HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 01/08/2020REG ULA R BO A RD MEET IN G
J anuary 8, 2020 - 5:30 PM
31111 Greenspot Road, Highland, C A 92346
AG E N D A
"In order to comply with legal requirements for posting of agenda, only those items filed
with the District C lerk by 12:00 p.m. on Wednesday prior to the following Wednesday
meeting not requiring departmental investigation, will be considered by the Board of
Directors".
C A LL TO O RD ER
P LED G E O F A LLEG IA N C E
RO LL C A LL O F BO A RD MEMBERS
P U B L I C C O MME N T S
Any person wishing to speak to the Board of Directors is asked to complete a Speaker
Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is
limited to three (3) minutes, unless waived by the C hairman of the Board. Under the State
of C alifornia Brown Act, the Board of Directors is prohibited from discussing or taking
action on any item not listed on the posted agenda. T he matter will automatically be
referred to staff for an appropriate response or action and may appear on the agenda at a
future meeting.
AGE N D A - T his agenda contains a brief general description of each item to be
considered. Except as otherwise provided by law, no action shall be taken on any item not
appearing on the following agenda unless the Board of Directors makes a determination
that an emergency exists or that a need to take immediate action on the item came to the
attention of the District subsequent to the posting of the agenda.
1.Approval of Agenda
2.AP P RO VAL O F C ON SE N T C AL E N D AR
All matters listed under the C onsent C alendar are considered by the Board of
Directors to be routine and will be enacted in one motion. T here will be no
discussion of these items prior to the time the board considers the motion unless
members of the board, the administrative staff, or the public request specific items to
be discussed and/or removed from the C onsent C alendar.
a.Directors' fees and expenses for December 2019
D I SC U SSI O N AN D P OS SI B L E AC T I O N I T E MS
3.Consider Adoption of Goals and Policies for Community Facilities District (C FD )
4.Consider the C ommunity Facilities District ("C F D") Petition for Highland Hills and
Authorize General Manager/C EO to Request Deposit
5.Consider Standby Generator Purchase
RE P O RT S
6.Board of Directors' Reports
7.General Manager/C EO Report
8.Legal C ounsel Report
9.Board of Directors' Comments
AD J O U RN
P LEAS E NO T E:
Materials related to an item on this agenda s ub mitted to the Board after dis trib utio n of the agend a pac ket
are available for p ublic ins p ectio n in the Dis tric t's o ffice lo cated at 31111 G reens pot R d., Highland, during
no rmal b usines s hours . Also, s uc h d o cuments are available o n the Dis tric t's web s ite at www.eas tvalley.o rg
sub ject to s taff's ab ility to post the d o cuments b efo re the meeting.
P urs uant to G overnment C o d e S ec tion 54954.2(a), any reques t fo r a d is ab ility-related mo dific ation or
ac commod ation, inc luding auxiliary aids or s ervic es , that is s ought in order to participate in the abo ve-
agendized p ublic meeting s hould b e d irected to the Dis tric t C lerk at (909) 885-4900 at leas t 72 hours prior
to said meeting.
R ec o mmend ed b y:
John Mura
G eneral Manager/C EO
R espec tfully s ubmitted:
Jus tine Hendric ks en
District C lerk
B OAR D AG E N D A S TAF F R E P O RT
Agenda Item #2.a.
Meeting Date: January 8, 2020
C ons ent Item
To: G overning Board Memb ers
From: G eneral Manager/C E O
S ubject: Direc tors ' fees and exp ens es for Dec ember 2019
R E COMME N D AT IO N:
Ap p ro ve the G o verning Board Members’ fees and exp ens es for Dec ember 2019.
B AC KG R O UN D / AN ALYS IS :
T he Board has instruc ted staff to lis t all d irec tor fees and exp ens es as a s ep arate agenda item to s how full fisc al
transparenc y. O nly after Board review and ap p ro val will the c o mpens ation and exp ens es be p aid.
AGE N C Y GOALS AN D OB J E C T IVE S:
G oal and O b jec tives I I - Maintain a C o mmitment to S us tainab ility, Trans p arency, and Ac countability
(E) - P rac tic e trans p arent & ac countable fis c al management
R E VIE W B Y O T HE R S :
T his agend a items has been reviewed b y the Administration d ep artment.
