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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 06/10/2015DRAFT BUDGET FISCAL YEAR 2015/16 LEADERSHIP PARTNERSHIP STEWARDSHIP EAST VALLEY WATER DISTRICT HIGHLAND, CALIFORNIA DR A F T TABLE OF CONTENTS Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Transmittal Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 District Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 GFOA Distinguished Budget Award . . . . . . . . . . . . . . . . . .3 Budget Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 District Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 District Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Financial Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Budget Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Authorized and Funded Positions . . . . . . . . . . . . . . . . . . . .19 Financial Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 District Wide Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31 District Wide Itemized Expense Summary . . . . . . . . . . . . .33 Fund Equity Summary (Accrual Basis) . . . . . . . . . . . . . . . . .35 Fund Equity History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 Water Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37 Wastewater Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 Program Summaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57 Governing Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59 General Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 Public Affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65 Conservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67 Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69 Information Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71 Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73 Meter Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77 Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79 Water Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81 Water Treatment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87 Water Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89 Water Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91 Wastewater Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 Facilities Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .97 Fleet Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101 Capital Outlay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103 Capital Improvement Program . . . . . . . . . . . . . . . . . . . . . . . . .105 Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145 Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .147 DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 1 <<<INSERT TEXT HERE>>> HONORABLE CHAIRMAN,GOVERNING BOARDand DISTRICT RATEPAYERS: DISTRICT OFFICIALS JAMES MORALES, JR. Chairman of the Board GOVERNING BOARD RONALD L. COATS Vice Chairman CHRIS CARILLO Director BEN COLEMAN Director NANETTE SHELTON Director DR A F T 2 JOHN MURA General Manager/CEO BRIAN TOMPKINS Chief Financial Officer KERRIE BRYAN Human Resources/Risk and Safety Manager JUSTINE HENDRICKSEN District Clerk TOM HOLLIMAN Engineering Manager KELLY MALLOY Public Affairs/Conservation Manager ROBERT PENG Information Technology Manager MARIE RICCI Finance Manager <<<INSERT TEXT HERE>>> DISTRICT MANAGEMENT LEADERSHIP PARTNERSHIP STEWARDSHIP DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 3 GFOA DISTINGUISHEDBUDGET AWARD The Government of Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to East Valley Water District, California for its annual budget for the fiscal year beginning July 1, 2014 . In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device . This award is valid for a period of one year only . We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award . BUDGETGUIDE The budget document is EVWD’s annual financial plan prepared by District Management and approved by the Governing Board . The financial plan serves as a policy document, operations guide for programs, and as means of transparent communication . The intended audience of the budget document is citizens, local businesses, debt holders and debt rating agencies, other governmental agencies, and other stakeholders . BUDGET DOCUMENT SECTIONS The budget document consists of 9 sections, including: INTRODUCTION The Budget Overview section includes the General Manager/CEO’s Budget Transmittal Letter, GFOA Distinguished Budget Award, District Profile, District Officials, Organizational Structure, District Vision (Mission Statement), Financial Management Policies, Budget Guide BUDGET OVERVIEW This section includes a summary of the Budget Highlights and Authorized Positions . FINANCIAL SUMMARY This section presents an in-depth District-wide overview of the Fiscal Year 2015-16 Budget . WATER FUND This section provides a description of the Water Fund balances, reserves, and debt service . WASTEWATER FUND This section provides a description of the Wastewater Fund balances, reserves, and debt service . PROGRAM SUMMARIES This section provides comprehensive information for each functional program within the District including their operational budget . The Fiscal Year 2015-16 Budget is organized into the following summary programs: • Governing Board • General Administration • Human Resources • Public Affairs • Conservation • Finance • Information Technology DR A F T 4 • Customer Service • Meter Service • Engineering • Water Production • Water Treatment • Water Quality • Maintenance Administration • Water Maintenance • Wastewater Maintenance • Facilities Maintenance • Fleet Maintenance Each program section includes: Program Personnel This section is the authorized personnel allocated to each program . Function This section includes a basic description of the responsibilities of each program . Goals & Objectives This section identifies specific goals and objectives for Fiscal Year 2015-16 . Accomplishments This section includes highlights from Fiscal Year 2014-15 . Significant Changes This section identifies causes of significant changes to program funding . Program Budget Detail This section is a breakdown of the program expenditures by category or line item . BUDGET GUIDE DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 5 BUDGET GUIDE Significant Changes This section presents major changes that have impacted program operation . CAPITAL OUTLAY This section presents in one section the Capital Outlay purchases included in the Fiscal Year 2015-16 Budget . CAPITAL IMPROVEMENT PROGRAM This section presents the Capital Improvement Projects included in the Fiscal Year 2015-16 Budget . GLOSSARY This section provides definitions for general terms and the Chart of Accounts used throughout the budget document . BUDGET FINANCIAL INFORMATION East Valley Water District operates on a fiscal year, or budget time period, that begins on July 1 and ends on June 30 . For example, Fiscal Year 2015-16 (FY 2015- 16 or FY 2016), means July 1, 2015 through June 30, 2016 . In most sections of the budget document, three years of information is provided, with two columns of information reflected for the current year (FY 2015) . The columns typically presented are: FY 2014 FY 2015 FY 2015 FY 2016 Prior Year Actual Budget Projected Proposed % Change FY 2014 ACTUAL Actual financial information for Fiscal Year 2014 as reported in the Comprehensive Annual Financial Report . The actual financial information is reported in the budget document on a budgetary basis . FY 2015 BUDGET The FY 2015 Budget as adopted by the Governing Board on June 25, 2014 and may also include any adjustments approved by the Governing Board at the Mid-Year Budget Review . FY 2015 PROJECTED The FY 2015 Projected column reflects the FY 2015 Budget in addition to any budget amendments approved by the Governing Board during the fiscal year . The FY 2015 Projected column is also adjusted to reflect management’s estimate of what revenues and expenditures will be at the end of the fiscal year . FY 2016 PROPOSED This column initially reflects the FY 2015-16 Proposed Budget submitted by the General Manager/CEO . After the Governing Board reviews and approves the Fiscal Year 2016 Budget, the information in the FY 2016 column changes, if necessary, to reflect the Board’s actions . PRIOR YEAR PERCENT CHANGE This column provides the percent change from the previous year’s budget to the newly proposed budget . DR A F T 6 THIS PAGE IS LEFT BLANK INTENTIONALLY DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 7 DISTRICTPROFILE East Valley Water District (EVWD or District) is a California Special District that provides water and wastewater service to residents within its 27 .7 square mile service area and is governed by a five member Governing Board elected at-large to staggered four year terms by EVWD constituents . East Valley Water District is a 100% rate-based organization that receives no tax-related revenue and operates in accordance with Division 12 of the California Water Code . The District was formed on January 18, 1954, through an election of local residents, mostly citrus grove operators, to have water service provided by a public water agency . The District is located in the foothills of the San Bernardino Mountains, approximately 65 miles east of Los Angeles in the County of San Bernardino . With a service area encompassing 27 .7 square miles, the District provides water and service to 101,733 residents within the City of Highland, eastern portions of the City of San Bernardino, the San Manuel Band of Mission Indians, Patton State Hospital, and portions of unincorporated County of San Bernardino . WATER SOURCES EVWD utilizes a mix of groundwater from the Bunker Hill Groundwater Basin, surface water from the Santa Ana River, and imported water from the State Water Project . The District is heavily reliant on groundwater which supplies approximately 80% of customer demand . Surface water is treated and distributed from the Philip A . Disch Surface Water Treatment Plant (Plant 134) . In 2013, the District completed an upgrade and expansion of Plant 134 to allow the treatment and distribution of up to 8 million gallons per day of water into the system using an ultra-filtration membrane system, resulting in additional system capacity and supply reliability . WASTEWATER COLLECTION & TREATMENT The District is responsible for the collection and conveyance of wastewater within the service area . All wastewater is sent to the City of San Bernardino Municipal Water Department where it is treated in accordance with a Joint Powers Agreement . In order to create a new source of supply to benefit the groundwater basin, the District is seeking activation of their wastewater treatment authority and produce recycled water . CUSTOMERS The District serves a wide range of residential and commercial customers in the area, in addition to the San Manuel Band of Mission Indians, San Manuel Indian Casino and Bingo, and Patton State Hospital . A majority of customers are residential (84 percent), with less than 2 percent of customers classified as agricultural users . WEATHER The weather in Highland/San Bernardino varies throughout the year . During the summer temperatures can reach over 115° F and as low as 40° F during the winter . This area typically averages 18 inches of precipitation annually, mostly during the months of January through March . DR A F T 8 The weather pattern helps the District forecast water usage during the year . This information is used to determine the best strategy to pump and distribute water to customers . Cost, supply, and system constraints are also considered when determining the water supply mix . GOVERNMENT The District is organized in a way that provides responsive and effective service to the rate payers . EVWD is governed by a five member Governing Board elected by voters at-large to four year terms . The Board represents the public’s interest as policy makers with regard to rates for service, assessments, policies, ordinances, and other overall matters related to the management and operation of the District . Appointed by the Governing Board, the General Manager/CEO is responsible for overseeing daily operations and managing staff resources . EDUCATION Residents within East Valley Water District’s service area have access to award winning K-12 schools through the Redlands and San Bernardino City Unified School Districts . Local colleges and universities include nearby California State University, San Bernardino, the University of California at Riverside, the University of Redlands, Loma Linda University, and junior colleges such as Riverside Community College, Crafton Hills College, and San Bernardino Valley Community College . HOSPITAL AND MEDICAL FACILITIES Hospital or medical facilities located in or near the East Valley Water District service area include Arrowhead Regional Medical Center, Loma Linda University Hospital, Kaiser Permanente Hospital, Redlands Community Hospital, San Bernardino Community Hospital, Veteran’s Administration, and St . Bernadine Medical Center . DISTRICT PROFILE DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 9 ORGANIZATIONALSTRUCTURE RATE PAYERS GOVERNING BOARD LEGAL COUNSEL GENERAL MANAGER/CEO PUBLIC AFFAIRS CHIEF FINANCIAL OFFICER CONSERVATIONFINANCE CUSTOMER SERVICE INFORMATION TECHNOLOGY GENERAL ADMINISTRATION HUMAN RESOURCES ENGINEERING OPERATIONS ASSISTANT GENERAL MANAGER DR A F T 10 THIS PAGE IS LEFT BLANK INTENTIONALLY DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 11 DISTRICTVISION In April 2015, the Governing Board adopted a new District Vision and Core Values to replace the existing Mission Statement. Additionally, the District adopted ambitious Agency Ideals and Organizational Endeavors to further enhance the effort set forth in the 2012 Strategic Initiatives. East Valley Water District is a performance based agency. In order to ensure consistent decision-making throughout the organization, the Governing Board adopted the updated District Vision. By setting clear expectations, all staff members are encouraged to be active participants in operations while looking for opportunities to make a positive impact on the community. VISION CORE VALUES Enhance and preserve the quality of life for our community through innovative leadership and world class public service. LEADERSHIP Motivating a group of people to act towards achieving a common goal or destination. PARTNERSHIP Developing relationships between a wide range of groups and individuals through collaboration and shared responsibility. STEWARDSHIP Embracing the responsibility of enhancing and protecting resources considered worth caring for and preserving. EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 11 DR A F T 12 DISTRICT VISION AGENCY IDEALS &ORGANIZATIONAL ENDEAVORS I II III IV ENCOURAGE INNOVATIVE INVESTMENTS TO PROMOTE SUSTAINABLE BENEFITS A . Develop Projects and Programs to Ensure Safe and Reliable Services B . Manage and Identify Methods to Conserve Natural Resources C . Enhance Emergency Preparedness Programs D . Dedicate Effort Toward System Maintenance and Modernization E . Actively Seek Alternative Supply Resources MAINTAIN AN ENVIRONMENT COMMITTED TO ELEVATED PUBLIC SERVICE A . Strive To Provide World Class Customer Relations B . Promote a Positive Organizational Culture C . Identify Strategies to Attract and Retain a High Quality Workforce D . Maximize Staff and Governing Board Capabilities Through Ongoing Professional Development E . Practice Transparent and Accountable Fiscal Management DEMONSTRATE VISIONARY LEADERSHIP TO ENHANCE DISTRICT IDENTITY A . Promote Community Involvement and Educational Opportunities B . Strengthen Regional, State and National Partnerships C . Utilize Innovative Communication Methods D . Respect and Preserve Regional Heritage E . Develop a Proactive Legislative Presence FULLY UNDERSTAND CHALLENGES TO CULTIVATE EFFECTIVE SOLUTIONS A . Support Ongoing Business Process Improvement B . Encourage Performance Based Results Through Staff Empowerment C . Pursue Alternative Funding Sources D . Embrace An Environment of Active Learning and Knowledge Sharing E . Conduct Post Implementation Evaluations and Make Improvements as NecessaryDR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 13 FINANCIAL FINANCIAL POLICIES The East Valley Water District financial management policies provide a basic framework for the overall fiscal management of the District . The policies represent a foundation for addressing changing circumstances and conditions, and to assist in the decision-making process . Financial policies represent guidelines for evaluating both current activities and proposals for future programs . They also reflect long-standing principles and practices, which have enabled the District to maintain its financial stability . Policies are reviewed annually to ensure the guidelines represent a realistic, current framework for policy decisions . BALANCED BUDGET East Valley Water District shall prepare an itemized budget for each fund and each program within those funds . The budgets will be balanced, with current revenues equal to or greater than current expenditures/expenses using the following strategies: improve productivity; raise fees to offset costs of providing services and/or use reserves if available . Investment Policy The District’s Investment Policy applies to the investment of short-term operating funds of the District in excess of those funds required to meet current District expenditures . District policy requires adherence to California Government Code sections 5921 and 5360 regarding allowable investments . The policy also includes guidelines on Pooling of Funds, Safety, Liquidity, Yield, Prudence, Ethical Standards, Risk, Diversification, and Reporting . RESERVE POLICY The District recognizes that fiscal responsibility requires anticipating, and preparing for, unforeseen events, in addition to ensuring sufficient funding is available for current operating, capital, and debt service needs . To that end, the District has adopted a Designated Funds (Reserve) Policy as part of prudent financial planning and to ensure sufficient funding for current and future needs . The Designated Funds Policy has established the following reserves and reserve target levels: • Operating Reserves – maintain 90 days of District’s budgeted total operating expenses; • Rate Stabilization Reserves – maintain 45 days of District’s budgeted total operating expenses; • Capital Replacement Reserves – minimum of 100 percent of depreciation expense for the preceding year; • Emergency Reserves – 2 percent of the total value of Plant and Equipment . DEBT POLICY The District has adopted a policy regarding the utilization of debt . Standards established in this policy require: • An equitable allocation of capital costs/charges between current and future system users; • Minimum rate volatility . In addition, the District confines long-term borrowing to capital improvements for projects that cannot be financed from current revenues . When the District MANAGEMENT DR A F T 14 finances capital projects by issuing bonds, it will pay back the bonds within a period not to exceed the estimated useful life of the project . The District maintains good communication with bond rating agencies regarding financial condition and will follow a policy of full disclosure on every financial report . BASIS OF ACCOUNTING AND BUDGETING The District’s financial records are kept in accordance with Generally Accepted Accounting Principles (GAAP) for governmental enterprise funds . The District follows the GAAP requirement that enterprise funds use the full accrual basis of accounting . However, there are exceptions where the accrual basis is not conducive to effective presentation of the District’s budget, in which case, GAAP is not followed . Those exceptions are as follows: • Compensated absence liabilities that are expected to be liquidated with current expendable financial resources are accrued as earned by employees (GAAP standard) as opposed to being expended when paid (budget procedure) . • Principal payments on Long Term Debt are applied to the outstanding liability on a GAAP basis, as opposed to being expended on a Budget basis . • Capital Outlay are capitalized on a GAAP basis, however, on a Budget basis, they are treated as expenditures . • Depreciation expense is recorded on a GAAP basis but is not contemplated on the Budget basis . • Interest expenditures are capitalized during construction on a GAAP basis, but are reported as an expense on a Budget basis . The activities of enterprise funds closely resemble those of ongoing businesses in which the purpose is to conserve and add to resources while meeting operating expenses from current revenues . Enterprise funds account for operations that provide services on a continuous basis and, in the case of East Valley Water District, are entirely financed by revenues derived from user charges . The District maintains a self-balancing set of accounts established to record the financial position and operating results that pertain to each activity . BUDGET DEVELOPMENT & PROCESS The budget reflects direction from the Governing Board as established by the Strategic Plan and communicated to the District’s staff through various meetings and workshops . The purpose of this budget document is to provide staff with a road map for prioritizing Capital Improvement Projects and fulfilling the District’s mission statement . The Fiscal Year 2014-15 Budget represents guidelines established to address the District’s short-term and long-term goals and objectives . This document also demonstrates the District’s ability to use capital resources for completing critical capital projects for current and future customers as well as the District’s commitment to meet its financial obligations . Staff is confident that the financial framework outlined in the FY 2015-16 Budget will allow the District to deliver reliable, high-quality water and wastewater services to its customers in a prudent and sustainable manner . Each year programs establish goals and objectives in support of the District’s guiding principles that provide clear direction to staff regarding District-wide priorities . Program Managers identify accompanying measures and targets to track progress toward achieving and communicating the intent of the objective against expected performance levels . Progress is measured throughout the fiscal year and reported to the Governing Board on a quarterly basis . Moreover, in developing the budget, staff used the Strategic Plan as a guide to provide the foundation for prioritizing efforts, activities, needs, human resources, and financial resources . BUDGET ADJUSTMENTS In January of each year, District management meets to analyze revenues and spending to determine, if any, where transfers between budget line items are necessary in order to ensure that budget limitations are not exceeded . Managers and supervisors will submit requests for transfers prior to the Mid-Year budget review and authorized staff will review the requests and submit them to the Board for approval . When possible, transfers have no net effect on the original budget balance . However, if revenue shortfalls or unanticipated costs are realized, and transfers between line items cannot meet the projected deficit, FINANCIAL MANAGEMENT DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 15 projects are evaluated and a determination of either projects deferral or draws on reserves is made to meet the shortfall . All proposed changes are presented to the Governing Board at a Mid-Year budget review . FINANCIAL MANAGEMENT BUDGETPROCESS STRATEGIC INITIATIVES East Valley Water District maintains Strategic Initiatives that have been designed to serve as a guide for all District activities in order to operate the District efficiently and effectively . DEVELOP PROGRAM GOALS & OBJECTIVES Program goals and objectives are established each year in anticipation of necessary actions that should take place during the specific fiscal year . ESTABLISH KEY PERFORMANCE INDICATORS & ESTIMATE COSTS In order to measure the program success, the District establishes measurable Key Performance Indicators and costs estimates that are referenced throughout the year . This information is subsequently utilized in the production of future budgets to identify need and potential for increased efficiencies . ADOPT BUDGET Following a public workshop where the budget is presented to the Governing Board, the completed document is adopted at a regularly scheduled board meeting . MONITOR PROGRAMS & ADJUST AS NECESSARY Throughout the Fiscal Year, staff monitors the budget, and makes minor adjustments as necessary . Should an unanticipated significant event or need occur, staff presents recomendations to the Governing Board for approval . STAKEHOLDER INPUT STRATEGIC INITIATIVES MONITOR PROGRAMS & ADJUST AS NECESSARY DEVELOP PROGRAM GOALS& OBJECTIVES ADOPT BUDGET ESTABLISH KEY PERFORMANCE INDICATORS & ESTIMATE COSTS DR A F T 16 FINANCIAL MANAGEMENT STAKEHOLDER INPUT East Valley Water District holds a number of opportunities for stakeholders, including community members, to provide input regarding District operations . This organization takes great pride in a commitment to leadership, partnership, and stewardship in all operations and activities . CURRENT AND PROPOSED BUDGET CYCLE CALENDAR DATE ACTIVITY JUNE 3, 2015 FY 2015-16 Budget Workshop JUNE 10, 2015 FY 2015-16 Budget Adoption First Quarter Budget Review Budget meeting to distribute worksheets to management staff Mid-Year Budget Review Capital Outlay and Capital Improvement Program Planning Meeting New Position Requests due to Finance Capital Improvement Project Requests due to Finance Program Budget Requests due to Finance Third Quarter Budget Review Districtwide Budget Review with managers and General Manager/CEO Capital Outlay and CIP Budget Review with manangers and General Manager/CEO Budget complete with all revisions FY 2016-17 Budget Workshop FY 2016-17 Budget AdoptionDR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 17 BUDGETOVERVIEW East Valley Water District utilizes program-based budgeting . Requested funds are associated with program goals and objectives . Performance is then reviewed on a quarterly basis with the Board of Directors . This performance based strategy provides the ability to monitor expenses related to a particular program or activity and track measurable benefits . Program-based budgeting results can be used in cost- benefit analyses, just as it would be in a business environment to determine the value of decisions and enhance transparency . District management worked collaboratively to re-evaluate the organizational priorities and corporate culture . As a result, the District Vision was adopted which included: • Vision Statement (replaced Mission Statement) • Core Values (formally adopting the Leadership, Partnership, Stewardship tag line) • Agency Ideals (replaced Strategic Initiatives) • Organizational Endeavors (replaced Strategic Objectives) District staff has developed program goals and objectives that can be directly related back to the District Vision . By adopting this Vision and clearly identifying the road to achieve this vision, rate payers and Board of Directors can more easily see where dollars are invested, monitor the effectiveness of programs, and increase policy engagement . The following Budget Highlights were the driving factors that influenced the development of the FY 2015-16 Budget . BUDGET HIGHLIGHTS CALIFORNIA DROUGHT The Conservation Program has gained significant momentum for FY 2015-16 . Governor Brown’s Executive Order on April 1, 2015 requires EVWD to reduce water consumption by 28 percent . The District has embraced its responsibility to protect our natural resources and educate customers to a new way of life in the community . To comply with the regulations, the District has made great investments in the Conservation Program by proposing a $1 million rebate program for turf replacement and weather based smart irrigation controllers . To further provide additional assistance to customers and ensure compliance with complex reporting to the State, a Conservation Analyst has been proposed in for FY 2015-16 to administer and monitor the conservation programs . RECYCLED WATER CENTER Efforts continue for the building of a Recycled Water Center . WATER BUDGET BASED RATES The District has taken major steps to encourage efficient water use and secure the agency’s long-term financial stability . In March 2015, the Governing Board unanimously voted to adopt budget based water rates . Budget based rates create an opportunity to DR A F T 18 BUDGET OVERVIEW provide our customers with more information about their water use along with a new level of service . This rate structure has significantly changed the proportion of revenue received from water sales . It has been designed to responsibly encourage conservation while still funding much needed pipeline and storage projects . Additionally, as part of the rate analysis process, a 20 percent reduction in water conservation was incorporated to address state mandates to reduce water consumption by 28 percent . TRANSPARENCY AND ACCOUNTABILITY The development of the District’s budget is constantly evolving to become more detailed and transparent to show all efforts to be as effective and efficient with rate payer’s dollars . Staff expanded contract services to clearly identify critical services . This has added quantifiable accountability to the programs and allows staff to make more informed decisions when encountering difficult monetary choices . LABOR AND BENEFITS As a result of the Organizational Assessment completed and adopted by the Governing Board on the MOU with the San Bernardino Public Employee Association was ratified . It included market increases to certain positions as a result of the Classification and Compensation survey . Moreover, a 2 percent COLA increase be effective July 1, 2015 and an additional 2 percent will be applied in July 1, 2016 . However, employees will now contribute their portion of retirement costs, therefore reducing the Districts obligation to CalPERS . Labor costs are increasing as a result of 5 new positions added to the FY 2015-16 Budget: 1 – Operations Manager: This position will replace the Water Production Superintendent who will retire in July 2015 . The Operations Manager will oversee both Operations and Maintenance and focus on strategically responding to long-term challenges for the field . 