00 5,646,000.00 1,215,543.33 64 Utilities - - - - - - 57,473.62 165,860.23 2,021,000.00 2,021,000.00 1,855,139.77 65 Professional Development - - - - - - 520.84 6,643.20 20,000.00 20,000.00 13,356.80 Program: 6300 - Water Reclamation Total:- - - - - - 897,797.01 5,204,100.27 9,896,000.00 9,896,000.00 4,691,899.73 - - - - - - Program: 7000 - Facilities Maintenance - - - - - - 51 Labor 8,323.71 49,317.32 109,500.00 3,329.46 19,726.76 43,800.00 4,994.17 29,589.97 65,700.00 219,000.00 120,365.95 53 Overtime 120.51 2,853.12 7,000.00 48.20 1,141.24 2,800.00 72.31 1,711.82 4,200.00 14,000.00 8,293.82 56 Benefits 3,036.50 35,143.13 61,500.00 1,214.50 14,056.48 24,600.00 1,821.56 21,083.49 36,900.00 123,000.00 52,716.90 62 Materials and Supplies 1,561.16 15,432.21 29,000.00 624.45 4,904.09 11,600.00 2,592.42 17,615.59 17,400.00 58,000.00 20,048.11 63 Contract Services 47,859.97 341,310.64 621,500.00 15,993.10 161,674.10 248,600.00 61,105.84 341,567.14 372,900.00 1,243,000.00 398,448.12 64 Utilities 23,526.86 107,346.12 181,500.00 7,470.73 16,908.04 72,600.00 15,072.62 56,550.88 108,900.00 363,000.00 182,194.96 65 Professional Development - - 1,000.00 - - 1,000.00 - - 1,000.00 3,000.00 3,000.00 Program: 7000 - Facilities Maintenance Total:84,428.71 551,402.54 1,011,000.00 28,680.44 218,410.71 405,000.00 85,658.92 468,118.89 607,000.00 2,023,000.00 785,067.86 - - - Program: 7100 - Fleet Maintenance - - - - - - 51 Labor 6,236.64 37,419.84 80,000.00 692.96 4,157.76 20,000.00 - - - 100,000.00 58,422.40 53 Overtime 116.94 2,514.17 2,400.00 12.99 279.34 600.00 - - - 3,000.00 206.49 56 Benefits 2,417.10 12,791.62 32,800.00 268.54 1,421.14 8,200.00 - - - 41,000.00 26,787.24 62 Materials and Supplies 16,201.89 93,750.59 96,000.00 4,050.45 19,719.10 24,000.00 - - - 120,000.00 6,530.31 63 Contract Services 14,262.44 67,511.65 200,800.00 3,565.60 13,903.10 50,200.00 - - - 251,000.00 169,585.25 64 Utilities 22,259.60 101,141.44 192,800.00 5,564.90 21,160.34 48,200.00 - - - 241,000.00 118,698.22 65 Professional Development - - 3,200.00 - - 800.00 - - - 4,000.00 4,000.00 Program: 7100 - Fleet Maintenance Total:61,494.61 315,129.31 608,000.00 14,155.44 60,640.78 152,000.00 - - - 760,000.00 384,229.91 - - - Program: 8000 - Capital - - - - - 71 - Debt Service - 5,314.36 3,103,000.00 - - 273,000.00 - - - 3,376,000.00 3,370,685.64 81 - Capital Improvement 248,719.52 415,412.62 3,425,000.00 - - 300,000.00 - - - 3,725,000.00 3,309,587.38 82 - Capital Outlay 54,862.95 224,899.98 695,000.00 100,533.31 185,407.76 260,000.00 52,690.17 79,934.20 210,000.00 1,165,000.00 674,758.06 83 - Accounting Income Add back (248,719.52) (415,412.62) - - - - - - - - 415,412.62 88 - Transfer to Reserves - - 95,000.00 - - 365,000.00 - - 1,020,000.00 1,480,000.00 1,480,000.00 99 - Transfer from Reserves - - - - - - - - - - - Program: 8000 - Capital Total:54,862.95 230,214.34 7,318,000.00 100,533.31 185,407.76 1,198,000.00 52,690.17 79,934.20 1,230,000.00 9,746,000.00 9,250,443.70 Total Surplus (Deficit):(102,222.54)$ 5,908,423.38$ -$ 86,398.63$ 1,026,753.48$ -$ (396,709.50)$ (977,921.91)$ -$ -$ (5,957,254.95)$ Page 6 of 6 Board of Directors CAPITAL IMPROVEMENT PROGRAM (CIP) UPDATE February 28, 2024 2 ADOPTED CAPITAL IMPROVEMENT PROGRAM (CIP) •Five-year planning schedule with the first year adopted as part of the Capital Budget for the fiscal year •Project included in the District’s CIP is an individually significant construction project with a cost of more than $25,000 •CIP creates: •A new capital asset •Improves an existing asset (increases its service capacity, etc.) •Or significantly extends an asset’s expected useful life •CIP is informed by the District’s Water Mater Plan and Wastewater Collection System Master Plan 3 CIP OVERVIEW Project Name Start Date Estimated Completion Total Project Cost Status 1 Meter Replacement Program July 2023 June 2024 $150,000 •50% of 128 commercial fire services have been converted to AMI •Additional data collector locations have been identified 2 Canal Zone Storage Reservoir July 2022 June 2027 $4.7 million •Draft Preliminary Design Report expected in March •Early cost estimates indicate total cost for one 1.5-million-gallon reservoir will be about $8 million ($12 million for two) 3 Plant 134 Membrane Replacement Oct 2023 Feb 2024 $250,000 •Membrane replacement has been completed •Likely no membrane replacement will be needed for two years 4 Tank / Reservoir Rehabilitation Oct 2023 June 2024 $500,000 •Since steel shell thickness doesn’t meet current standards, options for rehab/replacement were evaluated •Tank rehab effort has been paused to repair slope, drainage structure, and entry road 5 Plant 101 Hydro Tank Rehabilitation July 2021 June 2024 $1.9 million •Stationary generator project required revisions to design •Final bid package to be completed in February •Dec 2024 completion, depending on equipment lead times 6 Water Main Replacement: Elmwood Road Sept 2023 June 2024 $200,000 •Due to extensive coordination with County, the Elmwood main will be replaced next fiscal year •Water mains in Darren Place and Tiffani Place will be replaced instead 7 Water Main Replacement: Valaria Court Sept 2023 June 2024 $150,000 •This main replacement has been completed 8 Gate Valve Replacement July 2023 June 2025 $600,000 •20 of the planned 40 valves have been replaced to date •Remaining 20 valves expected to be complete by June •40 more valves to be replaced next fiscal year 4 CIP OVERVIEW (CONTINUED) Project Name Start Date Estimated Completion Total Project Cost Status 9 Facility Relocations July 2023 June 2024 $100,000 •Little 3rd St improvement project –water main relocation under design •Manhole lowering for Pedley Rd improvements •Water infrastructure relocations for Palm/3rd/5th improvements 10 Facility Rehabilitations July 2023 June 2024 $275,000 •Planned rehab work has been paused to provide funding for a small warehouse at Plant 39 at an estimated $325,000 11 Sterling Natural Resource Center Jan 2014 Dec 2023 $238 million •SNRC construction is complete •Transition of sewer began Jan 12th •Sewer flow transition expected to be complete mid-March 12 Water Main Seismic Retrofit June 2022 Jan 2026 $17 million •Grant-funded replacement of 6.5 miles of water main •Cal OES and FEMA working through review of design package and authorization to proceed to construction phase •Project expected to go out to bid in July 2024 13 Plant 120 Rehabilitation Aug 2022 March 2024 $280,000 •New well pump has been installed •Forebay tank has been replaced •Booster pumps and control system have been rehabbed •DDW working on approval to operate 5 CANAL ZONE STORAGE RESERVOIR •Project Description •Design and construct additional water storage in the District’s Canal Pressure Zone •Start Date •July 2022 •Estimated Completion •June 2027 •Total Project Cost •$4,700,000 6 •Staff has engaged a consultant to develop a Preliminary Design Report •Draft expected in February •Preliminary feedback indicates total cost for one 1.5-million-gallon reservoir will be approximately $8 million ($12 million for two reservoirs) CANAL ZONE STORAGE RESERVOIR: STATUS 7 TANK / RESERVOIR REHABILITATION •Project Description •District’s rehabilitation of Plant 56’s tank; a 500,000-gallon, welded steel storage tank serving the District’s Foothill zone •Start Date •October 2023 •Estimated Completion •June 2024 •Total Project Cost •$500,000 (FY 2023-24) 8 •The thickness of the steel shell doesn’t meet current design standards for a 500,000-gallon tank •A tech memo was completed to evaluate options for moving forward with tank rehabilitation •Entry road drainage structure washed out and damaged the road and slope •Tank rehab effort has been paused to repair slope, drainage structure, and entry road TANK / RESERVOIR REHABILITATION: STATUS 9 PHOTOS OF PLANT 56 SLOPE REPAIR 10 WATER MAIN REPLACEMENT: ELMWOOD ROAD •Project Description •Replacement of 1,127 feet of water main in Elmwood Road, from Lynwood Drive to Dogwood Street •Start Date •September 2023 •Estimated Completion •June 2024 •Total Project Cost •$200,000 11 WATER MAIN REPLACEMENT IN ELMWOOD ROAD: STATUS •Due to extensive coordination needed with County of San Bernardino, this water main replacement will be done next fiscal year •Water mains in Darren Place and Tiffani Place, approximately 500 ft, will be replaced instead 12 GATE VALVE REPLACEMENT PROGRAM •Project Description •Replacement of 80 inoperable or broken valves in the District’s system, 40 each year •Start Date •July 2023 •Estimated Completion •June 2025 •Total Project Cost •$300,000 per year for two years •20 of the planned 40 valves have been replaced to date •The remaining 20 valves are expected to be replaced by the end of June 13 GATE VALVE REPLACEMENT PROGRAM: STATUS 14 WATER MAIN SEISMIC RETROFIT PROJECT •Project Description •Grant-funded replacement of 6.5 miles of water main in the area bordered by Baseline Street, Dwight Way, Pacific Street, and Sterling Avenue •Start Date •June 2022 •Estimated Completion •January 2026 •Total Project Cost •$17,000,000 15 •Final Design package submitted to Cal OES and Federal Emergency Management Agency (FEMA) in November 2023 •Cal OES and FEMA working through review of design package and authorization to proceed to construction phase •Project anticipated to go out to bid in July 2024 WATER MAIN SEISMIC RETROFIT PROJECT: STATUS 16 PLANT 120 REHABILITATION •Project Description •Rehabilitation of groundwater production facility (well pump, forebay tank, booster pumps) that had been out of service for over ten years •Start Date •August 2022 •Estimated Completion •March 2024 •Total Project Cost •$280,000 •New well pump has been installed •The forebay tank has been replaced •Booster pumps and control system have been rehabilitated •Division of Drinking Water (DDW) is working on approval to operate 17 PLANT 120 REHABILITATION: STATUS DISCUSSION Agenda Item #4a February 28, 20241 Meeting Date: February 28, 2024 Agenda Item #4a Discussion Item 1 5 0 0 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Approval of Fiscal Year 2023-24 Mid-Year Budget Revisions RECOMMENDATION That the Board of Directors approve amendments to the FY 2023-24 Operating and Capital Budgets. BACKGROUND / ANALYSIS Each year staff provides a mid-year budget update to the Board, usually including recommendations for revisions to the adopted annual budget so that revenues and expenses remain closely aligned through the end of the fiscal year. The mid-year budget accounts for actual expenses July 1, 2023 through December 31, 2023. The mid-year budget update identifies changes in assumptions made to the fiscal year budget. Updating the budget allows the Board and staff to be closely aligned with budget modifications made before the end of the fiscal year. The operating and capital budgets are described for the three enterprise funds in this staff report. Detailed budget variations at the Program level are included in the PowerPoint presentation and describe an update on Program goals. The first six months of the year had budget variations in both revenue and expenses. Water revenues were lower than anticipated due to lower water usage. Water Reclamation revenues were lower than budgeted due to a three-month delay in commissioning the Sterling Natural Resource Center (SNRC). The delay in commissioning resulted in lower than expected non-rate revenue. The delay also increased budgeted expenses for Water Reclamation, such as the requirement to continue payments to the City of San Bernardino for treating wastewater for three additional months. Inflation continued to be higher than normal in the fiscal year. Contract services in all three funds were affected by higher cost than budgeted. The mid-year budget proposes a net decrease to projected revenue of $1,362,000. The operating expenses are proposed to increase by $938,000. The negative $2,300,000 impact of these previous items will partially be offset by proposed reductions to capital expenditures of $790,000, but the balance of the deficit will be made up by reserves. Where the adopted budget proposed contributions to reserves of $1,480,000 in fiscal Agenda Item #4a February 28, 20242 Meeting Date: February 28, 2024 Agenda Item #4a Discussion Item 1 5 0 0 year 2023-24, this amount is essentially eliminated and replaced by a proposed draw from reserves of $30,000. The above impacts are an agency-wide summary but are discussed in more detail and how they affect each of the District’s three enterprise funds below. Reclamation Fund The District’s Reclamation fund relies on both wastewater treatment rate revenue, received from customers, and non-rate revenue received from outside third parties. Wastewater treatment rate revenue was budgeted for $10,279,000 for fiscal year 2023- 24, and as these rates are substantially all based on fixed monthly charges, they are a very reliable revenue source. Actual treatment revenue is on track to exceed the budgeted amount by more than $100,000, so staff is proposing to increase this projected revenue to $10,379,000. Non-rate revenues in the Reclamation fund are only received after the full commissioning of the SNRC. These revenues consist of ‘sales’ of recycled water to Valley District for water recharged at the Weaver Basins and tipping fees collected from food waste haulers; combined they had projected revenue of $1,944,000 for 2023-24. The delays in commencing operations at the SNRC by three months and delays in commissioning the digesters by five months, make it necessary to decrease projected non-rate revenue by $1,112,000 to $832,000. In total, staff is proposing to reduce Reclamation fund revenue projections by $1,012,000. ADO PTED BUDGET PROPOS ED REVIS ION S REVISED BUDGET Revenues 12,3 23 ,0 00$(1 ,0 12 ,000)$11 ,311,00 0$ Operating Ex pense 11,093,000 68,000 11,161,000 Debt Serv ice --- Capital Ex penditures 210,000 (60,000)150,000 T ransfer T o (From ) Reserv es 1,020,000 (1,020,000)- Total Expendi tur es 12,3 23 ,0 00$(1 ,0 12 ,000)$11 ,311,00 0$ Net -$ -$ -$ The Reclamation fund had an original budget of $11,093,000 for operating expenses, but the significant reduction in revenue due to a delay in commissioning of the plant will require significant adjustments, including: •An additional $1,700,000 will be sent to the City of San Bernardino for treatment services. Agenda Item #4a February 28, 20243 Meeting Date: February 28, 2024 Agenda Item #4a Discussion Item 1 5 0 0 •Labor, power, materials, and other budgets will be reduced by $815,000 to reflect a shorter period of plant operation. •$607,000 in Facilities Maintenance expenses will need to be shifted from Reclamation and allocated between the Water and Wastewater funds. The Reclamation fund has no established operating reserve with which to absorb a net loss for the year, which would be the result if these costs remained an obligation of Reclamation. After making the adjustment above, staff projects that the operating expense budget will increase by $68,000. Reclamation fund capital expenditures were budgeted for $210,000 for fiscal year 2023- 24, but a grant received for a portion of the regional salt mitigation study has reduced the District’s required contribution and for a $60,000 reduction to the Capital budget. After recognizing that projected revenue needs to be reduced at mid-year and proposing shifts between operating and capital costs described above, a revised budget for the Reclamation fund can only be balanced by eliminating a planned contribution to operating reserves of $1,020,000. While using these planned reserves will solve the current year deficit, future years will need to show