F IS CAL IMPAC T
T he fis c al imp ac t as s o c iated with this agenda item is $6,426.45 whic h is inc luded in the c urrent fisc al b udget.
ATTAC H M E NTS:
Description Type
Directo r's Expe nse Reports Backup Material
Name: Month / Year:2019
Meeting
No.Stipend Written Oral
1 12 /05 175
2 12 /11 175
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Meetings
0.58/mi
No.
1
2
3
4
5
6
7
8
9
10
Subtotal
TOTAL PAYMENT
Date of Approval
Chris Carrillo December /
0.00 X
( 2 )
Report Provided
Subtotal Meetings' Stipend
Mileage
Administration Signature
I certify that the above is correct and accurate to the best of my knowledge.
Chris Carrillo
Date Meeting / Event Description
Date
Meeting with General Manager/CEO or Designee
Regular Board Meeting
$350.00
$350.00
$0.00
Reimbursement
Mileage
Miscellaneous Reimbursement DescriptionExpense Type
$0.00
DIRECTOR EXPENSE / REIMBURSEMENT
ACTIVITY SHEET
1
Name: Month / Year:2019
1
2
3
4
5
Event Description:
Brief Description of Meeting/Event Value to EVWD
Brief Description of Meeting/Event Value to EVWD
Meeting Date:
Event Description:
Brief Description of Meeting/Event Value to EVWD
Meeting Date:
Meeting Date:12 / 11 / 2019
Event Description:Regular Board Meeting
Brief Description of Meeting/Event Value to EVWD
Meeting Date:
Event Description:
Attended regular board meeting.
Chris Carrillo December /
As part of the District's commitment to transparency, please provide a brief description of any
meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's
Meeting Date:
Event Description:
Phone call with CEO Mura to discuss district business and review of agenda for upcoming regular
board meeting.
12 / 5 / 2019
Meeting with General Manager/CEO or Designee
Brief Description of Meeting/Event Value to EVWD
DIRECTOR EXPENSE / REIMBURSEMENT
ACTIVITY SHEET
AB 1234 SUPPLEMENTAL REPORT FORM
2
Name: Month / Year:2019
Meeting
No.Stipend Written Oral
1 12 /02 175
2 12 /04 175
3 12 /04 0
4 12 /11 175
5 12 /19 175
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Meetings
0.58/mi
No.
1
2
3
4
5
6
7
8
9
10
Subtotal
TOTAL PAYMENT
Date of Approval
Phillip R. Goodrich December /
0.00 X
( 4 )
Report Provided
Subtotal Meetings' Stipend
Mileage
Administration Signature
I certify that the above is correct and accurate to the best of my knowledge.
Phillip R. Goodrich
Date Meeting / Event Description
Date
Engineering & Operations Committee Meeting
Meeting with General Manager/CEO or Designee
Top workplace awards luncheon
$700.00
$700.00
$0.00
Reimbursement
Mileage
Miscellaneous Reimbursement Description
Regular Board Meeting
Agenda Review
Expense Type
$0.00
DIRECTOR EXPENSE / REIMBURSEMENT
ACTIVITY SHEET
1
Name: Month / Year:2019
1
2
3
4
5
Event Description:Agenda Review
Brief Description of Meeting/Event Value to EVWD
With Chairman and CEO for review of up coming agenda
Brief Description of Meeting/Event Value to EVWD
With Staff to collect top workplace award
Meeting Date:12 / 11 / 2019
Event Description:Regular Board Meeting
Brief Description of Meeting/Event Value to EVWD
Attend regular board meeting ,conduct District business
Meeting Date:12 / 19 / 2019
Meeting Date:12 / 4 / 2019
Event Description:Meeting with General Manager/CEO or Designee
Brief Description of Meeting/Event Value to EVWD
Meeting Date:12 / 4 / 2019
Event Description:Top workplace awards luncheon
Monthly meeting with CEO, District updates and discuss District affairs
Phillip R. Goodrich December /
As part of the District's commitment to transparency, please provide a brief fescription of any meeting/event(s)
that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is
Meeting Date:
Event Description:
Attend Engineering and Operations committee meeting ,updates on SNRC and new water main
replacements
12 / 2 / 2019
Engineering & Operations Committee Meeting
Brief Description of Meeting/Event Value to EVWD
DIRECTOR EXPENSE / REIMBURSEMENT
ACTIVITY SHEET
AB 1234 SUPPLEMENTAL REPORT FORM
2
Name: Month / Year:2019
Meeting
No.Stipend Written Oral
1 12 /01 175
2 12 /01 0
3 12 /04 175
4 12 /05 175
5 12 /06 175
6 12 /10 175
7 12 /11 175
8 12 /16 175
9 12 /17 175
10 12 /18 175
11
12
13
14
15
16
17
18
19
20
Meetings
0.58/mi
No.