1 – Conservation Analyst: In response to the drought, this position will be able to provide technical application and implementation of programs and reporting required by the State . 2 – Conservation Representatives: These positions are intended to monitor the service area to enforce compliance with State and District water restrictions and mandates . 1 – Public Affairs Representative: This position is intended to focus solely on managing and scheduling the use of the District Headquarters for special events as request continue to increase . Benefits have decreased for the following reasons: 1 . Employees have increased their contribution to retirement from 4% to 6% . 2 . In July 2014, the District paid off a side-fund with CalPERS 2 years early which resulted in a savings of $60,000 over the next 2 years . 3 . The employer contribution rate for FY 2015-16 has decreased from 16 .55% to 10 .82% of total base salaries . CAPITAL NEEDS Continued contributions to capital investments are a priority for the District . The District continues to evaluate vehicles and equipment as well as infrastructure to ensure proper planning and funding . THE DISTRICT’S BUDGET IS CONSTANTLY EVOLVING TO BECOME MORE DETAILED AND TRANSPARENT.DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 19 AUTHORIZED ANDFUNDED POSITIONS In FY 2014-15, the District conducted an Organizational Assessment and Compensation Study to analyze the District’s organization structure and determine whether the design is appropriate and efficient for current and future operational demands as well as ensure the District’s compensation and benefit packages are competitive to attract and retain a quality workforce . During this time, a Public Affairs Specialist was added in January 2015 to further enhance the public outreach for the multitude of ongoing programs provided to customers . Enhancing the Conservation Program was also necessary to continue to encourage customers to reduce non-essential water usage . As such, Public Affairs was divided into a second Department to address this need with Conservation Analyst proposed as a full-time permanent position for FY 2015-16 . The table below summarizes the number of Full Time Equivalent (FTE) by Department, followed by a detail of the positions in each Department . All authorized positions are funded in the proposed budget . For FY 2015-16, there will be 67 FTE, and 3 proposed part-time temporary employees: 1 Public Affairs Representative and 2 Conservation Representatives . STAFFING SUMMARY BY DEPARTMENT DEPARTMENT FY 2013-14 ACTUAL FY 2014-15 BUDGET FY 2015-16 PROPOSED 2000 – General Administration 3 3 3 2100 – Human Resources 2 .5 2 .5 2 2200 – Public Affairs 3 4 2 .5 2300 – Conservation 0 0 2 .5 3000 – Finance 7 7 7 3200 – Information Technology 2 3 3 3300 – Customer Service 8 8 8 3400 – Meter Services 4 4 4 4000 – Engineering 7 .5 6 .5 6 5000 – Water Production 7 7 7 5100 – Water Treatment 2 2 2 5200 – Water Quality 2 2 2 6000 – Maintenance Admin 2 2 2 6100 – Water Maintenance 11 11 11 6200 – Wastewater Maintenance 2 2 2 7000 – Facilities Maintenance 1 1 1 7100 – Fleet Maintenance 2 2 2 TOTAL DISTRICT EMPLOYEES 65 66 67 DR A F T 20 AUTHORIZED AND FUNDED POSITIONS NUMBER OFAUTHORIZEDPOSITIONS 65 66 68 PROGRAM/POSITION FY 2013-14 ACTUAL FY 2014-15 BUDGET FY 2015-16 PROPOSED GENERAL ADMINISTRATION General Manager 1 1 1 Assistant General Manager 1 1 1 District Clerk 1 1 1 DEPARTMENT SUBTOTAL 3 3 3 HUMAN RESOURCES HR/Risk & Safety Manager 1 1 1 Senior Administrative Assistant 1 1 1 Administrative Intern 0 .5 0 .5 0 .5 DEPARTMENT SUBTOTAL 2 .5 2 .5 2 .5 fy 2014 63 63 fy 2012 fy 2013 fy 2015 fy 2016fy 2011fy 2010 6668 DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 21 PROGRAM/POSITION FY 2013-14 ACTUAL FY 2014-15 BUDGET FY 2015-16 PROPOSED PUBLIC AFFAIRS Public Affairs/Conservation Manager 1 1 0 .5 Public Affairs Specialist 0 1 1 Senior Administrative Assistant 1 1 1 Public Affairs Representative (Part Time) 0 0 0 .5 DEPARTMENT SUBTOTAL 2 3 3 CONSERVATION Public Affairs/Conservation Manager 0 1 0 .5 Conservation Analyst 0 0 1 Conservation Coordinator 1 1 1 Conservation Representative (2-Part Time)0 0 1 DEPARTMENT SUBTOTAL 1 2 3 .5 FINANCE Chief Financial Officer 1 1 1 Finance Manager 1 1 1 Senior Accountant 1 1 1 Senior Accounting Technician 1 1 1 Administrative Assistant 1 1 1 Storekeeper/Buyer 1 1 1 Accounting Technician 1 1 1 DEPARTMENT SUBTOTAL 7 7 7 INFORMATION TECHNOLOGY Information Technology Manager 1 1 1 Network Administrator 1 1 1 Information Systems Technician 0 1 1 DEPARTMENT SUBTOTAL 2 3 3 AUTHORIZED AND FUNDED POSITIONS DR A F T 22 AUTHORIZED AND FUNDED POSITIONS PROGRAM/POSITION FY 2013-14 ACTUAL FY 2014-15 BUDGET FY 2015-16 PROPOSED CUSTOMER SERVICE Customer Service Supervisor 1 1 1 Senior Customer Service Representative 1 1 1 Customer Service Representative II 1 1 3 Customer Service Representative I 4 4 2 Receptionist 1 1 1 DEPARTMENT SUBTOTAL 8 8 8 METER SERVICE Field Service Representative 1 1 1 Meter Reader II 1 1 1 Meter Reader I 2 2 2 DEPARTMENT SUBTOTAL 4 4 4 ENGINEERING Engineering and Operations Manager 1 1 1 Associate Engineer 1 1 1 Senior Engineering Technician 1 1 1 Engineering Technician II 1 1 2 Engineering Technician I 2 1 0 Senior Administrative Assistant 1 1 1 Administrative Intern (Part Time)0 .5 0 .5 0 .5 DEPARTMENT SUBTOTAL 7 .5 6 .5 6 .5 WATER PRODUCTION ADMINISTRATION Operations Manager 0 0 1 Water Production Superintendent 1 1 0 Administrative Assistant 1 1 1 DEPARTMENT SUBTOTAL 2 2 2 DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 23 PROGRAM/POSITION FY 2013-14 ACTUAL FY 2014-15 BUDGET FY 2015-16 PROPOSED WATER PRODUCTION WELLS AND BOOSTERS Senior Water Production Operator 1 1 1 Water Production Operator III 3 3 3 Water Production Operator II 1 1 1 DEPARTMENT SUBTOTAL 5 5 5 WATER TREATMENT Water Production Supervisor 1 1 1 Senior Treatment Plant Operator 1 1 1 DEPARTMENT SUBTOTAL 2 2 2 WATER QUALITY Water Quality Coordinator 1 1 1 Water Quality Technician 1 1 1 DEPARTMENT SUBTOTAL 2 2 2 FIELD MAINTENANCE ADMINISTRATION Field Service Superintendent 1 1 1 Field Service Supervisor 1 1 1 DEPARTMENT SUBTOTAL 2 2 2 WATER MAINTENANCE Senior Field Service Worker 2 2 2 Field Service Worker III 2 2 2 Field Service Worker II 2 2 4 Field Service Worker I 5 5 3 DEPARTMENT SUBTOTAL 11 11 11 WASTEWATER MAINTENANCE Field Service Worker II 2 2 2 DEPARTMENT SUBTOTAL 2 2 2 AUTHORIZED AND FUNDED POSITIONS DR A F T 24 AUTHORIZED AND FUNDED POSITIONS PROGRAM/POSITION FY 2013-14 ACTUAL FY 2014-15 BUDGET FY 2015-16 PROPOSED FACILITIES MAINTENANCE Facilities Maintenance Coordinator 1 1 1 DEPARTMENT SUBTOTAL 1 1 1 FLEET MAINTENANCE Senior Equipment Mechanic 1 1 1 Equipment Mechanic II 1 1 1 DEPARTMENT SUBTOTAL 2 2 2 TOTAL AUTHORIZED POSITIONS 65 66 70 DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 25 OTHER CHARGES FINANCIALSUMMARY East Valley Water District strives to provide water delivery and wastewater collection services at an affordable price to the community while elevating the level of service provided to customers and other stakeholders . A critical component to serving the community is ensuring that the District takes steps to maintain a reliable and dependable water supply, through a balance of long-term capital improvements, preventative maintenance, and effective daily operations . The District continues to evaluate projects and programs to optimize operations and minimize costs, without compromising system reliability . REVENUES Each year, revenues projections are carefully calculated based on a number of factors . Staff reviews five years of data and makes population and growth assumptions based on the updated Water and Wastewater Master Plans . Additionally, the information is cross referenced with information provided by the State Department of Finance and regional agencies such as the San Bernardino Association of Governments (SANBAG) . This information serves as a foundation to help the District to be as accurate as possible in estimating service delivery needs . The implementation of Water Budget Based Rates has changed the sources of revenues . Water sales makes up only 36 percent of revenues where as in previous years, it has made up 45 percent . The shift has increased the District’s financial position by stabilizing rates and revenues for future years . DISTRICT REVENUESBY SOURCE fy 2015-16 36% WATER SALES 14% WW COLLECTIONS 22% WW TREATMENT 24% METER CHARGES 4% OTHER CHARGES 45% WATER SALES fy 2014-15 15% METER CHARGES 14% WW COLLECTIONS 22% WW TREATMENT 4% DR A F T 26 EXPENSES Each program is evaluated on an annual basis to determine its effectiveness . As staff continues to strategically optimize processes to enhance services to the community, expenses are shifting to other programs and staff is taking advantage of opportunities to collaborate with other agencies and consolidating projects with single consultants . Staff continues to seek opportunities to reduce contract services where possible while balancing the need for expert consulting services due to the high level of projects and programs that are being considered by the District . CAPITAL OUTLAY The Capital Outlay Budget is an effort to plan for the replacement of vehicles and equipment . The objective is to standardize the replacement process in order to create a managed system of purchasing and funding capital equipment, thereby allowing the District to accurately plan and budget for future needs . Staff has scheduled replacements in intervals on an annual basis to reduce capital, operating and maintenance costs in order to maximize the safety and efficiency of the District’s equipment . Staff continues to work on enhancing the replacement schedule that will project level spending for equipment replacement and acquisition for future years . The FY 2015-16 Capital Outlay budget totals $700,000 with a heavy emphasis on vehicle and equipment replacement . It is important to maintain a reliable fleet to ensure prompt response to calls in the field . This budget also includes the purchase of a hydro excavator in the amount of $400,000 . FINANCIAL SUMMARY DISTRICT-WIDEEXPENSES 49% OPERATING EXPENSES 22% PERSONNEL18% CAPITAL INVESTMENTS 11% DEBT SERVICE DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 27 CAPITAL IMPROVEMENT PROGRAM Due to limited resources, staff has identified and prioritized the projects that need to be completed to provide safe and reliable water delivery and wastewater collection services to customers . In past years, the District has utilized bond funding to pay for necessary infrastructure improvements and enhancements . Those funding sources were depleted in FY 2014-15 and in order to continue to address infrastructure improvements, identifying new sources of funding will be imperative in keeping up with the required construction . The total budget for Capital Improvement Projects is just over $6 .3 million . Fortunately, for FY 2015-16, staff was able to secure a $2 million grant from the State to implement Automated Metering Infrastructure (AMI) . The projects included in the Capital Improvement Program include the Del Rosa Facility Upgrade to ensure the District provides accessibility to customers on the west-end of the District . Since the completion of the Plant 134 upgrade, pipeline and boosting enhancements must be completed to meet the distribution capacity of the upgraded Plant . Lastly, staff has identified projects that need to be completed to accommodate new development occurring in the community, without these projects economic progress will be delayed because the District will not be in the position to support new development efforts . DEBT SERVICE The District has established its own policies regarding the utilization of debt instruments . According to the District’s Debt Policy, it confines long-term borrowing to capital improvement for projects that cannot be financed from current revenues . The District has a bond rating of AA- as rated by Standard & Poor’s Ratings Services and Fitch Ratings . Bond rating is a credit risk evaluation for investors and is the single most important factor in determining the interest cost of bonds issued . A rating of AA- is considered a high quality investment grade rating . There is no statutory or charter debt limitation . However, the Installment Purchase Agreement for the 2010 and 2013 Bonds require the District to maintain a debt coverage ratio equal to 120 percent of debt service per year . It is calculated as follows: FINANCIAL SUMMARY DEBT COVERAGE =RATIO NET REVENUE TOTAL DEBTSERVICE $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 Plant 134 Loan 2010 Bonds HQ Bonds US Bank REQUIRED DEBT SERVICE COVERAGE DR A F T 28 FINANCIAL SUMMARY The District has the following outstanding debt: 2010 BONDS: The purpose for issuing these bonds was to provide $16 million for future capital improvements, and for refunding all of the Districts outstanding long-term debt . The refunding decreased total debt service by approximately $1 .73 million over 14 years and save the District approximately $1 .8 million overall . 2013 BONDS: The purpose for issuing this bond was to provide financing for the construction of a new administration and operations headquarters . For the past 10 years, the District had been operating out of 2 locations . One location was offices located in a strip mall with an annual rental cost of $200,000 . In an effort to consolidate Administration and Operations, a new headquarters was constructed . DWR LOANS: The District was able to secure 0 percent interest loans from the State to fund consolidation projects of mutual water companies with East Valley Water District so they would comply with Federal and State Water Quality mandates and to upgrade Treatment Plant 134 with new technology that would be more effective and efficient supplying potable water to customers . U.S. BANK LOAN: The District worked in collaboration with Honeywell to complete several energy conservation measures that would help the District operate more efficiently . In order to fund these projects, U .S . Bank provided the District with approximately $4 million which would be paid back with the energy costs savings generated by the completed projects . The Table below summarizes the District’s debt obligation: ISSUE TERM (YEARS)RATE (%)AMOUNT ANNUAL DEBT SERVICE 2010 Refund Revenue Bonds 30 4 $ 28,845,000 $ 2,588,688 2013 Revenue Bonds 30 4 .4 12,085,000 585,125 DWR Loan – Arroyo Verde 30 0 104,812 6,762 DWR Loan – Eastwood Farms 30 0 390,482 13,016 DWR Loan – Plant 134 30 0 7,001,964 233,398 DWR Loan – Plant 150 Design 5 0 70,000 20,000 U .S . Bank Loan 10 2 .3 $ 3,671,848 $ 458,360 The FY 2015-16 increase in Debt Service is attributed to the following factors: 1 . Plant 134 Upgrade is complete and the repayment of the 30 year, 0 percent interest loan from the State of California will begin FY 2015-16 . The following schedule below is the District’s total annual debt service for the next 30 years: DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 29 FINANCIAL SUMMARY ANNUAL DEBT SERVICE YEAR ENDING JUNE 30 PRINCIPAL INTEREST TOTAL 2016 $ 1,960,916 $ 1,944,432 $ 3,905,349 2017 3,407,257 1,908,093 5,315,350 2018 3,455,410 1,831,851 5,287,260 2019 3,522,729 1,745,663 5,268,392 2020 - 2024 17,090,834 7,540,052 24,630,886 2025 - 2029 8,821,545 6,086,600 14,908,145 2030 - 2034 7,121,995 4,939,331 12,061,326 2035 - 2039 8,661,995 3,415,063 12,077,058 2040 - 2044 11,001,994 1,301,625 12,303,619 TOTAL $ 65,044,674 $ 30,712,710 $ 95,757,385 FUND STRUCTURE A California special district, East Valley Water District engages in two separate and distince business-type activities, including: • Acquisition, treatment and distribution of potable water, and the construction, repair and replacement of related infrastructure • Collection of domestic and industrial wastewater, and the construction, repair and replacement of conveyance facilities Accordingly, the District’s budget is organized on the basis of two major enterprise funds—water and wastewater . Each enterprise fund is considered a separate budgetary and accounting entity, reported on a full accrual accounting basis with the exceptions noted in the Basis of Accounting and Budgeting section on page XX of this document . Each fund is a separate fiscal entity with its own self balancing set of accounts, and rates and budgets are adopted for each to support the associated operating and capital costs . Each enterprise fund records cash and financial resources, together with all related liabilities and residual equity balances . Operations and maintenance programs are supported by the financial resources of each fund in accordance with the allocations presented later in this section . WATERFUND WASTEWATERFUND WATERSALES SERVICECHARGES INTERSTINCOME OTHERINCOME SEWERSERVICECHARGES WATER CAPITALEXPENDITURES DISTRICT OPERATIONS & MAINTENANCEPROGRAMS WASTEWATERCAPITALEXPENDITURES DR A F T 30 FUND/PROGRAM RELATIONSHIP Operating expenses incurred by each of the District’s programs are allocated to the water and wastewater funds based on the assumed benefit of each service to each fund . The Benefit Assessment entailed the evaluation of each program and the services provided through activity based costing . With the implementation of Water Budget Based Rates, more costs were shifted from the Wastewater Fund to the Water Fund due to the increased cost of administering the new rates . This resulted in increasing the allocation of Information Technology and Customer Service from being evenly split between both funds to 70 percent allocated to Water and 30 percent allocated to Wastewater . Fleet Maintenance was determined by the number of vehicles in the fleet used for each service operation . SIGNIFICANT CHANGES As the District continues to pursue financial accountability and transparency to the highest standards, staff has become more detailed . As such, contract services such as landscaping, uniforms, shut off notice delivery and banking fees have been identified as their own line item . Each year, staff works to identify costs and place them in the correct category to better evaluate and establish goals and objectives . After increased water restrictions and mandates from the State, the District felt it was necessary to separate the Conservation Program to address the drought . In order to encourage conservation, $1 million was dedicated to customer rebates to assist them in the costs of removing turf and installing smart irrigation meters . Overall, the District Budget is balanced, with a transfer from reserves in the amount of $3 .35 million from Wastewater Reserves . This will pay for the purchase of land for the Recycled Water Center Project and staff anticipates that State loans and grants will reimburse the District for these prepaid costs . FINANCIAL SUMMARY PROGRAM WATER FUND WASTEWATER FUND TOTAL Governing Board General Administration Human Resources Public Affairs Conservation Finance Information Technology Customer Service Meter Services Engineering Water Production Administration Source of Supply Pumping Transmission & Distribution Water Treatment Water Quality Maintenance Administration Water Maintenance Wastewater Maintenance Facilities Maintenance Fleet Maintenance DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 31 DISTRICT WIDESUMMARY FY 2015-16 PROPOSED BUDGET DISTRICT WIDE SUMMARY ITEM FY 2014 ACTUALS FY 2015 BUDGET FY 2015 PROJECTED FY 2016 PROPOSED AMOUNT CHANGED % CHANGE REVENUES 4100 - Water Sales $15,351,608 $ 14,000,000 $14,000,000 $11,950,000 $(2,050,000)-15% 4200 - Meter Charges 4,704,035 4,710,000 4,710,000 8,175,000 3,465,000 74% 4301 - Penalties 569,820 510,000 500,000 550,000 40,000 8% 4400 - WW Collection Charges 4,649,212 4,510,000 4,510,000 4,600,000 90,000 2% 4500 - WWTreatment Charges 7,197,418 6,861,600 6,861,600 7,250,000 388,400 6% 4605 - Other Operating Charge 148,481 600,000 600,000 785,000 185,000 31% 4701 - Interest Income 64,129 10,000 - 35,000 25,000 250% 4703 - Energy Incentives/Rebates 105,490 150,000 150,000 50,000 (100,000)-67% 4704 - Miscellaneous Revenue 121,827 130,000 130,000 25,000 (105,000)-81% TOTAL REVENUES $32,912,020 $31,481,600 $31,461,600 $33,420,000 $1,938,400 6% EXPENSES - OPERATING 1000 - Governing Board $249,122 $ 160,000 $ 160,000 $ 295,000 $ 135,000 84% 2000 - General Administration 1,441,704 1,348,000 1,328,000 1,312,000 (36,000)-3% 2100 - HR/Risk Management 484,378 685,000 665,300 697,000 12,000 2% 2200 - Public Affairs 593,070 829,500 844,500 507,000 (322,500)-39% 2300 - Conservation - - - 1,511,000 1,511,000 100% 3000 - Finance 795,575 1,153,000 1,175,000 992,300 (160,700)-14% 3200 - Information Technology 444,959 563,500 573,500 619,300 55,800 10% 3300 - Customer Service 1,272,919 1,351,550 1,595,500 1,716,500 389,950 27% 3400 - Meter Services 260,413 352,000 331,000 353,500 1,500 0% 4000 - Engineering 1,246,144 910,600 907,600 870,500 (40,100)-4% 5000 - Water Production Admin 397,061 377,500 367,800 353,000 (24,500)-6% 5000-51 - Source of Supply 2,646,923 3,055,000 3,070,000 3,278,000 223,000 7% 5000-52 - Pumps & Boosters 1,000,456 933,000 683,000 960,000 27,000 3% 5000-54 - Trans & Distribution 58,140 222,000 192,000 200,000 (22,000)-10% 5100 - Water Treatment 805,867 962,500 742,500 736,000 (226,500)-24% 5200 - Water Quality 279,910 363,000 363,000 342,000 (21,000)-6% 6000 - Maintenance Admin 490,066 378,250 380,750 355,500 (22,750)-6% 6100 - Water Maintenance 1,278,711 1,642,000 1,642,000 1,672,000 30,000 2% 6200 - Wastewater Maintenance $ 7,509,831 $ 7,369,600 $ 7,369,600 $ 7,709,000 $ 339,400 5% DR A F T 32 DISTRICT WIDE SUMMARY ITEM FY 2014 ACTUALS FY 2015 BUDGET FY 2015 PROJECTED FY 2016 PROPOSED AMOUNT CHANGED % CHANGE 7000 - Facilities Maintenance 776,353 560,500 560,500 788,000 227,500 41% 7100 - Fleet Maintenance 469,281 564,500 564,500 529,500 (35,000)-6% SUBTOTAL OPERATING EXPENSES $23,781,000 $23,516,050 $25,797,100 $ 2,041,100 9% EXPENSES - OTHER Debt Service $ - $ 3,574,200 $ 3,574,200 $ 3,925,000 $ 350,800 Capital Outlay - 207,500 207,500 700,000 492,500 Capital Improvement - 3,918,900 4,163,850 2,997,900 (689,250) Transfer from Reserves - 1,600,000 1,600,000 3,364,460 1,764,460 SUBTOTAL OTHER EXPENSES $ - $ 9,300,600 $ 9,545,550 $ 11,219,110 $ 1,918,510 NET $ - $ -$ -$ -$ - DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 33 DISTRICT WIDE ITEMIZEDEXPENSE SUMMARY FY 2015-16 PROPOSED BUDGET DISTRICT WIDE ITEMIZED EXPENSE SUMMARY ITEM FY 2014 ACTUALS FY 2015 BUDGET FY 2015 PROJECTED FY 2016 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 - Regular Labor $ 4,664,405 $ 5,225,000 $ 5,225,000 $ 5,645,000 $ 420,000 8 .0% 5102 - Temporary Labor 23,207 52,000 52,000 57,000 5,000 9 .6% 5103 - Overtime 207,338 239,750 239,750 275,500 35,750 14 .9% 5104 - Standby 36,639 35,000 35,000 40,000 5,000 14 .3% 5200 - Benefits 1,935,811 2,009,000 2,009,000 1,882,000 (127,000)-6 .3% PERSONNEL TOTAL $ 6,867,400 $ 7,560,750 $ 7,560,750 $ 7,899,500 $ 338,750 4 .5% WATER SUPPLY 6101 - Purchased Water $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ - 0 .0% 6102 - Replenishment 193,130 215,000 215,000 175,000 (40,000)-18 .6% 6103 - Water Assessment 158,341 205,000 205,000 200,000 (5,000)-2 .4% WATER SUPPLY TOTAL $ 551,471 $ 620,000 $ 620,000 $ 575,000 $ (45,000)-21 .0% OPERATING EXPENSES 6201 - Materials & Supplies $ 546,800 $ 637,000 $ 637,000 $ 589,500 $ (47,500)-7 .5% 6202 - Tools 13,171 31,000 31,000 26,000 (5,000)-16 .1% 6203 - Office Supplies 47,536 45,500 45,500 42,500 (3,000)-6 .6% 6204 - Chemicals 295,844 500,000 375,000 340,000 (160,000)-32 .0% 6205 - Conservation Rebates - - - 1,000,000 1,000,000 100 .0% 6301 - Contract Services 3,349,715 3,111,600 3,111,600 2,130,000 (981,600)-31 .5% 6302 - Banking Services 195,864 108,550 108,550 310,000 201,450 185 .6% 6303 - Printing & Publishing 65,522 52,000 52,000 78,500 26,500 51 .0% 6304 - Legal Services 181,481 326,000 326,000 265,000 (61,000)-18 .7% 6305 - Treatment Services 7,197,418 6,861,600 6,861,600 7,250,000 388,400 5 .7% 6306 - Rents & Leases 133,749 2,500 2,500 36,000 33,500 1340 .0% 6307 - Uniforms - - - 73,000 73,000 100 .0% 6308 - Billing Services - - - 75,000 75,000 100 .0% 6309 - 48-hr Notices $ - $ - $ - $ 375,000 $ 375,000 100 .0% 6310 - Street Services - - - 250,000 250,000 100 .0% DR A F T 34 DISTRICT WIDE ITEMIZED EXPENSE