excess revenue of around $7,500,000 within 18 to 24 months to make debt service payments. Water Fund Potable water sales were $801,110 under projection through December, ending the first half of the fiscal year with sales of $10,130,890. Customers reduced their usage in October as well as in November this fiscal year, contributing the most to missed projections. Unusual low water usage in these months appears to be due to reduced outdoor irrigation. Sales did recover to beat projections in both December and January; therefore, staff is proposing a reduction in budgeted water sales of $650,000. Meter charge revenues exceeded budget by approximately $77,000 through December, due primarily to construction activity and charges related to construction meters. As a rate adjustment for meter charges became effective in January, staff proposes recognizing an increase in meter charge revenue of $100,000 at mid-year. Investment income is also exceeding projections for two reasons: interest rates are still close to 5%, and the amount of investible cash is at its highest level since the start of the SNRC project. As a result, staff is proposing an increase in investment income from $200,000 to $400,000, reducing the net negative adjustment needed for all Water fund revenue to $350,000. Agenda Item #4a February 28, 20244 Meeting Date: February 28, 2024 Agenda Item #4a Discussion Item 1 5 0 0 ADO PTED BUDGET PROPOS ED REVIS ION S REVISED BUDGET Revenues 29,0 53 ,0 00$(3 50 ,000)$ 28 ,703,00 0$ Operating Ex pense 21,735,000 760,000 22,495,000 Debt Serv ice 3,103,000 -3,103,000 Capital Ex penditures 4,120,000 (755,000)3,365,000 T ransfer T o (From ) Reserv es 95,000 (355,000)(260,000) Total Expendi tur es 29,0 53 ,0 00$(3 50 ,000)$ 28 ,703,00 0$ Net -$ -$ -$ The adopted budget for the Water fund included operating expenses totaling $21,735,000; this amount will need to be adjusted at mid-year for various reasons, including: •$404,000 in Facilities Maintenance expenses needed to be reallocated from the Reclamation fund to Water. •An unexpected changeout of GAC filter media at Plant 134 costing $125,000. •A sharp increase in credit card processing fees requiring a $120,000 adjustment. •Increased labor and materials’ costs in Water Maintenance for $365,000. Some of these increases can be offset by trimming various costs in program budgets as shown in the attached Mid-Year Budget Review worksheets, and staff is proposing a $760,000 increase to operating expenses in the Water fund. Capital expenditures from the Water fund were originally budgeted for $4,120,000. After reviewing the status of each project, staff proposes to add new or revised equipment and project costs of $1,075,000 and reduce the budgets for other projects that have stalled by $1,830,000 for a net reduction of $755,000 in Water fund capital expenditures. These project revisions are explained in greater detail below and shown on the attached ‘Capital Budget - Mid Year Adjustments’ worksheet. After recognizing that projected revenue needs to be reduced at mid-year and proposing shifts between operating and capital costs described above, a revised budget for the Water fund can only be balanced by eliminating a planned contribution to Water reserves of $95,000, and to project a net draw from water reserves of $260,000. Wastewater Fund The District budgeted wastewater collection rate revenue of $5,968,000 for fiscal year 2023-24, and like treatment revenue, these are substantially all based on fixed charges and very reliable – there is no proposed change to these revenue projections. The wastewater fund had other revenues for delinquent charges and investment income Agenda Item #4a February 28, 20245 Meeting Date: February 28, 2024 Agenda Item #4a Discussion Item 1 5 0 0 that were projected for $80,000 combined, and since there are no proposed adjustments for this budgeted revenue, total revenue of $6,048,000 adopted for this fund by the original budget is unchanged. ADO PTED BUDGET PROPOS ED REVIS ION S REVISED BUDGET Revenues 6,0 48 ,0 00$ -$ 6 ,048,00 0$ Operating Ex pense 4,850,000 110,000 4,960,000 Debt Serv ice 273,000 -273,000 Capital Ex penditures 560,000 25,000 585,000 T ransfer T o (From ) Reserv es 365,000 (135,000)230,000 Total Expendi tur es 6,0 48 ,0 00$ -$ 6 ,048,00 0$ Net -$ -$ -$ The Wastewater fund had an original budget of $4,850,000 for operating expenses, but the need to absorb almost $203,000 in Facilities Maintenance expenses shifted from the Reclamation fund, and higher than expected credit card processing fees related to customer payments, requires some mid-year adjustments to operating expenses. After identifying several adjustments to decrease program spending, particularly in contract services, staff proposes to increase operating expenditures in the Wastewater fund by $110,000. Capital expenditures by the Wastewater fund were originally budgeted for $560,000, as shown on the attached Capital Budget worksheet. Staff is proposing to increase that amount by $25,000 for security improvements at SNRC. Staff proposes to absorb the increased operating and capital costs described above by reducing a transfer to reserves of $365,000 planned in the original adopted budget, to $230,000. This will allow a balanced Wastewater fund budget to remain balanced after the proposed revisions. Agenda Item #4a February 28, 20246 Meeting Date: February 28, 2024 Agenda Item #4a Discussion Item 9 9 3 Below is a District-wide summary of the proposed changes to the fiscal year 2023-24 budget: Capital Expenditures Some of the changes were presented to the Board previously and authorization to take certain actions with respect to capital expenditures was already obtained, while others are being presented to the Board for the first time. Regardless of whether the Board has already approved of an item, any change to the originally adopted budget is presented as an adjustment to be included in the proposed amended budget. Capital Outlay Plant 134 Security Cameras (previous request) - This item was approved by the Board on September 27, 2023. The $80,000 cost can be funded by water operating revenue, reallocated from other projects. SNRC Improvements (new request) - The computer servers provided by the contractor at the SNRC were not accompanied by Uninterrupted Power Supply (UPS) battery backups, which are essential to ensure operators do not lose remote communications with the plant. Also, security improvements are needed at the SNRC customer service center. The cost of the proposed UPS and security improvements is DESCRIPTION YTD A CTIVITY FY 2023-24 A DOPTED BUDGET PROPOSED A DJUSTMENTS A MENDED BUDGET REVENUE Water S ales $ 10,130,891 $ 19,037,000 $ (1,010,000) $ 18,027,000 Meter Charges 4,997,502 9,996,000 100,000 10,096,000 Wastewater Collection 2,936,533 5,968,000 - 5,968,000 Wastewater Treatment 5,211,419 10,279,000 100,000 10,379,000 Other Revenue - S NRC - 1,252,000 (752,000) 500,000 Other Revenue 1,133,243 892,000 200,000 1,092,000 TOTA L REVENUE $ 24,409,588 $ 47,424,000 $ (1,362,000) $ 46,062,000 EXPENDITURES Labor & Benefits $ 6,297,693 $ 13,003,000 $ (41,200) $ 12,961,800 Water S upply 271 768,000 - 768,000 Power Costs 1,709,119 5,455,000 (500,000) 4,955,000 Wastewater Treatment S ervices 4,319,792 3,700,000 2,600,000 6,300,000 Materials & S upplies 917,703 2,216,000 175,000 2,391,000 Contract S ervices 3,050,346 8,949,000 (1,016,000) 7,933,000 Other Operating Exp 2,059,921 3,587,000 (279,800) 3,307,200 TOTA L OPERA TING EXP $ 18,354,845 $ 37,678,000 $ 938,000 $ 38,616,000 Debt S ervice 2,101,482 3,376,000 - 3,376,000 Capital Expenditures 905,655 4,890,000 (790,000) 4,100,000 Transfers To (From) Reserves - 1,480,000 (1,510,000) (30,000) TOTA L EXPENDITURES $ 21,361,982 $ 47,424,000 $ (1,362,000) $ 46,062,000 Agenda Item #4a February 28, 20247 Meeting Date: February 28, 2024 Agenda Item #4a Discussion Item 1 5 0 0 approximately $120,000 and can be funded by operating revenue, reallocated from other projects. Salt Mitigation Feasibility Study - This study to develop a solution for removing nitrates from recycled water prior to recharging it into the groundwater basin has been partially funded by a federal grant. As a result, the District’s share of costs for FY 2023- 24 has been reduced by $60,000 to $65,000. Capital Improvement Program (CIP) The following narratives explain the proposed adjustments shown in the blue shaded area of the accompanying ‘Capital Budget - Mid Year Adjustments’ worksheet. Plant 134 Membrane Replacements - Inflation has affected this project to replace the fifth and final train of treatment membranes at Plant 134, as the $250,000 budgeted amount is insufficient and needs to be increased to $305,000. Therefore, staff is requesting an additional $55,000 for this project, to be paid from proposed reductions to other CIP projects. Tank/Reservoir Rehabilitation - The 0.5 million gallon tank at District Plant 56 was designated this year’s priority for structural repairs and recoating in the 2023-24 budget, with a $500,000 allocation to complete the work. However, a recently completed inspection and report on the tank conducted by Harper Engineering lists three options for ensuring safe, long-term storage at the site, the least of which has an estimated cost of $1.2 million. Staff proposes reallocating $380,000 from this project to other projects in the current fiscal year. The Reservoir rehabilitation will be deferred to next year’s budget. Plant 101 Hydro System Rehabilitation - This project was funded for $1.5 million out of operating revenue in the current year budget. The project is being re-designed to reduce the scope of work and reduce the cost. Staff is proposing to re-allocate $1,000,000 from this project in the current year to help fund shortfalls in other capital project budgets and in the FY 2023-24 operating budget. The Plant 101 project will be re-budgeted for next fiscal year. Water Main Replacements (Elmwood Rd, Tiffani Pl, Darren Pl) - These two projects budgeted for a combined $350,000 were performed in-house but costs allocated to the jobs were overstated, allowing staff to propose repurposing $250,000 from the two projects combined, to other projects or to offset higher than expected costs in the operating budget. Facility Relocations - Routine relocations occur regularly and is funded for $100,000 in the event another agency doing a street improvement needs the District to move some facilities. This year the County of San Bernardino is conducting a widening project Agenda Item #4a February 28, 20248 Meeting Date: February 28, 2024 Agenda Item #4a Discussion Item 1 5 0 0 over a District watermain that requires relocation of the watermain. The estimated cost of the relocation is $500,000, which is the amount staff is requesting from reallocated operating revenue. Facility Rehabilitations - This project in the capital budget was funded for $275,000 and earmarked for upgrades at Plant 39 in the current year budget. However, erecting a planned warehouse at Plant 39 to replace the deteriorating structures at the Del Rosa yard will cost approximately $325,000, therefore staff is proposing a $50,000 increase in this project budget funded from reallocations of deferred capital projects. Plant 129 Well (new request) – The design for a new groundwater well is being accelerated to replace the loss of three groundwater wells due to SNRC. Staff proposes to include $70,000 in mid-year budget adjustments to fund the design of a well at this site. Plant 120 Rehabilitation (new request) - With the inevitable loss of the three wells mentioned above, staff has been evaluating the rehabilitation of this well that has been out of service for approximately 15 years. Staff is proposing a budget of $280,000 to complete telemetry work, a forebay replacement, and well shaft rebuild to rehabilitate the well. The net effect of the proposed adjustments described above will decrease the Capital Outlay budget by $60,000, and decrease Capital Improvement Program budgets by a net $730,000. A summary of Capital budget adjustments is on the attached worksheet. Summary Staff recommends that the Board approve budget adjustments reducing budgeted revenue by $1,362,000, reducing operating and capital expenditures and reserve contributions by $1,332,000, and approve a draw from existing reserves of up to $30,000. The $30,000 is a net of an estimated $260,000 draw from Water fund reserves, while the Wastewater fund should still be able to contribute $230,000 to its reserves. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment to Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management Agenda Item #4a February 28, 20249 Meeting Date: February 28, 2024 Agenda Item #4a Discussion Item 1 5 0 0 REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department and Executive Management team. FISCAL IMPACT Authorize staff to withdraw up to $260,000 in Water fund reserves to offset an estimated shortfall in Revenue through year end. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS 1. Presentation 2. Budget Reports 3. Capital Expenditures Brian Tompkins, Chief Financial Officer MID-YEAR REVIEW FY 2023-24 February 28, 2024 OPERATING BUDGET REVIEW 2 3 WATER FUND SUMMARY REVENUE BUDGET YTD ACTUAL PROJECTED VARIANCE Water Sales 18,345,000$ 10,130,891$ 17,695,000$ (650,000)$ Meter Charges 9,996,000 4,997,502 10,096,000 100,000 Other Charges / Revenue 712,000 808,700 912,000 200,000 TOTAL REVENUE 29,053,000$ 15,937,094$ 28,703,000$ (350,000)$ EXPENSES BUDGET YTD ACTUAL PROJECTED VARIANCE Labor & Benefits 8,981,800 4,547,079 9,238,300 256,500$ Other Operating Expenses 12,753,200 5,503,493 13,256,700 503,500 Capital Expenditures 4,120,000 640,313 3,365,000 (755,000) Debt Service 3,103,000 1,877,060 3,103,000 - Transfer from Reserves 95,000 - (260,000) (355,000) TOTAL EXPENSES 29,053,000$ 12,567,945$ 28,703,000$ (350,000)$ NET -$ 3,369,149$ -$ -$ 4 WASTEWATER FUND SUMMARY REVENUE BUDGET YTD ACTUAL PROJECTED VARIANCE Collection System Charges 5,968,000$ 2,936,533$ 5,968,000$ -$ Other Charges / Revenue 80,000 324,543 80,000 - TOTAL REVENUE 6,048,000$ 3,261,076$ 6,048,000$ -$ EXPENSES BUDGET YTD ACTUAL PROJECTED VARIANCE Labor & Benefits 2,439,400$ 1,135,468$ 2,464,500$ 25,100$ Other Operating Expenses 2,410,600 1,032,348 2,495,500 84,900 Capital Expenditures 560,000 185,408 585,000 25,000 Debt Service 273,000 224,422 273,000 - Transfer from Reserves 365,000 - 230,000 (135,000) TOTAL EXPENSES 6,048,000$ 2,577,646$ 6,048,000$ -$ NET -$ 683,431$ -$ -$ 5 RECLAMATION FUND SUMMARY REVENUE BUDGET YTD ACTUAL PROJECTED VARIANCE Sales 692,000$ -$ 332,000$ (360,000)$ Treatment Charges 10,279,000 5,211,419 10,379,000 100,000 Other Operating Revenue 1,252,000 - 500,000 (752,000) Non-Operating Revenue 100,000 - 100,000 - TOTAL REVENUE 12,323,000$ 5,211,419$ 11,311,000$ (1,012,000)$ EXPENSES BUDGET YTD ACTUAL PROJECTED VARIANCE Labor & Benefits 1,581,800$ 615,146$ 1,259,000$ (322,800)$ Other Operating Expenses 9,511,200 5,521,311 9,902,000 390,800 Capital Expenditures 210,000 79,934 150,000 (60,000) Debt Service - - - - Transfer from Reserves 1,020,000 - - (1,020,000) TOTAL EXPENSES 12,323,000$ 6,216,391$ 11,311,000$ (1,012,000)$ NET -$ (1,004,972)$ -$ -$ ALL FUND BUDGET ADJUSTMENT SUMMARY 6 Revenue Decrease $1,362,000 Expenses Decrease $1,362,000 PROGRAM SUMMARIES 7 8 GOVERNING BOARD GOAL % COMPLETED Provide Organizational Direction and Set Expectations through Policy Decisions Consistent with the Five-Year Work Plan 50 Address Policy Decisions Related to the SNRC 50 Engage Elected Officials and Community on the District’s Strategic Priorities and Legislative