1
2
3
4
5
6
7
8
9
10
Subtotal
TOTAL PAYMENT
Date of Approval
James Morales, Jr.December /
234.00 X
( 9 )
Report Provided
Subtotal Meetings' Stipend
Mileage
San Bernardino Valley MWD
Administration Signature
I certify that the above is correct and accurate to the best of my knowledge.
James Morales, Jr.
Date Meeting / Event Description
Date
Finance & Human Resources Committee Meeting
Engineering & Operations Committee Meeting
ACWA Event
$2,192.28
$1,575.00
$135.72
Reimbursement
471.56
Misc. - Other 10.00
Lodging
Mileage
117.00
117.00
Miscellaneous Reimbursement Description
LAFCO
ACWA Event
ACWA Event
San Bernardino Board of Water Commissioners
Regular Board Meeting
Meeting with General Manager/CEO or Designee
Expense Type
$481.56
12/06/2019 ACWA Event
12/06/2019 ACWA Event per diem room gratuity
DIRECTOR EXPENSE / REIMBURSEMENT
ACTIVITY SHEET
1
Name: Month / Year:2019
1
2
3
4
5
Event Description:ACWA Event
Brief Description of Meeting/Event Value to EVWD
Statewide Water Trade Conference and Education Workshops.
Brief Description of Meeting/Event Value to EVWD
Statewide Water Trade Conference and Education Workshops.
Meeting Date:12 / 5 / 2019
Event Description:ACWA Event
Brief Description of Meeting/Event Value to EVWD
Statewide Water Trade Conference and Education Workshops. Region 9 Water Board Meeting.
Meeting Date:12 / 6 / 2019
Meeting Date:12 / 1 / 2019
Event Description:Engineering & Operations Committee Meeting
Brief Description of Meeting/Event Value to EVWD
Meeting Date:12 / 4 / 2019
Event Description:ACWA Event
Pleae refer to public agenda.
James Morales, Jr.December /
As part of the District's commitment to transparency, please provide a brief description of any
meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's
Meeting Date:
Event Description:
Please refer to public agenda.
12 / 1 / 2019
Finance & Human Resources Committee Meeting
Brief Description of Meeting/Event Value to EVWD
DIRECTOR EXPENSE / REIMBURSEMENT
ACTIVITY SHEET
AB 1234 SUPPLEMENTAL REPORT FORM
2
Name: Month / Year:2019
6
7
8
9
w10
James Morales, Jr.December /
As part of the District's commitment to transparency, please provide a brief description of any
meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's
Board report assignment, SNRC partner General Manager leaving position.
Meeting Date:12 / 18 / 2019
Event Description:LAFCO
Brief Description of Meeting/Event Value to EVWD
Board Report Assignment. Closed session update.
Event Description:Meeting with General Manager/CEO or Designee
Brief Description of Meeting/Event Value to EVWD
SNRC site visit, district operational update.
Meeting Date:12 / 17 / 2019
Event Description:San Bernardino Valley MWD
Brief Description of Meeting/Event Value to EVWD
District Update. Board Report Assignment.
Meeting Date:12 / 11 / 2019
Event Description:Regular Board Meeting
Brief Description of Meeting/Event Value to EVWD
Please reer to public agenda.
Meeting Date:12 / 16 / 2019
Meeting Date:12 / 10 / 2019
Event Description:San Bernardino Board of Water Commissioners
Brief Description of Meeting/Event Value to EVWD
DIRECTOR EXPENSE / REIMBURSEMENT
ACTIVITY SHEET
AB 1234 SUPPLEMENTAL REPORT FORM
3
B OAR D AG E N D A S TAF F R E P O RT
Agenda Item #3.