SUMMARY FY 2015-16 PROPOSED BUDGET DISTRICT WIDE ITEMIZED EXPENSE SUMMARY CONTINUED ITEM FY 2013-14 ACTUALS FY 2014-15 BUDGET FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE 6310 - Street Services - - - 250,000 250,000 100 .0% 6311 - Landscape Svcs - - - 142,000 142,000 100 .0% 6312 - Janitorial Svcs - - - 125,000 125,000 100 .0% 6401 - Utilities 47,698 30,000 30,000 25,000 (5,000)-16 .7% 6402 - Telephone 118,378 114,500 114,500 129,000 14,500 12 .7% 6403 - Electricity 2,352,605 2,725,000 2,475,000 2,975,000 250,000 9 .2% 6404 - Fuel 120,709 175,000 175,000 175,000 - 0 .0% 6405 - Permits 75,912 196,000 196,000 109,000 (87,000)-44 .4% 6406 - Postage 184,364 148,500 148,500 195,500 47,000 31 .6% 6501 - Memberships 64,785 82,500 82,500 106,600 24,100 29 .2% 6502 - Prof Dev 111,670 187,000 187,000 167,000 (20,000)-10 .7% 6503 - Edu Assistance 13,358 16,000 16,000 5,500 (10,500)-65 .6% 6504 - Meetings - - - 8,500 8,500 100 .0% 6505 - Emp Recog - - - 8,500 8,500 100 .0% 6701 - Gen Insurance 184,075 250,000 250,000 254,500 4,500 1 .8% 6702 - Ins Claims 2,167 - - 1,000 1,000 100 .0% 6703 - Over/Short 138 - - - - 0 .0% 6705 - OPEB Retirees - - - 55,000 55,000 100 .0% EXPENSES TOTAL $ 15,302,958 $ 15,600,250 $ 15,225,250 $ 17,347,600 $ 1,747,350 11 .2% TOTAL EXPENSES $ 22,721,829 $ 23,781,000 $23,406,000 $ 25,797,100 $ 2,016,100 8 .5%DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 35 DISTRICT WIDE ITEMIZED EXPENSE SUMMARY FY 2015-16 PROPOSED BUDGET FUND EQUITY SUMMARY (ACCRUAL BASIS) ITEM WATER WASTEWATER TOTAL 2014 OPERATING REVENUES TOTAL OPERATING REVENUES OPERATING EXPENSES TOTAL OPERATING EXPENSES OPERATING INCOME (LOSS) NON-OPERATING REVENUES (EXPENSES) TOTAL NON-OPERATING REVENUES (EXPENSES) INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS DR A F T 36 DISTRICT WIDE ITEMIZED EXPENSE SUMMARY FY 2015-16 PROPOSED BUDGET FUND EQUITY SUMMARY (ACCRUAL BASIS) CONTINUED ITEM WATER WASTEWATER TOTAL 2014 CONTRIBUTIONS AND TRANSFERS TOTAL CONTRIBUTIONS AND TRANSFERS CHANGE IN NET POSITION ESTIMATED FUND EQUITY, JUNE 30, 2015 FUND EQUITY HISTORY FOR FISCAL YEAR ENDING JUNE 30, 2010 THROUGHT FISCAL YEAR ENDING JUNE 30, 2014 WATER WASTEWATER TOTAL 2014 FUND EQUITY JUNE 30, 2010 FUND EQUITY JUNE 30, 2011 FUND EQUITY JUNE 30, 2012 FUND EQUITY JUNE 30, 2013 FUND EQUITY JUNE 30, 2014DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 37 WATERFUND East Valley Water District understands the importance of preserving California’s water supplies, especially in times of drought, and has taken many steps to encourage water use efficiency . The Water Budget Based Rates promote water efficiency is and is based on the cost of service; is equitable and fair; promotes sustainable behavior change; has shown to be effective in reducing water use; and is supported by Governor Brown in his Executive Order on Water Restrictions issued on April 1, 2015 that calls on water agencies throughout California to implement structures that promote conservation . Water Budget Based Rates structure has been recognized by the State Water Resources Control Board for producing superior water savings and is an approved alternative approach for compliance with current California Drought Emergency Conservation Regulations . RATES EVWD bills all customers on a monthly basis for water usage . In March 2015, the Board of Directors unanimously approved restructuring the water rates from a uniform structure to Water Budget Based rates to encourage efficient water use and secure the District’s long-term financial stability . The Board’s decision also included the approval of a three-year schedule of changes to the District’s water rates . Water Budget Based Rates are designed to treat customers fairly by meeting each individual customer’s unique needs . Its intent is to determine the quantity of water that would be considered an efficient level of water use . EVWD considers multiple factors in calculating each customer’s monthly water budget: • Number of Occupants • Number of Dwelling Units • Medical Needs • Horses/Live Stock • Business Needs • Agricultural Needs • Irrigable Landscape • Weather The new rates have been designed with a three-tier structure, each developed based on the District’s cost of service to provide three different sources and uses of water . Based on the new rate structure, approximately 60 percent of the District’s revenue requirements may be captured from the amount of water used . FY 2016 rates became effective on June 1, 2015 . MONTHLY METER CHARGE METER SIZE FY 2015 FY 2016 FY 2017 FY 2018 5/8 in .$ 13 .71 $ 20 .96 $ 23 .06 $ 24 .67 3/8 in .13 .71 26 .61 29 .27 31 .32 1 in .20 .87 37 .92 41 .71 44 .63 1 .5 in .38 .60 66 .19 72 .81 77 .91 2 in .88 .48 100 .12 110 .13 117 .84 3 in .163 .25 207 .54 228 .30 244 .28 4 in .270 .06 365 .85 402 .44 430 .61 6 in .537 .09 744 .67 819 .14 876 .48 8 in .$ 857 .52 $ 1,366 .62 $ 1,503 .25 $ 1,608 .51 DR A F T 38 WATER FUND REVENUES Water revenues are generated through the following avenues: • Fixed Meter Charges • Water Consumption Sales • Penalties –Late Fees –Shut Off Notice –Reconnect Fees • Initiation of Service Fees • Energy Incentives • Miscellaneous Reimbursements –District property damage –In Lieu Programs Projecting revenues for FY 2015-16 was particularly difficult as a result of the Governor’s Executive Order on April 1, 2015 that requires the District to reduce water consumption by 28% and the first year implementing new water budget based rate structure . In order to be as accurate as possible, staff evaluated and considered external factors that would have any impact on revenue projections: • Number of accounts by class • Total irrigable landscaped area in the District service area • Historical water usage • State mandates • Operational changes COMMODITY CHARGE RATE FY 2015 FY 2016 FY 2017 FY 2018 Flat Rate $ 1 .77 $ -$ -$ - Tier 1 - 1 .45 1 .63 1 .83 Tier 2 -2 .07 2 .32 2 .61 Tier 3 $ -$ 2 .89 $ 3 .24 $ 3 .64 MONTHLY FIRE LINE SERVICE CHARGE METER SIZE FY 2015 FY 2016 FY 2017 FY 2018 1 in .$ 5 .60 $ 7 .99 $ 8 .78 $ 9 .40 1 .5 in .8 .40 11 .98 13 .18 14 .10 2 in .11 .20 15 .97 17 .57 18 .80 3 in .16 .80 23 .96 26 .35 28 .20 4 in .22 .40 31 .94 35 .14 37 .59 6 in .33 .60 47 .91 52 .70 56 .39 8 in .44 .80 63 .88 70 .27 75 .19 10 in .$ 56 .00 $ 79 .85 $ 87 .84 $ 93 .99 DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 39 WATER FUND The following table reflects FY 2015-16 assumptions for revenue projections . The number of accounts does not include fire services: WATER SALES CLASS NO . OF ACCOUNTS TIER 1 HCF TIER 2 HCF TIER 3 HCF TOTAL HCF TOTAL SALES Residential 19,500 2,300,000 1,750,000 -4,050,000 $ 6,900,000 Commercial 1,250 2,150,000 190,550 48,000 2,388,500 3,650,000 Irrigation 275 -393,300 164,500 557,800 1,290,000 Other 36,050 36,050 110,000 Totals 21,025 4,450,000 2,333,850 248,500 7,032,350 $ 11,950,000 SOURCES OFREVENUE 39% METER CHARGES 56% WATER SALES OTHER CHARGES 5% DR A F T 40 WATER FUND EXPENSES Expenses are based on the cost to provide water to meet customer demands . The table below projects the amount of water to be produced for FY 2015-16 in acre feet (AF): SERVICE CHARGE METER SIZE NO . OF SERVICES RATE TOTAL 5/8 in .4,338 $ 20 .96 $ 1,091,094 3/8 in .12,065 26 .61 3,852,596 1 in .4,164 37 .92 1,894,787 1 .5 in .224 66 .19 177,919 2 in .283 100 .12 340,008 3 in .67 207 .54 166,862 4 in .24 365 .85 105,365 6 in .12 744 .67 107,232 8 in .10 1,366 .62 163,994 Fire Service 1 in .1,090 7 .97 104,248 Fire Service 1 .5 in .1 11 .98 144 Fire Service 4 in .49 31 .94 18,781 Fire Service 6 in .131 47 .94 75,362 Fire Service 8 in .49 63 .88 37,561 Fire Service 10 in .10 $ 79 .85 $ 9,582 Total 22,517 $ 8,145,533 WATER PRODUCTION ACRE FEET SOURCE OF SUPPLY FY 2013 ACTUAL FY 2014 ACTUAL FY 2015 PROJECTED FY 2016 PROPOSED Ground Water 20,161 18,210 17,500 14,000 Surface Water 2,147 3,350 2,000 3,500 Total 22,308 21,560 19,500 17,500 During July through August 2014, customers significantly decreased water usage in response to an emergency regulation adopted by the State Water Board on July 15, 2014 . The effort to reduce water usage has resulted in commendable reductions, and the District anticipates continued reduction in non- essential water usage . The continued severity of the drought has prompted the District to put forth significant effort towards the Conservation Program . As such, the Conservation Program has become a fully funded program within the Water Fund and has $1,000,000 dedicated assist customers with conservation efforts such as the replacement of turf and other related activities . Included in these costs are San Bernardino Valley Municipal Water District’s (SBVMWD) reimbursements in the amount of $500,000 to help offset the expense . DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 41 WATER FUND Staff continues to review and enhance processes to ensure optimal performance . However, due to the new rate structure, cost allocations for the Information Technology and Customer Service Departments were shifted to the Water Fund . Previously, those costs were allocated evenly between the Water and Wastewater Fund . It has been determined that budget based rates require a significant amount of time and commitment from staff therefore justifying the shift in expenses . Moreover, due to the uncertainty of revenue income, staff has reprioritized programs ensure critical programs continue while additional services can be re- evaluated at mid-year . CONCLUSION The District strives to provide safe and reliable water delivery services . In light of the continued drought, the District has put forth significant effort to overcome the challenges of maintaining a fiscally sustainable and operationally dependable organization . The District maintains its commitment to investing in critical infrastructure to ensure the future of its thriving community . Due to the variable factors, mid-year review will be an important time to review projections and program expenditures to make adjustments as necessary . EXPENSES BYCOST CENTER 42%ADMINISTRATION 23% SOURCE OF SUPPLY CUSTOMER SERVICE PUMPS & BOOSERS TREATMENT TRANSMISSION & DISTRIBUTION 13%10% 7% 5% DR A F T 42 WATER FUND WATER FUND REVENUES AND EXPENSE SUMMARY FY 2011-12 ACTUAL FY 2012-13 ACTUAL FY 2013-14 ACTUAL FY 2014-15 PROJECTED FY 2015-16 PROPOSED Revenues $ 18,041,652 $ 20,385,046 $ 23,120,539 $ 20,065,000 $ 21,310,000 Operating Expenses 10,827,122 10,997,073 12,275,670 12,900,350 15,404,390 WATER FUNDEXPENSES vs. REVENUES FY 2011/12 ACTUAL FY 2012/13 ACTUAL FY 2013/14 ACTUAL FY 2014/15 PROJECTED FY 2015/16 PROPOSED $10,827,122 $10,997,073 $12,275,670 $12,900,350 $15,404,390 EXPENSES REVENUES DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 43 WATER FUND FY 2015-16 PROPOSED BUDGET WATER FUND FY 2013-14 ACTUALS FY 2014-15 ADOPTED FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE REVENUES 4100 - Water Sales $ 15,351,608 $ 14,000,000 $ 14,000,000 $ 11,950,000 $ (2,050,000)-14 .6% 4200 - Meter Charges 4,704,035 4,710,000 4,710,000 8,175,000 3,465,000 73 .6% 4301 - Late Payment Fee 181,545 500,000 500,000 100,000 (400,000)-80 .0% 4303 - Disconnect Notice Charge 338,530 - - 400,000 400,000 100 .0% 4605 - Other Operating Charge 148,818 600,000 600,000 585,000 (15,000)-2 .5% 4701 - Interest Income - - 25,000 25,000 100 .0% 4703 - Energy Incentives/Rebates 105,490 150,000 150,000 50,000 (100,000)-66 .7% 4704 - Miscellaneous Revenue 108,468 105,000 105,000 25,000 (80,000)-76 .2% TOTAL REVENUES $ 20,938,494 $20,065,000 $20,065,000 $21,310,000 $1,245,000 6 .2% OPERATING EXPENSES SOURCE OF SUPPLY/WELLS 5101 - Regular Labor $ 212,009 $ 315,000 $ 315,000 $ 335,000 $ 20,000 6 .3% 5103 - Overtime 12,158 33,000 33,000 28,000 (5,000)-15 .2% 5200 - Benefits 58,524 105,000 105,000 97,500 (7,500)-7 .1% 6101 - Purchased Water 200,000 200,000 200,000 200,000 - 0 .0% 6102 - Groundwater Replenishment 193,130 215,000 215,000 175,000 (40,000)-18 .6% 6103 - Water Assessment 158,341 205,000 205,000 200,000 (5,000)-2 .4% 6201 - Materials & Supplies 38,150 33,000 33,000 59,500 26,500 80 .3% 6204 - Chemicals 123,933 200,000 200,000 150,000 (50,000)-25 .0% 6301 - Contract Services 257,573 175,000 175,000 235,000 60,000 34 .3% 6311 - Landscape Services - - - 40,000 40,000 100 .0% 6402 - Telephone 514 - - - - 0 .0% 6403 - Electricity 1,534,651 1,750,000 1,750,000 2,000,000 250,000 14 .3% 6405 - Permits - - - 8,000 8,000 100 .0% SOURCE OF SUPPLY TOTAL $ 2,788,982 $ 3,231,000 $ 3,231,000 $ 3,528,000 $ 297,000 9 .2% PUMPS & BOOSTERS 5101 - Regular Labor 268,813 83,000 83,000 85,000 2,000 2 .4% 5103 - Overtime 9,684 5,000 5,000 5,000 - 0 .0% DR A F T 44 WATER FUND FY 2013-14 ACTUALS FY 2014-15 ADOPTED FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE 5200 - Benefits $ 43,124 $ 25,000 $ 25,000 $ 25,000 $ - 0 .0% 6201 - Materials & Supplies 9,858 20,000 20,000 25,000 5,000 25 .0% 6301 - Contract Services 45,509 50,000 50,000 100,000 50,000 100 .0% 6311 - Landscape Services - - - 35,000 35,000 100 .0% 6403 - Electricity 623,468 750,000 500,000 750,000 - 0 .0% PUMPS & BOOSTERS TOTAL $ 1,000,456 $ 933,000 $ 683,000 $ 1,025,000 $ 92,000 9 .9% TREATMENT 5101 - Regular Labor $ 116,833 $ 220,000 $ 220,000 $ 211,000 $ (9,000)-4 .1% 5103 - Overtime 13,837 10,000 10,000 10,000 - 0 .0% 5200 - Benefits 26,056 60,000 60,000 52,000 (8,000)-13 .3% 6201 - Materials & Supplies 21,058 15,000 15,000 20,000 5,000 33 .3% 6204 - Chemicals 162,650 250,000 125,000 150,000 (100,000)-40 .0% 6301 - Contract Services 300,996 200,000 200,000 185,500 (14,500)-7 .3% 6311 - Landscape Services - - - 12,000 12,000 100 .0% 6401 - Utilities - 15,000 15,000 15,000 - 0 .0% 6402 - Telephone 8,612 7,500 7,500 7,500 - 0 .0% 6403 - Electricity 155,548 125,000 125,000 125,000 - 0 .0% 6405 - Permits 307 100,000 100,000 5,000 (95,000)-95 .0% TREATMENT TOTAL $ 805,895 $ 1,002,500 $ 877,500 $ 793,000 $ (209,500)-20 .9% TRANSMISSION & DISTRIBUTION 5101 - Regular Labor $ 612,777 $ 819,000 $ 819,000 $ 850,000 $ 31,000 3 .8% 5103 - Overtime 72,215 120,000 120,000 155,000 35,000 29 .2% 5200 - Benefits 143,451 295,000 295,000 297,500 2,500 0 .8% 6201 - Materials & Supplies 168,392 287,000 287,000 255,000 (32,000)-11 .1% 6202 - Tools 4,898 15,000 15,000 10,000 (5,000)-33 .3% 6204 - Chemicals 9,261 50,000 50,000 40,000 (10,000)-20 .0% 6301 - Contract Services 386,973 410,000 410,000 114,000 (296,000)-72 .2% 6307 - Uniforms - - - 20,000 20,000 100 .0% 6310 - Street Services - - - 250,000 250,000 100 .0% 6405 - Permits 39,141 50,000 50,000 50,000 - 0 .0% 6406 - Postage 133 5,000 5,000 2,500 (2,500)-50 .0% TRANSMISSION & DISTRIBUTION TOTAL $ 1,437,238 $ 2,051,000 $ 2,051,000 $ 2,044,000 $ (7,000)-0 .3% DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 45 WATER FUND FY 2013-14 ACTUALS FY 2014-15 ADOPTED FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE CUSTOMER SERVICE 5101 - Regular Labor $ 309,700 $ 357,000 $ 357,000 $ 438,000 $ 81,000 22 .7% 5102 - Temporary Labor 942 12,500 12,500 - (12,500)-100 .0% 5103 - Overtime 36,075 15,000 15,000 13,500 (1,500)-10 .0% 5200 - Benefits 76,114 142,500 142,500 165,000 22,500 15 .8% 6201 - Materials & Supplies 2,566 2,000 2,000 3,600 1,600 80 .0% 6202 - Tools 598 1,000 1,000 250 (750)-75 .0% 6203 - Office Supplies 4,614 3,000 3,000 4,200 1,200 40 .0% 6301 - Contract Services 196,878 242,250 242,250 70,500 (171,750)-70 .9% 6302 - Banking Services 83,978 29,275 29,275 210,000 180,725 617 .3% 6304 - Legal Services - 2,500 2,500 3,500 1,000 40 .0% 6306 - Rents & Leases - - - 16,800 16,800 100 .0% 6307 - Uniforms - - - 15,500 15,500 100 .0% 6308 - Billing Services - - - 52,500 52,500 100 .0% 6309 - Shut Off Notice Services - - - 375,000 375,000 100 .0% 6402 - Telephone 1,360 1,750 1,750 1,700 (50)-2 .9% 6406 - Postage 81,703 55,000 55,000 112,000 57,000 103 .6% 6502 - Professional Development 421 20,000 20,000 7,000 (13,000)-65 .0% 6503 - Education Assistance - - - 1,750 1,750 100 .0% 6703 - Cash Over/Short 97 - - - - 0 .0% CUSTOMER SERVICE TOTAL $ 795,044 $ 883,775 $ 883,775 $ 1,490,800 $ 607,025 68 .7% ADMINISTRATION 5101 - Regular Labor $ 2,018,799 $ 2,091,705 $ 2,091,705 $ 2,393,350 $ 301,645 14 .4% 5102 - Temporary Labor 15,756 18,900 18,900 46,900 28,000 148 .1% 5103 - Overtime 39,516 22,075 22,075 35,800 13,725 62 .2% 5104 - Standby 33,174 27,500 27,500 34,000 6,500 23 .6% 5200 - Benefits 1,040,424 823,950 823,950 778,500 (45,450)-5 .5% 6201 - Materials & Supplies 190,317 151,600 151,600 142,300 (9,300)-6 .1% 6202 - Tools 4,731 6,150 6,150 6,900 750 12 .2% 6203 - Office Supplies 28,919 27,350 27,350 26,200 (1,150)-4 .2% 6205 - Conservation Rebates - - - 1,000,000 1,000,000 100 .0% 6301 - Contract Services 1,261,855 1,034,720 1,034,720 813,800 (220,920)-21 .4% DR A F T 46 FY 2013-14 ACTUALS FY 2014-15 ADOPTED FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE 6302 - Banking Services 15,137 35,000 35,000 7,000 (28,000)-80 .0% 6303 - Printing & Publishing 46,006 36,400 36,400 62,450 26,050 71 .6% 6304 - Legal Services 128,250 224,700 224,700 181,000 (43,700)-19 .4% 6306 - Rents & Leases 96,989 1,625 1,625 7,800 6,175 380 .0% 6307 - Uniforms - - - 21,100 21,100 100 .0% 6311 - Landscape Services - - - 35,750 35,750 100 .0% 6312 - Janitorial Services - - - 81,250 81,250 100 .0% 6401 - Utilities 38,155 9,750 9,750 6,500 (3,250)-33 .3% 6402 - Telephone 76,147 68,850 68,850 83,100 14,250 20 .7% 6403 - Electricity 22,902 65,000 65,000 65,000 - 0 .0% 6404 - Fuel 91,945 122,500 122,500 122,500 - 0 .0% 6405 - Permits 26,352 32,200 32,200 27,600 (4,600)-14 .3% 6406 - Postage 15,552 23,450 23,450 27,550 4,100 17 .5% 6501 - Memberships & Dues 45,799 58,650 58,650 75,540 16,890 28 .8% 6502 - Professional Development 77,187 105,800 105,800 110,350 4,550 4 .3% 6503 - Education Assistance 9,350 11,200 11,200 2,100 (9,100)-81 .3% 6504 - Meetings - - - 5,950 5,950 100 .0% 6505 - Employee Recognition - - - 5,950 5,950 100 .0% 6701 - General Insurance 122,580 175,000 175,000 178,150 3,150 1 .8% 6702 - Insurance Claims 1,367 - - 700 700 100 .0% 6704 - Bad Debt - - - - - 0 .0% 6705 - OPEB Retirees - - - 38,500 38,500 100 .0% ADMINISTRATION TOTAL $5,447,209 $ 5,174,075 $ 5,174,075 $ 6,423,590 $ 1,249,515 24 .1% TOTAL OPERATING EXPENSES $12,274,825 $13,275,350 $12,900,350 $15,304,390 $ 2,029,040 15 .3% OTHER USES 7101 - Debt Principle $ 1,650,520 $ 1,760,800 $ 1,760,800 $ 1,855,000 $ 94,200 5 .3% 7102 - Debt Interest 1,151,809 1,813,400 1,813,400 1,750,000 (63,400)-3 .5% 8101 - Capital Outlay 11,478 207,500 207,500 633,250 425,750 205 .2% 8999 - Capital Improvement Program (381,701) 3,357,950 3,357,950 1,767,360 (1,590,590)-47 .4% TOTAL OTHER USES $ 2,432,106 $ 7,139,650 $ 7,139,650 $ 6,005,610 $ (1,134,040)-15 .9% WATER FUND DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 47 WATER FUND FY 2013-14 ACTUALS FY 2014-15 ADOPTED FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE SUMMARY Total Revenue $20,938,494 $20,065,000 $20,065,000 $21,310,000 $1,245,000 6 .2% Total Operating Expenses 12,274,825 13,275,350 12,900,350 15,304,390 2,029,040 15 .3% Total Other Expenses 2,432,106 7,139,650 7,139,650 6,005,610 (1,134,040)-15 .9% NET $ 6,231,563 $ (350,000) $ 25,000 $ - $ 350,000 DR A F T 48 THIS PAGE IS LEFT BLANK INTENTIONALLY DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 49 WASTEWATERFUND The Wastewater Fund pays for all activities related to the operations and maintenance of the wastewater collection infrastructure as well as the treatment of wastewater . All treatment charges collected from customers are remitted to the City of San Bernardino Municipal Water Department . RATES There are two sets of rates that make up the Wastewater Charge: 1 . East Valley Water District Collection System Charge that includes conveyance and maintenance of the sewer mains and; 2 . City of San Bernardino Sewer Treatment Charge that includes the treatment and disposal of waste . Each set of rates has 2 components: 1 . System Charge based on customer type, Residential or Commercial . 2 . Service Charge based on the amount and concentration of the wastewater discharged into the sewer system . Amount and concentration have a direct impact to the entire sewer system and treatment facility . The District’s service area for wastewater is divided into 2 regions with City Creek being the identifying landmark . Residences and businesses west of City Creek are charged at a different rate than those east of City Creek due to the timing of development and the hydraulics of the system . RESIDENTIAL East Valley Water District bills residential customers a monthly wastewater charge based on the number of dwelling units, up to four units, per property . Properties with four or more units are classified as multi-family . The table below identifies the number of services and the wastewater charges per month . RESIDENTIAL NUMBER OF SERVICES COLLECTION CHARGE TREATMENT CHARGE TOTAL MONTHLY CHARGE West of City Creek 13,112 $ 15 .36 $ 18 .50 $ 33 .86 East of City Creek 5,231 15 .36 20 .50 35 .86 DR A F T 50 COMMERCIAL East Valley Water District bills commercial customers on a monthly basis for wastewater usage using the formula [Wastewater System Charge + (Usage Rate x Water Used) = Monthly Wastewater Bill] . The table below identifies the costs per month for the collection and maintenance of the sewer conveyance system and City of San Bernardino Wastewater Treatment Charges . WASTEWATER FUND COMMERCIAL CUSTOMER EVWD COLLECTION CHARGE CITY OF SAN BERNARDINO TREATMENT CHARGE SYSTEM CHARGE $/HCF TREATMENT CHARGE $/HCF Flat Rate $ 3 .90 $ -$ 2 .40 $ - West of City Creek Multi-Family 0 .55 1 .25 Commercial/Retail/Dry Cleaners 0 .55 2 .10 Restaurants/Hotels 0 .55 2 .70 Laundromats/Government/Office Building/Motels 0 .55 1 .50 Schools/Churches 0 .55 1 .10 Convalescent Homes 0 .55 1 .35 Office Buildings/Motels 0 .55 1 .50 Auto Repair/Service/Carwash 0 .55 1 .30 East of City Creek Multi-Family 0 .55 1 .34 Commercial/Retail/Dry Cleaners 0 .55 2 .19 Restaurants/Hotels 0 .55 2 .79 Laundromats/Government 0 .55 1 .59 Schools/Churches 0 .55 1 .19 Convalescent Homes 0 .55 1 .49 Office Buildings/Motels 0 .55 1 .59 Auto Repair/Service/Carwash 0 .55 1 .39 HCF – Hundred Cubic Feet = 748 gallonsDR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 51 WASTEWATER FUND REVENUES Wastewater revenues consist of collection charges, treatment charges, and miscellaneous revenues such as interest income and capacity charges for new services . Revenues are projected to increase by 6 .1 percent for FY 2015-16 . The District anticipates that the increase will be related to collecting sewer connection charges from vacant homes . Also, the City of San Bernardino has begun the process for a possible rate increase to treatment . Those revenues will be remitted to the City of San Bernardino, therefore having no impact on District Operations . An additional $200,000 in revenue will be generated by a Maintenance Agreement with Patton State Hospital where the District will provide sewer services for a fee . Providing these services to Patton State Hospital is beneficial to the customers of East Valley Water District because their system is antiquated which may present problems to the District’s sewer mains . Assisting the State is in the best interest of this region . EXPENSES Operating expenses have remained the same overall in the Wastewater Fund . The District continues to conduct preventive maintenance programs on the wastewater mains such as videoing the lines and cleaning the lines on a regular schedule . Additionally, staff has invested more time and efforts into the spot repairs of the mains when sags and cracks are found in the lines when reviewing the videos tapes of the wastewater system . With the implementation of Water Budget Based Water Rates, as such costs associated with Customer Service and Information Technology were shifted to the Water Fund because of increased efforts to administer the new tiered rates . Over the past year, the District has been exploring options to resolve the District’s sewer capacity limitations while utilizing existing resources in the most effective and efficient manner during the ongoing drought . The completion of the Recycled Water Feasibility Study in October 2014 recommended that the District initiate a recycled water program to treat a majority of the sewer flows generated by East Valley Water District customers . The treated wastewater can then be reused for groundwater recharge, providing the greatest benefit to the District’s customers . EXPENSES BYCOST CENTER 69%TREATMENT 21%ADMINISTRATION TRANSMISSION & DISTRIBUTION 4% CUSTOMER SERVICE 6%DR A F T 52 Building a Recycled Water Center will mitigate the impacts of future droughts by providing a long term reliable water supply . This approach makes the District self-reliant rather than relying on the City of San Bernardino for treatment and disposal of wastewater . The continued focus for FY 2015-16 will be moving this project forward toward design and build . CONCLUSION Overall, the Wastewater Fund is balanced and revenues and expenditures are not anticipated to increase . However, a rate study must be conducted to ensure proper rates are charged to fund future capital improvement projects and that the District continues to meet debt service obligations as set forth in the bond covenants . District staff will continue to monitor the revenues and expenses and present the progress to the Board of Directors on a quarterly basis . WASTEWATER FUND WASTEATER FUND REVENUES AND EXPENSE SUMMARY FY 2011-12 ACTUAL FY 2012-13 ACTUAL FY 2013-14 ACTUAL FY 2014-15 PROJECTED FY 2015-16 PROPOSED Revenues 9,905,954 11,585,430 11,974,364 11,396,600 12,110,000 Operating Expenses 9,822,951 10,113,949 10,460,073 10,505,650 10,492,710 WASTEWATER FUNDEXPENSES vs. REVENUES FY 2011/12 ACTUAL FY 2012/13 ACTUAL FY 2013/14 ACTUAL FY 2014/15 PROJECTED FY 2015/16 PROPOSED $9,822,951 $10,113,949 $10,460,073 $10,505,650 $10,492,710 EXPENSES REVENUES DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 53 WASTEWATER FUND FY 2015-16 PROPOSED BUDGET WASTEWATER FUND FY 2013-14 ACTUALS FY 2014-15 ADOPTED FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE REVENUES 4301 - Late Payment Fee $ 49,745 $ 10,000 $ - $ 50,000 $ 40,000 400 .0% 4400 - WW Collection Charges 4,649,412 4,510,000 4,510,000 4,600,000 90,000 2 .0% 4500 - Wastewater Treatment Charges 7,197,418 6,861,600 6,861,600 7,250,000 388,400 5 .7% 4605 - Other Operating Charge 300 - - 200,000 200,000 100 .0% 4701 - Interest Income 77,489 35,000 25,000 10,000 (25,000)-71 .4% TOTAL REVENUES $ 11,974,364 $ 11,416,600 $ 11,396,600 $ 12,110,000 $ 693,400 6 .1% OPERATING EXPENSES TREATMENT 6305 - Treatment Services $ 7,197,418 $ 6,861,600 $ 6,861,600 $ 7,250,000 $ 388,400 5 .7% TREATMENT TOTAL $ 7,197,418 $ 6,861,600 $ 6,861,600 $ 7,250,000 $ 388,400 5 .7% TRANSMISSION & DISTRIBUTION 5101 - Regular Labor $ 134,896 $ 145,000 $ 145,000 $ 135,000 $ (10,000)-6 .9% 5103 - Overtime 3,502 10,000 10,000 3,000 (7,000)-70 .0% 5200 - Benefits 24,695 48,000 48,000 55,000 7,000 14 .6% 6201 - Materials & Supplies 41,476 50,000 50,000 30,000 (20,000)-40 .0% 6202 - Tools 43 5,000 5,000 5,000 - 0 .0% 6301 - Contract Services 107,801 250,000 250,000 228,000 (22,000)-8 .8% 6307 - Uniforms - - - 3,000 3,000 100 .0% TRANSMISSION & DISTRIBUTION TOTAL $ 312,413 $ 508,000 $ 508,000 $ 459,000 $ (49,000)-9 .6% CUSTOMER SERVICE 5101 - Regular Labor 267,103 293,000 293,000 252,000 (41,000)-14 .0% 5102 - Temporary Labor 942 12,500 12,500 - (12,500)-100 .0% 5103 - Overtime 12,349 15,000 15,000 11,500 (3,500)-23 .3% 5200 - Benefits 74,068 142,500 142,500 95,000 (47,500)-33 .3% 6201 - Materials & Supplies 2,566 2,000 2,000 2,400 400 20 .0% 6202 - Tools 598 1,000 1,000 250 (750)-75 .0% DR A F T 54 WASTEWATER FUND FY 2013-14 ACTUALS FY 2014-15 ADOPTED FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE 6203 - Office Supplies 3,447 3,000 3,000 1,800 (1,200)-40 .0% 6301 - Contract Services 193,972 242,250 242,250 34,500 (207,750)-85 .8% 6302 - Banking Services 83,700 29,275 29,275 90,000 60,725 207 .4% 6303 - Printing & Publishing 684 - - - - 0 .0% 6304 - Legal Services - 2,500 2,500 1,500 (1,000)-40 .0% 6306 - Rents & Leases - - - 7,200 7,200 100 .0% 6307 - Uniforms - - - 7,500 7,500 100 .0% 6308 - Billing Services - - - 22,500 22,500 100 .0% 6402 - Telephone 1,158 1,750 1,750 1,300 (450)-25 .7% 6406 - Postage 81,703 55,000 55,000 48,000 (7,000)-12 .7% 6502 - Professional Development 421 20,000 20,000 3,000 (17,000)-85 .0% 6503 - Education Assistance - - - 750 750 100 .0% 6703 - Cash Over/Short 40 - - - - 0 .0% CUSTOMER SERVICE TOTAL $ 722,751 $ 819,775 $ 819,775 $ 579,200 $ (240,575)-29 .3% ADMINISTRATION - 5101 - Regular Labor $ 723,476 $ 901,295 $ 901,295 $ 945,650 $ 44,355 4 .9% 5102 - Temporary Labor 5,568 8,100 8,100 10,100 2,000 24 .7% 5103 - Overtime 8,004 9,675 9,675 13,700 4,025 41 .6% 5104 - Standby 3,465 7,500 7,500 6,000 (1,500)-20 .0% 5200 - Benefits 462,423 367,050 367,050 316,500 (50,550)-13 .8% 6201 - Materials & Supplies 72,418 76,400 76,400 51,700 (24,700)-32 .3% 6202 - Tools 2,303 2,850 2,850 3,600 750 26 .3% 6203 - Office Supplies 10,556 12,150 12,150 10,300 (1,850)-15 .2% 6301 - Contract Services 598,160 507,380 507,380 348,700 (158,680)-31 .3% 6302 - Banking Services 13,049 15,000 15,000 3,000 (12,000)-80 .0% 6303 - Printing & Publishing 18,832 15,600 15,600 16,050 450 2 .9% 6304 - Legal Services 53,232 96,300 96,300 79,000 (17,300)-18 .0% 6306 - Rents & Leases 36,760 875 875 4,200 3,325 380 .0% 6307 - Uniforms - - - 5,900 5,900 100 .0% 6311 - Landscape Services - - - 19,250 19,250 100 .0% 6312 - Janitorial Services - - - 43,750 43,750 100 .0% 6401 - Utilities 9,543 5,250 5,250 3,500 (1,750)-33 .3% 6402 - Telephone 30,587 34,650 34,650 35,400 750 2 .2% DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 55 WASTEWATER FUND FY 2013-14 ACTUALS FY 2014-15 ADOPTED FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE 6403 - Electricity 16,035 35,000 35,000 35,000 - 0 .0% 6404 - Fuel 28,764 52,500 52,500 52,500 - 0 .0% 6405 - Permits 10,114 13,800 13,800 18,400 4,600 33 .3% 6406 - Postage 5,273 10,050 10,050 5,450 (4,600)-45 .8% 6501 - Memberships & Dues 18,986 23,850 23,850 31,060 7,210 30 .2% 6502 - Professional Development 33,641 41,200 41,200 46,650 5,450 13 .2% 6503 - Education Assistance 4,007 4,800 4,800 900 (3,900)-81 .3% 6504 - Meetings - - - 2,550 2,550 100 .0% 6505 - Employee Recognition - - - 2,550 2,550 100 .0% 6701 - General Insurance 61,496 75,000 75,000 76,350 1,350 1 .8% 6702 - Insurance Claims 800 - - 300 300 100 .0% 6705 - OPEB Retirees - - - 16,500 16,500 100 .0% ADMINISTRATION TOTAL $ 2,227,490 $ 2,316,275 $ 2,316,275 $ 2,204,510 $ (111,765)-4 .8% TOTAL OPERATING EXPENSES $10,460,073 $10,505,650 $10,505,650 $10,492,710 $(12,940) OTHER USES 7101 - Debt Principle $ 86,809 $ 87,500 $ 87,500 $ 90,000 $ 2,500 2 .9% 7102 - Debt Interest 190,152 229,800 229,800 230,000 200 0 .1% 8101 - Capital Outlay 175,800 57,500 57,500 66,750 9,250 16 .1% 8999 - Capital Improvement Program 441,250 517,950 517,590 4,595,000 4,077,050 787 .2% TOTAL OTHER USES $ 894,011 $ 892,750 $ 892,390 $ 4,981,750 $ 4,089,000 458 .0% SUMMARY Total Revenue $ 11,974,364 $ 11,416,600 $ 11,396,600 $ 12,110,000 $ 693,400 Total Operating Expenses 10,460,073 10,505,650 10,505,650 10,492,710 (12,940) Total Other Uses 894,011 892,750 892,390 4,981,750 4,089,000 Transfer from Reserves - 1,600,000 - 3,364,460 3,364,460 NET $ 620,280 $ 18,200 $ (1,440)$ - $ (18,200) DR A F T 56 THIS PAGE IS LEFT BLANK INTENTIONALLY DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 57 PROGRAMSUMMARIES East Valley Water District utilizes program- based budgeting . Requested funds are associated with the expected results and performance is measured by indicators and reviewed on a quarterly basis with the Governing Board . This results- oriented strategy provides the ability to monitor expenses related to a particular program or activity and track measurable benefits . Program-based budgeting results can be used in cost-benefit analyses, just as it would be in a business environment to determine the value of decisions and enhance transparency . Program goals and objectives have been designed to correlate directly with the District’s newly adopted vision, and built from the organization ideals and endeavors . Based on these goals and objectives, key performance meausres monitor progress towards meeting program objectives . Program-based budgeting also increases accountability and transparency . The rate payers and Governing Board can more easily see where dollars are invested, monitor the effectiveness of programs, and increase policy engagement . The Fiscal Year 2015-16 Budget is organized into the following summary programs: • Governing Board • General Administration • Human Resources • Public Affairs • Conservation • Finance • Information Technology • Customer Service • Meter Service • Engineering • Water Production • Water Treatment • Water QUality • Water Maintenance • Wastewater Maintenance • Facilities Maintenance • Fleet Maintenance DR A F T 58 THIS PAGE IS LEFT BLANK INTENTIONALLY DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 59 GOVERNINGBOARD GOALS AND OBJECTIVES GOAL ONE Conduct All Activities Required for 2015 Board of Directors Election Objectives • Attend Registrar of Voters election workshops • Post official election notices as required • Enhance District website with electoral information • Review and update potential Board Member Orientation Program GOAL TWO Address Agenda Items Brought Before the Board of Director’s Towards Achieving the Regulatory and Environmental Requirements to Design and Construct the East Valley Water District Recycled Water Center Objectives • Consider Notice of Intent /NOI for environmental requirements • Review and approve engineering reports relating to permitting • Review and approve RFQ/RFP for design build entity and other procurement related agenda items GOAL THREE Streamline Communications Related to Board Agendas, Expense Reports and Other District Related Documents Objectives • Implement paperless agenda process • Promote electronic correspondence as appropriate • Utilize technological resources to reduce number of District distributed paper copies GOAL FOUR Continue Commitment of Board Professional Development Objectives • Obtain District Transparency Certificate of Excellence / Special Leadership Foundation and required continuing education • Conduct Board training throughout the year • Review and update Board Member Handbook and Policies • Review and update General Manager/CEO’s Goals and Objectives and conduct performance evaluation GOAL FIVE Consider Development Agreements and Take Appropriate Action ACCOMPLISHMENTS • Developed Board of Director’s Handbook • Established Board of Director’s Expense Reimbursement Policy • Adopted water budget based rate structure • Conducted 14 candidate interviews and successful appointment of two new Board Members • All Board Members completed California Special District’s Association Special District Leadership Academy • Received Business of the Year Award from the Highland Chamber of Commerce • Adopted eight Administrative Policies and Procedures • Approved a balanced budget for fiscal year 2014/15 consistent with Board policies • Completed the feasibility study of the District constructing a recycled water center FUNCTION The Governing Board is the legislative body of the organization and is comprised of five members elected at-large to four year staggered terms of office . Board members are responsible for the development and adoption of all district policy . The Governing Board appoints the General Manager/CEO to be charged with the implementation of adopted policy . Reflective of the expertise and leadership of the Board, EVWD customers continue to maintain affordable rates and have a very reliable water supply . DR A F T 60 PROGRAM BUDGET DETAIL FY 2013-14 ACTUALS FY 2014-15 BUDGET FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 - Regular Labor $ 70,313 $ 90,000 $ 90,000 $ 105,000 $ 15,000 17% 5200 - Benefits 56,882 40,000 40,000 40,000 - 0% OPERATING EXPENSES 6301 - Contract Services $ 102,282 - - $ 100,000 $ 100,000 100% 6502 - Professional Development 19,646 30,000 30,000 50,000 20,000 67% GOVERNING BOARD TOTAL $ 249,122 $ 160,000 $ 160,000 $ 295,000 $ 135,000 84% SIGNIFICANT CHANGES • Labor has increased because Board Members are participating in regional meetings to stay involved with the drought and the Recycled Water Center . • Contract Services has increased due to the need for a general election for 3 Board Members ending their terms . • Professional Development has increased due to the increased training necessary to understand State mandates and regulations related to the drought . GOVERNING BOARD DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 61 GENERALADMINISTRATION GOALS AND OBJECTIVES GOAL ONE Establish an Agenda Policy and Procedure Manual in Order to Implement Consistent Guidelines Resulting in Efficient Board Meetings Objectives • Develop an agenda policy and procedure manual to be distributed to Board Members and staff • Create an annual calendar for Board Members and staff in order to assist with coordinating recurring and individual agenda items • Facilitate training sessions for Board, managers and administrative support staff ensuring department compliance with approved policy GOAL TWO Review and Update the District’s Records Retention Policy, Which Sets Forth Guidelines on Purging Documents Objectives • Review the current Policy and develop a timeline for update implementation • Conduct inventory of administrative records • Create electronic spreadsheet and catalog inventoried documents • Facilitate training to ensure all departments understand and comply with updated policy • Implement a yearly schedule for destruction of records GOAL THREE Preserve and Maintain North Fork Water Company Records Objectives • Inventory historical records • Establish and implement a record keeping procedure ACCOMPLISHMENTS • Facilitated the development of the Board of Director’s Handbook • Completed the Feasibility Study for Recycled Water Center • Completed Strategic Staffing Analysis • Conducted feasibility study of a water treatment facility for new development • Completed business assessment for the North Fork Water Company to enhance operational efficiencies • Negotiated surplus property sale to San Bernardino Valley Municipal Water District • Received national recognition and awards for the District’s Headquarters Facility ADMINISTRATION EXECUTES THE DISTRICT VISION. FUNCTION General Manager/CEO is responsible for overseeing day-to-day administration and program implementation of District operations . Administration is responsible for managing, documenting, organizing, communicating, and ensuring the implementation and execution of the District’s Vision . PROGRAM PERSONNEL General Manager/CEO 1 Assistant General Manager 1 District Clerk 1 Total Full Time Employees 3 DR A F T 62 PROGRAM BUDGET DETAIL FY 2013-14 ACTUALS FY 2014-15 BUDGET FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 - Regular Labor $ 723,325 $ 530,000 $ 530,000 $ 565,000 $ 35,000 7% 5103 - Overtime 2,089 - - - - 5200 - Benefits 253,958 230,000 230,000 200,000 (30,000)-13% OPERATING EXPENSES 6201 - Materials & Supplies $ 11,765 $ 3,000 $ 3,000 $ 2,000 $ (1,000)-33% 6203 - Office Supplies 9,507 10,000 10,000 5,000 (5,000)-50% 6301 - Contract Services 174,055 217,500 217,500 200,000 (17,500)-8% 6303 - Printing & Publishing 947 1,500 1,500 3,000 1,500 100% 6304 - Legal Services 156,250 250,000 250,000 200,000 (50,000)-20% 6402 - Telephone 11,646 5,000 5,000 5,000 - 0% 6406 - Postage 263 1,000 1,000 1,000 - 0% 6501 - Memberships & Dues 59,500 60,000 60,000 86,000 26,000 43% 6502 - Professional Development 31,498 40,000 20,000 40,000 - 0% 6503 - Education Assistance 6,902 - - - - 0% 6504 - Meetings - - - 5,000 5,000 100% GENERAL ADMIN TOTAL $ 1,441,704 $ 1,348,000 $ 1,328,000 $ 1,312,000 $ (36,000)-3% SIGNIFICANT CHANGES • Materials and Supplies decreased because Public Affairs took more responsibility of general outreach items . • Office Supplies decreased because costs were distributed among multiple programs . • Printing and Publishing increased because of the requirement for publishing public hearings and agendas in the newspaper . • Legal Services have decreased because the District has established one permanent attorney for general District business . • Memberships and Dues have increased because of membership in the Inland Empire Economic Partnership that will provide the District opportunities for future growth . GENERAL ADMINISTRATION DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 63 HUMANRESOURCES GOALS AND OBJECTIVES GOAL ONE Develop and Implement a District Volunteer Program to Promote Community Involvement, Provide Work Experience Opportunities, and Offer Staff Assistance Objectives • Conduct departmental needs assessment to gain understanding of areas where volunteers could be utilized • Create the written Volunteer Program and Volunteer Application • Develop and implement recruitment strategies • Interview and background screen volunteer applicants • Provide orientation and training to all volunteers GOAL TWO Review, Update and Create Workforce Programs to Enhance Organizational Culture Objectives • Generate Total Compensation Statements to inform employees of the total value of their compensation and benefits package on an annual basis • Create a non-represented employees’ handbook consistent with the Memorandum of Understanding for represented employees • Increase efficiency by consolidating employee identification badges and proximity access cards into one resource • Facilitate a District Leadership Excellence Program • Create a Safety Committee to encourage employee participation in reducing the risk of workplace injuries GOAL THREE Conduct District-Wide Succession Planning Objectives • Assemble a succession planning team • Create a career development survey to determine staff’s future career goals • Identify the main factors that will influence the succession plan • Link the plan to the District’s Organizational Ideals and Endeavors • Create District action plan ACCOMPLISHMENTS • Coordinated the District’s Organizational Structure Review and Classification and Compensation Study • Received the SDRMA McMurchie Excellence in Safety Award for low workers’ compensation experience modifier • Developed and implemented the District’s Computer Loan Program • Created the East Valley Water District Administrative Policy and Program Manual consolidating District policies into one resource • Created a new compensation structure which incentivizes performance rather than time in grade • Increased employee assumption of PERS contributions; over three years employees will pay full employee share • Implemented the 9/80 flexible work schedule • Facilitated the Customer Service Excellence Program FUNCTION Human Resources plans, directs, manages and oversees programs and operations related to personnel matters, including employee relations, contract administration, retention, recruitment and selection of employees, administration of health and welfare benefits, risk management, administration of safety regulations, and professional development services . Specific functions include: • Personnel: recruitment, labor negotiations and ensure compliance with all state and federal laws . • Worker’s Compensation: oversight of the District’s comprehensive Risk Management Program . • Employee Services: management and administration of employee compensation, benefit plans and monitor labor agreements . • Safety: ensure a safe work environment . PROGRAM PERSONNEL Human Resources/Risk & Safety Manager 1 Senior Administrative Assistant 1 Administrative Intern 0 .5 Total Full Time Employees 2.5 DR A F T 64 PROGRAM BUDGET DETAIL FY 2013-14 ACTUALS FY 2014-15 BUDGET FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 - Regular Labor $ 112,159 $ 185,000 $ 185,000 $ 200,000 $ 15,000 8% 5102 - Temporary Labor 12,988 12,000 5,000 12,000 - 0% 5103 - Overtime 3,443 5,000 5,000 3,000 (2,000)-40% 5200 - Benefits 114,855 81,000 81,000 65,000 (16,000)-20% OPERATING EXPENSES 6201 - Materials & Supplies $ 7,032 $ 10,000 $ 1,000 $ 4,000 $ (6,000)-60% 6203 - Office Supplies 2,182 3,000 1,500 1,000 (2,000)-67% 6301 - Contract Services 37,968 102,000 102,000 61,500 (40,500)-40% 6303 - Printing & Publishing - 500 500 500 - 0% 6304 - Legal Services 3,885 21,000 21,000 15,000 (6,000)-29% 6406 - Postage 9 1,000 300 500 (500)-50% 6501 - Memberships & Dues 349 6,500 5,000 4,500 (2,000)-31% 6502 - Professional Development 3,265 8,000 8,000 7,500 (500)-6% 6504 - Meetings - - - 3,500 3,500 100% 6505 - Employee Recognition - - - 8,500 8,500 100% 6701 - General Insurance 184,075 250,000 250,000 254,500 4,500 2% 6702 - Insurance Claims 2,167 - - 1,000 1,000 100% 6705 - OPEB Retirees - - - 55,000 55,000 100% HUMAN RESOURCES TOTAL $ 484,378 $ 685,000 $ 665,300 $ 697,000 $ 12,000 2% SIGNIFICANT CHANGES • Materials and Supplies have decreased because safety materials will be purchased by the Operations and Fields Departments . • Contract Services have been decreased because the Organizational Assessment has been completed and does not have to be updated for the next five years . • Legal Services have been decreased because the few outstanding personnel cases have been settled . • Memberships and Dues have been decreased because the District does not anticipate the need for standardized testing for new positions . • Meetings is a new line item to identify the cost of providing District wide training opportunities . • Employee Recognition is a new line item to provide opportunities to recognize the continued increased efforts from employees . • OPEB Retirees is a new line item to clearly identify costs associated with post-employment benefits . This line item includes a portion of the medical coverage for employees who retire from the District who have at least 20 years of service, until they reach the age to qualify for Medicare . HUMAN RESOURCES DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 65 PUBLICAFFAIRS GOALS AND OBJECTIVES GOAL ONE Conduct an Extensive Outreach Effort for the Recycled Water Project in Order to Inform a Broad Range of Stakeholders of the Project Benefits Objectives • Develop and deploy a dedicated Recycled Water Project website • Conduct educational meetings with community leaders, residents, and industry members • Create and distribute print materials informing a wide audience of the project overview and benefits GOAL TWO Increase Methods of Communication in Order to Reach a Broad Range of Stakeholders Objectives • Implement a robust social media program to highlight District projects and programs in a timely manner • Identify methods of communicating with the community that would facilitate a heightened level of dialogue between the District and customers • Increase participation in legislative activities consistent with the adopted Legislative Platform GOAL THREE Evaluate and Implement Measures to Elevate the District’s Emergency Preparedness Program Objectives • Review the current Emergency Response Plan and develop a timeline for update implementation • Conduct quarterly emergency preparedness exercises • Facilitate trainings to ensure that all District staff have received necessary certifications, as required by FEMA ACCOMPLISHMENTS • Conducted extensive outreach for the Recycled Water Project Feasibility Study • Hosted six water conservation workshops for the community • Utilized the Headquarters site in line with the Facility Use Policy, including hosting 42 events outside of regularly scheduled District events • Conducted extensive community outreach relating to Budget Based Rates PUBLIC AFFAIRS IS THE PRIMARY OUTREACH VEHICLE FOR THE DISTRICT. FUNCTION Public Affairs is the primary outreach vehicle for increasing awareness of the District’s mission and role in the local and regional community . Through media, community and governmental relations, the District is able to provide effective communications to various community stakeholders . Specific functions include: • Community presentations and meetings • Maintain working relationships with federal, state and local officials • Oversee and coordinate the District’s emergency planning, training, response and recovery efforts • Administer the Headquarters facility rental program PROGRAM PERSONNEL Public Affairs/Conservation Manager 0 .5 Public Affairs Specialist 1 Senior Administrative Assistant 1 Public Affairs Representative 0 .5 Total Full Time Employees 3 DR A F T 66 PROGRAM BUDGET DETAIL FY 2013-14 ACTUALS FY 2014-15 BUDGET FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 - Regular Labor $ 133,596 $ 290,000 $ 290,000 $ 220,000 $ (70,000)-24% 5102 - Temporary Labor 37 - - 15,000 15,000 100% 5103 - Overtime 4,497 15,000 15,000 7,000 (8,000)-53% 5200 - Benefits 67,133 90,000 90,000 63,000 (27,000)-30% OPERATING EXPENSES 6201 - Materials & Supplies $ 91,249 $ 85,000 $ 85,000 $ 43,000 $ (42,000)-49% 6203 - Office Supplies 4,121 2,000 2,000 2,000 - 0% 6301 - Contract Services 194,307 247,500 247,500 75,000 (172,500)-70% 6303 - Printing & Publishing 61,751 50,000 60,000 50,000 - 0% 6304 - Legal Services - 5,000 10,000 5,000 - 0% 6406 - Postage 19,752 30,000 30,000 15,000 (15,000)-50% 6501 - Memberships & Dues 335 5,000 5,000 3,000 (2,000)-40% 6502 - Professional Development 16,292 10,000 10,000 6,000 (4,000)-40% 6503 - Education Assistance - - - 3,000 3,000 100% PUBLIC AFFAIRS TOTAL $ 593,070 $ 829,500 $ 844,500 $ 507,000 $ (322,500)-39% SIGNIFICANT CHANGES • The Public Affairs Program was decreased because it was important for the District to create a separate Conservation Program to directly address the ongoing drought conditions in California . PUBLIC AFFAIRS DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 67 CONSERVATION GOALS AND OBJECTIVES GOAL ONE Implement Water Conservation Measure Reports Consistent with the State of California Emergency Drought Regulations Objectives • Utilize existing internal databases to monitor system-wide water use efficiency • Submit monthly reporting data to the State Water Resources Control Board as required for the statewide drought tracking effort • Develop a regular report to track regulation compliance and communication efforts GOAL TWO Expand the Water Conservation Rebate Programs to Assist Customers Implement Water Efficiency Measures to Achieve Mandated Reductions Objectives • Develop and hire a Conservation Analyst position to oversee the expanded water conservation program • Implement a turf replacement program for both residential and commercial customers • Implement a direct install weather-based irrigation controller program GOAL THREE Increase Communication Efforts Encouraging Responsible and Sustainable Use of Water Objectives • Renovate the Headquarters Demonstration Garden to serve as a resource for easily applied water- efficient landscape design options • Showcase success stories of customers that implemented conservation measures while maintaining aesthetic curb appeal on the District’s website and social media outlets • Implement a positive outreach campaign that encourages a sense of community pride and collective effort toward conservation ACCOMPLISHMENTS • Hosted six water conservation workshops for the community • Developed and implemented a residential landscaping evaluation program • Conducted extensive outreach informing customers of the need for conservation to support State regulations CONSERVATION ENCOURAGES SUSTAINABLE WATER USE. FUNCTION Conservation is responsible for overseeing programs that facilitate and encourage sustainable water use throughout the District . Specific functions include: • Rebate program development and administration • Educational outreach regarding conservation techniques • Preparing and submitting regulatory reporting requirements PROGRAM PERSONNEL Public Affairs/Conservation Manager 0 .5 Conservation Analyst 1 Conservation Coordinator 1 Conservation Representative 1 Total Full Time Employees 3.5 DR A F T 68 PROGRAM BUDGET DETAIL FY 2013-14 ACTUALS FY 2014-15 BUDGET FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 - Regular Labor $ - $ - $ - $ 230,000 $ 230,000 100% 5102 - Temporary Labor - - - 25,000 25,000 100% 5103 - Overtime - - - 8,000 8,000 100% 5200 - Benefits - - - 60,000 60,000 100% OPERATING EXPENSES 6201 - Materials & Supplies $ - $ - $ - $ 35,000 $ 35,000 100% 6203 - Office Supplies - - - 2,000 2,000 100% 6205 - Conservation Rebates - - - 1,000,000 1,000,000 100% 6301 - Contract Services - - - 100,000 100,000 100% 6303 - Printing & Publishing - - - 25,000 25,000 100% 6304 - Legal Services - - - 5,000 5,000 100% 6406 - Postage - - - 15,000 15,000 100% 6501 - Memberships & Dues - - - 2,000 2,000 100% 6502 - Professional Development - - - 4,000 4,000 100% CONSERVATION TOTAL $ - $ - $ - $ 1,511,000 $ 1,511,000 100% SIGNIFICANT CHANGES • The Conservation Program was created for FY 2015-16 to solely focus on water use regulations and mandates due to the drought . CONSERVATION DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 69 FINANCE GOALS AND OBJECTIVES GOAL ONE Produce Accurate, Timely Financial Reports for External and Internal Stakeholders Objectives • Complete audit and adopt Comprehensive Annual Financial Report within four months of fiscal year end; submit for GFOA award • Closely monitor actual water sales versus projections and propose responsible adjustments to program expenditures . • Review monthly budget to actual expenditure reports with program managers within 15 days of month end GOAL TWO Cultivate Sources, Other than Utility Rates, for Cost Recovery and Project Funding Objectives • Complete cost of service study for miscellaneous service fees and schedule Proposition 26 hearing by January 2016 . • Enhance yields on cash reserves by updating District Investment Policy, and through diversification of investment portfolio . Submit policy for California Municipal Treasurers Association Certificate • Provide financial data and analysis to support SRF and other funding efforts for Water Recycling Facility GOAL THREE Enhance Internal Asset Management Objectives • Implement integrated inventory module in existing financial software • Increase inventory controls by conducting quarterly inventory audits ACCOMPLISHMENTS • Successfully implemented the payroll process in-house to save the District $15,000 per year in contract services • Completed the Water Rate Study for Budget Based Water Rates to secure the District’s financial stability in the future • Received national recognition awards for FY 2013-14 Comprehensive Annual Financial Reporting (CAFR) and the FY 2014-15 Operating and Capital Budget • Conducted thorough cost analysis to ensure that North Fork Water Company captures all expenses as required FINANCE PROVIDES ACCOUNTABILITY AND ADEQUATE CONTROL OVER DISTRICT FUNDS. FUNCTION Finance oversees the financial operations