Priorities 50 BUDGET PROJECTED FY 2023-24 FY 2023-24 $364,000 $157,415 $359,000 -1.39% VARIANCEYTD 9 GENERAL ADMINISTRATION GOAL % COMPLETED Complete Consolidation / Dissolution of Mutual Water Companies 50 Implement Document Management Process 70 Document / Update Organizational Priorities and Philosophies 50 BUDGET PROJECTED FY 2023-24 FY 2023-24 $1,370,000 $617,777 $1,370,000 0.00% VARIANCEYTD 10 HUMAN RESOURCES GOAL % COMPLETED Implement Workforce Programs in Support of the SNRC 40 Promote a Positive Organizational Culture that Maintains a Supportive and Encouraging Work Environment 30 Promote Regional Involvement and Provide Workforce Experience and Educational Opportunities 60 BUDGET PROJECTED FY 2023-24 FY 2023-24 $2,857,000 $1,821,977 $2,671,200 -6.96% VARIANCEYTD 11 PUBLIC AFFAIRS GOAL % COMPLETED Implement Community Based Activities at the SNRC 50 Utilize Communication Methods that Enhance the District’s Priorities 55 Advance the District’s Emergency Preparedness Program 25 BUDGET PROJECTED FY 2023-24 FY 2023-24 $1,292,000 $503,804 $1,240,000 -4.19% VARIANCEYTD 12 CONSERVATION GOAL % COMPLETED Coordinate Necessary Program Working Groups to Complete Conservation Reports 75 Evaluate Rebate Program Success and Implement Program Modifications 45 Engage and Educate Students on Water Resources Consistent with State Curriculum 50 BUDGET PROJECTED FY 2023-24 FY 2023-24 $689,000 $136,892 $615,000 -12.03% VARIANCEYTD 13 FINANCE & ACCOUNTING GOAL % COMPLETED Ensure Financial Stability with Full Understanding of Operational Complexities 50 Fully Understand the Cost and Accounting Associated with Placing the SNRC in Service 80 Maximize the Utility and Security of Financial Software and Data 40 BUDGET PROJECTED FY 2023-24 FY 2023-24 $1,344,000 $582,773 $1,303,800 -3.08% VARIANCEYTD 14 INFORMATION TECHNOLOGY GOAL % COMPLETED Ensure Reliability of Technology Infrastructure for Primary Business and Operation Requirements 95 Improve Systems and Cybersecurity Measures for Response Functions 50 Analyze Current Systems to Enhance Reporting and Automate Processes 35 BUDGET PROJECTED FY 2023-24 FY 2023-24 $1,722,000 $663,385 $1,592,000 -8.17% VARIANCEYTD 15 CUSTOMER SERVICE GOAL % COMPLETED Develop Strategies to Address Organizational Service Needs 30 Work with other Departments to Recover Costs that are Not Currently Captured by the District Fee Schedule 10 Identify and Implement Software Adjustments Needed Due to SB 998 and Other Legislation 20 BUDGET PROJECTED FY 2023-24 FY 2023-24 $1,863,000 $1,043,274 $2,048,000 9.03% VARIANCEYTD 16 METER SERVICES GOAL % COMPLETED Implement Inspection Program for AMI Meters 100 Work with Customer Service to Address Coverage Issues with the AMI Network 75 Continue Meter Testing Programs in Compliance with State Water Audits Best Practices 100 BUDGET PROJECTED FY 2023-24 FY 2023-24 $292,000 $127,804 $292,000 0.00% VARIANCEYTD 17 ENGINEERING GOAL % COMPLETED Develop and Implement the District’s Capital Improvement Program to Address Rehabilitation and Maintenance Needs While Preparing for New Development 20 Develop Plans to Optimize District Water and Energy Resources 20 Complete Construction and Commissioning of the SNRC 75 BUDGET PROJECTED FY 2023-24 FY 2023-24 $1,428,000 $463,777 $1,298,000 -10.02% VARIANCEYTD 18 WATER PRODUCTION GOAL % COMPLETED Implement a Plan to Identify and Enhance Water Sources’ Requirements Due to the SNRC Discharge Location 75 Enhance the SCADA System to Achieve Water Production Requirements 100 Rehabilitate Plant Components to Ensure Water Production 100 BUDGET PROJECTED FY 2023-24 FY 2023-24 $5,992,000 $2,350,669 $5,942,000 -0.84% VARIANCEYTD 19 WATER TREATMENT GOAL % COMPLETED Maximize Plant 134 Water Production While Utilizing GAC Facilities 50 Complete Plant 134 Membrane Replacements Using a Five-Phase Replacement Schedule 100 Evaluate and Rehabilitate Existing Clean-in-Place Equipment at Plant 134 30 BUDGET PROJECTED FY 2023-24 FY 2023-24 $1,082,000 $674,460 $1,275,000 15.14% VARIANCEYTD 20 WATER QUALITY GOAL % COMPLETED Evaluate Water Quality Regulations and Improve Process Efficiencies to Enhance Water Quality Compliance 100 Implement Backflow Program Enhancement Modifications 85 Implement Customer / Vendor FOG Program Requirements and Training Campaign 70 BUDGET PROJECTED FY 2023-24 FY 2023-24 $546,000 $200,591 $504,000 -8.33% VARIANCEYTD 21 WATER MAINTENANCE GOAL % COMPLETED Prioritize Preventative Maintenance Schedules to Ensure Equipment Readiness for Emergency Response 50 Assess Operation of Tyler’s EnerGov Asset Management Software 50 Continue Replacement Program for Mains and Inground Fire Service Devices 100 22 WASTEWATER COLLECTION GOAL % COMPLETED Continue Wastewater Collection System Maintenance and Management 75 Provide Support for New Fats, Oils, and Grease (FOG) Program 0 Keep Sewer Mains Clear of Pests and Obstructions 100 BUDGET PROJECTED FY 2023-24 FY 2023-24 $867,000 $352,697 $801,000 -8.24% VARIANCEYTD 23 WATER RECLAMATION GOAL % COMPLETED Complete Staffing and Training for New Wastewater Treatment Operations 85 Meet and Exceed Compliance Requirements for the SNRC 50 Commence Operations at the SNRC 20 BUDGET PROJECTED FY 2023-24 FY 2023-24 $9,896,000 $5,203,368 $10,781,000 8.21% VARIANCEYTD 24 FACILITIES MAINTENANCE GOAL % COMPLETED Complete Site Improvements at the Del Rosa Facility 0 Continue Phased Upgrades and Rehabilitation of District Facilities 20 Assess Security Needs at SNRC, District Headquarters, and Plant 134 20 BUDGET PROJECTED FY 2023-24 FY 2023-24 $2,023,000 $1,226,042 $2,053,000 1.46% VARIANCEYTD 25 FLEET MAINTENANCE GOAL % COMPLETED Assess Future Operations of Fleet Management 40 Continue to Implement the Air Quality Management Program 90 Enhance the Vendor-Managed Fleet Maintenance Program 70 BUDGET PROJECTED FY 2023-24 FY 2023-24 $760,000 $363,431 $760,000 0.00% VARIANCEYTD CAPITAL BUDGET 26 27 CAPITAL OUTLAY PROJECT FUNDING SOURCE ADOPTED BUDGET PROPOSED MID-YEAR ADJUSTMENT ADJUSTED BUDGET Boardroom Enhancements Water/Wastewater Operating Revenue 85,000$ -$ 85,000$ Emergency Plan Updates Water/Wastewater Operating Revenue 150,000 - 150,000 Website Redesign Water/Wastewater Operating Revenue 150,000 - 150,000 Hardware Replacements (PCs, Laptops, Phones) Water Operating Revenue 35,000 - 35,000 Firewall Standardization Water/Wastewater/Reclamation Operating Revenue 120,000 - 120,000 Water Master Plan Update Water Operating Revenue 300,000 (200,000) 100,000 Salt Mitigation Feasibility Study Reclamation Operating Revenue 125,000 (60,000) 65,000 Pickup Trucks (4) Water/Wastewater/Reclamation Operating Revenue 200,000 - 200,000 Plant 134 Cameras / SNRC Improvements Water/Wastewater Operating Revenue - 200,000 200,000 TOTAL 1,165,000$ (60,000)$ 1,105,000$ 28 CIP –PROPOSED REVISIONS PROJECT FUNDING SOURCE ADOPTED BUDGET PROPOSED MID-YEAR REVISIONS REVISED BUDGET Plant 134 - Membrane Replacement Water Operating Revenue 250,000$ 55,000$ 305,000$ Tank/Reservoir Rehabilitation Water Operating Revenue 500,000 (380,000) 120,000 Plant 101 - Rehabilitate Hydro System Water Operating Revenue 1,500,000 (1,000,000) 500,000 Water Main Rehabilitation - Elmwood Rd, Tiffani Pl, Darren Pl Water Operating Revenue 200,000 (150,000) 50,000 Water Main Rehabilitation - Valaria Ct Water Operating Revenue 150,000 (100,000) 50,000 Facility Relocations Water Operating Revenue 100,000 445,000 545,000 Facility Rehabilitations Water Operating Revenue 275,000 50,000 325,000 New Well - Plant 129 Water Operating Revenue - 70,000 70,000 Plant 120 - Rehabilitation Water Operating Revenue - 280,000 280,000 SUBTOTAL 2,975,000$ (730,000)$ 2,245,000$ 29 CIP –NO PROPOSED REVISIONS PROJECT FUNDING SOURCE ADOPTED BUDGET PROPOSED MID-YEAR REVISIONS REVISED BUDGET Meters - AMI Enhancements Water Operating Revenue 150,000$ -$ 150,000$ Canal Zone Storage Reservoir Development Fees 300,000 - 300,000 Gate Valve Replacement Program Water Operating Revenue 300,000 - 300,000 SNRC - Construction SRF Loan 4,000,000 - 4,000,000 SNRC - Inspections, Project Mgt, and Compliance Mgt Wastewater Operating Revenue 300,000 - 300,000 SUBTOTAL $ 5,050,000 $ - $ 5,050,000 SUBTOTAL (PREV PAGE) $ 2,975,000 $ (730,000) $ 2,245,000 TOTAL $ 8,025,000 $ (730,000) $ 7,295,000 ACCOMPLISHMENTS 30 31 ACCOMPLISHMENTS •Rehabilitated well at Plant 28 •Installed pressure reducing drop valve at Plant 129 •Relocated south fence at Plant 40 for City Street improvements •Completed the 2023 leak detection survey •Repaired 120 main leaks and 195 service leaks •Operated and inspected 1,300 distribution valves and 1,200 fire hydrants •Replaced 15 ten-inch butterfly valves at Plant 134 •Completed 128 fire service meter replacements •Responded to 4,982 Underground Service Alert (USA) requests and 1,300 after hour calls •Developed wastewater pre-treatment, Fats, Oils, Grease (FOG) program requirements •Recognized as the Top Workplace in the Inland Empire for the 9th consecutive year •Triple Crown for receiving all three Government Finance Officers (GFOA) awards for the District’s Budget, Annual Comprehensive Financial Report, and Popular Annual Financial Report •2023 Polaris Award for Excellence for the 2022 Consumer Confidence Report by the Public Relations Society of America (PRSA) •2023 Capella Award of Distinction for the SNRC’s Ribbon Cutting Ceremony Campaign by the Public Relations Society of America (PRSA) •2023 Platinum Award for the SNRC Visitor’s Guide by Marcom Awards 32 DISTRICT AWARDS DISCUSSION WATER FUND FY 2023-24 MID-YEAR BUDGET REVIEW JULY 1, 2023 - DECEMBER 31, 2023 YTD ACTIVITY FY 2023-24 BUDGET BUDGET ADJUSTMENT FY 2023-24 PROJECTED % CHANGE Program: 0000 - Undesignated 41 - Water Sales 10,130,891 18,345,000 (650,000) 17,695,000 42 - Meter Charges 4,997,502 9,996,000 100,000 10,096,000 43 - Penalties 273,406 450,000 - 450,000 44 - Wastewater System Charges - - - - 45 - Wastewater Treatment Charges - - - - 46 - Other Operating Revenue 505,958 42,000 - 42,000 47 - Non Operating Revenue 29,336 220,000 200,000 420,000 TOTAL 15,937,093 29,053,000 (350,000) 28,703,000 -1.22% Program: 1000 - Governing Board 51 - Labor 41,186 98,000 (14,000) 84,000 56 - Benefits 24,915 63,000 - 63,000 62 - Materials and Supplies 56 2,100 - 2,100 63 - Contract Services 33,358 77,700 - 77,700 65 - Professional Development 12,287 14,000 10,500 24,500 TOTAL 111,802 254,800 (3,500) 251,300 -1.39% Program: 2000 - General Admin 51 - Labor 200,899 417,900 (10,500) 407,400 52 - Temporary Labor 3,662 21,000 - 21,000 53 - Overtime 1,404 2,800 - 2,800 56 - Benefits 107,033 184,800 - 184,800 62 - Materials and Supplies 1,185 4,900 - 4,900 63 - Contract Services 65,841 217,000 - 217,000 64 - Utilities 559 2,800 - 2,800 65 - Professional Development 56,668 107,800 10,500 118,300 TOTAL 437,251 959,000 - 959,000 0.00% Program: 2100 - Human Resources 51 - Labor 105,713 230,300 - 230,300 52 - Temporary Labor - - - - 53 - Overtime 950 2,100 - 2,100 56 - Benefits 93,421 139,300 - 139,300 62 - Materials and Supplies 844 4,900 - 4,900 63 - Contract Services 45,475 109,200 7,000 116,200 64 - Utilities 249 700 700 1,400 65 - Professional Development 14,890 39,200 - 39,200 67 - Other 781,524 1,176,700 13,000 1,189,700 TOTAL 1,043,066 1,702,400 20,700 1,723,100 1.20% Water Fund 1 of 20 WATER FUND FY 2023-24 MID-YEAR BUDGET REVIEW JULY 1, 2023 - DECEMBER 31, 2023 YTD ACTIVITY FY 2023-24 BUDGET BUDGET ADJUSTMENT FY 2023-24 PROJECTED % CHANGE Program: 2200 - Public Affairs 51 - Labor 154,003 300,300 - 300,300 52 - Temporary Labor - - - - 53 - Overtime 3,166 11,900 - 11,900 56 - Benefits 55,624 88,900 - 88,900 62 - Materials and Supplies 7,309 58,800 (3,500) 55,300 63 - Contract Services 100,519 385,700 (23,100) 362,600 64 - Utilities 1,651 33,600 (6,300) 27,300 65 - Professional Development 3,209 25,200 (3,500) 21,700 TOTAL 325,481 904,400 (36,400) 868,000 -4.19% Program: 2300 - Conservation 51 - Labor 51,072 107,000 - 107,000 52 - Temporary Labor - - - - 53 - Overtime 1,436 7,000 - 7,000 56 - Benefits 15,478 42,000 - 42,000 62 - Materials and Supplies 3,446 26,000 - 26,000 63 - Contract Services 53,322 346,000 (24,000) 322,000 64 - Utilities 181 26,000 - 26,000 65 - Professional Development 5,082 15,000 - 15,000 67 - Other 6,875 120,000 (50,000) 70,000 TOTAL 136,892 689,000 (74,000) 615,000 -12.03% Program: 3000 - Finance & Accounting 51 - Labor 200,992 542,500 (40,200) 502,300 52 - Temporary Labor - - - - 53 - Overtime 1,496 9,100 - 9,100 56 - Benefits 143,946 261,800 - 261,800 62 - Materials and Supplies 1,239 4,900 - 4,900 63 - Contract Services 49,680 98,700 - 98,700 64 - Utilities 744 2,800 - 2,800 65 - Professional Development 9,633 21,000 - 21,000 67 - Other 82 - - - TOTAL 407,812 940,800 (40,200) 900,600 -4.46% Program: 3200 - Information Technology 51 - Labor 129,375 303,100 - 303,100 52 - Temporary Labor 6,388 11,900 - 11,900 53 - Overtime - - - - 56 - Benefits 123,934 181,300 - 181,300 62 - Materials and Supplies 45,243 49,000 - 49,000 63 - Contract Services 150,251 648,200 (91,000) 557,200 64 - Utilities 7,412 8,400 - 8,400 65 - Professional Development 1,767 3,500 - 3,500 TOTAL 464,370 1,205,400 (91,000) 1,114,400 -8.17% Water Fund 2 of 20 WATER FUND FY 2023-24 MID-YEAR BUDGET REVIEW JULY 1, 2023 - DECEMBER 31, 2023 YTD ACTIVITY FY 2023-24 BUDGET BUDGET ADJUSTMENT FY 2023-24 PROJECTED % CHANGE Program: 3300 - Customer Service 51 - Labor 194,202 433,300 - 433,300 52 - Temporary Labor - - - - 53 - Overtime 3,970 4,900 - 4,900 56 - Benefits 120,762 217,000 - 217,000 62 - Materials and Supplies 962 4,900 - 4,900 63 - Contract Services 356,517 515,200 120,000 635,200 64 - Utilities 53,636 112,700 - 112,700 65 - Professional Development 751 11,900 - 11,900 67 - Other 989 4,200 - 4,200 TOTAL 731,789 1,304,100 120,000 1,424,100 8.43% Program: 3400 - Meter Services 51 - Labor 75,495 173,000 - 173,000 53 - Overtime 309 6,000 - 6,000 56 - Benefits 50,794 101,000 - 101,000 62 - Materials and Supplies - 4,000 - 4,000 63 - Contract Services 724 7,000 - 7,000 64 - Utilities 482 1,000 - 1,000 65 - Professional Development - - - - TOTAL 127,804 292,000 - 292,000 0.00% Program: 4000 - Engineering 51 - Labor 185,872 438,900 - 438,900 52 - Temporary Labor - - - - 53 - Overtime - 2,100 - 2,100 56 - Benefits 37,643 107,100 - 107,100 62 - Materials and Supplies 6,165 13,300 - 13,300 63 - Contract Services 68,723 296,100 (21,000) 275,100 64 - Utilities 47,539 131,600 (70,000) 61,600 65 - Professional Development 439 10,500 - 10,500 TOTAL 346,381 999,600 (91,000) 908,600 -10.02% Program: 5000 - Water Production 51 - Labor 356,689 790,000 - 790,000 53 - Overtime 25,963 46,000 - 46,000 54 - Standby 17,940 15,000 - 15,000 56 - Benefits 244,562 400,000 - 400,000 61 - Water Supply 271 768,000 - 768,000 62 - Materials and Supplies 122,663 335,000 (50,000) 285,000 63 - Contract Services 156,093 528,000 - 528,000 64 - Utilities 1,421,248 3,099,000 - 3,099,000 65 - Professional Development 5,240 11,000 - 11,000 TOTAL 2,350,669 5,992,000 (50,000) 5,942,000 -0.84% Water Fund 3 of 20 WATER FUND FY 2023-24 MID-YEAR BUDGET REVIEW JULY 1, 2023 - DECEMBER 31, 2023 YTD ACTIVITY FY 2023-24 BUDGET BUDGET ADJUSTMENT FY 2023-24 PROJECTED % CHANGE Program: 5100 - Water Treatment 51 - Labor 126,250 273,000 - 273,000 53 - Overtime 15,293 39,000 - 39,000 56 - Benefits 114,451 164,000 - 164,000 62 - Materials and Supplies 170,025 200,000 65,000 265,000 63 - Contract Services 162,167 224,000 125,000 349,000 64 - Utilities 86,274 182,000 3,000 185,000 TOTAL 674,460 1,082,000 193,000 1,275,000 15.14% Program: 5200 - Water Quality 51 - Labor 92,956 223,000 - 223,000 53 - Overtime 820 12,000 - 12,000 56 - Benefits 52,127 107,000 - 107,000 62 - Materials and Supplies 4,380 