Meeting Date: January 8, 2020
Dis c ussion Item
To: G overning Board Memb ers
From: G eneral Manager/C E O
S ubject: C o ns id er Adoption of G o als and P o lic ies for C ommunity F acilities Dis trict (C F D)
R E COMME N D AT IO N:
S taff rec o mmend s that the Board o f Direc tors (Bo ard ) ad o p t land s ecured G oals and P olicies fo r C o mmunity
F acilities Dis tricts (C F D).
B AC KG R O UN D / AN ALYS IS :
At the Augus t 28, 2019 Bo ard meeting, C yrus Torab i fro m S trad ling, Yoc ca, C arlson, & R auth p res ented an
‘Introduc tion to C ommunity F ac ilities Dis tricts ’ in antic ipatio n that the Distric t wo uld soon be petitioned by the
d evelo p ment c ommunity to fac ilitate the es tablishment o f a C F D.
Mr. Torabi’s pres entation d isc uss ed a series of events and Board ac tio ns that usually take place during the
formatio n o f a C F D and the sequence in whic h thos e events o cc ur. P er his dis cus s io n, prior to forming a C F D
the Dis trict mus t adopt land s ec ured G o als and P o lic ies for C ommunity F acilities Dis tricts (G oals & P olic ies).
T he Dis trict’s F inancial Advisor F ieldman, R olapp & As s o ciates, Inc . (F ieldman) has p rep ared the attached
G o als and P olicies for the Board to cons ider. S pec ific items that mus t be includ ed in G oals and P o lic ies are
d etailed b elo w:
1. A statement o f the priority that various kinds of public fac ilities will have fo r financ ing through a C F D.
P ublic fac ilities to be o wned and operated by pub lic agenc ies other than the Dis trict mus t also b e inc lud ed
in the s tatement o f priorities.
2. A statement conc erning the c red it q uality which is to be req uired o f C F D bond iss ues. T his statement
must inc lude criteria fo r evaluating c redit quality.
3. A s tatement concerning the s teps to b e taken to ensure that p ro s p ec tive pro p erty purc has ers are fully
informed about the s p ec ial taxes impos ed on the pro p erty within any C F D.
4. A s tatement c oncerning the c riteria to b e us ed fo r evaluating the eq uity o f tax allo c ation fo rmulas (i.e.
s pecial taxes allo c ated to d ifferent land us e c ategories ). T his statement mus t includ e the desirab le and
maximum s p ecial tax levels to b e levied against any C F D p roperties.
5. A statement establishing the criteria for p reparing ap p raisals , inc luding d efinitions , s tand ards, and
as s umptions to b e us ed in ap p raisals .
6. A C F D may b e es tablis hed to financ e any one o r mo re types of s ervices within an area.
S taff recommends that the Bo ard ad o p t the attac hed G o als and P o lic ies for C ommunity F acilities Dis tricts to
R ec o mmend ed b y:
John Mura
G eneral Manager/C EO
R espec tfully s ubmitted:
Brian Tomp kins
C hief F inancial O fficer
S taff recommends that the Bo ard ad o p t the attac hed G o als and P o lic ies for C ommunity F acilities Dis tricts to
s erve as a guid eline for staff and d evelo p ers .
AGE N C Y GOALS AN D OB J E C T IVE S:
G oal and O b jec tives I V - P romo te P lanning, Maintenanc e and P res ervation of Distric t R es o urces
b) Enhance P lanning Efforts that R espond to F uture Demands
R E VIE W B Y O T HE R S :
T his agend a item has been reviewed b y the Engineering Dep artment.
F IS CAL IMPAC T
T here is no fis cal imp ac t as s oc iated with this agend a item.
ATTAC H M E NTS:
Description Type
P resentation P resentation
P olicy Backup Material
Presented By:
Adam Bauer, Chief Executive Officer and President Fieldman, Rolapp & Associates, Inc.
Direct: (949) 660-7303 | Cell: (949) 295-5735 | abauer@fieldman.com
www.fieldman.com
Goals and Policies for Community
Facilities Districts
January 8, 2020
Goals and Policies for Community Facilities Districts
INTRODUCTION
•As of January 1, 1994, the Mello-Roos Community Facilities Act requires
public agencies initiating the establishment of a Community Facilities District
(“CFD”) to first adopt local goals and policies that address the following:
•A statement of the priority that various kinds of public facilities will have for financing
through a CFD. Public facilities to be owned and operated by public agencies other
than the lead agency must be included in the statement of priorities.