of the District in order to provide accountability and adequate control over the use of District funds . Finance staff maintains the financial systems and records in accordance with Generally Accepted Accounting Principles (GAAP) as well as applicable laws, regulations and District policies . Specific functions include: • Preparation of financial reports and annual budget • Capital asset funding and accounting • Strategic and financial planning support • Issuance and administration of District debt issues PROGRAM PERSONNEL Chief Financial Officer 1 Finance Manager 1 Senior Accountant 1 Senior Accounting Technician 1 Administrative Assistant 1 Storekeeper/Buyer 1 Accounting Technician 1 Total Full Time Employees 7 DR A F T 70 PROGRAM BUDGET DETAIL FY 2013-14 ACTUALS FY 2014-15 BUDGET FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 - Regular Labor $ 536,740 $ 625,000 $ 625,000 $ 640,000 $ 15,000 2% 5102 - Temporary Labor 4,005 10,000 10,000 - (10,000)-100% 5103 - Overtime 5,307 1,500 1,500 1,500 - 0% 5200 - Benefits - 255,000 290,000 205,000 (50,000)-20% OPERATING EXPENSES 6203 - Office Supplies $ 5,774 $ 7,000 $ 10,000 $ 7,000 $ - 0% 6301 - Contract Services 185,719 150,000 150,000 100,000 (50,000)-33% 6302 - Banking Services 28,187 50,000 50,000 10,000 (40,000)-80% 6303 - Printing & Publishing 2,032 - - - - 0% 6304 - Legal Services 6,129 20,000 10,000 10,000 (10,000)-50% 6307 - Uniforms - - - 3,000 3,000 100% 6402 - Telephone 622 1,500 1,500 1,500 - 0% 6406 - Postage 330 1,000 1,000 1,000 - 0% 6501 - Memberships & Dues 2,552 1,000 1,000 3,300 2,300 230% 6502 - Professional Development 11,721 15,000 10,000 10,000 (5,000)-33% 6503 - Education Assistance 6,456 16,000 15,000 - (16,000)-100% 6704 - Bad Debt - - - - - 0% FINANCE TOTAL $ 795,575 $ 1,153,000 $ 1,175,000 $ 992,300 $ (160,700)-14% SIGNIFICANT CHANGES • Temporary Labor has decreased because there are no anticipated long-term absences from permanent staff . • Contract Services have decreased because the Finance Department has taken certain tasks such as payroll in-house . • Banking Services were shifted to the Customer Service Program because those costs are associated with payment collection administration . • Uniforms was added to Finance to allow staff to wear EVWD branded clothing . • Professional Development was decreased due to the unavailability of funds for the coming year . • Education Assistance was decreased because the employee attending school has graduated . FINANCE DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 71 INFORMATIONTECHNOLOGY GOALS AND OBJECTIVES GOAL ONE Implement Secure and Reliable Technological Infrastructure and Effective Services Objectives • Modernize the District’s server infrastructure by virtualizing 90% of servers and upgrading all server operating systems approaching end-of-life • Initiate a Virtual Desktop Infrastructure (VDI) pilot project and deploy five virtual desktops for evaluation • Reduce email costs, upgrade Office applications, install MS Project and SharePoint (Intranet) by implementing Microsoft Office 365 • Improve security by implementing a comprehensive web content security filter to continuously block known malicious and not-safe-for-work (NSFW) websites • Integrate Advanced Metering Infrastructure (AMI) with Utility Billing and provide continuous support to ensure a successful AMI program GOAL TWO Assess and Evaluate Existing Technology Solutions to Improve Operations Objectives • Conduct a post implementation review of the Tyler Incode product suite and Cityworks • Promote active learning by creating an Information Technology FAQ page, training videos, and develop an in-house training program GOAL THREE Enhance Conservation Efforts by Making Information More Accessible and Presentable Objectives • Transition to a new Customer Online Billing Portal to support Budget Based Rates, AMI, conservation efforts and social media integration • Develop additional Conservation Dashboards that are aligned with Best Management Practices from the State ACCOMPLISHMENTS • Developed a Water Conservation dashboard to monitor the rebate program, field verifications and watering violations • Improved business processes by implementing Government-to-Government (G2G) to electronically submit documents to the County’s Assessor- Recorder office • Significantly improved business continuity and disaster recovery by installing a new, centralized backup and recovery appliance • Elevated Customer Service and increased efficiency with the implementation of Automated Courtesy Calls and call type tracking • Maximized staff value by achieving three technical certifications and two FEMA Incident Command System certifications • Implemented Landscape Analysis to support an equitable rate structure with Budget Based Billing • Implemented a new Web Help Desk (WHD) based on industry best practices (ITIL) and continuous service improvement FUNCTION Information Technology (IT) is responsible for system maintenance, network management, systems support, updating software/hardware, and monitoring District needs for new equipment . Specific functions include: • Network and telecommunications • Geographic Information Systems (GIS) • Enterprise Resource Planning (ERP) • Customer Information System and Utility Billing (CIS) • Supervisory Control and Data Acquisition (SCADA) • Document Imaging System (Laserfische) • Computerized Maintenance Management System (CMMS) PROGRAM PERSONNEL Information Technology Manager 1 Network Administrator 1 Information Systems Technician 1 Total Full Time Employees 3 DR A F T 72 PROGRAM BUDGET DETAIL FY 2013-14 ACTUALS FY 2014-15 BUDGET FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 - Regular Labor $ 107,105 $ 220,000 $ 220,000 $ 275,000 $ 55,000 25% 5102 - Temporary Labor 3,240 - - - - 0% 5103 - Overtime 539 - - - - 0% 5200 - Benefits 48,805 65,000 65,000 75,000 10,000 15% OPERATING EXPENSES 6201 - Materials & Supplies $ 52,594 $ 30,000 $ 40,000 $ 30,000 $ - 0% 6203 - Office Supplies 4,332 3,000 3,000 3,000 - 0% 6301 - Contract Services 220,015 235,000 235,000 225,000 (10,000)-4% 6303 - Printing & Publishing 33 - - - - 0% 6402 - Telephone 2,478 3,000 3,000 3,000 - 0% 6501 - Memberships & Dues 200 500 500 1,300 800 160% 6502 - Professional Development 5,618 7,000 7,000 7,000 - 0% INFORMATION TECHNOLOGY TOTAL $ 444,959 $ 563,500 $ 573,500 $ 619,300 $ 55,800 10% SIGNIFICANT CHANGES • Labor has increased because the Information Technology Technician was made permanent to the Program in the fall of 2014 . • Benefits have increased as a direct relation to the increased number of employees and labor . • Memberships & Dues have increased because IT staff will participate in more informative forums . INFORMATION TECHNOLOGY DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 73 CUSTOMERSERVICE GOALS AND OBJECTIVES GOAL ONE Always Provide Quality Customer Service Objectives • Conduct customer satisfaction surveys . • Attend training specific to enhancing the guest experience • Ensure accurate and consistent messaging to customers regarding events and regulations implemented by the District GOAL TWO Increase Training Opportunities for Staff to Leverage Technological Investments Objectives • Establish a policy manual for all daily duties of the department . • Develop systemic training programs for customer service representatives GOAL THREE Improve Customer Awareness of District Processes Objectives • Increase customer education on District policies and procedures related to water and wastewater services • Routinely update information on website for customers • Create quick guide booklet for new customers GOAL FOUR Utilize Water Budget Based Rates to Encourage Conservation Objectives • Proactively identify and contact customers with inefficient water usage and direct them to assistance programs as necessary ACCOMPLISHMENTS • Completed deployment of kiosks at two off-site locations • Increased customer accessibility through on-line services • Increased phone efficiencies through automation • Implemented Water Budget Based billing • Hired and trained two temporary Customer Service Representatives to provide increased education about Water Budget Rates to customers CUSTOMER SERVICE STAFF STRIVE TO RESOLVE ALL CUSTOMER CONCERNS ON A DAILY BASIS. FUNCTION Customer Service is responsible for responding to customer inquiries, establishing and discontinuing service, preparing monthly bills, processing payments, and collecting outstanding customer balances . Customer Service staff continues to explore opportunities to provide convenient methods of payments and strives to resolve all customer concerns on a daily basis . PROGRAM PERSONNEL Customer Service Supervisor 1 Senior Customer Service Representative 1 Customer Service Representative II 3 Customer Service Representative I 2 Receptionist 1 Total Full Time Employees 8 DR A F T 74 PROGRAM BUDGET DETAIL FY 2013-14 ACTUALS FY 2014-15 BUDGET FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 - Regular Labor $ 350,147 $ 440,000 $ 440,000 $ 465,000 $ 25,000 6% 5102 - Temporary Labor 1,883 25,000 40,000 - (25,000)-100% 5103 - Overtime 12,409 10,000 8,000 5,000 (5,000)-50% 5200 - Benefits 174,269 200,000 200,000 175,000 (25,000)-13% OPERATING EXPENSES 6201 - Materials & Supplies $ 3,893 $ 1,000 $ 2,000 $ 3,000 $ 2,000 200% 6203 - Office Supplies 8,061 6,000 6,500 6,000 - 0% 6301 - Contract Services 388,598 454,500 500,000 90,000 (364,500)-80% 6302 - Banking Services 167,677 58,550 200,000 300,000 241,450 412% 6303 - Printing & Publishing 684 - - - - 0% 6304 - Legal Services - 5,000 2,500 5,000 - 0% 6306 - Rents & Leases - - - 24,000 24,000 100% 6307 - Uniforms - - - 20,000 20,000 100% 6308 - Billing Services - - - 75,000 75,000 100% 6309 - Shut Off Notice Services - - - 375,000 375,000 100% 6402 - Telephone 952 1,500 1,500 1,000 (500)-33% 6406 - Postage 163,406 110,000 150,000 160,000 50,000 45% 6502 - Professional Development 801 40,000 45,000 10,000 (30,000)-75% 6503 - Education Assistance - - - 2,500 2,500 100% 6703 - Cash Over/Short 138 - - - - 0% PROGRAM BUDGET TOTAL $ 1,272,919 $ 1,351,550 $ 1,595,500 $ 1,716,500 $ 364,950 27% CUSTOMER SERVICE DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 75 SIGNIFICANT CHANGES • Temporary Labor decreased because the program is fully staffed . • Overtime has decreased because staff is able to fully utilize the utility billing system to automate tasks such as phone calls to delinquent accounts . • Materials and Supplies have increased to ensure employees have the tools and equipment for proper ergonomics in their work areas . • Contract Services was decreased significantly to be more transparent and detailed about services rendered for the Customer Service Program . • Banking Services has increased due to a shift in expenses from Finance and also the anticipated merchant fees from the variety of payment methods offered to customers . • Rents and Leases are costs associated with the placement of kiosks in the Super Penny Mart and Rio Ranch Market . • Uniforms was added to provide consistency in the dress code for the Customer Service employees . • Billing Services is the cost to have a company print and mail over 25,000 bills on a monthly basis . • Shut Off Notice Services is the cost to deliver 48- hour shutoff notices for customers who are severely delinquent on their water bill . • Professional Development was decreased because a Customer Service Assessment was conducted last year that will not need to take place in the coming year . CUSTOMER SERVICE 75 DR A F T 76 THIS PAGE IS LEFT BLANK INTENTIONALLY DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 77 METERSERVICE GOALS AND OBJECTIVES GOAL ONE Ensure Accurate and Timely Meter Reads of Customer Meters Objectives • Review meter reading routes and cycles to identify reader workload; adjust amount of books per cycle where needed • Prevent plastic meter register damage by providing staff training on proper debris clearing procedures • Utilize Citiworks to implement a logging program for damaged meter registers • Evaluate the benefits of replacing plastic meter registers with a more durable material • Participate in the Automated Meter Infrastructure (AMI) project GOAL TWO Utilize Opportunities to Create Dialogue with Customers While Meter Reading to Promote District Outreach Objectives • Attend water budget based rate and billing system training in order to assist customers with questions or concerns about their budget based bills • Gain thorough understanding of the District’s drought ordinance and conservation rebates in order to educate the community on drought awareness, compliance and rebate programs ACCOMPLISHMENTS • Performed two thousand one hundred and ninety- three (2,193) customer meter lock-offs • Identified inefficient water users throughout the District and hung information tags on their doors • Assisted in the educational outreach of water budget based rates METER SERVICES SERVE AS A FIELD EXTENSION OF CUSTOMER SERVICE. FUNCTION Meter Services serves as a field extension of Customer Service, and is responsible for completing all on-site related customer requests such as turning water on/ off, monthly meter readings for billing, and assisting customers at their residence when requested . Meter Services staff may also at times assist the Meter Maintenance program by installing new meters, testing meters for accuracy, and repairing meter leaks . PROGRAM PERSONNEL Field Service Representative 1 Meter Reader II 1 Meter Reader I 2 Total Full Time Employees 4 DR A F T 78 PROGRAM BUDGET DETAIL FY 2013-14 ACTUALS FY 2014-15 BUDGET FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 - Regular Labor $ 199,541 $ 210,000 $ 210,000 $ 225,000 $ 15,000 7% 5103 - Overtime 24,739 20,000 20,000 20,000 - 0% 5200 - Benefits 29,839 85,000 85,000 85,000 - 0% OPERATING EXPENSES 6201 - Materials & Supplies $ 1,238 $ 3,000 $ 3,500 $ 3,000 $ - 0% 6202 - Tools 1,197 2,000 500 500 (1,500)-75% 6301 - Contract Services 2,252 30,000 10,000 15,000 (15,000)-50% 6307 - Uniforms - - - 3,000 3,000 100% 6402 - Telephone 1,566 2,000 2,000 2,000 - 0% 6502 - Professional Development 40 - - - - 0% METER SERVICE TOTAL $ 260,413 $ 352,000 $ 331,000 $ 353,500 $ 1,500 0% SIGNIFICANT CHANGES • Contract Services has decreased because new large octave meters are being installed and do not need to be tested by a third party . • Uniforms have been added in an effort to be more detailed and transparent . METER SERVICE DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 79 ENGINEERING GOALS AND OBJECTIVES GOAL ONE Conduct Long-Term Planning for the District to Meet Customer Demands and Environmental Changes Objectives • Update Water and Wastewater Master Plans • Prepare 2016 Urban Water Management Plan Update • Update the Sewer System Management Plan (SSMP) GOAL TWO Efficiently Develop, Design and Manage the District’s Capital Improvement Program Objectives • Complete Plant 134 upgrades to fully utilize its capacity • Complete sewer expansion upgrades to mitigate potential overflows and provide capacity for development • Complete City Creek Crossing design/permitting • Complete assessment of Plunge Creek Crossing and Santa Ana River Crossing GOAL THREE Continue to Develop Partnerships with Surrounding Agencies to Provide Future Benefits to the District and the Region Objectives • Complete Patton Hospital State Hospital sewer cleaning and mapping project GOAL FOUR Leverage Technology Investments to Enhance Asset Management Objectives • Enhance usage of GIS to develop the District’s Emergency Response Plan • Continue to enter asset record data into GIS to improve capital improvement planning GOAL FIVE Provide Excellent Customer Service for Developers Objectives • Continue to streamline the application process for developers and contractors • Collaborate with Finance to implement a program to track and collect construction costs associated with new development ACCOMPLISHMENTS • Completed Baseline Gardens Mutual Water conversion project; installed 3-½ miles of new water main, 54 new fire hydrants and added 500 new customers • Completed Patton State Hospital Service Agreement for sewer services by the District FUNCTION Engineering is responsible for identifying and implementing infrastructure projects needed to provide safe and reliable water and sewer service . Staff administers and manages the Capital Improvement Program, assists developers in building new residential and commercial properties, and provides support in the maintenance and repair of water and wastewater infrastructure . Specific functions include: • Conduct planning studies to evaluate water and sewer system improvement needs • Establish and implement the Capital Improvement Program (CIP) • Assist in ensuring the District complies with state and federal regulations • Maintain and update technical data by GIS PROGRAM PERSONNEL Engineering and Operations Manager 1 Associate Engineer 1 Senior Engineering Technician 1 Engineering Technician II 2 Senior Administrative Assistant 1 Administrative Intern 0 .5 Total Full Time Employees 6.5 DR A F T 80 PROGRAM BUDGET DETAIL FY 2013-14 ACTUALS FY 2014-15 BUDGET FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 - Regular Labor $ 501,109 $ 400,000 $ 400,000 $ 436,000 $ 36,000 9% 5102 - Temporary Labor 1,053 5,000 5,000 5,000 - 0% 5103 - Overtime 3,698 1,500 1,500 1,500 - 0% 5200 - Benefits 250,713 180,000 180,000 165,000 (15,000)-8% OPERATING EXPENSES 6202 - Tools $ - $ 1,000 $ 1,000 $ 3,500 $ 2,500 250% 6203 - Office Supplies 5,552 7,500 5,000 8,500 1,000 13% 6301 - Contract Services 421,507 220,100 220,100 157,500 (62,600)-28% 6304 - Legal Services 15,218 25,000 25,000 25,000 - 0% 6307 - Uniforms - - - 2,000 2,000 100% 6402 - Telephone 3,291 3,000 3,000 3,000 - 0% 6405 - Permits 36,465 46,000 46,000 46,000 - 0% 6406 - Postage 471 500 500 500 - 0% 6501 - Memberships & Dues 275 2,000 1,500 1,500 (500)-25% 6502 - Professional Development 6,791 19,000 19,000 15,500 (3,500)-18% ENGINEERING TOTAL $ 1,246,144 $ 910,600 $ 907,600 $ 870,500 $ (40,100) -4% SIGNIFICANT CHANGES • Tools have increased due to increased software necessary to manage ongoing Capital Improvement Projects . • Contract Services have decreased due to the purchase of software that will reduce the programs need for consultants to provide assistance with the water and wastewater master plans . • Uniforms was added in an effort to be more detailed and transparent . • Professional Development has decreased due to the reduced availability of funding for training . ENGINEERING • Completed WEKA contracted portion of 30” pipeline installation in 5th Street • Completed Greenspot Road Bridge pipeline installations • Completed North Fork Inlet Pipeline replacement project • Completed Plant 40 Booster Station consisting of four booster pumps to allow pumping water from the Intermediate Zone to the Upper Zone, which will allow water supply reliability into the higher pressure zones • Updated EVWD’s Developer Handbook DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 81 WATERPRODUCTION GOALS AND OBJECTIVES GOAL ONE Coordinate the Standardization of Production Meters at all Plants to Ensure Consistency in Unit of Measurement and Improve Reporting Accuracy Objectives • Conduct meter audits to confirm units of measure • Identify meters needing to be rebuilt or recalibrated GOAL TWO Maximize Efficiencies by Utilizing Computerized Asset Management Systems to Maintain Electronic Records and Reports Objectives • Begin entering routes and maintenance records through work orders in Citiworks • Establish preventive maintenance schedules for water production infrastructure • Utilize SCADA data to establish appropriate maintenance schedules for pumps and wells based on actual usage • Review accuracy of monthly reports submitted to the State Water Resources Control Board and explore methods to automate the production of these reports GOAL THREE Increase Efficiency and Accuracy of the North Fork Water Company Objectives • Increase staff knowledge of the North Fork Water Company through training and review of historical documents • Gain understanding and apply formulas for share deliveries based upon actual river flow • Enhance well monitoring and establish priority locations to maintain water reliability and prevent equipment damage caused by reduced water levels GOAL FOUR Investigate Alternative Sources of Water Supply Objectives • Explore possible water supply from Plunge Creek and City Creek • Work with legal counsel to determine ownership of water rights • If water supply is available to District, partner with Engineering to determine a method of delivery ACCOMPLISHMENTS • Implemented a per share delivery schedule on a monthly basis, for North Fork irrigators • Completely cleaned, scraped, patched and painted three pump houses and replaced three swamp coolers • Completed preventative maintenance on two Altitude Valves, 12 Pressure Regulating Valves and 10 Pump Control Valves • Completed the Honeywell Efficiency Project WATER PRODUCTION IS RESPONSBILE FOR MONITORING AND OPERATING THE ENTIRE WATER SYSTEM. FUNCTION Water Production is responsible for the daily monitoring and operations of the entire water production system, which includes 18 wells, 18 reservoirs and 24 booster stations . This program also ensures the timely preventive maintenance of all pumps and motors for wells and boosters . PROGRAM PERSONNEL Operations Manager 1 Senior Water Production Operator 1 Water Production Operator III 3 Water Production Operator II 1 Administrative Assistant 1 Total Full Time Employees 7 DR A F T 82 PROGRAM BUDGET DETAIL ADMINISTRATION FY 2013-14 ACTUALS FY 2014-15 BUDGET FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 - Regular Labor $ 165,867 $ 200,000 $ 200,000 $ 198,000 $ (2,000)-1% 5103 - Overtime 6,399 500 500 500 - 0% 5104 - Standby 12,659 20,000 20,000 20,000 - 0% 5200 - Benefits 154,505 75,000 75,000 65,000 (10,000)-13% OPERATING EXPENSES 6201 - Materials & Supplies $ 4,317 $ - $ - $ - $ - 0% 6203 - Office Supplies 5,235 3,000 3,000 4,000 1,000 33% 6301 - Contract Services 26,654 45,000 45,000 33,500 (11,500)-26% 6307 - Uniforms - - - 10,000 10,000 100% 6402 - Telephone 15,030 15,000 15,000 15,000 - 0% 6405 - Permits - - - - - 0% 6501 - Memberships & Dues 1,325 4,000 300 2,000 (2,000)-50% 6502 - Professional Development 5,070 15,000 9,000 5,000 (10,000)-67% 6503 - Education Assistance - - - - - WATER PRODUCTION ADMINISTRATION TOTAL $ 397,061 $ 377,500 $ 367,800 $ 353,000 $ (24,500)-6% SIGNIFICANT CHANGES • Contract Services has decreased because the District has secured a maintenance contract with the SCADA consultant to reduce costs arising as a result of an emergency . • Uniforms was added in an effort to be more detailed and transparent . • Professional Development was decreased due to the unavailability of funds . WATER PRODUCTION DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 83 PROGRAM BUDGET DETAIL SOURCE OF SUPPLY/WELLS FY 2013-14 ACTUALS FY 2014-15 BUDGET FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 - Regular Labor $ 159,434 $ 240,000 $ 240,000 $ 255,000 $ 15,000 6% 5103 - Overtime 8,450 30,000 30,000 25,000 (5,000)-17% 5200 - Benefits 51,767 85,000 85,000 75,000 (10,000)-12% OPERATING EXPENSES 6101 - Purchased Water $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ - 0% 6102 - Groundwater Replenishment 193,130 215,000 230,000 175,000 (40,000)-19% 6103 - Water Assessment 158,341 205,000 205,000 200,000 (5,000)-2% 6201 - Materials & Supplies 31,741 30,000 30,000 40,000 10,000 33% 6204 - Chemicals 123,933 200,000 200,000 150,000 (50,000)-25% 6301 - Contract Services 184,962 100,000 100,000 150,000 50,000 50% 6402 - Telephone 514 - - - - 0% 6403 - Electricity 1,534,651 1,750,000 1,750,000 2,000,000 250,000 14% 6405 - Permits - - - 8,000 8,000 100% SOURCE OF SUPPLY TOTAL $ 2,646,923 $ 3,055,000 $ 3,070,000 $ 3,278,000 $ 223,000 7% SIGNIFICANT CHANGES • Overtime was decreased as a result of increased preventive maintenance programs to wells . • Groundwater Replenishment was decreased due to increased conservation efforts that will decrease the amount of water needed to meet customer demands . • Materials & Supplies was increased to purchase parts for unanticipated repairs related to well motors and pumps . • Chemicals were decreased due to the decrease in water produced that will need to be treated . • Contract Services was increased to enhance the preventive maintenance program for well maintenance . This will control expensive repair costs in the long run . • Electricity was increased as a result of Southern California Edison increasing their rates . • Permits were added because the State Water Resource Control Board requires large water system fees for being a water operator in California . WATER PRODUCTION DR A F T 84 WATER PRODUCTION PROGRAM BUDGET DETAIL BOOSTING AND PUMPING FY 2013-14 ACTUALS FY 2014-15 BUDGET FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 - Regular Labor $ 268,813 $ 83,000 $ 83,000 $ 85,000 $ 2,000 2% 5103 - Overtime 9,684 5,000 5,000 5,000 - 0% 5200 - Benefits 43,124 25,000 25,000 25,000 - 0% OPERATING EXPENSES 6201 - Materials & Supplies $ 9,858 $ 20,000 $ 20,000 $ 20,000 $ - 0% 6301 - Contract Services 45,509 50,000 50,000 75,000 25,000 50% 6403 - Electricity 623,468 750,000 500,000 750,000 - 0% BOOSTING & PUMPING TOTAL $ 1,000,456 $ 933,000 $ 683,000 $ 960,000 $ 27,000 3% SIGNIFICANT CHANGES • Contract Services was increased to enhance the preventive maintenance program that will save the District expensive repair costs in the long run . DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 85 PROGRAM BUDGET DETAIL TRANSMISSION AND DISTRIBUTION FY 2013-14 ACTUALS FY 2014-15 BUDGET FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 - Regular Labor $ 6,403 $ 77,000 $ 77,000 $ 80,000 $ 3,000 4% 5103 - Overtime - 5,000 5,000 5,000 - 0% 5200 - Benefits 17,035 25,000 30,000 25,000 - 0% OPERATING EXPENSES 6201 - Materials & Supplies $ 12,023 $ 15,000 $ 10,000 $ 10,000 $ (5,000)-33% 6204 - Chemicals - 50,000 40,000 40,000 (10,000)-20% 6301 - Contract Services 22,679 50,000 30,000 40,000 (10,000)-20% TRANSMISSION & DISTRIBUTION TOTAL $ 58,140 $ 222,000 $ 192,000 $ 200,000 $ (22,000)-10% SIGNIFICANT CHANGES • Materials & Supplies were decreased because staff does not foresee any major issues with pressure reducing valves or cla-vals . • Chemicals were decreased because the amount of water distributed is anticipated to reduce as a result of the drought and conservation . • Contract Services was decreased because staff has established a schedule to phase reservoir maintenance and large altitude valves maintenance . WATER PRODUCTION DR A F T 86 THIS PAGE IS LEFT BLANK INTENTIONALLY DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 87 WATERTREATMENT GOALS AND OBJECTIVES GOAL ONE Continue to Increase Operational Efficiencies for Water Treatment Objectives • Train all production employees on the maintenance and operations of the treatment plant • Establish preventive maintenance schedules for all equipment and motors at the plant • Participate in the Plant 134 upgrade project to ensure operational needs are met • Re-evaluate production strategy to increase optimization of treatment Plant 134 to meet customer demands GOAL TWO Increase Water Conservation Efficiencies by Minimizing Waste from Excessive Bypass Flow During Un-scheduled Releases Objectives • Work with SCADA systems integrator to develop an alarm system for bypass flow • Develop a response