25,000 - 25,000 63 - Contract Services 49,743 170,000 (42,000) 128,000 64 - Utilities - 2,000 - 2,000 65 - Professional Development 565 7,000 - 7,000 TOTAL 200,591 546,000 (42,000) 504,000 -8.33% Program: 6000 - Maintenance Admin 51 - Labor 88,568 195,300 - 195,300 52 - Temporary Labor - - - - 53 - Overtime - 1,800 - 1,800 54 - Standby 18,430 18,000 - 18,000 56 - Benefits 91,245 142,200 - 142,200 62 - Materials and Supplies 74 2,700 - 2,700 63 - Contract Services 705 900 - 900 64 - Utilities 13,650 36,900 - 36,900 65 - Professional Development 17,521 20,700 - 20,700 67 - Other - - - - TOTAL 230,193 418,500 - 418,500 0.00% Program: 6100 - Water Maintenance 51 - Labor 520,471 914,000 150,000 1,064,000 53 - Overtime 181,970 219,000 100,000 319,000 56 - Benefits 324,165 620,000 - 620,000 62 - Materials and Supplies 322,592 471,000 215,000 686,000 63 - Contract Services 260,963 602,000 (45,000) 557,000 64 - Utilities - - - - TOTAL 1,610,161 2,826,000 420,000 3,246,000 12.94% Program: 6200 - Wastewater Collection 51 - Labor - - - - 53 - Overtime - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - 65 - Professional Development - - - - TOTAL - - - - 0.00% Water Fund 4 of 20 WATER FUND FY 2023-24 MID-YEAR BUDGET REVIEW JULY 1, 2023 - DECEMBER 31, 2023 YTD ACTIVITY FY 2023-24 BUDGET BUDGET ADJUSTMENT FY 2023-24 PROJECTED % CHANGE Program: 6300 - Water Reclamation 51 - Labor - - - - 53 - Overtime - - - - 54 - Standby - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - 65 - Professional Development - - - - TOTAL - - - - 0.00% Program: 7000 - Facilities Maintenance 51 - Labor 49,317 109,500 43,800 153,300 53 - Overtime 2,853 7,000 2,800 9,800 56 - Benefits 35,143 61,500 24,600 86,100 62 - Materials and Supplies 15,303 29,000 11,600 40,600 63 - Contract Services 337,286 621,500 248,500 870,000 64 - Utilities 106,690 181,500 102,600 284,100 65 - Professional Development - 1,000 500 1,500 TOTAL 546,592 1,011,000 434,400 1,445,400 30.05% Program: 7100 - Fleet Maintenance 51 - Labor 37,420 80,000 - 80,000 53 - Overtime 2,514 2,400 - 2,400 56 - Benefits 12,792 32,800 - 32,800 62 - Materials and Supplies 93,654 96,000 48,000 144,000 63 - Contract Services 67,511 200,800 (48,000) 152,800 64 - Utilities 91,367 192,800 - 192,800 65 - Professional Development - 3,200 - 3,200 TOTAL 305,258 608,000 - 608,000 0.00% Program: 8000 - Capital 71 - Debt Service 1,877,060 3,103,000 - 3,103,000 81 - Capital Improvement 415,413 3,425,000 (730,000) 2,695,000 82 - Capital Outlay 224,900 695,000 (25,000) 670,000 88 - Transfer To (From) Reserves - 95,000 (355,000) (260,000) TOTAL 2,517,373 7,318,000 (1,110,000) 6,208,000 -17.88% TOTAL OPERATING EXPENSES 10,050,572 21,735,000 760,000 22,495,000 3.38% NET 3,369,148 - - - Water Fund 5 of 20 WASTEWATER FUND FY 2023-24 MID-YEAR BUDGET REVIEW JULY 1, 2023 - DECEMBER 31, 2023 YTD ACTIVITY FY 2023-24 BUDGET BUDGET ADJUSTMENT FY 2023-24 PROJECTED % CHANGE Program: 0000 - Undesignated 41 - Water Sales - - - - 42 - Meter Charges - - - - 43 - Penalties 30,651 60,000 - 60,000 44 - Wastewater System Charges 2,936,533 5,968,000 - 5,968,000 45 - Wastewater Treatment Charges - - - - 46 - Other Operating Revenue 287,292 - - - 47 - Non Operating Revenue 6,600 20,000 - 20,000 TOTAL 3,261,076 6,048,000 - 6,048,000 0.00% Program: 1000 - Governing Board 51 - Labor 17,651 42,000 (6,000) 36,000 56 - Benefits 10,678 27,000 - 27,000 62 - Materials and Supplies 24 900 - 900 63 - Contract Services 14,296 33,300 - 33,300 65 - Professional Development 2,964 6,000 4,500 10,500 TOTAL 45,613 109,200 (1,500) 107,700 -1.39% Program: 2000 - General Admin 51 - Labor 86,100 179,100 (4,500) 174,600 52 - Temporary Labor 1,569 9,000 - 9,000 53 - Overtime 602 1,200 - 1,200 56 - Benefits 41,323 79,200 - 79,200 62 - Materials and Supplies 507 2,100 - 2,100 63 - Contract Services 28,218 93,000 - 93,000 64 - Utilities 239 1,200 - 1,200 65 - Professional Development 21,968 46,200 4,500 50,700 TOTAL 180,526 411,000 - 411,000 0.00% Program: 2100 - Human Resources 51 - Labor 45,306 98,700 - 98,700 52 - Temporary Labor - - - - 53 - Overtime 407 900 - 900 56 - Benefits 40,036 59,700 - 59,700 62 - Materials and Supplies 362 2,100 - 2,100 63 - Contract Services 19,489 46,800 3,000 49,800 64 - Utilities 107 300 500 800 65 - Professional Development 3,597 16,800 - 16,800 67 - Other 201,071 339,300 - 339,300 TOTAL 310,375 564,600 3,500 568,100 0.62% Wastewater Fund 6 of 20 WASTEWATER FUND FY 2023-24 MID-YEAR BUDGET REVIEW JULY 1, 2023 - DECEMBER 31, 2023 YTD ACTIVITY FY 2023-24 BUDGET BUDGET ADJUSTMENT FY 2023-24 PROJECTED % CHANGE Program: 2200 - Public Affairs 51 - Labor 66,001 128,700 - 128,700 52 - Temporary Labor - - - - 53 - Overtime 1,357 5,100 - 5,100 56 - Benefits 23,839 38,100 - 38,100 62 - Materials and Supplies 3,133 25,200 (1,500) 23,700 63 - Contract Services 81,910 165,300 (9,900) 155,400 64 - Utilities 708 14,400 (2,700) 11,700 65 - Professional Development 1,375 10,800 (1,500) 9,300 TOTAL 178,323 387,600 (15,600) 372,000 -4.19% Program: 2300 - Conservation 51 - Labor - - - - 52 - Temporary Labor - - - - 53 - Overtime - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - 65 - Professional Development - - - - 67 - Other - - - - TOTAL - - - - 0.00% Program: 3000 - Finance & Accounting 51 - Labor 86,125 232,500 - 232,500 52 - Temporary Labor - - - - 53 - Overtime 641 3,900 - 3,900 56 - Benefits 61,655 112,200 - 112,200 62 - Materials and Supplies 531 2,100 - 2,100 63 - Contract Services 21,563 42,300 - 42,300 64 - Utilities 318 1,200 - 1,200 65 - Professional Development 4,128 9,000 - 9,000 67 - Other - - - - TOTAL 174,961 403,200 - 403,200 0.00% Program: 3200 - Information Technology 51 - Labor 55,446 129,900 - 129,900 52 - Temporary Labor 2,738 5,100 - 5,100 53 - Overtime - - - - 56 - Benefits 53,114 77,700 - 77,700 62 - Materials and Supplies 19,390 21,000 - 21,000 63 - Contract Services 64,393 277,800 (39,000) 238,800 64 - Utilities 3,176 3,600 - 3,600 65 - Professional Development 758 1,500 - 1,500 TOTAL 199,015 516,600 (39,000) 477,600 -8.17% Wastewater Fund 7 of 20 WASTEWATER FUND FY 2023-24 MID-YEAR BUDGET REVIEW JULY 1, 2023 - DECEMBER 31, 2023 YTD ACTIVITY FY 2023-24 BUDGET BUDGET ADJUSTMENT FY 2023-24 PROJECTED % CHANGE Program: 3300 - Customer Service 51 - Labor 83,229 185,700 - 185,700 52 - Temporary Labor - - - - 53 - Overtime 1,701 2,100 - 2,100 56 - Benefits 51,754 93,000 - 93,000 62 - Materials and Supplies 412 2,100 - 2,100 63 - Contract Services 152,793 220,800 65,000 285,800 64 - Utilities 21,274 48,300 - 48,300 65 - Professional Development 322 5,100 - 5,100 67 - Other - 1,800 - 1,800 TOTAL 311,485 558,900 65,000 623,900 10.42% Program: 3400 - Meter Services 51 - Labor - - - - 53 - Overtime - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - 65 - Professional Development - - - - TOTAL - - - - 0.00% Program: 4000 - Engineering 51 - Labor 79,661 188,100 - 188,100 52 - Temporary Labor - - - - 53 - Overtime - 900 - 900 56 - Benefits 16,132 45,900 - 45,900 62 - Materials and Supplies 215 5,700 - 5,700 63 - Contract Services (654) 126,900 (9,000) 117,900 64 - Utilities 21,633 56,400 (30,000) 26,400 65 - Professional Development 409 4,500 - 4,500 TOTAL 117,396 428,400 (39,000) 389,400 -10.02% Program: 5000 - Water Production 51 - Labor - - - - 53 - Overtime - - - - 54 - Standby - - - - 56 - Benefits - - - - 61 - Water Supply - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - 65 - Professional Development - - - - TOTAL - - - - 0.00% Wastewater Fund 8 of 20 WASTEWATER FUND FY 2023-24 MID-YEAR BUDGET REVIEW JULY 1, 2023 - DECEMBER 31, 2023 YTD ACTIVITY FY 2023-24 BUDGET BUDGET ADJUSTMENT FY 2023-24 PROJECTED % CHANGE Program: 5100 - Water Treatment 51 - Labor - - - - 53 - Overtime - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - TOTAL - - - - 0.00% Program: 5200 - Water Quality 51 - Labor - - - - 53 - Overtime - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - 65 - Professional Development - - - - TOTAL - - - - 0.00% Program: 6000 - Maintenance Admin 51 - Labor 9,795 21,700 - 21,700 52 - Temporary Labor - - - - 53 - Overtime - 200 - 200 54 - Standby 1,269 2,000 - 2,000 56 - Benefits 9,975 15,800 - 15,800 62 - Materials and Supplies 8 300 - 300 63 - Contract Services 78 100 - 100 64 - Utilities 1,517 4,100 - 4,100 65 - Professional Development 1,713 2,300 - 2,300 67 - Other - - - - TOTAL 24,355 46,500 - 46,500 0.00% Program: 6100 - Water Maintenance 51 - Labor - - - - 53 - Overtime - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - TOTAL - - - - 0.00% Program: 6200 - Wastewater Collection 51 - Labor 165,511 371,000 - 371,000 53 - Overtime 2,913 9,000 - 9,000 56 - Benefits 78,157 174,000 - 174,000 62 - Materials and Supplies 17,513 36,000 6,000 42,000 63 - Contract Services 88,603 277,000 (72,000) 205,000 64 - Utilities - - - - 65 - Professional Development - - - - TOTAL 352,697 867,000 (66,000) 801,000 -8.24% Wastewater Fund 9 of 20 WASTEWATER FUND FY 2023-24 MID-YEAR BUDGET REVIEW JULY 1, 2023 - DECEMBER 31, 2023 YTD ACTIVITY FY 2023-24 BUDGET BUDGET ADJUSTMENT FY 2023-24 PROJECTED % CHANGE Program: 6300 - Water Reclamation 51 - Labor - - - - 53 - Overtime - - - - 54 - Standby - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - 65 - Professional Development - - - - TOTAL - - - - 0.00% Program: 7000 - Facilities Maintenance 51 - Labor 19,727 43,800 21,900 65,700 53 - Overtime 1,141 2,800 1,400 4,200 56 - Benefits 14,057 24,600 12,300 36,900 62 - Materials and Supplies 4,852 11,600 5,800 17,400 63 - Contract Services 158,475 248,600 124,400 373,000 64 - Utilities 16,645 72,600 36,300 108,900 65 - Professional Development - 1,000 500 1,500 TOTAL 214,897 405,000 202,600 607,600 33.34% Program: 7100 - Fleet Maintenance 51 - Labor 4,158 20,000 - 20,000 53 - Overtime 279 600 - 600 56 - Benefits 1,421 8,200 - 8,200 62 - Materials and Supplies 19,695 24,000 12,000 36,000 63 - Contract Services 13,903 50,200 (12,000) 38,200 64 - Utilities 18,717 48,200 - 48,200 65 - Professional Development - 800 - 800 TOTAL 58,173 152,000 - 152,000 0.00% Program: 8000 - Capital 71 - Debt Service 224,422 273,000 - 273,000 81 - Capital Improvement - 300,000 - 300,000 82 - Capital Outlay 185,408 260,000 25,000 285,000 88 - Transfer To (From) Reserves - 365,000 (135,000) 230,000 TOTAL 409,830 1,198,000 (110,000) 1,088,000 -10.11% TOTAL OPERATING EXPENSES 2,167,816 4,850,000 110,000 4,960,000 2.22% NET 683,431 - - - Wastewater Fund 10 of 20 WATER RECLAMATION FUND FY 2023-24 MID-YEAR BUDGET REVIEW JULY 1, 2023 - DECEMBER 31, 2023 YTD ACTIVITY FY 2023-24 BUDGET BUDGET ADJUSTMENT FY 2023-24 PROJECTED % CHANGE Program: 0000 - Undesignated 41 - Water Sales - 692,000 (360,000) 332,000 42 - Meter Charges - - - - 43 - Penalties - - - - 44 - Wastewater System Charges - - - - 45 - Wastewater Treatment Charges 5,211,419 10,279,000 100,000 10,379,000 46 - Other Operating Revenue - 1,252,000 (752,000) 500,000 47 - Non Operating Revenue - 100,000 - 100,000 TOTAL 5,211,419 12,323,000 (1,012,000) 11,311,000 -8.95% Program: 1000 - Governing Board 51 - Labor - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 65 - Professional Development - - - - TOTAL - - - - 0.00% Program: 2000 - General Admin 51 - Labor - - - - 52 - Temporary Labor - - - - 53 - Overtime - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - 65 - Professional Development - - - - TOTAL - - - - 0.00% Program: 2100 - Human Resources 51 - Labor - - - - 52 - Temporary Labor - - - - 53 - Overtime - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - 65 - Professional Development - - - - 67 - Other 468,536 590,000 (210,000) 380,000 TOTAL 468,536 590,000 (210,000) 380,000 -55.26% Reclamation Fund 11 of 20 WATER RECLAMATION FUND FY 2023-24 MID-YEAR BUDGET REVIEW JULY 1, 2023 - DECEMBER 31, 2023 YTD ACTIVITY FY 2023-24 BUDGET BUDGET ADJUSTMENT FY 2023-24 PROJECTED % CHANGE Program: 2200 - Public Affairs 51 - Labor - - - - 52 - Temporary Labor - - - - 53 - Overtime - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - 65 - Professional Development - - - - TOTAL - - - - 0.00% Program: 2300 - Conservation 51 - Labor - - - - 52 - Temporary Labor - - - - 53 - Overtime - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - 65 - Professional Development - - - - 67 - Other - - - - TOTAL - - - - 0.00% Program: 3000 - Finance & Accounting 51 - Labor - - - - 52 - Temporary Labor - - - - 53 - Overtime - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - 65 - Professional Development - - - - 67 - Other - - - - TOTAL - - - - 0.00% Program: 3200 - Information Technology 51 - Labor - - - - 52 - Temporary Labor - - - - 53 - Overtime - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - 65 - Professional Development - - - - TOTAL - - - - 0.00% Reclamation Fund 12 of 20 WATER RECLAMATION FUND FY 2023-24 MID-YEAR BUDGET REVIEW JULY 1, 2023 - DECEMBER 31, 2023 YTD ACTIVITY FY 2023-24 BUDGET BUDGET ADJUSTMENT FY 2023-24 PROJECTED % CHANGE Program: 3300 - Customer Service 51 - Labor - - - - 52 - Temporary Labor - - - - 53 - Overtime - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - 65 - Professional Development - - - - 67 - Other - - - - TOTAL - - - - 0.00% Program: 3400 - Meter Services 51 - Labor - - - - 53 - Overtime - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - 65 - Professional Development - - - - TOTAL - - - - 0.00% Program: 4000 - Engineering 51 - Labor - - - - 52 - Temporary Labor - - - - 53 - Overtime - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - 65 - Professional Development - - - - TOTAL - - - - 0.00% Program: 5000 - Water Production 51 - Labor - - - - 53 - Overtime - - - - 54 - Standby - - - - 56 - Benefits - - - - 61 - Water Supply - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - 65 - Professional Development - - - - TOTAL - - - - 0.00% Reclamation Fund 13 of 20 WATER RECLAMATION FUND FY 2023-24 MID-YEAR BUDGET REVIEW JULY 1, 2023 - DECEMBER 31, 2023 YTD ACTIVITY FY 2023-24 BUDGET BUDGET ADJUSTMENT FY 2023-24 PROJECTED % CHANGE Program: 5100 - Water Treatment 51 - Labor - - - - 53 - Overtime - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - TOTAL - - - - 0.00% Program: 5200 - Water Quality 51 - Labor - - - - 53 - Overtime - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - 65 - Professional Development - - - - TOTAL - - - - 0.00% Program: 6000 - Maintenance Admin 51 - Labor - - - - 52 - Temporary Labor - - - - 53 - Overtime - - - - 54 - Standby - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - 65 - Professional Development - - - - 67 - Other - - - - TOTAL - - - - 0.00% Program: 6100 - Water Maintenance 51 - Labor - - - - 53 - Overtime - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - TOTAL - - - - 0.00% Program: 6200 - Wastewater Collection 51 - Labor - - - - 53 - Overtime - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - 65 - Professional Development - - - - TOTAL - - - - 0.00% Reclamation Fund 14 of 20 WATER RECLAMATION FUND FY 2023-24 MID-YEAR BUDGET REVIEW JULY 1, 2023 - DECEMBER 31, 2023 YTD ACTIVITY FY 2023-24 BUDGET BUDGET ADJUSTMENT FY 2023-24 PROJECTED % CHANGE Program: 6300 - Water Reclamation 51 - Labor 336,385 939,000 (189,000) 750,000 53 - Overtime 2,639 25,000 25,000 50,000 54 - Standby - 55,000 - 55,000 56 - Benefits 223,736 456,000 (52,000) 404,000 62 - Materials and Supplies 38,383 734,000 (116,000) 618,000 63 - Contract Services 4,429,722 5,646,000 1,700,000 7,346,000 64 - Utilities 165,860 2,021,000 (483,000) 1,538,000 65 - Professional Development 6,643 20,000 - 20,000 TOTAL 5,203,368 9,896,000 885,000 10,781,000 8.21% Program: 7000 - Facilities Maintenance 51 - Labor 29,590 65,700 (65,700) - 53 - Overtime 1,712 4,200 (4,200) - 56 - Benefits 21,084 36,900 (36,900) - 62 - Materials