procedure to address alarms • Document the bypass flow process and train operators to ensure proper response to bypass flow alarms • Develop a procedure manual that will identify new sources of water to treat when Santa Ana River and State Project Water are unavailable ACCOMPLISHMENTS • Completed diver inspections on six water storage reservoirs • Completed 400 fiber repairs in the MBR treatment cassette units at Plant 134 • Decommissioned the treatment plant at Plant 40 • Completed the Intermediate Zone to Upper Zone booster station WATER TREATMENT IS RESPONSBILE FOR OPERATING WATER TREATMENT FACILITIES. FUNCTION Water Treatment is responsible for the daily operation of water treatment facilities, namely Plant 134, Plant 39 and Plant 28 . Plant 134 is a Surface Water Treatment Plant that takes in water from the Santa Ana River via the North Fork Canal and State Water Project . Plant 39 is a treatment plant that utilizes a blending plan for fluoride . Lastly, Plant 28 utilizes Granular Activated Carbon to treat for PCE (perchloroethylene) . PROGRAM PERSONNEL Water Production Supervisor 1 Senior Treatment Plant Operator 1 Total Full Time Employees 2 DR A F T 88 PROGRAM BUDGET DETAIL FY 2013-14 ACTUALS FY 2014-15 BUDGET FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 - Regular Labor $ 116,805 $ 220,000 $ 220,000 $ 211,000 $ (9,000)-4% 5103 - Overtime 13,837 10,000 10,000 10,000 - 0% 5200 - Benefits 26,056 60,000 60,000 52,000 (8,000)-13% OPERATING EXPENSES 6201 - Materials & Supplies $ 21,058 $ 15,000 $ 15,000 $ 15,000 $ - 0% 6204 - Chemicals 162,650 250,000 125,000 150,000 (100,000)-40% 6301 - Contract Services 300,996 175,000 175,000 160,500 (14,500)-8% 6402 - Telephone 8,612 7,500 7,500 7,500 - 0% 6403 - Electricity 155,548 125,000 125,000 125,000 - 0% 6405 - Permits 307 100,000 5,000 5,000 (95,000)-95% WATER TREATMENT TOTAL $ 805,867 $ 962,500 $ 742,500 $ 736,000 $ (226,500)-24% SIGNIFICANT CHANGES • Chemicals have decreased due to the reduced amount of water that will need to be produced as a result of the drought . • Contract Services costs have been shifted to facilities maintenance to care for the facilities around the treatment plant . • Permits costs have decreased because Plant 134 has completed the Department of Public Health permitting process for the new technology installed in FY 2014-15 . WATER TREATMENT DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 89 WATERQUALITY GOALS AND OBJECTIVES GOAL ONE Provide Safe and Reliable Water to the Customers Objectives • Ensure water sampling and testing as required by the State Water Resources Control Board • Conduct quarterly source water sampling of various constituents and implement improved processes with data • Implement process control sampling on source water to maximize existing and future treatment operations • Explore methods to capture water from flushing to be reused GOAL TWO Utilize Technological Solutions to Increase Operational Efficiencies Objectives • Train employees on customer billing system to access real time customer information in the field • Install auto flush devices to reduce manpower and customer complaints • Optimize flushing needs using automated flushing software GOAL THREE Ensure Customers are Complying with Water Quality Requirements Objectives • Continue to monitor annual back flow device inspections as required • Identify methods to revert ownership of commercial fire services to customers ACCOMPLISHMENTS • Completed Final UCMR3 Quarterly Sampling • Flushed 80 percent of strategic locations, remaining points will be completed by end of Fiscal Year • Installed 29 new backflow devices as a result of backflow surveys conducted throughout the District • Provided all 2014 CCR water Quality Data to Public Affairs Department by March 31, 2015 deadline • Received CDPH approval to reduce DBP sample collection frequency WATER QUALITY COMPLIES WITH ALL REQUIRED DRINKING WATER REGULATIONS. FUNCTION Water Quality is responsible for ensuring District compliance with state and federal drinking water regulations . This program also manages, supervises and coordinates the activities of fire service backflow protection devices, customer-owned backflow protection devices, water sampling and testing, and fire hydrant flushing . PROGRAM PERSONNEL Water Quality Coordinator 1 Water Quality Technician 1 Total Full Time Employees 2 DR A F T 90 PROGRAM BUDGET DETAIL FY 2013-14 ACTUALS FY 2014-15 BUDGET FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE SOURCE OF SUPPLY/WELLS: PERSONNEL EXPENSES 5101 - Regular Labor $ 64,415 $ 75,000 $ 75,000 $ 80,000 $ 5,000 7% 5103 - Overtime 3,708 3,000 3,000 3,000 - 0% 5200 - Benefits 6,757 20,000 20,000 22,500 2,500 13% SOURCE OF SUPPLY/WELLS: OPERATING EXPENSES 6201 - Materials & Supplies $ 6,408 $ 3,000 $ 3,000 $ 14,500 $ 11,500 383% 6301 - Contract Services 72,610 75,000 75,000 50,000 (25,000)-33% TRANSMISSION AND DISTRIBUTION: PERSONNEL EXPENSES 5101 - Regular Labor $ 62,530 $ 75,000 $ 75,000 $ 80,000 $ 5,000 7% 5103 - Overtime - 15,000 15,000 - (15,000)-100% 5200 - Benefits 19,502 20,000 20,000 22,500 2,500 13% TRANSMISSION AND DISTRIBUTION: OPERATING EXPENSES 6201 - Materials & Supplies $ 549 $ 7,000 $ 7,000 $ - $ (7,000)-100% 6202 - Tools 3,660 5,000 5,000 5,000 - 0% 6204 - Chemicals 9,261 - - - - 0% 6301 - Contract Services 30,377 60,000 60,000 62,000 2,000 3% 6406 - Postage 133 5,000 5,000 2,500 (2,500)-50% WATER QUALITY TOTAL $ 279,910 $ 363,000 $ 363,000 $ 342,000 $ (21,000)-6% SIGNIFICANT CHANGES • Overtime has decreased because staff does not anticipate any water quality emergencies . • Materials and Supplies have increased because of the need to purchase reagents equipment for water sampling . • Contract Services have decreased due to the completion of Unregulated Contaminated Monitoring Rule 3 (UCMR3) that requires additional testing of constituents for the years 2013-2015 mandated by the US Environmental Protection Agency . • Postage decreased due to the reduced number of certified mailings required for backflow testing each year . WATER QUALITY DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 91 WATERMAINTENANCE GOALS AND OBJECTIVES GOAL ONE Expand Knowledge Base of Employees and Reduce Staff Exposure to Hazards in the Work Environment through Professional Development and Enhanced Safety Training Objectives • Develop a distribution and treatment training academy utilizing internal staff as instructors to assist staff in obtaining state certifications • Conduct traffic control and competent person training for all department staff • Implement annual ride-along evaluations for all DOT drivers to ensure proper operation of commercial vehicles • Conduct thorough daily vehicle inspections and provide the District’s mechanics with repair needs GOAL TWO Implement Advanced Metering Infrastructure (AMI) Installation Program Objectives • Coordinate with Engineering to review existing meter inventory to confirm condition, location, and work necessary for AMI retrofits • Participate in the field installation of the first phase of the AMI meter conversion program • Provide feedback regarding installation and maintenance requirements to enhance and refine future implementation phases GOAL THREE Elevate technological skills and abilities through enhanced training opportunities Objectives • Coordinate Citiworks training to ensure all department staff have the ability to competently utilize the District’s asset management program . • Attend Tyler timesheet training to become proficient with automated timesheets • Utilize computer programs on a daily basis to communicate with staff including work orders, work logs, daily updates, incident reporting, email, and other correspondence GOAL FOUR Create a Valve Shut Down Program for Implementation at District Plants as Part of Emergency Response Plan Objectives • Coordinate with Production to obtain plant valve locations • Coordinate with Engineering to map valves using the District’s GIS program . • Exercise valves in plants for emergency shut down purposes ACCOMPLISHMENTS • Completed 92 main leaks • Completed 148 service leaks • 795 hydrants maintained or repaired • Installed and/or repaired 33 reading lids on vaults • Responded to 1,183 call outs after hours • Installed 26 Octave meters due to damage or inaccurate meter reads (10 three-inch meters, 7 four-inch meters, 4 six-inch meters, and 5 eight-inch meters) FUNCTION Water Maintenance is responsible for the daily repair and maintenance of the District’s water transmission, distribution pipelines, and all related equipment, including fire hydrants, meters, valves, and meter vaults . PROGRAM PERSONNEL Field Service Superintendent 1 Field Service Supervisor 1 Senior Field Service Worker 2 Field Service Worker III 2 Field Service Worker II 4 Field Service Worker I 3 Total Full Time Employees 13 DR A F T 92 PROGRAM BUDGET DETAIL FIELD MAINTENANCE ADMINISTRATION FY 2013-14 ACTUALS FY 2014-15 BUDGET FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 - Regular Labor $ 217,146 $ 243,000 $ 243,000 $ 235,000 $ (8,000)-3% 5103 - Overtime 14,520 250 250 - (250)-100% 5104 - Standby 23,980 15,000 15,000 20,000 5,000 33% 5200 - Benefits 203,658 90,000 90,000 72,000 (18,000)-20% OPERATING EXPENSES 6203 - Office Supplies $ 1,459 $ 3,000 $ 3,000 $ 3,000 $ - 0% 6303 - Printing & Publishing 75 - - - - 0% 6402 - Telephone 19,374 25,000 25,000 15,000 (10,000)-40% 6501 - Memberships & Dues 198 1,000 1,000 500 (500)-50% 6502 - Professional Development 9,657 1,000 3,500 10,000 9,000 900% FIELD MAINTENANCE ADMINISTRATION TOTAL $ 490,066 $ 378,250 $ 380,750 $ 355,500 $ (22,750)-6% SIGNIFICANT CHANGES • Telephone was decreased because all field employees have updated smart phones to enhance communication methods with District staff . • Professional Development was increased to allow staff to attain Commercial Licenses and Water and Wastewater Certificates . WATER MAINTENANCE DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 93 WATER MAINTENANCE FY 2013-14 ACTUALS FY 2014-15 BUDGET FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 - Regular Labor $ 557,347 $ 667,000 $ 667,000 $ 690,000 $ 23,000 3% 5103 - Overtime 83,490 100,000 100,000 150,000 50,000 50% 5200 - Benefits 106,914 250,000 250,000 250,000 - 0% OPERATING EXPENSES 6201 - Materials & Supplies $ 155,820 $ 265,000 $ 265,000 $ 245,000 $ (20,000)-8% 6202 - Tools 1,237 10,000 10,000 5,000 (5,000)-50% 6301 - Contract Services 333,917 300,000 300,000 12,000 (288,000)-96% 6307 - Uniforms - - - 20,000 20,000 100% 6310 - Street Services - - - 250,000 250,000 100% 6402 - Telephone 846 - - - - 0% 6405 - Permits 39,141 50,000 50,000 50,000 - 0% WATER MAINTENANCE TOTAL $ 1,278,711 $ 1,642,000 $ 1,642,000 $ 1,672,000 $ 30,000 2% SIGNIFICANT CHANGES • Overtime was increased as a result of an overtime change in the Memorandum of Understanding that provides standby staff to receive a two-hour minimum of overtime when responding to an emergency call out . • Materials and Supplies because there are main replacements taking place that will resolve locations with multiple leak problems that staff is consistently responding to and temporarily fixing . • Tools were decreased because staff has taken an inventory of all tools and have found ways to share tools when not in use by another truck . • Contract Services costs shifted to the Street Services line item in an effort to be more detailed and transparent . • Uniforms was a line item added in an effort to be more detailed and transparent . • Street Services was a line item added in an effort to be more detailed and transparent . This costs fund WATER MAINTENANCE DR A F T 94 THIS PAGE IS LEFT BLANK INTENTIONALLY DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 95 WASTEWATERMAINTENANCE GOALS AND OBJECTIVES GOAL ONE Enhance Sewer Maintenance Cross-Training Program Objectives • Create a schedule for assigning Field Service Workers to a sewer maintenance rotation • Ensure all Field Service Workers are trained on sewer jetting and CCTV equipment GOAL TWO Enhance Sewer Collection System Maintenance and Management Objectives • Ensure at least sixty miles of sewer main is video inspected in order to complete a full system review by the 2018/19 fiscal year • Identify septic tank owners and partner with Engineering to map them on GIS • Coordinate with Engineering to create an electronic sewer tracking map incorporating directional flow through GIS • Work with Water Quality to explore requirements of implementing a FOG (fats, oils and grease) program • Encourage employees to attain the Grade I Collection System Maintenance certification ACCOMPLISHMENTS • Cleaned by water jetting 210 miles of sewer main • Videoed (CCTV) 32 miles of sewer main • Completed four sewer repairs WASTEWATER MAINTENANCE REPAIRS AND MAINTAINS A 208-MILE SYSTEM. FUNCTION Wastewater Maintenance is responsbile for the maintenance and repair of the 208 miles of the wastewater conveyance system . Based on the Sewer System Maintenance Plan, crews complete preventative video monitoring, scheduled maintenance, system repairs, and emergency repairs . PROGRAM PERSONNEL Field Service Worker II 2 Total Full Time Employees 2 DR A F T 96 PROGRAM BUDGET DETAIL FY 2013-14 ACTUALS FY 2014-15 BUDGET FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 - Regular Labor $ 134,896 $ 145,000 $ 145,000 $ 135,000 $ (10,000)-7% 5103 - Overtime 3,502 10,000 10,000 3,000 (7,000)-70% 5200 - Benefits 24,695 48,000 48,000 55,000 7,000 15% OPERATING EXPENSES 6201 - Materials & Supplies $ 41,476 $ 50,000 $ 50,000 $ 30,000 $ (20,000)-40% 6202 - Tools 43 5,000 5,000 5,000 - 0% 6301 - Contract Services 107,801 250,000 250,000 228,000 (22,000)-9% 6307 - Uniforms - - - 3,000 3,000 100% 6305 - Treatment Services 7,197,418 6,861,600 6,861,600 7,250,000 388,400 6% WASTEWATER MAINTENANCE TOTAL $ 7,509,831 $ 7,369,600 $ 7,369,600 $ 7,709,000 $ 339,400 5% SIGNIFICANT CHANGES • Overtime was decreased because of the enhanced preventive maintenance program staff does not anticipate any major emergencies for the sewer collection system . • Materials and Supplies was decreased because staff will not be utilizing sleeve technology for minor repairs, instead a contractor will be used to permanently fix a sag or crack in the line . • Uniforms was a line item added in an effort to be more detailed and transparent . • Treatment Services was increased in anticipated of the City of San Bernardino treatment rate increases . This amount is collected in revenues and remitted to the City and does not affect operations . WASTEWATER MAINTENANCE DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 97 FACILITIESMAINTENANCE GOALS AND OBJECTIVES GOAL ONE Ensure the Functional Upkeep of the District Facilities Objectives • Develop preventive maintenance program for all District facilities pertaining to roofing, HVAC, landscaping, and structural repairs • Identify facility deficiencies through routine inspections and create a schedule to correct these items • Participate in the annual development of the Capital Improvement Program to ensure significant facility improvements are included GOAL TWO Manage the Headquarters to a Level that Ensures the Facility is Always Aesthetically Pleasing, Clean, Sanitary, and Safe Objectives • Promptly replace/repair any problematic building systems • Establish written level of service standards for the headquarters to be used during the Facilities Rental process • Organize Safety Data Sheets throughout each department • Develop a product sheet through as-built specifications to understand building materials and construction within the Headquarters building ACCOMPLISHMENTS • Scheduled all work at District Facilities through the Cityworks Program • Put contracts in place for preventative maintenance on Headquarters Building HVAC and floor maintenance • Installed two new swamp coolers at Plants 11 and 33 • Installed Smart Tracker Flow Meters with Smart Tracking Controllers for weather stations FACILITIES MAINTENANCE REPAIRS AND MAINTAINS ALL DISTRICT FACILITIES. FUNCTION Facilities Maintenance is responsible for the complete maintenance and repair of all District facilities, including Administration Buildings, water facilities, District owned vacant properties and easements . PROGRAM PERSONNEL Facilities Maintenance Coordinator 1 Total Full Time Employees 1 DR A F T 98 PROGRAM BUDGET DETAIL FY 2013-14 ACTUALS FY 2014-15 BUDGET FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE ADMINISTRATION: PERSONNEL EXPENSES 5101 - Regular Labor $ 36,513 $ 55,000 $ 55,000 $ 85,000 $ 30,000 55% 5103 - Overtime 5,838 5,000 5,000 25,000 20,000 400% 5200 - Benefits 9,947 25,000 25,000 30,000 5,000 20% ADMINISTRATION: OPERATING EXPENSES 6201 - Materials & Supplies $ 43,203 $ 40,000 $ 40,000 $ 20,000 $ (20,000)-50% 6202 - Tools 5,219 3,000 3,000 2,000 (1,000)-33% 6301 - Contract Services 401,395 225,000 225,000 35,000 (190,000)-84% 6306 - Rents & Leases 133,749 2,500 2,500 12,000 9,500 380% 6307 - Uniforms - - - 12,000 12,000 100% 6311 - Landscape Services - - - 55,000 55,000 100% 6312 - Janitorial Services - - - 125,000 125,000 100% 6401 - Utilities 47,698 15,000 15,000 10,000 (5,000)-33% 6402 - Telephone 53,854 50,000 50,000 75,000 25,000 50% 6403 - Electricity 38,937 100,000 100,000 100,000 - 0% SOURCE OF SUPPLY/WELLS: OPERATING EXPENSES 6201 - Materials & Supplies $ - $ - $ - $ 5,000 $ 5,000 100% 6301 - Contract Services - - - 35,000 35,000 100% 6311 - Landscape Services - - - 40,000 40,000 100% PUMPS AND BOOSTERS: OPERATING EXPENSES 6201 - Materials & Supplies $ - $ - $ - $ 5,000 $ 5,000 100% 6301 - Contract Services - - - 25,000 25,000 100% 6311 - Landscape Services - - - 35,000 35,000 100% TREATMENT: OPERATING EXPENSES 6201 - Materials & Supplies $ - $ - $ - $ 5,000 $ 5,000 100% 6301 - Contract Services - 25,000 25,000 25,000 - 0% 6311 - Landscape Services - - - 12,000 12,000 100% 6401 - Utilities - 15,000 15,000 15,000 - 0% FACILITIES MAINTENANCE TOTAL $ 776,353 $ 560,500 $ 560,500 $ 788,000 $ 227,500 41% FACILITIES MAINTENANCE DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 99 SIGNIFICANT CHANGES • The Facilities Maintenance Program has expanded its responsibilities to facilities throughout the District . Costs were carefully reviewed and allocated to the correct cost centers in an effort to accurately capture costs by location . In an effort to be more detailed and transparent, Contract Services have been divided into significant services such as Landscape Services and Janitorial Services . FACILITIES MAINTENANCE 99 DR A F T 100 THIS PAGE IS LEFT BLANK INTENTIONALLY DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 101 FLEETMAINTENANCE GOALS AND OBJECTIVES GOAL ONE Enhance the Management of the District’s Fleet Program Objectives • Develop and maintain a ten-year vehicle and equipment replacement program • Establish a Fleet Maintenance Manual • Evaluate costs and benefits of installing GPS units in District vehicles to automatically track equipment mileage and usage GOAL TWO Prepare for Compliance with New Federal DOT Regulations Objectives • Update Driver Proficiency and Record of Authorized Vehicle forms • Inspect commercial vehicles using the two-person inspection method • Ensure drivers are thoroughly trained on new vehicles prior to operation • Conduct bi-weekly audits of Daily Vehicle Inspection reports ACCOMPLISHMENTS • Established hourly rates schedule for vehicles to be used in calculating activity costs VEHICLE MAINTENANCE REPAIRS AND MAINTAINS THE DISTRICT’S VEHICLE FLEET. FUNCTION Fleet Maintenance is responsible for the maintenance and repair of the District’s fleet, which includes approximately 54 vehicles and 15 pieces of heavy equipment . Fleet maintenance is also responsible for maintaining air quality regulations, vehicle registration and transportation requirements . PROGRAM PERSONNEL Senior Equipment Mechanic 1 Equipment Mechanic II 1 Total Full Time Employees 2 DR A F T 102 PROGRAM BUDGET DETAIL FY 2013-14 ACTUALS FY 2014-15 BUDGET FY 2014-15 PROJECTED FY 2015-16 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 - Regular Labor $ 129,414 $ 155,000 $ 155,000 $ 150,000 $ (5,000)-3% 5103 - Overtime 1,190 3,000 3,000 3,000 - 0% 5200 - Benefits 64,393 60,000 60,000 55,000 (5,000)-8% OPERATING EXPENSES 6201 - Materials & Supplies $ 52,575 $ 60,000 $ 60,000 $ 60,000 $ - 0% 6202 - Tools 1,815 5,000 5,000 5,000 - 0% 6203 - Office Supplies 1,313 1,000 1,000 1,000 - 0% 6301 - Contract Services 96,113 100,000 100,000 75,000 (25,000)-25% 6402 - Telephone 440 1,000 1,000 1,000 - 0% 6404 - Fuel 120,709 175,000 175,000 175,000 - 0% 6501 - Memberships & Dues 50 2,500 2,500 2,500 - 0% 6502 - Professional Development 1,269 2,000 2,000 2,000 - 0% FLEET MAINTENANCE TOTAL $ 469,281 $ 564,500 $ 564,500 $ 529,500 $ (35,000)-6% SIGNIFICANT CHANGES • Contract Services have been decreased as a result of the ongoing effort to develop a consistent vehicle replacement program that replaced old costly vehicles with new vehicles that require less maintenance . In the last two years, the District has decreased the fleet by eight vehicles and replaced five trucks . FLEET MAINTENANCE DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 103 CAPITALOUTLAY The District defines Capital outlay expenditures as an individually significant acquisition of capital assets (not involving construction) that are expected to last more than 2 years and have an individual cost of $5,000 or more . This threshold is applied at the individual asset level . Group purchases of individual assets under $5,000 are not capitalized, even if the group totals to more than $5,000 . Each year as part of the budget process, the District’s Program Managers and Supervisors compile and submit a list of capital outlay request for consideration . Then staff reviews and prioritizes the list of equipment based on a needs assessment and the amount of funding available . Items that benefit both the water and wastewater systems are allocated accordingly . CAPITAL OUTLAY ASSET INVESTMENTS ARE EXPECTED TO LAST MORE THAN TWO YEARS.DR A F T 104 CAPITAL OUTLAY FISCAL YEAR 2015/16 CAPITAL OUTLAY ITEM DESCRIPTION WATER SEWER TOTAL Web Content Security Appliance - web filter that block viruses and websites not appropriate for the work environment .$ 7,250 $ 7,250 $ 14,500 Conference Rooms Technology Upgrades - wireless presentation and communications equipment for conference rooms to enhance meetings . 5,500 5,500 11,000 Mobile Laptops/Tablets - additional mobile devices that can be used in the field and offsite to make work flow more efficient . 16,000 - 16,000 AWWA Standards - software with detailed specifications and requirements for water works related materials and system . 6,000 - 6,000 Computer Linked White Board - conference room equipment to enhance meetings for Engineering, Operations and Maintenance . 7,000 3,000 10,000 GPS Surveying Equipment - continue mapping of District facilities and infrastructure . 25,000 - 25,000 InfoSewer Master Software - software that will analyze existing sewer infrastructure and will provide basis for schedule of replacements and improvements . 37,000 37,000 InfoWater Master Software - software that will analyze existing water infrastructure and will provide basis for schedule of replacements and improvements . 37,000 - 37,000 Pressure Data Loggers w/ Locks - equipment to be installed on fire hydrants to monitor pressure changes over time throughout the system . Data is used for design of future water system improvements . 5,000 - 5,000 InfoWater Unidirectional Flushing Program - to develop a complete water system flushing sequence map . This will enhance water quality and devise an efficient flushing program . 27,000 - 27,000 Hydro Excavator - replaces #46 to assist water maintenance in the repair of main leaks . 400,000 - 400,000 2 Field Trucks - 2 1/2 ton trucks to replace #143 and #115 which are 10 years with over 110,000 miles . 65,000 - 65,000 Code Reader - this tool will help mechanics identify problems with vehicles to be repaired efficiently . 7,000 3,000 10,000 Lift - this equipment will help staff access hard to reach locations throughout the facilities . 21,000 9,000 30,000 Special Events Furniture - Tables and chairs for special events . 4,500 2,000 6,500 TOTAL CAPITAL OUTLAY $ 633,250 $ 66,750 $ 700,000 DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 105 CAPITAL PROGRAM A Capital Improvement Project expenditure is an individually significant construction project with a cost $25,000 or more that creates a new capital asset, improves an existing asset (increases its service capacity, etc .), or significantly and unusually extends an asset’s operating life . The District’s Capital Improvement Program (CIP) is a 5 year budget . However, each year projects are reviewed and evaluated based on the needs of the District . Therefore, some projects may be omitted and others moved forward annually during the development of each fiscal year budget . Proposed Capital Improvement Projects for the budgeted fiscal years were submitted by the Engineering, Operations and Maintenance Programs in accordance with the anticipated needs of the District as outlined in the updated 2013 Water and Wastewater Master Plans . The Master Plans identify over $25 million in projects for year 1, however due to limited resources, the District evaluated and prioritized projects based on the following criteria: • Preservation of public health and water quality . • Improvements required as a result of local, state or federal legislation/mandates . • Reduction of current maintenance expenditures and avoidance of costly future rehabilitation . • Preservation of existing facilities/infrastructure . • Positive impacts on customers . • Grant/loan secured or leverage of funds or Grant/ loan availability . For FY 2014-15, the District was only able to fund Capital Improvement Projects through revenues and development fees for a total of $7,333,790 . This is a significant decrease in comparison to the $28 million in projects approved in FY 2013-14 . Engineering will continue to complete ongoing projects from previous years and provide quarterly updates on the progress . CAPITAL IMPROVEMENT PROJECTS ARE BASED ON THE NEEDS OF THE DISTRICT.DR A F T 106 CA P I T A L I M P R O V E M E N T P R O J E C T S FI V E Y E A R P R O G R A M S C H E D U L E ( F Y 2 0 1 6 - 2 0 ) YE A R 1 FY 2 0 1 6 YE A R 2 FY 2 0 1 7 YE A R 3 FY 2 0 1 8 YE A R 4 FY 2 0 1 9 YE A R 5 FY 2 0 2 0 PR O J E C T TO T A L GE N E R A L Av i g a t i o n E a s e m e n t f o r S t e r l i n g P r o p e r t y $ 15 0 , 0 0 0 - - - - $ 15 0 , 0 0 0 Sa n t a A n a W a t e r S h e d H C P 1 0 5 , 0 0 0 6 3 , 0 0 0 - - - 1 6 8 , 0 0 0 Wa s h P l a n 3 4 , 0 0 0 3 4 , 0 0 0 3 4 , 0 0 0 - - 10 2 , 0 0 0 Mu l t i Y e a r R a t e S t u d y 5 0 , 0 0 0 - - - - 50 , 0 0 0 Me t e r R e p l a c e m e n t P r o g r a m / A M I 2 , 0 1 1 , 4 6 5 - - - - 2 , 0 1 1 , 4 6 5 GE N E R A L S U B T O T A L $ 2, 3 5 0 , 4 6 5 $ 97 , 0 0 0 $ 34 , 0 0 0 $ - $ - $ 2, 4 8 1 , 4 6 5 WA T E R Fa c i l i t i e s R e l o c a t i o n $ 15 0 , 0 0 0 $ 15 0 , 0 0 0 $ 15 0 , 0 0 0 $ 15 0 , 0 0 0 - $ 75 0 , 0 0 0 Up p e r Z o n e B o o s t e r 2 5 0 , 0 0 0 1 , 1 9 5 , 0 0 0 - - - 1 , 4 4 5 , 0 0 0 Ca n a l Z o n e 3 B o o s t e r - 3 0 0 , 0 0 0 1 , 1 9 5 , 0 0 0 - - 1 , 4 9 5 , 0 0 0 M- 1 M a i n R e p l a c e m e n t D w i g h t / G l a s g o w - 1 , 3 2 5 , 0 0 0 - - - 1 , 3 2 5 , 0 0 0 M- 2 M a i n R e p l a c e m e n t R e e d e y / M e s s i n a - 3 1 2 , 5 0 0 - - - 3 1 2 , 5 0 0 M- 3 M a i n R e p l a c e m e n t 3 5 t h S t . 