and Supplies 17,538 17,400 (17,400) - 63 - Contract Services 338,471 372,900 (372,900) - 64 - Utilities 56,158 108,900 (108,900) - 65 - Professional Development - 1,000 (1,000) - TOTAL 464,553 607,000 (607,000) - 0.00% Program: 7100 - Fleet Maintenance 51 - Labor - - - - 53 - Overtime - - - - 56 - Benefits - - - - 62 - Materials and Supplies - - - - 63 - Contract Services - - - - 64 - Utilities - - - - 65 - Professional Development - - - - TOTAL - - - - 0.00% Program: 8000 - Capital 71 - Debt Service - - - - 81 - Capital Improvement - - - - 82 - Capital Outlay 79,934 210,000 (60,000) 150,000 88 - Transfer To (From) Reserves - 1,020,000 (1,020,000) - TOTAL 79,934 1,230,000 (1,080,000) 150,000 -720.00% TOTAL OPERATING EXPENSES 6,136,457 11,093,000 68,000 11,161,000 0.61% NET (1,004,972) - - - Reclamation Fund 15 of 20 ALL FUNDS FY 2023-24 MID-YEAR BUDGET REVIEW JULY 1, 2023 - DECEMBER 31, 2023 YTD ACTIVITY FY 2023-24 BUDGET BUDGET ADJUSTMENT FY 2023-24 PROJECTED % CHANGE Program: 0000 - Undesignated 41 - Water Sales 10,130,891 19,037,000 (1,010,000) 18,027,000 42 - Meter Charges 4,997,502 9,996,000 100,000 10,096,000 43 - Penalties 304,057 510,000 - 510,000 44 - Wastewater System Charges 2,936,533 5,968,000 - 5,968,000 45 - Wastewater Treatment Charges 5,211,419 10,279,000 100,000 10,379,000 46 - Other Operating Revenue 793,250 1,294,000 (752,000) 542,000 47 - Non Operating Revenue 35,936 340,000 200,000 540,000 TOTAL 24,409,588 47,424,000 (1,362,000) 46,062,000 -2.96% Program: 1000 - Governing Board 51 - Labor 58,837 140,000 (20,000) 120,000 56 - Benefits 35,593 90,000 - 90,000 62 - Materials and Supplies 80 3,000 - 3,000 63 - Contract Services 47,654 111,000 - 111,000 65 - Professional Development 15,251 20,000 15,000 35,000 TOTAL 157,415 364,000 (5,000) 359,000 -1.39% Program: 2000 - General Admin 51 - Labor 286,999 597,000 (15,000) 582,000 52 - Temporary Labor 5,231 30,000 - 30,000 53 - Overtime 2,006 4,000 - 4,000 56 - Benefits 148,356 264,000 - 264,000 62 - Materials and Supplies 1,692 7,000 - 7,000 63 - Contract Services 94,059 310,000 - 310,000 64 - Utilities 798 4,000 - 4,000 65 - Professional Development 78,636 154,000 15,000 169,000 TOTAL 617,777 1,370,000 - 1,370,000 0.00% Program: 2100 - Human Resources 51 - Labor 151,019 329,000 - 329,000 52 - Temporary Labor - - - - 53 - Overtime 1,357 3,000 - 3,000 56 - Benefits 133,457 199,000 - 199,000 62 - Materials and Supplies 1,206 7,000 - 7,000 63 - Contract Services 64,964 156,000 10,000 166,000 64 - Utilities 356 1,000 1,200 2,200 65 - Professional Development 18,487 56,000 - 56,000 67 - Other 1,451,131 2,106,000 (197,000) 1,909,000 TOTAL 1,821,977 2,857,000 (185,800) 2,671,200 -6.96% All Funds 16 of 20 ALL FUNDS FY 2023-24 MID-YEAR BUDGET REVIEW JULY 1, 2023 - DECEMBER 31, 2023 YTD ACTIVITY FY 2023-24 BUDGET BUDGET ADJUSTMENT FY 2023-24 PROJECTED % CHANGE Program: 2200 - Public Affairs 51 - Labor 220,004 429,000 - 429,000 52 - Temporary Labor - - - - 53 - Overtime 4,523 17,000 - 17,000 56 - Benefits 79,463 127,000 - 127,000 62 - Materials and Supplies 10,442 84,000 (5,000) 79,000 63 - Contract Services 182,429 551,000 (33,000) 518,000 64 - Utilities 2,359 48,000 (9,000) 39,000 65 - Professional Development 4,584 36,000 (5,000) 31,000 TOTAL 503,804 1,292,000 (52,000) 1,240,000 -4.19% Program: 2300 - Conservation 51 - Labor 51,072 107,000 - 107,000 52 - Temporary Labor - - - - 53 - Overtime 1,436 7,000 - 7,000 56 - Benefits 15,478 42,000 - 42,000 62 - Materials and Supplies 3,446 26,000 - 26,000 63 - Contract Services 53,322 346,000 (24,000) 322,000 64 - Utilities 181 26,000 - 26,000 65 - Professional Development 5,082 15,000 - 15,000 67 - Other 6,875 120,000 (50,000) 70,000 TOTAL 136,892 689,000 (74,000) 615,000 -12.03% Program: 3000 - Finance & Accounting 51 - Labor 287,117 775,000 (40,200) 734,800 52 - Temporary Labor - - - - 53 - Overtime 2,137 13,000 - 13,000 56 - Benefits 205,601 374,000 - 374,000 62 - Materials and Supplies 1,770 7,000 - 7,000 63 - Contract Services 71,243 141,000 - 141,000 64 - Utilities 1,062 4,000 - 4,000 65 - Professional Development 13,761 30,000 - 30,000 67 - Other 82 - - - TOTAL 582,773 1,344,000 (40,200) 1,303,800 -3.08% Program: 3200 - Information Technology 51 - Labor 184,821 433,000 - 433,000 52 - Temporary Labor 9,126 17,000 - 17,000 53 - Overtime - - - - 56 - Benefits 177,048 259,000 - 259,000 62 - Materials and Supplies 64,633 70,000 - 70,000 63 - Contract Services 214,644 926,000 (130,000) 796,000 64 - Utilities 10,588 12,000 - 12,000 65 - Professional Development 2,525 5,000 - 5,000 TOTAL 663,385 1,722,000 (130,000) 1,592,000 -8.17% All Funds 17 of 20 ALL FUNDS FY 2023-24 MID-YEAR BUDGET REVIEW JULY 1, 2023 - DECEMBER 31, 2023 YTD ACTIVITY FY 2023-24 BUDGET BUDGET ADJUSTMENT FY 2023-24 PROJECTED % CHANGE Program: 3300 - Customer Service 51 - Labor 277,431 619,000 - 619,000 52 - Temporary Labor - - - - 53 - Overtime 5,671 7,000 - 7,000 56 - Benefits 172,516 310,000 - 310,000 62 - Materials and Supplies 1,374 7,000 - 7,000 63 - Contract Services 509,310 736,000 185,000 921,000 64 - Utilities 74,910 161,000 - 161,000 65 - Professional Development 1,073 17,000 - 17,000 67 - Other 989 6,000 - 6,000 TOTAL 1,043,274 1,863,000 185,000 2,048,000 9.03% Program: 3400 - Meter Services 51 - Labor 75,495 173,000 - 173,000 53 - Overtime 309 6,000 - 6,000 56 - Benefits 50,794 101,000 - 101,000 62 - Materials and Supplies - 4,000 - 4,000 63 - Contract Services 724 7,000 - 7,000 64 - Utilities 482 1,000 - 1,000 65 - Professional Development - - - - TOTAL 127,804 292,000 - 292,000 0.00% Program: 4000 - Engineering 51 - Labor 265,533 627,000 - 627,000 52 - Temporary Labor - - - - 53 - Overtime - 3,000 - 3,000 56 - Benefits 53,775 153,000 - 153,000 62 - Materials and Supplies 6,380 19,000 - 19,000 63 - Contract Services 68,069 423,000 (30,000) 393,000 64 - Utilities 69,172 188,000 (100,000) 88,000 65 - Professional Development 848 15,000 - 15,000 TOTAL 463,777 1,428,000 (130,000) 1,298,000 -10.02% Program: 5000 - Water Production 51 - Labor 356,689 790,000 - 790,000 53 - Overtime 25,963 46,000 - 46,000 54 - Standby 17,940 15,000 - 15,000 56 - Benefits 244,562 400,000 - 400,000 61 - Water Supply 271 768,000 - 768,000 62 - Materials and Supplies 122,663 335,000 (50,000) 285,000 63 - Contract Services 156,093 528,000 - 528,000 64 - Utilities 1,421,248 3,099,000 - 3,099,000 65 - Professional Development 5,240 11,000 - 11,000 TOTAL 2,350,669 5,992,000 (50,000) 5,942,000 -0.84% All Funds 18 of 20 ALL FUNDS FY 2023-24 MID-YEAR BUDGET REVIEW JULY 1, 2023 - DECEMBER 31, 2023 YTD ACTIVITY FY 2023-24 BUDGET BUDGET ADJUSTMENT FY 2023-24 PROJECTED % CHANGE Program: 5100 - Water Treatment 51 - Labor 126,250 273,000 - 273,000 53 - Overtime 15,293 39,000 - 39,000 56 - Benefits 114,451 164,000 - 164,000 62 - Materials and Supplies 170,025 200,000 65,000 265,000 63 - Contract Services 162,167 224,000 125,000 349,000 64 - Utilities 86,274 182,000 3,000 185,000 TOTAL 674,460 1,082,000 193,000 1,275,000 15.14% Program: 5200 - Water Quality 51 - Labor 92,956 223,000 - 223,000 53 - Overtime 820 12,000 - 12,000 56 - Benefits 52,127 107,000 - 107,000 62 - Materials and Supplies 4,380 25,000 - 25,000 63 - Contract Services 49,743 170,000 (42,000) 128,000 64 - Utilities - 2,000 - 2,000 65 - Professional Development 565 7,000 - 7,000 TOTAL 200,591 546,000 (42,000) 504,000 -8.33% Program: 6000 - Maintenance Admin 51 - Labor 98,363 217,000 - 217,000 52 - Temporary Labor - - - - 53 - Overtime - 2,000 - 2,000 54 - Standby 19,699 20,000 - 20,000 56 - Benefits 101,220 158,000 - 158,000 62 - Materials and Supplies 82 3,000 - 3,000 63 - Contract Services 783 1,000 - 1,000 64 - Utilities 15,167 41,000 - 41,000 65 - Professional Development 19,234 23,000 - 23,000 67 - Other - - - - TOTAL 254,548 465,000 - 465,000 0.00% Program: 6100 - Water Maintenance 51 - Labor 520,471 914,000 150,000 1,064,000 53 - Overtime 181,970 219,000 100,000 319,000 56 - Benefits 324,165 620,000 - 620,000 62 - Materials and Supplies 322,592 471,000 215,000 686,000 63 - Contract Services 260,963 602,000 (45,000) 557,000 64 - Utilities - - - - TOTAL 1,610,161 2,826,000 420,000 3,246,000 12.94% Program: 6200 - Wastewater Collection 51 - Labor 165,511 371,000 - 371,000 53 - Overtime 2,913 9,000 - 9,000 56 - Benefits 78,157 174,000 - 174,000 62 - Materials and Supplies 17,513 36,000 6,000 42,000 63 - Contract Services 88,603 277,000 (72,000) 205,000 64 - Utilities - - - - 65 - Professional Development - - - - TOTAL 352,697 867,000 (66,000) 801,000 -8.24% All Funds 19 of 20 ALL FUNDS FY 2023-24 MID-YEAR BUDGET REVIEW JULY 1, 2023 - DECEMBER 31, 2023 YTD ACTIVITY FY 2023-24 BUDGET BUDGET ADJUSTMENT FY 2023-24 PROJECTED % CHANGE Program: 6300 - Water Reclamation 51 - Labor 336,385 939,000 (189,000) 750,000 53 - Overtime 2,639 25,000 25,000 50,000 54 - Standby - 55,000 - 55,000 56 - Benefits 223,736 456,000 (52,000) 404,000 62 - Materials and Supplies 38,383 734,000 (116,000) 618,000 63 - Contract Services 4,429,722 5,646,000 1,700,000 7,346,000 64 - Utilities 165,860 2,021,000 (483,000) 1,538,000 65 - Professional Development 6,643 20,000 - 20,000 TOTAL 5,203,368 9,896,000 885,000 10,781,000 8.21% Program: 7000 - Facilities Maintenance 51 - Labor 98,634 219,000 - 219,000 53 - Overtime 5,706 14,000 - 14,000 56 - Benefits 70,284 123,000 - 123,000 62 - Materials and Supplies 37,693 58,000 - 58,000 63 - Contract Services 834,232 1,243,000 - 1,243,000 64 - Utilities 179,493 363,000 30,000 393,000 65 - Professional Development - 3,000 - 3,000 TOTAL 1,226,042 2,023,000 30,000 2,053,000 1.46% Program: 7100 - Fleet Maintenance 51 - Labor 41,578 100,000 - 100,000 53 - Overtime 2,793 3,000 - 3,000 56 - Benefits 14,213 41,000 - 41,000 62 - Materials and Supplies 113,349 120,000 60,000 180,000 63 - Contract Services 81,414 251,000 (60,000) 191,000 64 - Utilities 110,084 241,000 - 241,000 65 - Professional Development - 4,000 - 4,000 TOTAL 363,431 760,000 - 760,000 0.00% Program: 8000 - Capital 71 - Debt Service 2,101,481 3,376,000 - 3,376,000 81 - Capital Improvement 415,413 3,725,000 (730,000) 2,995,000 82 - Capital Outlay 490,242 1,165,000 (60,000) 1,105,000 88 - Transfer To (From) Reserves - 1,480,000 (1,510,000) (30,000) TOTAL 3,007,136 9,746,000 (2,300,000) 7,446,000 -30.89% TOTAL OPERATING EXPENSES 18,354,845 37,678,000 938,000 38,616,000 2.43% NET 3,047,607 - - - All Funds 20 of 20 EAST VALLEY WATER DISTRICT CAPITAL BUDGET - MID YEAR ADJUSTMENTS FY 2023-24 WATER WASTEWATER RECLAMATION GRANTS /TOTAL WATER WASTEWATER RECLAMATION WATER OPERATING OPERATING OPERATING CAPACITY FEE LOW INTEREST ADOPTED OPERATING OPERATING OPERATING CAPITAL ADJ PROJECT PROJECT REVENUE REVENUE REVENUE RESERVES LOANS BUDGET REVENUE REVENUE REVENUE RESERVES TOTAL CAPITAL OUTLAY Boardroom Enhancements 60,000$ 25,000$ -$ -$ -$ 85,000$ -$ -$ -$ -$ 85,000$ Emergency Plan Updates 100,000 50,000 - - - 150,000 - - - - 150,000 Website Redesign 100,000 50,000 - - - 150,000 - - - - 150,000 Hardware Replacements (PCs, Laptops, Phones)35,000 - - - - 35,000 - - - - 35,000 Firewall Standardization 50,000 35,000 35,000 - - 120,000 - - - - 120,000 Water Master Plan Update 300,000 - - - - 300,000 (200,000) - - - 100,000 Salt Mitigation Feasibility Study - - 125,000 - - 125,000 - - (60,000) - 65,000 PickupTrucks (4)50,000 100,000 50,000 - - 200,000 - - - - 200,000 Plant 134 Cameras / SNRC Improvements - - - 175,000 25,000 - - 200,000 TOTAL CAPITAL OUTLAY 695,000 260,000 210,000 - - 1,165,000 (25,000) 25,000 (60,000) - 1,105,000 CAPITAL IMPROVEMENT PROGRAM WATER CIP Meters - AMI Enhancements 150,000 - - - - 150,000 - - - - 150,000 Canal Zone Storage Reservoir - - - 300,000 - 300,000 - - - - 300,000 Plant 134 - Membranes Replacement 250,000 - - - - 250,000 55,000 - - - 305,000 Tank/Reservoir Rehabilitation 500,000 - - - - 500,000 (380,000) - - - 120,000 Plant 101 - Rehabilitate Hydro System 1,500,000 - - - - 1,500,000 (1,000,000) - - - 500,000 Water Main Rehabilitation - Elmwood Rd, Tiffani Pl, Darren Pl 200,000 - - - - 200,000 (150,000) - - - 50,000 Gate Valve Replacement Program 300,000 - - - - 300,000 - - - - 300,000 Water Main Rehabilitation - Valaria Ct 150,000 - - - - 150,000 (100,000) - - - 50,000 Facility Relocations 100,000 - - - - 100,000 445,000 - - - 545,000 Facility Rehabilitations 275,000 - - - - 275,000 50,000 - - - 325,000 New Well - Plant 129 - - - - - - 70,000 - - - 70,000 Plant 120 - Rehabilitation - - - - - - 280,000 - - - 280,000 Water Subtotal 3,425,000 - - 300,000 - 3,725,000 (730,000) - - - 2,995,000 WASTEWATER CIP SNRC - Inspections, Project Mgt, and Compliance Mgt - 300,000 - - - 300,000 - - - - 300,000 SNRC - Construction - - 4,000,000 - - 4,000,000 - - - - 4,000,000 Wastewater Subtotal - 300,000 4,000,000 - - 4,300,000 - - - - 4,300,000 TOTAL CAPITAL IMPROVEMENT PROGRAM 3,425,000$ 300,000$ 4,000,000$ 300,000$ -$ 8,025,000$ (730,000)$ -$ -$ -$ 7,295,000$ TOTAL PROPOSED ADJUSTMENTS (755,000)$ 25,000$ (60,000)$ -$ PROPOSED ADJUSTMENTS Agenda Item #4b February 28, 20241 Meeting Date: February 28, 2024 Agenda Item #4b Discussion Item 1 0 3 1 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Approval of Revised Reserve Funds Policy 7.2 RECOMMENDATION That the Board of Directors approve the attached Reserve Funds Policy 7.2 BACKGROUND / ANALYSIS The Finance and Human Resources Committee recommended, at their February 13, 2024 meeting, that the Board of Directors (Board) approve the attached Reserve Funds Policy. Periodic reviews of financial policies are important to ensure that policies are relevant and up-to-date with industry practices and legal provisions. Reserve funds provide the District with options to respond to unexpected issues and a strong reserve policy helps the District plan for future projects and mitigate potential risks. Staff is proposing the following updates to Reserve Funds Policy 7.2: •Updating the Replacement Reserve from a minimum requirement of $10 million to twice the five-year average of the District’s annual Capital Improvement Plan (CIP) and reduce the target maximum from seven years to five years of total projected CIP expenditures. •Adjusting the Emergency Reserve from a minimum requirement of 2% of the system asset value to 1% of the system’s asset value. This reduction is due to the increase of the Replacement Reserve. •In 2010, the Rate Stabilization Fund was intended to offset significant fluctuations in water supply cost which the District has deemed is no longer subject to. As a result, we will be eliminating this fund. •All other changes are minor formatting or wording amendments. Attached is a copy of the District’s Reserve Funds Policy with proposed revisions. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management Agenda Item #4b February 28, 20242 Meeting Date: February 28, 2024 Agenda Item #4b Discussion Item 1 0 3 1 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 RG-Reserve Funds Policy 7.2 2. Reserve Funds Policy 7.2 (redlined) Rudy Guerrero, Finance Supervisor REVISED RESERVE FUNDS POLICY 7.2 February 28, 2024 EXISTING RESERVE FUNDS POLICY 2 •Rate Stabilization •OperatingLiquidity •Replacement •EmergencyCapital •Bond Restrictions •Customer DepositsRestricted 3 PROPOSED RESERVE FUNDS POLICY Operating •Replacement •EmergencyCapital •Bond Restrictions •Customer DepositsRestricted 4 PROPOSED RESERVE TARGETS CATEGORY RESERVE PROPOSED TARGET Operating Operating Minimum: Equal to 90 days of the District’s budgeted total operating expense Capital Replacement Emergency Minimum: Equal to twice the five-year average of the District's annual CIP Minimum: 1% of the total value of the District's plant and equipment Restricted Bond Restrictions Customer Deposits Established at the time of the bond issuance Fluctuates depending on the number of utility customer deposits (currently at $150 per account -see District ordinance) EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Reserve Funds Policy Original Approval Date: August 10, 2010 Last Revised: February 28, 2024 Policy No: 7.2 Page 1 of 7 Purpose It is the purpose of East Valley Water District Reserve Policy to ensure that sufficient funding is available for current operating, capital, and debt service needs. Additionally, fiscal responsibility requires anticipating the likelihood of, and preparing for, unforeseen events. East Valley Water District (District) will at all timesalways strive to have sufficient funding available to meet its operating, capital, and debt service obligations. Reserve Funds (FundsReserves) will be accumulated and maintained to allow the District to fund expenditures in a manner consistent with the District's Capital Improvement Plan, and avoid significantwhile avoiding undue pressure on District operations rate fluctuations due to changes in cash flow requirements. The Board of Directors (Board) may designate specific fund accountsReserve Funds and maintain minimum fund reserve balances consistent with statutory obligations that it has determined to be in the best interest of the District. The Policy directives outlined in this document are intended to ensure the District has sufficient funds reserves to meet current and future needs. The Board will annually review the level of FundsReserves. General Provisions The District has established and will maintain the following primary funds reserves and their respective sub-accounts: • Legally Restricted Reserves – comprised of Debt Proceeds and Customer and Developer Deposits. • Capital Reserves – includes the Capital Replacement Fund Reserves and Emergency FundReserves. • Operating Reserves – includes the Rate Stabilization Fund and Operating Fund. The District will maintain its liquidity operating and capital funds reserves in designated sub- accounts in a manner that ensures their financial soundness and provides transparency to its ratepayers. The Fund Reserves balances are considered the minimum necessary to maintain the District's credit worthiness and adequately provide for: • Compliance with applicable statutory requirements. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Reserve Funds Policy Original Approval Date: August 10, 2010 Last Revised: February 28, 2024 Policy No: 7.2 Page 2 of 7 • Financing of future capital facilities and repair and replacement of existing assets. • Cash flow requirements. • Economic uncertainties, local disasters, and other financial hardships or downturns in the local or national economy. • Contingencies or unforeseen operating or capital needs. In the context of funding future capital facilities and maintaining and replacing existing assets, in each instance, the District will analyze the benefits and tradeoffs of utilizing pay- as-you-go and/or debt financing and determine the optimal funding strategy or combination of funding strategies. The analysis should consider the District's current and projected liquidity and capital positions, as well as the impact of inflation and other factors on the operations of the District and its capital improvement program. Through a variety of policy documents and plans, including East Valley's Capital Improvement Plan, Water and Sewer System Master Plans, Strategic Plan, and Five-Year Financial Plan, the Board has set forth a number ofseveral long-term goals for the District. A fundamental purpose of these documents is to link what must be accomplished with the necessary resources to successfully do so. Among the resources which may be considered are the District’s Reserves Funds. A principal tenet of the District's Reserve Funds Policy shall be the crediting of interest income to specific reserve funds until the respective reserve fund's maximum is achieved. Once the maximum balance is reached within a specific FundReserve, the surplus interest earnings will be reallocated to other Funds Reserves whose funding level is below the minimum or maximum requirement recommended by this Policy. Fund Reserves balances will be reviewed on an annual basis at, or near, the end of the fiscal year to ensure compliance with this Policy. In the event the Liquidity Operating Fund Reserves balance exceeds the established maximum, excess monies will be transferred annually into the Capital FundReplacement Reserves. On an as-needed basis, monies from the Capital Fund Replacement Reserves can be moved to pay for operating emergencies to supplement the Liquidity FundOperating Reserves. In addition, in the event thatif the Capital Fund Replacement Reserves balance exceeds the established maximum, the Board will make a determination regarding the reallocation of excess monies. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Reserve Funds Policy Original Approval Date: August 10, 2010 Last Revised: February 28, 2024 Policy No: 7.2 Page 3 of 7 The minimum established for each Reserve Fund represents the baseline financial condition that is acceptable to the District from risk and long-range financial planning perspectives. Maintaining Funds Reserves at appropriate levels is a prudent, ongoing business process that consists of an assessment and application of various revenue generating alternatives. These alternatives (either alone or in combination with each other) include but are not limited to: fees and charges, water usage, capital financing, investment of funds, and levels of capital expenditures. To achieve and maintain a strong credit rating, in every fiscal year the District will strive to maintain unrestricted cash and designated fund reserves balances totaling a minimum of 180 120 days of budgeted operating expenses. Should the District determine to target a higher credit rating level, this minimum will be adjusted accordingly. However, should the District decide to pursue a credit rating upgrade, it will need to analyze carefully under what circumstances and in what timeframes it will be optimal to achieve this goal. The Board shall approve any reallocation of funds reserves or any transfers among FundsReserves. LEGALLY RESTRICTED RESERVES A. Bond Debt Proceeds – Bond Debt proceeds funds are monies derived from the proceeds of a bond issue. TypicallyTypically, they consist of construction fund monies, and a debt service reserve fund (DSRF). The use of these proceeds is restricted by conditions set forth in the respective legal bond debt documents. These funds are usually may be held by the a Trustee in favor of the bond holders, if applicable. 1. Target Level – The debt service reserve requirement is established at the time of the bond issue or execution of debt agreements. This amount may be recalculated as the bonds are debt is paid down. Any excess principal and/or interest earnings can be used to pay debt service on the bonds. 2. Events or Conditions Prompting the Use of the Fund(s)Reserves – As stipulated in the respective bond debt documents. Construction fund monies are expected to be spent on applicable projects, while DSRF can only be used in the event of a shortfall in revenues to pay debt service or to pay down principal at maturity. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Reserve Funds Policy Original Approval Date: August 10, 2010 Last Revised: February 28, 2024 Policy No: 7.2 Page 4 of 7 3. Periodic Review Dates for Balances – Reviewed by the Trustee on a semi-annual basis (i.e., every interest and/or principal payment date). B. Customer Deposits and Construction Advances – Monies held on behalf of District customers as required for their utility account or as cash bonds for development projects. 1. Target Level -– Customer deposits, and deposit requirements for development projects, are outlined in District Ordinances and Schedule of Water and Sewer Rates and Charges. The balance in these accounts will fluctuate depending on the number of utility customer deposits required and the number of development projects in process. Therefore, no minimum or maximum levels will be established. 2. Events or Conditions Prompting Use of the FundReserves(s) – As deposits on utility accounts are released, they will be refunded to the customer. When development projects are complete, the projects will be closedclosed, and a final accounting will be completed. Excess deposit monies will be returned to the development customer. 3. Periodic Review Dates for Balances -– Reviewed by staff on a regular basis as part of the monthly closing process. CAPITAL REPLACEMENT RESERVE The District will strive to maintain a the minimum balances as defined for each of the reserves listed belowof $10.0 million in the Capital Replacement Reserves. The Capital Funds will consist of the following sub-accounts: A. Capital Replacement Fund Reserve – Both the water and sewer All divisions will maintain a replacement fund reserves for the replacement of capitalized assets when they reach the end of their useful lives. The source of replacement funds reserves will be user fee revenue from the respective enterprises. 1. Target Level – The District may set aside replacement funds reserves on a project- by-project basis. The minimum target level should be equal to twice the five-year average of the District’s annual Capital Improvement Plan budgetthe $10.0 million EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Reserve Funds Policy Original Approval Date: August 10, 2010 Last Revised: February 28, 2024 Policy No: 7.2 Page 5 of 7 required for the Capital Funds less the minimum levels established for the Emergency Fund. The maximum balance in Capital Replacement Funds Reserves shall not exceed the projected needs for seven five years according to the District’s Capital Improvement Plan. 2. Events or Conditions Prompting the Use of the Fund Reserve – Staff will recommend assets to be replaced during the Capital Improvement Plan / Capital Budget presentation. As projects are approved, funds reserves will be appropriated from undesignated funds reserves or available revenues. 3. Periodic Review Dates for Balances – Fund Reserve balances and projected improvement projects will be reviewed by staff and the Board during the preparation and approval of the annual budget. B. Emergency Fund Reserve – The Emergency Fund Reserve is may be used to begin repair of the water and sewer systems after a catastrophic event or other unforeseen circumstances. , such as a severe earthquake or fire, while long-term financing is being arranged or insurance claims are being processed. 1. Target Level – The minimum target for this fund reserve is two one (21%) percent of the total value of plant and equipment while striving to achieve a two (2%) percent target.. 2. Events or Conditions Prompting the Use of the Fund Reserves – The Board may designate use of this fund reserve after establishing that conditions exist as called out in the definition and purpose of the fundreserve. 3. Periodic Review Dates for Balances – Fund Reserve balances and target levels will be reviewed by staff and the Board during the preparation and approval of the annual budget. LIQUIDITY OPERATING RESERVES FUNDS Liquidity Funds will be comprised of the following sub-accounts: the Rate Stabilization Fund and the Operating Reserve. The balance in the Liquidity Funds will fluctuate depending on the annual operating expenses. The maximum balance in the Liquidity Funds will be equal EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Reserve Funds Policy Original Approval Date: August 10, 2010 Last Revised: February 28, 2024 Policy No: 7.2 Page 6 of 7 to 180 days of the annual budgeted operating expenses. A. Rate Stabilization Fund -This fund is established to provide flexibility to the Board when setting rates to allow for absorbing temporary rate fluctuations or for one-time expenditures. 1. Target Level - This fund shall be maintained at a minimum level of 45 days of the annual budgeted operating expenses. The maximum level of this fund shall not exceed 60 days of the annual budgeted operating expenses. 2. Events or Conditions Prompting the Use of the Fund - This fund is intended to be used to defray any temporary unforeseen and extraordinary increases in the cost of water supply. The Board, on a case by case basis, will determine the amount and timing for any use of the fund. 3. Periodic Review Dates for Balances - Fund balances will be reviewed by staff and the Board during the preparation and approval of the annual budget. B.A. Operating Reserve – The Operating Reserve is used for unanticipated operating expenses. This fund reserve is designated by the Board to maintain working capital for current operations and to meet routine cash flow needs. 1. Target Level – Funding shall be targeted at a minimum amount equal to 90 days of the District's budgeted total operating expenses, and the maximum amount shall not exceed 120 days of the budgeted total operating expenses. 2. Events or Conditions Prompting Use of the Fund Reserve – This reserve may be routinely utilized by staff to cover temporary cash flow deficiencies caused by timing differences between revenue and expenses and extraordinary decreases in revenues and unexpected increases in expenses. 