4 0 0 , 0 0 0 - - - - 1 5 0 , 0 0 0 M- 4 M a i n R e p l a c e m e n t G l e n m a r e / F a i r f a x 4 0 0 , 0 0 0 - - - - 1 9 0 , 0 0 0 M- 5 M a i n R e p l a c e m e n t F i s h e r / S t r a t f o r d / 1 4 t h - - 8 6 0 , 0 0 0 - - 8 6 0 , 0 0 0 M- 6 M a i n R e p l a c e m e n t S t e r l i n g / H i g h l a n d - - 5 3 0 , 0 0 0 - - 5 3 0 , 0 0 0 M- 7 M a i n R e p l a c e m e n t V i c t o r i a - - - 1 , 5 5 0 , 0 0 0 - 1 , 5 5 0 , 0 0 0 M- 9 M a i n R e p l a c e m e n t L a P r a i x / 1 4 t h 3 3 4 , 8 6 0 - - - - 1 0 0 , 0 0 0 M- 1 0 M a i n R e p l a c e m e n t D e l R o s a / H i g h l a n d - 2 4 5 , 0 0 0 - - 2 4 5 , 0 0 0 M- 1 1 M a i n R e p l a c e m e n t E l m w o o d / L y n w o o d - - - 2 2 0 , 0 0 0 - 2 2 0 , 0 0 0 Ha r l a n L a n e R e p l a c e m e n t P r o j e c t - - - 2 0 0 , 0 0 0 - 2 0 0 , 0 0 0 Ca n a l Z o n e 3 M G R e s e r v o i r 2 5 0 , 0 0 0 1 , 8 6 5 , 0 0 0 9 6 0 , 0 0 0 - - 3 , 0 7 5 , 0 0 0 Mo u n t a i n Z o n e 1 M G R e s e r v o i r - - - 1 2 5 , 0 0 0 7 5 0 , 0 0 0 8 7 5 , 0 0 0 Fo o t h i l l Z o n e 4 M G R e s e r v o i r - - - - 5 0 0 , 0 0 0 5 0 0 , 0 0 0 Up p e r Z o n e 3 M G R e s e r v o i r - - - - 3 7 5 , 0 0 0 3 7 5 , 0 0 0 We l l & B o o s t e r R e h a b s 1 5 0 , 0 0 0 1 5 0 , 0 0 0 1 5 0 , 0 0 0 1 5 0 , 0 0 0 1 5 0 , 0 0 0 7 5 0 , 0 0 0 CAPITAL IMPROVEMENT PROGRAM DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 107 CA P I T A L I M P R O V E M E N T P R O J E C T S FI V E Y E A R P R O G R A M S C H E D U L E ( F Y 2 0 1 6 - 2 0 ) YE A R 1 FY 2 0 1 6 YE A R 2 FY 2 0 1 7 YE A R 3 FY 2 0 1 8 YE A R 4 FY 2 0 1 9 YE A R 5 FY 2 0 2 0 PR O J E C T TO T A L No r t h F o r k E n g i n e e r i n g A s s e s s m e n t s / Su r v e y $ 46 , 0 0 0 - - - - $ 46 , 0 0 0 Wa t e r T r e a t m e n t P l a n t / S W P T u r n o u t - - - - 7 , 8 0 0 , 0 0 0 7 , 8 0 0 , 0 0 0 Co n j u n c t i v e U s e W e l l s 1 , 0 0 0 , 0 0 0 3 , 0 0 0 , 0 0 0 3 , 0 0 0 , 0 0 0 3 , 0 0 0 , 0 0 0 1 0 , 0 0 0 , 0 0 0 WA T E R S U B T O T A L $ 1, 9 8 0 , 8 6 0 $ 6, 2 9 7 , 5 0 0 $ 7, 0 9 0 , 0 0 0 $ 5, 3 9 5 , 0 0 0 $ 12 , 5 7 5 , 0 0 0 $ 40 , 8 3 9 , 0 2 0 WA S T E W A T E R Re c y c l e d W a t e r C e n t e r ( W R P ) $ 15 , 0 0 0 , 0 0 0 $ 35 , 0 0 0 , 0 0 0 $ 28 , 4 0 0 , 0 0 0 $ - $ - $ 81 , 6 0 0 , 0 0 0 Ci t y C r e e k S e w e r M a n h o l e R e l o c a t i o n 9 7 0 , 0 0 0 - - - 1 , 3 7 0 , 0 0 0 Se w e r C a p a c i t y I m p r o v e m e n t s 1 , 5 0 0 , 0 0 0 - - - - 1 , 8 5 0 , 0 0 0 Se w e r f l o w m o n i t o r i n g 3 0 , 0 0 0 3 0 , 0 0 0 3 0 , 0 0 0 3 0 , 0 0 0 - 2 0 0 , 0 0 0 5t h S t r e e t T r u n k S e w e r ( W R P ) . 3 5 0 , 0 0 0 3 , 1 0 0 , 0 0 0 - - 3 , 4 5 0 , 0 0 0 Va l a r i a m a n h o l e r e p l a c e m e n t s 8 2 , 5 0 0 - - - - 8 0 , 0 0 0 Gr e e n s p o t E a s t - 7 0 0 , 0 0 0 6 , 3 0 0 , 0 0 0 - 3 , 4 4 5 , 1 9 0 7 , 0 0 0 , 0 0 0 Vi c t o r i a A v e P i p e l i n e - 1 0 0 , 0 0 0 7 3 7 , 0 0 0 - - 8 3 7 , 0 0 0 Se w e r M a i n R e p l a c e m e n t - 8 1 5 , 2 8 0 8 1 5 , 2 8 0 8 1 5 , 2 8 0 8 1 5 , 2 8 0 2 , 4 4 5 , 8 4 0 St e r l i n g A v e n u e T r u n k S e w e r ( W R P ) - 4 0 0 , 0 0 0 3 , 7 0 0 , 0 0 0 - - 4 , 1 0 0 , 0 0 0 6t h S t r e e t L i f t S t a t i o n a n d F o r c e M a i n ( W R P ) - 1 , 7 7 0 , 0 0 0 1 5 , 9 0 0 , 0 0 0 - - 1 7 , 6 7 0 , 0 0 0 3t h S t r e e t L i f t S t a t i o n a n d F o r c e M a i n ( W R P ) - 3 0 0 , 0 0 0 2 , 4 5 4 , 0 0 0 - - 2 , 7 5 4 , 0 0 0 WA S T E W A T E R S U B T O T A L $ 16 , 6 1 2 , 5 0 0 $ 40 , 4 3 5 , 2 8 0 $ 61 , 4 3 6 , 2 8 0 $ 84 5 , 2 8 0 $ 4, 2 6 0 , 4 7 0 $ 12 3 , 3 5 6 , 8 4 0 TO T A L $ 20 , 9 4 3 , 8 2 5 $ 4 6 , 8 2 9 , 7 8 0 $ 6 8 , 5 6 0 , 2 8 0 $ 6, 2 4 0 , 2 8 0 $ 16 , 8 3 5 , 4 7 0 $ 1 6 6 , 6 7 7 , 3 2 5 CAPITAL IMPROVEMENT PROGRAM DR A F T 108 FI S C A L Y E A R 2 0 1 5 - 1 6 P R O P O S E D F U N D I N G PR O J E C T WA T E R OP E R A T I N G RE V E N U E SE W E R OP E R A T I N G RE V E N U E GR A N T S / LO A N S OT H E R F U N D RE S E R V E S DE B T PR O C E E D S PR O J E C T TO T A L GE N E R A L Av i g a t i o n E a s e m e n t f o r S t e r l i n g P r o p e r t y $ 97 , 5 0 0 $ 52 , 5 0 0 $ - $ - $ - $ 1 5 0 , 0 0 0 Sa n t a A n a W a t e r S h e d H C P 1 0 5 , 0 0 0 - - - - 1 0 5 , 0 0 0 Wa s h P l a n 3 4 , 0 0 0 - - - - 3 4 , 0 0 0 Wa t e r B a s e d B u d g e t 5 0 , 0 0 0 - - - - 5 0 , 0 0 0 AM I - - 2 , 0 1 1 , 4 6 5 - - 2 , 0 1 1 , 4 6 5 GE N E R A L S U B T O T A L $ 28 6 , 5 0 0 $ 52 , 5 0 0 $ 2, 0 1 1 , 4 6 5 $ - $ - $ 2, 3 6 7 , 4 6 5 WA T E R Fa c i l i t i e s R e l o c a t i o n $ 15 0 , 0 0 0 $ - $ - $ - $ - $ 1 5 0 , 0 0 0 Up p e r Z o n e B o o s t e r - - - - 2 5 0 , 0 0 0 2 5 0 , 0 0 0 M- 3 M a i n R e p l a c e m e n t 3 5 t h S t . 4 0 0 , 0 0 0 - - - - 4 0 0 , 0 0 0 M- 4 M a i n R e p l a c e m e n t G l e n m a r e / F a i r f a x 4 0 0 , 0 0 0 - - - 4 0 0 , 0 0 0 M- 9 M a i n R e p l a c e m e n t L a P r a i x / 1 4 t h 3 3 4 , 8 6 0 - - - 3 3 4 , 8 6 0 Ca n a l Z o n e 3 M G R e s e r v o i r - - - - 2 5 0 , 0 0 0 2 5 0 , 0 0 0 We l l & B o o s t e r R e h a b s 1 5 0 , 0 0 0 - - - - 1 5 0 , 0 0 0 No r t h F o r k E n g i n e e r i n g A s s e s s m e n t / S u r v e y 4 6 , 0 0 0 - - - - 4 6 , 0 0 0 WA T E R S U B T O T A L $ 1 , 4 8 0 , 8 6 0 $ - $ - $ - $ 5 0 0 , 0 0 0 $ 1 , 9 8 0 , 8 6 0 WA S T E W A T E R Re c y c l e d W a t e r C e n t e r $ - $ - $1 2 , 0 7 0 , 0 0 0 - $ 2, 9 3 0 , 0 0 0 $ - $ 1 5 , 0 0 0 , 0 0 0 Se w e r C a p a c i t y I m p r o v e m e n t s - 1 , 0 6 5 , 5 4 0 - 4 3 4 , 4 6 0 - 1 , 5 0 0 , 0 0 0 Se w e r F l o w M o n i t o r i n g - 3 0 , 0 0 0 - - - 3 0 , 0 0 0 Va l a r i a M a n h o l e r e p l a c e m e n t s - 8 0 , 0 0 0 - - - 8 0 , 0 0 0 WA S T E W A T E R S U B T O T A L $ - $ 1, 1 7 5 , 5 4 0 $ - $ 3, 3 6 4 , 4 6 0 $ - $ 16 , 6 1 0 , 0 0 0 TO T A L $ 1, 7 6 7 , 3 6 0 $ 1, 2 2 8 , 0 4 0 $ 14 , 0 8 1 , 4 6 5 $ 3, 3 6 4 , 4 6 0 $ 50 0 , 0 0 0 $ 20 , 9 4 3 , 8 2 5 CAPITAL IMPROVEMENT PROGRAM DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 109 AVIGATION EASEMENTPROJECT PROJECT DESCRIPTION The District is involved in an ongoing lawsuit against the Inland Valley Development Agency (IVDA) to remove a flyover easement, on the property located at 3rd Avenue and Sterling Avenue . The District is appealing the court ruling for the avigation easement on the Third and Sterling property near the San Bernardino Airport . It is important to have the easement removed because it prevents the development of the property, therefore lowering its value on the market . PROJECT DETAILS PROJECT TYPE General LOCATION 3rd Avenue and Sterling Avenue PROJECT MANAGER Administration PROJECT SCHEDULE START DATE July 2014 ESTIMATED COMPLETION June 2016 CAPITAL REQUESTS Previously Programmed Project PROJECT COST OVERVIEW TOTAL PROJECT COST $400,000 PRIOR YEARS BUDGET $250,000 OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A CAPITAL IMPROVEMENT PROGRAM DR A F T 110 PROJECT COST YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design Land and Land Preparation Construction (Contract) Project Mgmt/Inspection Equipment/Furnishings Materials EVWD Labor Other (Legal)150,000 150,000 ANNUAL TOTAL $ 150,000 $ -$ -$ -$ -$ 150,000 PROJECT FUNDING YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 150,000 $ 150,000 Reserve Transfer Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 150,000 $ -$ -$ -$ -$ 150,000 AVIGATION EASEMENT DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 111 PROJECTVICINITY HABITAT CONSERVATION PLANPROJECT PROJECT DESCRIPTION The Upper Santa Ana River Watershed Habitat Conservation Plan (HCP) focuses on management of activities throughout the watershed in such a way that it minimizes impacts to species of animals that live in the water shed as well as the hydrogeography of the area . San Bernardino Valley Municipal Water District is the lead agency in developing this plan . There are nine agencies involved in ths plan and costs will be dependent on the type and amount of activities associated with each agency . Final costs have not been identified yet, but preliminary estimates have the District’s share of the total cost at approximately $100,000 . A draft report should be released by the 4th quarter of FY 2015 . The District will benefit from the HCP by allowing all of the District’s ongoing activities and future projects to have their environmental impacts mitigated thru the HCP and avoid project specific mitigation in the future . PROJECT DETAILS PROJECT TYPE General LOCATION Upper Santa Ana River Watershed PROJECT MANAGER Tom Holliman PROJECT SCHEDULE START DATE June 2015 ESTIMATED COMPLETION January 2017 CAPITAL REQUESTS Previously Programmed Project PROJECT COST OVERVIEW TOTAL PROJECT COST $168,000 PRIOR YEARS BUDGET $63,000 OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A CAPITAL IMPROVEMENT PROGRAM DR A F T 112 PROJECT COST YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 100,000 $ 100,000 Land and Land Preparation Construction (Contract) Project Mgmt/Inspection Equipment/Furnishings Materials EVWD Labor 5,000 5,000 Other (Legal) ANNUAL TOTAL $ 105,000 $ -$ -$ -$ -$ 105,000 PROJECT FUNDING YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 105,000 $ 105,000 Reserve Transfer Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 105,000 $ -$ -$ -$ -$ 105,000 HABITAT CONSERVATION PLAN DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 113 WASH PLANPROJECT CAPITAL IMPROVEMENT PROGRAM PROJECTVICINITY PROJECT DESCRIPTION San Bernardino Valley Water Conservation District is the lead agency in developing a Habitat Conservation Plan (HCP) for the Santa Ana River Wash (Wash) which includes a total of seven agencies including the District . The purpose of the plan is to allow the coordinated development and management of multiple resources in the Wash . The HCP is required to coordinate and manage present and future activities and to balance ground disturbing activities with habitat conservation . The jurisdiction of the Wash falls under many local, State and Federal agencies and all have participated in the development of the plan . The total endowment to implement the plan is just over $10M with each agency is responsible for paying their fair share . The District’s share for participating in the plan is estimated at $93,000 . This is a one time payment to fund the endowment for maintaining the HCP with payments spread over three fiscal years . Staff labor will provide funding for HCP related meetings and reviews during the first three years of implementation . PROJECT DETAILS PROJECT TYPE General LOCATION Santa Ana River Watershed PROJECT MANAGER Tom Holliman PROJECT SCHEDULE START DATE June 2015 ESTIMATED COMPLETION June 2016 CAPITAL REQUESTS New Project PROJECT COST OVERVIEW TOTAL PROJECT COST $102,000 PRIOR YEARS BUDGET N/A OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE The HCP will not require additional updates . UTILITIES N/A DR A F T 114 PROJECT COST YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design Land and Land Preparation Construction (Contract)$ 31,000 $ 31,000 $ 31,000 $ 93,000 Project Mgmt/Inspection Equipment/Furnishings Materials EVWD Labor 3,000 3,000 3,000 9,000 Other (Legal) ANNUAL TOTAL $ -$ 34,000 $ 34,000 $ 34,000 $ -$ 102,000 PROJECT FUNDING YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 34,000 $ 34,000 $ 34,000 $ 102,000 Reserve Transfer Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ -$ 34,000 $ 34,000 $ 34,000 $ -$ 102,000 WASH PLAN PROJECT DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 115 WATER BASED BUDGETIMPLEMENTATION PROJECT CAPITAL IMPROVEMENT PROGRAM PROJECT DESCRIPTION The implementation of budget based rates requires a significant amount of administration . Part-time temporary employees were hired to help with the large influx of calls that would result . There are two part-time employees who are currently workingin the Customer Service Department to provide assistance to customers during this transition to the new rate structure . This amount of funding will pay their salaries until December 2015 . The District anticipates reimbursment for the entire project amount from a grant from the state for the implementation of water conserving rates . PROJECT DETAILS PROJECT TYPE General LOCATION District-wide PROJECT MANAGER Brian Tompkins PROJECT SCHEDULE START DATE July 2014 ESTIMATED COMPLETION December 2015 CAPITAL REQUESTS Previously Programmed Project PROJECT COST OVERVIEW TOTAL PROJECT COST $300,000 PRIOR YEARS BUDGET $250,000 OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES Temporary part-time employees were hired to help customers understand budget based rates and shadow bills prior to implementation . It will be determined at a later date if additional permanent employees are necessary . DEBT SERVICE N/A MAINTENANCE The District’s utility billing system that calculates budget based rates is annually budgeted for software maintenance . UTILITIES N/A DR A F T 116 PROJECT COST YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design Land and Land Preparation Construction (Contract) Project Mgmt/Inspection Equipment/Furnishings Materials EVWD Labor $ 50,000 $ 50,000 Other (Legal) ANNUAL TOTAL $ 50,000 $ -$ -$ -$ -$ 50,000 PROJECT FUNDING YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 50,000 $ 50,000 Reserve Transfer Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 50,000 $ -$ -$ -$ -$ 50,000 WATER BASED BUDGET IMPLEMENTATION DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 117 AMI METER RETROFIT PROGRAMPROJECT CAPITAL IMPROVEMENT PROGRAM PROJECTVICINITY PROJECT DESCRIPTION This project will consist of retrofitting approximately 6,100 AMR and manual read meters throughout the District . Funding for the project will be in the form of a grant from the Department of Water Resources-Energy Grant Program . The work will include a pilot testing phase and then a systematic system roll-out . PROJECT DETAILS PROJECT TYPE Water LOCATION Various locations throughout the District PROJECT MANAGER Tom Holliman PROJECT SCHEDULE START DATE July 2015 ESTIMATED COMPLETION June 2016 CAPITAL REQUESTS New Project PROJECT COST OVERVIEW TOTAL PROJECT COST $2,011,465 PRIOR YEARS BUDGET N/A OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/ADR A F T 118 PROJECT COST YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design Land and Land Preparation Construction (Contract) Project Mgmt/Inspection Equipment/Furnishings Materials EVWD Labor Other (Legal) ANNUAL TOTAL $ $ -$ -$ -$ -$ PROJECT FUNDING YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL FINANCING SOURCES Operating Revenue Reserve Transfer Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ $ -$ -$ -$ -$ AMI METER RETROFIT DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 119 FACILITIES RELOCATIONPROJECT CAPITAL IMPROVEMENT PROGRAM DISTRICT-WIDEBOUNDARY PROJECT DESCRIPTION The District’s service area covers all of the City of Highland, parts of the City of San Bernardino and parts of San Bernardino County . When these agencies plan and construct improvements within their jurisdiction on occasion there are conflicts with the District’s facilities . When roads are resurfaced or widened existing District facilities are required to be adjusted to grade or relocated behind new curb and gutter . This project will provide funding to relocate or adjust District facilities such as fire hydrants, main lines, or meter services for FY2015/16 . PROJECT DETAILS PROJECT TYPE Water LOCATION District-wide PROJECT MANAGER Eliseo Ochoa PROJECT SCHEDULE START DATE July 2015 ESTIMATED COMPLETION June 2016 CAPITAL REQUESTS On-going Project PROJECT COST OVERVIEW TOTAL PROJECT COST $150,000 PRIOR YEARS BUDGET N/A OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE N/A UTILITIES N/A DR A F T 120 PROJECT COST YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 5,000 $ 5,000 Land and Land Preparation Construction (Contract)140,000 140,000 Project Mgmt/Inspection Equipment/Furnishings Materials EVWD Labor 5,000 5,000 Other (Legal) ANNUAL TOTAL $ 150,000 $ -$ -$ -$ -$ 150,000 PROJECT FUNDING YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 150,000 $ 150,000 Reserve Transfer Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 150,000 $ -$ -$ -$ -$ 150,000 FACILITIES RELOCATION DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 121 B-2, BOOSTER STATIONUPPER ZONE TO CANAL ZONE 3PROJECT CAPITAL IMPROVEMENT PROGRAM PROJECT DESCRIPTION This project will consist of the construction of a new booster station capable of pumping 3 MGD from the Upper Zone to Canal Zone 3 . The Water Master Plan recommended the construction of this booster station due to large developments that will be built in the east end of the District’s service area . This booster station will also help improve pressure conditions in the existing eastern portion of the District’s distribution system . The location of the booster station has yet to be determined . The preliminary design phase of this project will include a siting evaluation to determine the best location for the booster station . PROJECT DETAILS PROJECT TYPE Water LOCATION In the Upper Zone, location has not yet been identified PROJECT MANAGER Eliseo Ochoa PROJECT SCHEDULE START DATE July 2015 ESTIMATED COMPLETION June 2016 CAPITAL REQUESTS New Project PROJECT COST OVERVIEW TOTAL PROJECT COST $1,495,000 PRIOR YEARS BUDGET N/A OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE Bonds will be issued to help fund this project MAINTENANCE Operations staff will be responsible for operations and maintenance UTILITIES Increaased electricity costs to operate DISTRICT-WIDEBOUNDARY DR A F T 122 PROJECT COST YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 200,000 $ 200,000 Land and Land Preparation 40,000 40,000 Construction (Contract) 1,000,000 1,000,000 Project Mgmt/Inspection 150,000 $50,000 Equipment/Furnishings Materials EVWD Labor 10,000 95,000 105,000 Other (Legal) ANNUAL TOTAL $ 250,000 $ 1,245,000 $ -$ -$ -$ 1,495,000 PROJECT FUNDING YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL FINANCING SOURCES Operating Revenue Reserve Transfer Grants/Loans Bond Proceeds Development Fees $ 250,000 $ 250,000 Other ANNUAL TOTAL $ 250,000 $ -$ -$ -$ -$ 250,000 B-2, BOOSTER STATION DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 123 M-3 WATER MAINREPLACEMENT IN 35TH STREETPROJECT CAPITAL IMPROVEMENT PROGRAM PROJECTVICINITYPROJECTVICINITY PROJECT DESCRIPTION Replace 6-inch main with new 8-inch main . Approximately 780 lineal feet of pipeline in 35th street from Conejo Drive to Mountain Ave . The existing 6-inch main has developed multiple leaks in the last few years and required reactive mode repairs . This pipeline should be replaced through a scheduled replacement which should result in lower cost of construction . PROJECT DETAILS PROJECT TYPE Water LOCATION 35th Street between Conejo and Mountain PROJECT MANAGER Eliseo Ochoa PROJECT SCHEDULE START DATE January 2016 ESTIMATED COMPLETION June 2016 CAPITAL REQUESTS New Project PROJECT COST OVERVIEW TOTAL PROJECT COST $400,000 PRIOR YEARS BUDGET N/A OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE Less labor for repairing leaks will allow staff more time to focus on preventative maintenance throughout the system UTILITIES N/A DR A F T 124 PROJECT COST YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 25,000 $ 25,000 Land and Land Preparation Construction (Contract) 350,000 350,000 Project Mgmt/Inspection 15,000 15,000 Equipment/Furnishings Materials EVWD Labor 10,000 10,000 Other (Legal) ANNUAL TOTAL $ 400,000 $ - $ - $ - $ - $ 400,000 PROJECT FUNDING YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 400,000 $ 400,000 Reserve Transfer Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 400,000 $ -$ -$ -$ -$ 400,000 M-3 WATER MAIN REPLACEMENT DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 125 M-4 WATER MAIN REPLACEMENTIN GLENMARE STREET/FAIRFAX DRIVEPROJECT CAPITAL IMPROVEMENT PROGRAM PROJECTVICINITYPROJECTVICINITY PROJECT DESCRIPTION Replace 6-inch main with new 8-inch main . Approximately 1,000 lineal feet of pipeline in Glenmare Street from Erwin Ave to Mountain Ave and in Fairfax Drive from Eureka Street to Glenmare Street . The existing 6-inch main has developed multiple leaks in the last few years and required reactive mode repairs . This pipeline should be replaced through a scheduled replacement which should result in lower cost of construction . PROJECT DETAILS PROJECT TYPE Water LOCATION Glenmare Street and Fairfax Drive PROJECT MANAGER Eliseo Ochoa PROJECT SCHEDULE START DATE January 2016 ESTIMATED COMPLETION June 2016 CAPITAL REQUESTS New Project PROJECT COST OVERVIEW TOTAL PROJECT COST $400,000 PRIOR YEARS BUDGET N/A OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE Less labor for repairing leaks will allow staff more time to focus on preventative maintenance throughout the system UTILITIES N/A DR A F T 126 PROJECT COST YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 30,000 $ 30,000 Land and Land Preparation Construction (Contract)330,000 330,000 Project Mgmt/Inspection 25,000 25,000 Equipment/Furnishings Materials EVWD Labor 15,000 15,000 Other (Legal) ANNUAL TOTAL $ 400,000 $ -$ -$ -$ -$ 400,000 PROJECT FUNDING YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 400,000 $ 400,000 Reserve Transfer Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 400,000 $ -$ -$ -$ -$ 400,000 M-4 WATER MAIN REPLACEMENT DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 127 M-9 WATER MAINREPLACEMENT 14THSTREETPROJECT CAPITAL IMPROVEMENT PROGRAM PROJECTVICINITYPROJECTVICINITY PROJECT DESCRIPTION Replace 4-inch main with new 8-inch main . Approximately 550 lineal feet of pipeline in 14th Street from La Praix Street to the end of 14th Street . The existing 4-inch main has developed multiple leaks in the last few years and required reactive mode repairs . This pipeline should be replaced through a scheduled replacement which should result in lower cost of construction . PROJECT DETAILS PROJECT TYPE Water LOCATION 14th Street at La Praix PROJECT MANAGER Eliseo Ochoa PROJECT SCHEDULE START DATE January 2016 ESTIMATED COMPLETION June 2016 CAPITAL REQUESTS New Project PROJECT COST OVERVIEW TOTAL PROJECT COST $334,860 PRIOR YEARS BUDGET N/A OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE Less labor for repairing leaks will allow staff more time to focus on preventative maintenance throughout the system UTILITIES N/A DR A F T 128 PROJECT COST YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 15,000 $ 15,000 Land and Land Preparation Construction (Contract)299,860 299,860 Project Mgmt/Inspection 10,000 10,000 Equipment/Furnishings Materials EVWD Labor 10,000 10,000 Other (Legal) ANNUAL TOTAL $ 334,860 $ -$ -$ -$ -$ 334,860 PROJECT FUNDING YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 334,860 $ 334,860 Reserve Transfer Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 334,860 $ -$ -$ -$ -$ 334,860 M-9 WATER MAIN REPLACEMENT DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 129 CAPITAL IMPROVEMENT PROGRAM PROJECT DESCRIPTION Project will consist of the construction of a 2 .5 MG reservoir in the Canal Zone 3 . Total required storage in any zone is the combination of operational, fire flow and emergency storage . The Canal 3 Zone was identified as deficient in storage in the 2014 Water System Master Plan . The Master Plan recommended the construction of reservoirs in the higher pressure zones first because water can be dropped down into lower pressure zones through pressure reducing valves thereby sharing the storage while ultimate storage is constructed . The location of the reservoir has yet to be determined . The Preliminary Design phase will include a siting study to determine the best location to construct this reservoir . PROJECT DETAILS PROJECT TYPE Water LOCATION In the Canal Zone, the location has not yet been identified PROJECT MANAGER Eliseo Ochoa PROJECT SCHEDULE START DATE July 2015 ESTIMATED COMPLETION June 2016 CAPITAL REQUESTS New Project PROJECT COST OVERVIEW TOTAL PROJECT COST $3,075,000 PRIOR YEARS BUDGET N/A OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE The new reservoir will require some increase in maintenance costs to maintain the facility and grounds UTILITIES The reservoir should help reduce pumping costs by allowing pumping and storage during low power cost periods for use, by gravity, during higher energy cost R-1 CANAL ZONE 3 RESERVOIRPROJECT PROJECTVICINITY DR A F T 130 PROJECT COST YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 200,000 $ 200,000 Land and Land Preparation 40,000 40,000 Construction (Contract)1,665,000 900,000 2,565,000 Project Mgmt/Inspection 150,000 50,000 200,000 Equipment/Furnishings Materials EVWD Labor 10,000 50,000 10,000 70,000 Other (Legal) ANNUAL TOTAL $ 250,000 $ 1,865,000 $ 960,000 $ -$ -$ 3,075,000 PROJECT FUNDING YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL FINANCING SOURCES Operating Revenue Reserve Transfer Grants/Loans Bond Proceeds Development Fees $ 250,000 $ 250,000 Other ANNUAL TOTAL $ 250,000 $ -$ -$ -$ -$ 250,000 R-1 CANAL ZONE 3 RESERVOIR DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 131 CAPITAL IMPROVEMENT PROGRAM PROJECT DESCRIPTION The District has approximately 65 Booster Pumps, and 16 Wells in the water distribution system . In order to ensure that these facilities operate properly and provide reliable service this budget item will provide funding to rehabilitate existing booster pumps and wells prior to failure or major reductions in performance . This pro-active approach will reduce the cost of repairs done in an emergency or reactive mode . Plant 143 is scheduled for FY 2015-16 . PROJECT DETAILS PROJECT TYPE Water LOCATION Plant 143 PROJECT MANAGER Mike Henderson PROJECT SCHEDULE START DATE July 2015 ESTIMATED COMPLETION June 2016 CAPITAL REQUESTS On-going Project PROJECT COST OVERVIEW TOTAL PROJECT COST $150,000 PRIOR YEARS BUDGET N/A OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE Will reduce maintenance costs by allowing work to be scheduled in proactive mode rather than emergency reactive modes, which can incur overtime charges in addition to the cost of the repairs UTILITIES Improving pump and well performance through scheduled repairs and rehabilitation will result in improved efficiency and lower energy costs WELL AND BOOSTERREHABILITATIONPROJECT DISTRICT-WIDEBOUNDARY DR A F T 132 PROJECT COST YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 5,000 $ 5,000 Land and Land Preparation Construction (Contract)140,000 140,000 Project Mgmt/Inspection Equipment/Furnishings Materials EVWD Labor 5,000 5,000 Other (Legal) ANNUAL TOTAL $ 150,000 $ -$ -$ -$ -$ 150,000 PROJECT FUNDING YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 150,000 $ 150,000 Reserve Transfer Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 150,000 $ -$ -$ -$ -$ 150,000 WELL AND BOOSTER REHABILITATION DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 133 CAPITAL IMPROVEMENT PROGRAM PROJECT DESCRIPTION The North Fork pipeline crosses over the Santa Ana River and is supported on wooden trestles . Further west, the North Fork pipeline crosses over Plunge Creek and is supported on concrete footings . Both sections are exposed to the elements and over time have began to develop leaks . The North Fork Pipeline has a constant water flow and small leaks can lead to a significant loss of water . Both sections of pipeline are in environmentally sensitive areas . This