3. Periodic Review Dates for Balances – Fund Reserve balances and target level will be reviewed by staff and the Board during the preparation and approval of the annual budget. Investment Guidelines EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Reserve Funds Policy Original Approval Date: August 10, 2010 Last Revised: February 28, 2024 Policy No: 7.2 Page 7 of 7 It has been the District’s practice to rely primarily on a pay-as-you-go (pay-go) strategy to fund capital improvements and replacement of existing assets. However, maintaining a balance between debt and pay-go sources may provide an added benefit to the District in terms of allowing for a more optimal investment strategy. In the context of these policies and in circumstances where such balance is present, the investment portfolio can be separated into short and long portfolios to maximize investment returns. The balance in the Liquidity FundsOperating Reserves should be kept in short-term investments. Monies in the Capital FundsReserves, however, may be invested for a longer horizon as the funds reserves are needed in the later years. Delegation of Authority The Board has sole authority to amend or revise the Reserve Funds Policy. Through approval of this Policy, the Board has established written procedures for staff to follow in the management of East Valley Water District’s Funds. Agenda Item #4c February 28, 20241 Meeting Date: February 28, 2024 Agenda Item #4c Discussion Item 1 0 4 1 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Approval of Contract with Trussell Technologies for Sterling Natural Resource Center Reporting Support RECOMMENDATION That the Board of Directors authorize the General Manager/CEO to enter into an agreement with Trussell Technologies for Regulatory Reporting Support for Sterling Natural Resource Center. BACKGROUND / ANALYSIS The Waste Discharge Requirements (WDRs) and Water Recycling Requirements (WRRs) for Sterling Natural Resources Center (SNRC) stipulates routine reporting of plant conditions to verify compliance with the WDRs and WRRs. Reporting requirements were developed and approved by the State Water Resources Control Board, Division of Drinking Water and Regional Water Quality Control Board as part of the SNRC Operations Optimization Plan (OOP). The OOP for SNRC was developed by Trussell Technologies as part of the District’s activities to obtain the necessary permits for SNRC Operations. Regulatory reporting includes: 1. Monthly Log Removal Value (LRV) reports to demonstrate compliance with the EPA’s 12/10/10 Rule for pathogen removal •12-log enteric virus reduction, •10-log Giardia lamblia cyst reduction •10-log cryptosporidium oocyst reduction 2. Quarterly Self-Monitoring Reports •Results from continuous monitoring equipment •Results from laboratory analysis 3. General Coordination with regulators During the startup of SNRC and as effluent water quality data is obtained the WDRs and WRRs include various thresholds, monitoring trigger levels, and response actions that require detailed understanding of Title 22 Regulations and other water regulations. Trussell Technologies has been an industry leader in the implementation of projects with complex and challenging reporting requirements and has project specific experience in the development of SNRC’s OOP as a subconsultant to another vendor. Agenda Item #4c February 28, 20242 Meeting Date: February 28, 2024 Agenda Item #4c Discussion Item 1 0 4 1 Trussell Technologies is uniquely qualified to provide these support services based on their expertise in regulatory coordination, reporting requirements, and SNRC prior experience. Staff solicited a proposal from Trussell Technologies to provide support in the development of Monthly and Quarterly reports for the first year of operations and reporting of SRNC. Staff negotiated the proposed scope of work with Trussell and developed a draft Professional Services Agreement that are both attached to this staff report. The not-to-exceed proposed cost of this work is $99,880 for one year of support, if approved, funding for these activities will come from Water Reclamation's contract services budget for this fiscal year and included in next fiscal year's proposed budget. Following the one-year support period, staff intends to have all the templates and experience to perform the reporting work in-house moving forward. If specialty support services are needed in future years for non-routine reporting scenarios, staff will conduct a separate solicitation for such services. AGENCY GOALS AND OBJECTIVES I. Implement Effective Solutions Through Visionary Leadership A. Identify Opportunities to Optimize Natural Resources C. Strengthen Regional, State and National Partnerships III. Deliver Public Service With Purpose While Embracing Continuous Growth D. Embrace an Environment of Active Learning and Knowledge Sharing Through State-of-the-Art Data Management 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 D. Enable Fact-Based Decision Making REVIEW BY OTHERS This agenda item has been reviewed by the Executive Committee. FISCAL IMPACT This item is funded in the current fiscal year budget and will be included in next fiscal years proposed budget for consideration by the Board. Recommended by:Respectfully submitted: Agenda Item #4c February 28, 20243 Meeting Date: February 28, 2024 Agenda Item #4c Discussion Item 1 0 4 1 ________________ Michael Moore General Manager/CEO ________________ Rocky Welborn Water Reclamation Manager ATTACHMENTS Draft Agreement 2024.04 Exhibit A- Trussell Proposal Sterling Natural Resource Center Routine DDW and RWQCB Regulatory Reporting Support 1 EVWD Standard-Professionals Agreement AGREEMENT NO 2024.04 EAST VALLEY WATER DISTRICT FOR FOR PROFESSIONAL SERVICES FOR SNRC REGULATORY REPORTING SUPPORT THIS AGREEMENT is made this day of February, 2024, 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 Trussell Technologies, Inc. , (hereinafter referred to as “CONSULTANT”). RECITALS WHEREAS, the DISTRICT desires to contract with CONSULTANT to provide design professional services for Sterling Natural Resources Center Routine DDW and RWQCB Regulatory Reporting Support (hereinafter referred to as “Project”); and WHEREAS, CONSULTANT is willing to contract with the DISTRICT to provide such services; and WHEREAS, CONSULTANT 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 CONSULTANT to provide the services described herein for the Project. COVENANTS Sterling Natural Resource Center Routine DDW and RWQCB Regulatory Reporting Support 2 EVWD Standard-Professionals Agreement 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 CONSULTANT AND AUTHORIZATION TO PROCEED 1.1 ENGAGEMENT: The DISTRICT hereby engages CONSULTANT, and CONSULTANT hereby accepts the engagement, to perform certain design professional 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 CONSULTANT 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 other security documents required pursuant to Section 6.3 of this Agreement are received and approved by the DISTRICT. CONSULTANT shall not proceed with said work until so authorized by the DISTRICT, and shall commence work promptly upon receipt of the Notice to Proceed. 1.3 NO EMPLOYEE RELATIONSHIP: CONSULTANT 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. CONSULTANT 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. CONSULTANT 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 CONSULTANT or any employee of CONSULTANT for work performed under this Agreement. ARTICLE II SERVICES OF CONSULTANT 2.1 SCOPE OF SERVICES: The scope of design professional services to be performed by the CONSULTANT 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 Sterling Natural Resource Center Routine DDW and RWQCB Regulatory Reporting Support 3 EVWD Standard-Professionals Agreement specifically addressed, include all related services ordinarily provided by the CONSULTANT 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 DEPARTMENT OF INDUSTRIAL RELATIONS COMPLIANCE: This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the California Public Contract Code, or engage in the performance of any contract for public work, as defined by the California Labor Code, unless currently registered and qualified to perform public work pursuant to Section 1725.5 of the California Labor Code. 2.3 PREVAILING WAGES: In accordance with the provisions of the California Labor Code, CONSULTANT shall secure the payment of compensation to employees. To the extent required by the California Labor Code, CONSULTANT 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. CONSULTANT shall post a copy of such determination at each job site. If applicable, CONSULTANT 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 CONSULTANT or by any subcontractor. 2.4 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 to public contracts are a part of this Agreement to the same extent as though set forth herein and will be complied with by CONSULTANT. CONSULTANT shall comply with all applicable provisions of the California Labor Code relating to working hours and the employment of apprentices on public works projects. CONSULTANT shall, as a penalty to the DISTRICT, forfeit $25.00 for each worker employed in the execution of this Agreement by CONSULTANT 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 Sterling Natural Resource Center Routine DDW and RWQCB Regulatory Reporting Support 4 EVWD Standard-Professionals Agreement 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 CONSULTANT 3.1 DUTIES OF THE DISTRICT: The DISTRICT, without cost to CONSULTANT, will provide all pertinent information necessary for CONSULTANT’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 CONSULTANT is to acquire such information. The DISTRICT does not guarantee or ensure the accuracy of any reports, information, and/or data so provided. However, the DISTRICT will notify CONSULTANT if it becomes aware of any errors in the reports, information and/or data it provides and will take reasonable steps to correct any such errors and to promptly give CONSULTANT the corrected information. 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, 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 CONSULTANT of the change in writing. 3.3 DUTIES OF CONSULTANT: CONSULTANT 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 CONSULTANT pursuant to this Agreement. The CONSULTANT 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 CONSULTANT of responsibility for the technical Sterling Natural Resource Center Routine DDW and RWQCB Regulatory Reporting Support 5 EVWD Standard-Professionals Agreement 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 by the DISTRICT is indicated in this Agreement, it is understood to be conceptual approval only and does not relieve the CONSULTANT 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 CONSULTANT or its subcontractors. CONSULTANT’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 CONSULTANT or its subcontractors as set forth above in this paragraph. ARTICLE IV PAYMENTS TO CONSULTANT 4.1 PAYMENT: The DISTRICT will pay CONSULTANT for work performed under this Agreement, which work can be verified by the DISTRICT, on the basis of the following: CONSULTANT 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 CONSULTANT 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 thereunder. Adjustments in the total payment amount shall only be allowed pursuant to Section 6.4 of this Agreement. In no event shall CONSULTANT 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 CONSULTANT or any subcontractor performing work on the Project. 4.2 PAYMENT TO CONSULTANT: Payment will be made by the DISTRICT within thirty (30) calendar days after receipt of an invoice from CONSULTANT, provided that all invoices are complete and product and services are determined to be of sufficient quality by the DISTRICT. CONSULTANT shall invoice DISTRICT monthly for services performed under this Agreement. In the event that a payment dispute arises between the parties, CONSULTANT shall provide to the DISTRICT full and complete access to CONSULTANT’s labor cost records and other direct cost data, and copies thereof, at CONSULTANT’s Pasadena office during regular Sterling Natural Resource Center Routine DDW and RWQCB Regulatory Reporting Support 6 EVWD Standard-Professionals Agreement business hours, if requested by the DISTRICT at DISTRICT’s expense. The parties will in good faith attempt to resolve any disputes under this section in a reasonable and timely manner. 4.3 ESTIMATED CHARGES: The total estimated charges for all work under this Agreement are not to exceed $__99,880.00______ and such amount is the cost ceiling as described herein. The total estimated charges stated herein constitute the total amount agreed to. 4.4 COST FOR REWORK: CONSULTANT shall, at no cost to the DISTRICT, prepare any necessary rework occasioned by CONSULTANT’s negligent act or omission or otherwise due substantially to CONSULTANT’s fault. ARTICLE V COMPLETION SCHEDULE 5.1 TASK SCHEDULE: The work is anticipated to be completed in accordance with the schedule contained in the Scope of Work. 5.2 TIME OF ESSENCE: CONSULTANT 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. 5.3 TERM: The term of this Agreement is 1 year from the date of execution. ARTICLE VI GENERAL PROVISIONS 6.1 COMPLIANCE WITH FEDERAL, STATE, AND LOCAL LAWS: CONSULTANT 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 CONSULTANTS: No subcontract shall be awarded by CONSULTANT if not identified as a subcontractor in its Proposal unless prior written approval is obtained from the DISTRICT. CONSULTANT shall be responsible for payment to subcontractors used by them to perform the services under this Agreement. If CONSULTANT subcontracts any of the work to be performed, CONSULTANT shall be as fully responsible to the DISTRICT for the performance of the work, including errors and omissions of CONSULTANT’s subcontractors and of the persons employed by the subcontractor, as CONSULTANT is for the acts and omissions of persons directly employed by the Sterling Natural Resource Center Routine DDW and RWQCB Regulatory Reporting Support 7 EVWD Standard-Professionals Agreement CONSULTANT. Nothing contained in this Agreement shall create any contractual relationship between any subcontractor of CONSULTANT and the DISTRICT. CONSULTANT shall bind every subcontractor and every subcontractor of a subcontractor to the terms of this Agreement that are applicable to CONSULTANT’s work unless specifically noted to the contrary in the subcontract in question and approved in writing by the DISTRICT. 6.3 INSURANCE: CONSULTANT 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 CONSULTANT. 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, CONSULTANT 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 the following provisions or have them incorporated by endorsement(s): (1) Primary Coverage: The insurance policies provided by CONSULTANT 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 CONSULTANT’s insurance. (2) Additional Insured: The policies of insurance provided by CONSULTANT, 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 Sterling Natural Resource Center Routine DDW and RWQCB Regulatory Reporting Support 8 EVWD Standard-Professionals Agreement 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 CONSULTANT 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 CONSULTANT. (5) Claim Reporting: CONSULTANT 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 CONSULTANT 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. CONSULTANT shall be solely responsible for any such deductible or self-insured retention and the DISTRICT, in its sole discretion, may require CONSULTANT 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) Consultant’s Subcontractors: CONSULTANT 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 CONSULTANT under this Agreement. (c) Insurance Company Requirements: CONSULTANT 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 Sterling Natural Resource Center Routine DDW and RWQCB Regulatory Reporting Support 9 EVWD Standard-Professionals Agreement 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: CONSULTANT shall maintain Workers' Compensation insurance as required by law in the State of California to cover CONSULTANT’s obligations as imposed by federal and state law having jurisdiction over CONSULTANT’s employees and Employers' Liability insurance, including disease coverage, of not less than $1,000,000. (2) General Liability: CONSULTANT 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: CONSULTANT 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. (4) Professional Liability: CONSULTANT shall maintain Professional Liability insurance covering errors and omissions arising out of the services performed by the CONSULTANT or any person employed by him, with a limit of not less than $1,000,000 per occurrence or claim and $1,000,000 aggregate. In the event the 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. 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 Sterling Natural Resource Center Routine DDW and RWQCB Regulatory Reporting Support 10 EVWD Standard-Professionals Agreement time of completion, an equitable adjustment shall be made and this Agreement shall be modified in writing accordingly. CONSULTANT must assert any claim for adjustment under this clause in writing within thirty (30) calendar days from the date of receipt from CONSULTANT 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 31111 Greenspot Road Highland, CA 92346 Attn: Engineering Manager To CONSULTANT: _Trussell Technologies, Inc. _____ _4350 Executive Drive, Suite 300_ _San Diego, CA 92121__________________ Attn: _Shane Trussell________________________ 6.6 CONSULTANT’S ASSIGNED PERSONNEL: CONSULTANT designates __Eileen Idica____ 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, CONSULTANT shall substitute with a person acceptable to the DISTRICT. 