project will consist of an engineering assessment of the condition of both crosses and develop alternatives to stop the leaks and cost estimates for repair/replacement, protection, and environmental mitigation and permitting . PROJECT DETAILS PROJECT TYPE Water LOCATION North Fork crossing of Plunge Creek and Santa Ana River PROJECT MANAGER Eliseo Ochoa PROJECT SCHEDULE START DATE July 2015 ESTIMATED COMPLETION June 2016 CAPITAL REQUESTS New Project PROJECT COST OVERVIEW TOTAL PROJECT COST $46,000 PRIOR YEARS BUDGET N/A OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE District Staff complete repairs when leaks develop; a new pipeline will allow District staff to focus on preventative maintenance UTILITIES N/A NORTH FORKPIPELINE ASSESSMENTPROJECT PLUNGE CREEKCROSSING SANTA ANARIVER CROSSING DR A F T 134 PROJECT COST YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 44,000 $ 44,000 Land and Land Preparation Construction (Contract) Project Mgmt/Inspection Equipment/Furnishings Materials EVWD Labor 2,000 2,000 Other (Legal) ANNUAL TOTAL $ 46,000 $ -$ -$ -$ -$ 46,000 PROJECT FUNDING YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 46,000 $ 46,000 Reserve Transfer Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 46,000 $ -$ -$ -$ -$ 46,000 NORTH FORK PIPELINE DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 135 CAPITAL IMPROVEMENT PROGRAM PROJECT DESCRIPTION In response to the drought and SBX7-7 which mandates that the District must cut 20 percent of its use by the year 2020, the District is planning and constructing a recycled water center . The facility will allow the District to treat wastewater to a point that it can be recharged back into the groundwater basin and reused for domestic purpose . Initially the facility will treat approximately 6 million gallons a day and will be expandable to be able to treat ultimate build out . PROJECT DETAILS PROJECT TYPE Sewer LOCATION Southwest Corner of 5th and Del Rosa PROJECT MANAGER Tom Holliman PROJECT SCHEDULE START DATE January 2014 ESTIMATED COMPLETION June 2018 CAPITAL REQUESTS Previously Programmed Project PROJECT COST OVERVIEW TOTAL PROJECT COST $80,250,000 PRIOR YEARS BUDGET $1,850,000 OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES No additional engineering staff required for Year 1 and 2 during design, additional wastewater operators will be required in Year 2 and then after the recycled water center becomes operational DEBT SERVICE Project will be funded through California State SRF Loan Funds MAINTENANCE No additional maintenance staff will be required during construction (Years 1-3), additional staff member will be required after construction beggining in Year 4 UTILITIES Recycled water center will require additional electrical energy, natural gas, water, sewer, and telephone RECYCLED WATER CENTERPROJECT PROJECTVICINITYPROJECTVICINITY DR A F T 136 PROJECT COST YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 1,500,000 $ 2,000,000 $ 3,500,000 Land and Land Preparation 1,000,000 1,000,000 Construction (Contract)10,000,000 25,000,000 22,400,000 57,400,000 Project Mgmt/Inspection 1,500,000 5,000,000 4,000,000 10,500,000 Equipment/Furnishings Materials EVWD Labor 1,000,000 3,000,000 2,000,000 6,000,000 Other (Legal) ANNUAL TOTAL $ 15,000,000 $ 35,000,000 $ 28,400,000 $ -$ -$ 78,400,000 PROJECT FUNDING YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL FINANCING SOURCES Operating Revenue Reserve Transfer $ 15,000,000 $ 15,000,000 Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 15,000,000 $ -$ -$ -$ -$ 15,000,000 RECYCLED WATER CENTER DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 137 CAPITAL IMPROVEMENT PROGRAM PROJECT DESCRIPTION The project will consist of approximately 3,500 linear feet of 15-inch trunk sewer in Whitlock Avenue from Sixth Street to 3rd Street, and in 3rd Street from Whitlock Avenue to Waterman Avenue . This project will relieve surcharging in the 6th Street trunk sewer as well as potentially improve flows in the adjacent local residential sewers . The Church Street Bypass will include the installation of 600 feet of 12-inch trunk in Old Greenspot Road adjacent to existing Greenspot Road . Both projects will relieve current flow restrictions as well as allow for new development along Greenspot Road and 5th Street . PROJECT DETAILS PROJECT TYPE Sewer LOCATION Whitlock and Little Third; Greenspot and Church PROJECT MANAGER Eliseo Ochoa PROJECT SCHEDULE START DATE July 2015 ESTIMATED COMPLETION June 2016 CAPITAL REQUESTS Previously Programmed Project PROJECT COST OVERVIEW TOTAL PROJECT COST $1,675,000 PRIOR YEARS BUDGET $175,000 OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES No additional staff will be required for the design and construction of this project DEBT SERVICE N/A MAINTENANCE No additional staff will be required to maintain the new sewer facilities UTILITIES N/A SEWER CAPACITY IMPROVEMENTSPROJECT DR A F T 138 PROJECT COST YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design Land and Land Preparation Construction (Contract)$ 1,300,000 $ 1,300,000 Project Mgmt/Inspection 150,000 150,000 Equipment/Furnishings Materials EVWD Labor 50,000 50,000 Other (Legal) ANNUAL TOTAL $ 1,500,000 $ -$ -$ -$ -$ 1,500,000 PROJECT FUNDING YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 1,200,000 $ 1,200,000 Reserve Transfer 300,000 300,000 Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 1,500,000 $ -$ -$ -$ -$ 1,500,000 SEWER CAPACITY DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 139 CAPITAL IMPROVEMENT PROGRAM PROJECT DESCRIPTION The District installed two flow meters, one on 6th Street just East of Waterman and one on 3rd Street just East of Waterman . These two meters measure the entire sewer flow of the District’s service area . The purpose of these meters is to verify how much flow the District is sending to the City of San Bernardino sewer treatment plant compared to the flows calculated based on connections . The flow data will be used to design the new Water Reclamation Plant, monitor the impacts of new development, and provide data to calibrate the District’s InfoSewer system model . The meters will be needed for a minimum of three more years, and then re-assessed . PROJECT DETAILS PROJECT TYPE Sewer LOCATION Meters will be located on west end and will measure entire District flows PROJECT MANAGER Eliseo Ochoa PROJECT SCHEDULE START DATE September 2014 ESTIMATED COMPLETION June 2016 CAPITAL REQUESTS New Project PROJECT COST OVERVIEW TOTAL PROJECT COST $120,000 PRIOR YEARS BUDGET N/A OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A - Data is uploaded by ADS services DEBT SERVICE N/A MAINTENANCE N/A - Meters are maintainted by ADS services UTILITIES N/A SEWER FLOW MONITORINGPROJECT PROJECTVICINITYPROJECTVICINITY DR A F T 140 PROJECT COST YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design Land and Land Preparation Construction (Contract) Project Mgmt/Inspection $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 120,000 Equipment/Furnishings Materials EVWD Labor Other (Legal) ANNUAL TOTAL $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ -$ 120,000 PROJECT FUNDING YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 120,000 Reserve Transfer Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ -$ 120,000 SEWER FLOW MONITORING DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 141 CAPITAL IMPROVEMENT PROGRAM PROJECT DESCRIPTION During video inspections of sewer mains and manholes on Valaria Drive staff identified significant odors and corrosion of the cement bases and manholes in Valaria Drive caused by high levels of hydrogen sulfide gas . Based on the current level of odors and damage, and the potential for manhole failure and subsequent impacts to sewer service for Valaria Drive customers, staff has identified six manholes on Valaria Drive and at the intersection of Valaria Drive and Del Norte Drive that need to either be rehabilitated or replaced . PROJECT DETAILS PROJECT TYPE Sewer LOCATION Valaria Drive South of Marshall Boulevard PROJECT MANAGER Eliseo Ochoa PROJECT SCHEDULE START DATE December 2015 ESTIMATED COMPLETION June 2016 CAPITAL REQUESTS New Project PROJECT COST OVERVIEW TOTAL PROJECT COST $80,000 PRIOR YEARS BUDGET N/A OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE This project will reduce maintenance costs by eliminating the need for additional flushing of the manholes and sewer main UTILITIES N/A VALARIA DRIVEMANHOLE REHABILITATIONPROJECT PROJECTVICINITYPROJECTVICINITY DR A F T 142 PROJECT COST YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 5,000 $ 5,000 Land and Land Preparation Construction (Contract)65,000 65,000 Project Mgmt/Inspection 5,000 5,000 Equipment/Furnishings Materials EVWD Labor 5,000 5,000 Other (Legal) ANNUAL TOTAL $ 80,000 $ -$ -$ -$ -$ 80,000 PROJECT FUNDING YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 80,000 $ 80,000 Reserve Transfer Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 80,000 $ -$ -$ -$ -$ 80,000 VALARIA DRIVE MANHOLE DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 143 CAPITAL IMPROVEMENT PROGRAM PROJECT DESCRIPTION The existing ground surface over the sewer main and a manhole located in the middle of City Creek has eroded away due to the realignment of City Creek after the 2010 floods . The manhole structure is now protruding 6 feet above the creek bed with only 6 feet of cover over the 18-inch sewer . Staff cannot access the manhole for inspection and maintenance activities due to site access restrictions, the height of the manhole above the ground surface and potential habitat impacts . In the event a storm damages the sewer manhole structure, it could result in a significant sewer spill into City Creek and potentially the Santa Ana River if during high flows, or at a minimum a significant impact to the flows in the 18-inch sewer and the main trunk sewer in Greenspot Road . The project will evaluate options for either protecting the sewer in place with a relocated manhole structure outside of the creek, or pump station options which would eliminate the creek crossing completely . PROJECT DETAILS PROJECT TYPE Sewer LOCATION City Creek between Baseline Rd . and Greenspot Rd . PROJECT MANAGER Eliseo Ochoa PROJECT SCHEDULE START DATE May 2015 ESTIMATED COMPLETION June 2016 CAPITAL REQUESTS New Project PROJECT COST OVERVIEW TOTAL PROJECT COST $970,000 PRIOR YEARS BUDGET N/A OPERATING BUDGET IMPACT STATEMENT ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE Staff will perform preventative maintenance activities in compliance with the District’s SSMP UTILITIES N/A CITY CREEKMANHOLE RELOCATIONPROJECT PROJECTVICINITYPROJECTVICINITY DR A F T 144 PROJECT COST YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design Land and Land Preparation $ 50,000 $ 50,000 Construction (Contract)800,000 800,000 Project Mgmt/Inspection 80,000 80,000 Equipment/Furnishings Materials EVWD Labor 40,000 40,000 Other (Legal) ANNUAL TOTAL $ -$ 970,000 $ -$ -$ -$ 970,000 PROJECT FUNDING YEAR 1 FY 2015-16 YEAR 2 FY 2016-17 YEAR 3 FY 2017-18 YEAR 4 FY 2018-19 YEAR 5 FY 2019-20 PROJECT TOTAL FINANCING SOURCES Operating Revenue Reserve Transfer Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ -$ -$ -$ -$ -$ - CITY CREEK MANHOLE DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 145 GLOSSARY • Acre Foot (AF) - water measurement equal to 325,851 gallons • Enterprise Fund - a fund established to account for operations that are financed and operated in a manner similar to business enterprises where the intent of the governing body is that costs of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges • Fees - charges for service that are based upon the cost of providing the service • Fiscal Year (FY) - the time frame in which the budget applies . This period is from July 1 through June 30 • Full-Time Equivalent (FTE) - a measure of effective authorized positions, indicating the percentage of time a position or group of positions is funded . It is calculated by equating 2,080 hours of work per year with the full-time equivalent of one position; thus, one position would have an FTE of 1 • Fund - an independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives • Fund Equity - the excess of an entity’s assets over its liabilities . A negative Fund Equity is sometimes called a deficit • Generally Accepted Accounting Principles (GAAP) - Uniform minimum standards of, and guidelines for external financial accounting and reporting . They govern the form and content of the basic financial statements of an entity . GAAP encompasses the conventions, rules and procedures necessary to define accepted accounting practices at a particular time . They include not only broad guidelines of general application, but also detailed practices and procedures . The primary authoritative statements on the application of GAAP to state and local governments are Government Accounting Standards Board (GASB) pronouncements and Financial Accounting Standards Board (FASB) pronouncements . GAAP provides a standard by which to measure financial presentations . • General Obligation Bonds - bonds, the payment for which, the full faith and credit of the issuing government are pledged • Geographic Information System (GIS) - an organized collection of computer hardware, software and geographic data designed to efficiently capture, store, update, manipulate, analyze, and display all forms of geographically referenced information • Hundred Cubic Feet (HCF) - water billing measurement equal to 748 gallons • Interfund Transfers - budgeted amounts transferred from one governmental accounting fund to another for work or services provided DR A F T 146 GLOSSARY • Internal Control - a plan of organization for purchasing, accounting, and financial activities which, among other things, provides that: –The duties of employees are subdivided so that no single employee handles a financial transaction from beginning to end, –Proper authorizations from specific responsible officials are obtained before key steps in the processing of transactions are completed, and –Records and procedures are arranged appropriately to facilitate effective control . • MGD - Million Gallons Per Day . • Previous Year Percentage Change (PR YR % CH)- The percentage change of a fund or line item as compared to the previous year • Purchase Order - a document issued to authorize a vendor or consultant to deliver specified merchandise or render a specified service for a stated estimated price • Revenue - income generated by assessments, investments, connection fees, stand-by fees, and user charges • Reserve - an account used to indicate that a portion of fund equity or (Fund Balance) is legally restricted for a specific purpose or not available for appropriation and subsequent spending • SCADA - Supervisory Control and Data Acquisition DR A F T EAST VALLEY WATER DISTRICT FISCAL YEAR 2015-2016 147 CHART OFACCOUNTS • Labor - regular salaries and wages for permanent full-time and part- time employees • Temporary Labor - costs for labor not permanently employed by the District • Overtime - for employees that work more than their regular 40 hours per week • Standby - employees that are on call for emergencies after hours, weekends, and holidays • Benefits - medical, dental, vision, retirement, and related benefits offered by the District • Purchased Water - cost to purchase surface water • Groundwater Replenishment - cost to pump groundwater from the basin • Water Stock Assessment - cost of water shares directly related to North Fork • Materials & Supplies - items used in daily operations, repair, and maintenance • Tools - items used to perform repair and maintenance activities • Office Supplies - items such as pens, paper and other related desk accessories • Chemicals - chemicals used for the treatment of water and wastewater • Contract Services - services rendered by consultants and contractors • Printing & Publishing - costs for printing and producing District publications • Banking Services - services and fees charged by the District’s banks • Legal Services - cost for legal advice, consultation, contract review, and litigation • Treatment Services - outside treatment services for water and wastewater such as the City of San Bernardino • Rents & Leases - rental and lease costs for buildings and equipment that are not owned by the District • Utilities - cable, gas, and other utilities not including telephone and electricity • Telephone - land lines, cellular phones, and internet services • Electric - electricity usage costs • Fuel - fuel costs for vehicles and generators • Permits - permit costs required by federal, state, and local regulatory agencies • Postage - costs for mailing bills, publications, and special deliveries • Memberships & Dues - subscriptions and memberships for associations and special groups • Professional Development - seminars, conferences and travel costs for employee development • Education Assistance - tuition reimbursement for those employees who attend school for a degree or certificate • Insurance/Claims - general liability insurance for the District’s facilities and infrastructure DR A F T 148 THIS PAGE IS LEFT BLANK INTENTIONALLY DR A F T FISCAL YEAR BUDGET 2015/16 Leadership Partnership Stewardship DR A F T Headquarters: 31111 Greenspot Road, Highland, California 92346 | Ph: 909-889-9501 | www.eastvalley.org STAY CONNECTED // EAST VALLEY FISCAL YEAR BUDGET 2015/16 DR A F T •Makes joint recommendations to the ACWA President regarding regional appointments to all ACWA committees. •Appoints representatives in concurrence of the region board, to serve on the region's nominating committee with the approval of the region board. •Facilitates communication from the region board and the region membership to the ACWA board and staff. Region Vice Chair: •Serves as a member of the ACWA Board of Directors at bimonthly meetings at such times and places as the Board may determine. The Vice Chair will also participate in at least two Region membership meetings to be held at each of the ACWA Conferences and periodic Region Board meetings. •In the absence of the chair and in partnership with the chair, exercises the powers and performs duties of the region chair. •Is a member of ACWA's Outreach Program, and encourages region involvement. •Makes joint recommendations to the ACWA president regarding regional appointments to all ACWA committees. Region Board Member: •May serve as alternate for the chair and/or vice chair in their absence (if appointed) to represent the region to the ACWA Board. •Will participate in at least two Region membership meetings to be held at each of the ACWA Conferences and periodic Region Board meetings. •Supports program planning and activities for the region. •Actively participates and encourages region involvement in ACWA's Outreach Program. March 2015 AGENDA •District Vision •Budget Influences •Financials –Water Production Projections –Revenue Projections –District Overview •Program Overview •Capital Outlay •Capital Improvement Program •Staffing Needs 2 3 4 DISTRICT GOALS 5 GOAL ONE Complete tasks towards achieving the regulatory and environmental requirements to design and construct the EVWD Recycled Water Center. GOAL TWO Coordinate the necessary steps to implement budget based rates including conservation programs to support the efficient use of water, as directed by the Governor’s Drought Mandate. GOAL THREE Conduct District-wide succession planning and present findings to Board of Directors for consideration. GOAL FOUR Reevaluate and make needed improvements to the various programs and processes that were implemented over the past 3 years. GOAL FIVE Develop a program to achieve official organization distinction such as Class I Utility from AWWA or similar award. GOALS 6 FINANCIALS FISCAL YEAR 2015/16 BUDGET INFLUENCES •California Drought •Recycled Water Facility •Conservation Program •Budget Based Water Rates •Transparency and Accountability •Labor and Benefits •Capital Needs 7 WATER PRODUCTION PROJECTIONS 8 ACRE FEET PRODUCED SOURCE OF SUPPLY FY 2012-13 ACTUAL FY 2013-14 ACTUAL FY 2014-15 PROJECTED FY 2015-16 PROPOSED Groundwater 20,161 18,210 17,500 14,000 Surface Water 2,147 3,350 2,000 3,500 Total 22,308 21,560 19,500 17,500 TOTAL WATER REVENUE PROJECTIONS 9 FY 2014-15 BUDGET FY 2015-16 PROPOSED CHANGE Meter Charge $ 4,710,000 $ 8,175,000 74% Sales $14,000,000 $11,950,000 -15% Total $18,710,000 $20,125,000 8% COMPARISON OF REVENUE Water Sales 70% Meter Charges 23% Other Charges 7% FY 2014-15 10 Water Sales 56% Meter Charges 39% Other Charges 5% FY 2015-16 FINANCIAL OVERVIEW 11 WATER FUND WASTEWATER FUND Revenues $ 21,310,000 $ 12,110,000 Operating Expenses 15,404,390 10,547,710 Other Expenses 5,905,610 1,562,290 Transfer from Reserves 3,364,460 NET - - DISTRICT WIDE EXPENSES 12 Personnel 24% Operating Expenses 52% Debt Service 11% Capital Investments 13% FY 2014-15 Personnel 22% Operating Expenses 49% Debt Service 11% Capital Investments 18% FY 2015-16 COST DISTRIBUTION 13 Personnel 22% Operating Expenses 49% Debt Service 11% Capital Investments 18% Infrastructure, Maintenance & Equipment Replacement 78% 14 PROGRAM OVERVIEW PROPOSED BUDGETS PROGRAM GOALS & OBJECTIVES •Programs established goals and objectives based on the District Vision –Budget Document clearly states all specific goals and objectives by program •Based on priorities and expectations, costs were estimated –Significant changes noted in the following slides. 15 GOVERNING BOARD 16 FY 2014-15 APPROVED FY 2015-16 PROPOSED CHANGE $160,000 $295,000 84% Significant Changes –General election for 3 Board Members to take place in FY 2015 -16. •Elections cost $105,000 every 2 years. –Professional Development increased to provide educational opportunities for Directors to stay abreast of Federal, State and Regional issues. GENERAL ADMINISTRATION 17 FY 2014-15 APPROVED FY 2015-16 PROPOSED CHANGE $1,348,000 $1,312,000 -3% Significant Changes –Reduced legal services for permanently appointing a new District attorney. –The District is now a member of the Inland Empire Economic Partnership to stay involved in economical regional issues. HUMAN RESOURCES/RISK MGMT 18 FY 2014-15 APPROVED FY 2015-16 PROPOSED CHANGE $685,000 $697,000 2% Significant Changes –Reduced Contract Services due to the completion of District Wide Organizational Assessment. –Added a line item for Employee Recognition throughout the District. –Added a line item for Retiree benefits paid by the District. PUBLIC AFFAIRS 19 Significant Changes –Conservation Program was separated from Public Affairs and listed as a separate program. FY 2014-15 APPROVED FY 2015-16 PROPOSED CHANGE $829,500 $507,000 -39% CONSERVATION 20 Significant Changes –Conservation is now a separate program in response to increasing drought regulations and need for water efficiencies. –Increased funding for conservation efforts to $1 million (turf removal, smart irrigation controllers). –Added 1 full-time Conservation Analyst and 2 part-time Conservation Compliance Representatives. FY 2014-15 APPROVED FY 2015-16 PROPOSED CHANGE $0 $1,511,000 100% FINANCE 21 FY 2014-15 APPROVED FY 2015-16 PROPOSED CHANGE $1,153,000 $992,300 -14% Significant Changes –Merchant fees previously paid by Finance were moved to Customer Service because it is associated with the administration of payment collection. INFORMATION TECHNOLOGY 22 FY 2014-15 APPROVED FY 2015-16 PROPOSED CHANGE $563,000 $619,300 10% Significant Changes –Information Technology Technician position made permanent to the program. –Memberships and dues increased because staff will participate in more technology forums. CUSTOMER SERVICE 23 FY 2014-15 APPROVED FY 2015-16 PROPOSED CHANGE $1,351,550 $1,716,500 27% Significant Changes –Merchant fees previously paid by Finance were moved to Customer Service because it is associated with the administration of payment collection. –Identified Billing Services, Bank Fees, and Shut Off Notices as separate line items in an effort to be more detailed and transparent. METER SERVICE 24 FY 2014-15 APPROVED FY 2015-16 PROPOSED CHANGE $352,000 $353,500 0% Significant Changes –Decrease in contract services due to the installation of new large octave water meters in the system. ENGINEERING 25 FY 2014-15 APPROVED FY 2015-16 PROPOSED CHANGE $910,600 $870,500 -4% Significant Changes –More labor will be invested in significant Capital Improvement Projects. –Contract Services has decreased because software will be purchased to help staff with Master Plans WATER PRODUCTION 26 FY 2014-15 APPROVED FY 2015-16 PROPOSED CHANGE $4,587,500 $4,791,000 4% Significant Changes –SCE has 15% rate increases for FY 2015-16. –Water Production is anticipated to decrease as a result of the drought. –Increased preventive maintenance schedules for well and boosters. WATER TREATMENT 27 FY 2014-15 APPROVED FY 2015-16 PROPOSED CHANGE $962,500 $736,000 -24% Significant Changes –This is the first year the Treatment Plant 134 operated with the process, budget has been refined based on actual operation. WATER QUALITY 28 FY 2014-15 APPROVED FY 2015-16 PROPOSED CHANGE $363,000 $342,000 -6% Significant Changes –Water testing requirements for new mandates have been completed and do not have to take place for the next 5 years. WATER MAINTENANCE 29 FY 2014-15 APPROVED FY 2015-16 PROPOSED CHANGE $1,642,000 $1,672,000 2% Significant Changes –The construction of main line replacements should decrease the need for constant repair of leaks and mains in older areas of the District –Separated Street Services and Uniforms in an effort to be more detailed and transparent. WASTEWATER MAINTENANCE 30 FY 2014-15 APPROVED FY 2015-16 PROPOSED CHANGE $7,369,600 $7,709,000 5% Significant Changes –Anticipated rate increase from the City of San Bernardino for wastewater treatment services. –Decreased overtime because of enhanced maintenance resulting in no sanitary sewer overflows. FLEET MAINTENANCE 31 FY 2014-15 APPROVED FY 2015-16 PROPOSED CHANGE $564,500 $529,500 -6% Significant Changes –Contract Services has decreased as a result of recent updates to the fleet. 32 CAPITAL INVESTMENTS CAPITAL ASSET EXPENDITURES CAPITAL OUTLAY 33 DESCRIPTION AMOUNT IT Hardware $ 41,500 Engineering Software 107,000 Engineering Tools 40,000 Miscellaneous Equipment 46,500 2 Heavy Duty Trucks 65,000 Hydro Excavator 400,000 Total $ 700,000 CAPITAL IMPROVEMENT PROJECTS 34 PROJECT AMOUNT **Automated Metering Infrastructure (AMI) $ 2,011,465 Upper Zone Booster 250,000 Canal Zone Reservoir 250,000 Main Replacements 1,134,860 Sewer Capacity Improvements 1,500,000 **Recycled Water Center 15,000,000 **Staff is pursuing State grants and loans to fund these projects. 35 STAFFING NEEDS AUTHORIZED POSITIONS AUTHORIZED POSITIONS •Conservation Analyst •2 Conservation Representatives (Part Time) •Public Affairs Representative (Part Time) •Operations Manager (Replaces Retiring Water Production Superintendent) 36 AUTHORIZED AND FUNDED POSITIONS 37 60 61 62 63 64 65 66 67 68 69 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Proposed Does not include part time temporary positions. DROUGHT UPDATE 2 DROUGHT UPDATE 111 166 146 170 102 117 100 93 93 96 0 50 100 150 200 2015 2013 January February March April May Month Total System Reduction January 3% February -8% March 13% April 15% May 49% 3 Gallons Per Capita Per Day HEARING THE CALL FOR ACTION •Proposed Language for Trailer Bill •Weekly Conference Calls •Updating Customer Service Representatives •Turf Removal Program –Over 50 Participants 4