6.7 TERMINATION: (a) If the engagement of CONSULTANT is not extended by the mutual written consent of the DISTRICT and CONSULTANT, 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 CONSULTANT. CONSULTANT may terminate its obligation to provide further Sterling Natural Resource Center Routine DDW and RWQCB Regulatory Reporting Support 11 EVWD Standard-Professionals Agreement 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 CONSULTANT. (c) In the event of termination of this Agreement or abandonment of any portion of the Project, the DISTRICT shall be immediately given title to all original drawings and other documents developed for the Project, and the sole right and remedy of CONSULTANT shall be to receive payment for all amounts due and not previously paid to CONSULTANT 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 CONSULTANT, after good faith consultation and reasonable efforts by the parties to reach such agreement. The foregoing notwithstanding, if the parties cannot reach accord on outstanding amounts, despite all good faith efforts, CONSULTANT shall be free to pursue legal and/or equitable remedies available to it to recover any remaining amounts. Such payments available to the CONSULTANT 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 CONSULTANT brings an action or proceeding for damages for an alleged breach of any provision of this Agreement, to 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. 6.9 INDEMNITY: (a) CONSULTANT 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, that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT or Sterling Natural Resource Center Routine DDW and RWQCB Regulatory Reporting Support 12 EVWD Standard-Professionals Agreement any of CONSULTANT’s subcontractors, including their respective directors, officers, employees, agents and assigns, excepting in no event shall the cost to defend charged to CONSULTANT exceed the CONSULTANT’s proportional percentage of fault. (b) CONSULTANT 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 CONSULTANT or CONSULTANT’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 CONSULTANT or CONSULTANT’s subcontractors, including their respective directors, officers, employees, agents and assigns, in connection with the performance of services under this Agreement. CONSULTANT 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 provisions of this Agreement. (c) CONSULTANT 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 CONSULTANT or CONSULTANT’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 CONSULTANT 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. Sterling Natural Resource Center Routine DDW and RWQCB Regulatory Reporting Support 13 EVWD Standard-Professionals Agreement 6.10 SAFETY: CONSULTANT 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) CONSULTANT 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, CONSULTANT’s employees, and third persons. All work shall be performed entirely at CONSULTANT’s risk. CONSULTANT shall comply with the insurance requirements set forth in Section 6.3 of this Agreement. (b) CONSULTANT shall also furnish the DISTRICT with a copy of any injury prevention program established for the CONSULTANT’s employees pursuant to Labor Code Section 6401.7, including any necessary documentation regarding implementation of the program. CONSULTANT 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. CONSULTANT 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. 6.11 EXAMINATION OF RECORDS: All original drawings, specifications, reports, calculations, and other documents or electronic data developed by CONSULTANT for the Project shall be furnished to and become the property of the DISTRICT. CONSULTANT 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 at CONSULTANT’s offices in Pasadena during regular business hours. All copies will be done at DISTRICT’s expense. The obligations under this provision shall continue for a period of three years following the termination or completion of this agreement, whichever comes first. 6.12 OWNERSHIP OF SOFTWARE: (a) Subject to payment of all compensation due under this Agreement and all other terms and conditions herein, CONSULTANT hereby grants DISTRICT a nonexclusive, transferable, royalty-free license to use the Software furnished to DISTRICT by CONSULTANT under this Agreement. The license granted herein shall authorize DISTRICT to: (1) Install the Software on computer systems owned, leased or otherwise controlled by DISTRICT; Sterling Natural Resource Center Routine DDW and RWQCB Regulatory Reporting Support 14 EVWD Standard-Professionals Agreement (2) Utilize the Software for its internal data-processing purposes; and (3) Copy the Software and distribute as desired to exercise the rights granted herein. (b) CONSULTANT retains its entire right, title and interest in the Software developed under this Agreement. DISTRICT acknowledges that CONSULTANT owns or holds a license to use and sublicense various pre-existing development tools, routines, subroutines and other programs, data and materials that CONSULTANT may include in the Software developed under this Agreement. This material shall be referred to hereafter as “Background Technology.” (c) DISTRICT agrees that CONSULTANT shall retain any and all rights CONSULTANT may have in the Background Technology. CONSULTANT grants DISTRICT an unrestricted, nonexclusive, perpetual, fully paid-up worldwide license to use the Background Technology in the Software developed and delivered to DISTRICT under this Agreement, and all updates and revisions thereto. However, DISTRICT shall make no other commercial use of the Background Technology without CONSULTANT’s written consent. 6.13 INTEGRATION AND AMENDMENT: This Agreement contains the entire understanding between the DISTRICT and CONSULTANT as to those matters contained herein. No other representations, covenants, undertakings or other prior or contemporaneous agreements, 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. 6.14 ASSIGNMENT: Neither party shall assign 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. 6.15 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 with in rem jurisdiction over the Project. Sterling Natural Resource Center Routine DDW and RWQCB Regulatory Reporting Support 15 EVWD Standard-Professionals Agreement 6.16 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. 6.17 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. 6.18 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. 6.19 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. 6.20 FORCE MAJEURE: Neither Party hereto shall be considered in default of performance of its obligations under this Agreement to the extent that the performance is prevented or delayed by any cause which is beyond the Party’s reasonable control and/or could not have been anticipated by the affected Party, including, but not limited to, acts of God, floods, fire, earthquakes, strikes, boycotts or other labor disputes, war, riots, civil unrest, acts or failures to act by any government entity, or similar types of events. The time for performance hereunder shall, to the extent feasible, be extended by a period of time equal to the time lost because of such force majeure situation, provided, however, that prompt notice of such situation shall be provided to the other Party and reasonable efforts shall be used to mitigate any potential adverse impacts. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above. CONSULTANT DISTRICT By:_____________________________ By:_____________________________ _____________________________ East Valley Water District (Print Name and Title) Sterling Natural Resource Center Routine DDW and RWQCB Regulatory Reporting Support 16 EVWD Standard-Professionals Agreement EXHIBIT A SCOPE OF WORK 4350 Executive Drive, Suite 305, San Diego, CA 92121 (858) 458-1030 February 1, 2024 Rocky Welborn, P.E., BCEE Water Reclamation Manager East Valley Water District 31111 Greenspot Road Highland, CA 92346 rwelborn@eastvalley.org Subject: Proposal for Sterling Natural Resource Center Routine DDW and RWQCB Regulatory Reporting Support for 2024 Dear Mr. Welborn, We appreciate the opportunity to provide you and the East Valley Water District with a proposal for regulatory reporting support to assist the Sterling Natural Resource Center project. Trussell’s extensive experience in developing reports per Division of Drinking Water and Regional Water Quality Control Board requirements for potable reuse and environmental discharge ensures that the work proposed herein will be accomplished efficiently and with opportunities for optimization implemented when possible. Please feel free to contact me with any questions. Sincerely, Eileen Idica, Ph.D., P.E. Principal Engineer Trussell Technologies, Inc. Cell: (858) 232-8175 eileeni@trusselltech.com Cc. Shane Trussell, Ph.D., P.E., BCEE, President & CEO, Trussell Technologies Exhibit "A" Trussell Technologies, Inc. Page 1 of 3 East Valley Water District Sterling Natural Resource Center Routine DDW and RWQCB Regulatory Reporting Support for 2024 East Valley Water District’s (EVWD’s) Sterling Natural Resource Center (SNRC) project recently started discharging treated recycled water into the Weaver Basins for potable reuse as a groundwater replenishment project via surface application. Under the project’s Waste Discharge Requirements and Master Recycling Permit (Order No. R8-2023-0009), the project is required to produce routine reports on monthly, quarterly, semi-annual, and annual frequencies. This scope of work covers the routine reports that are due between February 10, 2024 and February 15, 2025. SCOPE OF WORK Task 1 – Regulatory Reporting for 2024 (Routine Reports due February 10, 2024 to February 15, 2025) Task 1.1 – Monthly DDW LRV Reports Monthly reports are due to the Division of Drinking Water (DDW) to document daily pathogen log reduction values (LRV) for compliance with the permit and regulation requirements. These reports are due on the 10th month following the reporting month (first day to last day of calendar month). Trussell with develop a draft of each monthly report (reporting periods from January 2024 to January 2025; 13 reports total) and incorporate comments from one comment-review cycle with EVWD. It is assumed that EVWD will provide operating data on membrane filtrate turbidity and UV operating parameters (number of banks online, UV dose, influent UVT, and flow rate). It is also assumed that EVWD will provide information and context for any off-spec events to be reported on these monthly reports, such as additional operating data and copies of relevant operator log entries. Trussell assumes one onsite visit to set up data transfer procedures for the initial report(s). Task 1.2 – Quarterly Self Monitoring Reports Quarterly self monitoring reports are reports that compile all required monitoring on continuous, daily, weekly, monthly, and quarterly frequencies for all required monitoring locations, including influent, effluent, lysimeter, monitoring wells, and diluent water. Most of the data contained in each quarterly report comes from laboratory analytical data, with the remainder being operating data. Trussell will develop a draft of each quarterly report (reporting periods each quarter of 2024; 4 reports total), including a cover letter that clearly identifies any violations of the permit and associated corrective actions and required documentation. Trussell will incorporate comments from one comment-review cycle with EVWD for each quarterly report. As part of this task, Trussell will coordinate with Eurofins (or other contracted lab(s) performing EVWD’s compliance monitoring analyses) to ensure that upload to DDW’s electronic database for water quality monitoring (CLIP) is occurring as required by DDW; any deviations are to be noted in the quarterly reports. It is assumed that Trussell will be able to coordinate directly with Eurofins for copies of lab results reports as PDF and MSExcel formats as they are generated, and for other Trussell Technologies, Inc. Page 2 of 3 questions pertaining to information required in the quarterly reports. It is assumed that lab data will not be compiled into a laboratory information management system (LIMS) and as such will need to be organized by Trussell manually. It is also assumed that EVWD will provide information and context for any off-spec events to be reported on these quarterly reports, such as additional operating data and copies of relevant operator log entries. For the first year of operation, there is no semi-annual monitoring required; as such, there is no requirement for semi-annual reports. As part of this task, Trussell will develop a brief letter to indicate that no semi-annual data was required and that no semi-annual report is submitted, for EVWD to submit. Please note that this will change after the first year of operation, particularly for CEC monitoring per the permit. General Assumption for Task 1 • EVWD will sign, certify, and directly submit the regulatory reports described above, unless EVWD has authorized a Trussell engineer to do so, in writing, with DDW and RWQCB. Task 2 – DDW and RWCQB Technical Support As-needed Trussell will support EVWD with technical support for items as needed with DDW and RWQCB as relates to compliance that is separate from development of the monthly and quarterly reports. Potential tasks include continuing discussion with DDW on follow-up items from the DDW inspection and OOP, clarification or modification of requirements in the permit with RWQCB, and optimization of sampling for compliance. Task 3 – Project Management This task involves budget tracking, schedule management, and monthly invoicing. Trussell Technologies, Inc. Page 3 of 3 Schedule Trussell anticipates this work to occur between February 2024 and February 2025. Budget Based on our present knowledge of the work described herein, we recommend that $99,880.00, on a not-to-exceed time and materials basis, be budgeted for this project. The budget breakdown by labor hours and other direct costs is shown below and Trussell’s current rate sheet is attached. TRUSSELL TECHNOLOGIES, INC. HOURLY BILLING RATES Billing Rate Normal Hourly 1 Rate Expert Daily 2 Rate Senior Company Officer $ 400 $ 4,800 Principal Engineer III $ 380 $ 4,560 Principal Engineer II $ 360 $ 4,320 Principal Engineer I $ 340 $ 4,080 Supervising Engineer III $ 320 - Supervising Engineer II $ 300 - Supervising Engineer I $ 280 - Senior Engineer III $ 260 - Senior Engineer II $ 240 - Senior Engineer I $ 230 - Engineer II $ 215 - Engineer I $ 195 - Senior Drafter I $ 195 - Senior Office Manager II $ 195 - Associate Engineer II $ 180 - Senior Office Manager I $ 180 - Associate Engineer I $ 175 - Office Manager III $ 175 - Assistant Engineer II $ 165 - Office Manager II $ 165 - Assistant Engineer I $ 145 - Office Manager I $ 145 - Lab Assistant II $ 140 - Office Assistant II $ 140 - Lab Assistant I $ 120 - Office Assistant I $ 120 - 1. Time will be billed in 15 minute increments 2. Time will be billed in increments of one day Other Direct Costs Mileage for vehicle use to be reimbursed at current IRS rate. Travel, equipment rental and other direct costs to be reimbursed at actual cost plus 5%. Outside Professional Services: Outside professional services to be reimbursed at actual cost plus 15% Trussell Technologies respectfully requests the ability to update billing rates at a frequency of every twelve (12) months, based on CPI and other cost increases. Justification for the request would be provided for review, comment, and approval. 10/20/23