•A statement concerning the credit quality which is to be required of CFD bond issues.
This statement must include criteria for evaluating credit quality.
•A statement concerning the steps to be taken to ensure that prospective property
purchasers are fully informed about the special taxes imposed on the property within
any CFD.
2
Goals and Policies for Community Facilities Districts
INTRODUCTION –CONTINUED
•A statement concerning the criteria to be used for evaluating the
equity of tax allocation formulas (i.e. special taxes allocated to
different land use categories). This statement must include the
desirable and maximum special tax levels to be levied against any
CFD properties.
•A statement establishing the criteria for preparing appraisals,
including definitions, standards, and assumptions to be used in
appraisals.
3
Goals and Policies for Community Facilities Districts
PRIORITIES FOR CFD FINANCING
A.Facilities needed to serve approved development which is deficient in
infrastructure or other public facilities needed to develop the area as
planned
B.Other facilities for which there is clearly a demonstrated public benefit
C.Other facilities as permitted by the Act
D.Useful life of 5 years or more
E.Public facilities owned and operated by public agencies shall not be
included as eligible with CFD
4
Goals and Policies for Community Facilities Districts
CREDIT QUALITY REQUIREMENTS FOR CFD BOND ISSUES
A.Value to Debt Ratio
•Four to one property value to public lien ratio
•Appraisal must be dated within three months of Bond Issue or if more than three months of the
date bonds are issued a “bring down” or “update” letter from an appraiser shall be provided
B.Reserve Fund
•Standard Internal Revenue Test for Tax Exempt CFD Bonds when less than 95% of the buildable
increase has been developed
•Reserve Fund Surety may be used to satisfy Reserve Fund Requirement
C.Property Tax Delinquency Rates
•No greater than 10%
D.Development of Feasibility
E.Exceptions
5
Goals and Policies for Community Facilities Districts
DISCLOSURE REQUIREMENTS FOR PROSPECTIVE PROPERTY PURCHASERS
A.Disclosure Requirements for Builders and Developers
B.Disclosure Requirements for the Resale of Homes or Lots
6
Goals and Policies for Community Facilities Districts
EQUITY OF SPECIAL TAX FORMULAS & MAXIMUM SPECIAL TAXES
•110% of Debt Service Coverage
•Reasonable Administrative Expense Coverage
•Total tax burden will not be greater than 2.00% of projected initial sales
price of a fully developed parcel
•Special Taxes shall not increase by more than 2.00% annually on
Developed Property
•Allow for full prepayment
7
Goals and Policies for Community Facilities Districts
APPRAISAL STANDARDS
•An appraisal is a written self-contained report independently and
impartially prepared by a qualified appraiser
•Sets forth an opinion of defined value of an adequately described
property as of a specific date
•Supported by the presentation and analysis of relevant market
information
8
Goals and Policies for Community Facilities Districts
APPLICATION & DEPOSITS
•Initial Deposit of $75,000
•Balance falls below $5,000, additional deposit is required within 10 days
•Reimbursed from future CFD Bond proceeds
9
Goals and Policies for Community Facilities Districts
MINIMUM STANDARDS, WAIVER & AMENDMENTS
•The policies set forth herein reflect the minimum standards under which
the Water District will assist in the development of property through the
use of the Act. The Water District may, in its discretion, require
additional measures and procedures, enhanced security and higher
standards in particular cases.
•The Water District may, in limited and exceptional circumstances and to
the extent permitted by law, in its discretion, waive any of the policies
set forth herein in particular cases.
•The goals and policies set forth herein may be amended at any time
and from time to time by the Water District.
10
Goals and Policies for Community Facilities Districts
QUESTIONS & DISCUSSION
11
GOALS AND POLICIES FOR
COMMUNITY FACILITIES DISTRICTS
31111 Greenspot Road
Highland, CA 92346
(909) 889-9501
Adopted by the Board of Directors and
Effective on January 8, 2020
i
Table of Contents
East Valley Water District
Goals and Policies
For Community Facilities Districts
Section Page
I. INTRODUCTION ...............................................................................................................1
II. PRIORITIES FOR CFD FINANCING ...............................................................................2
III. CREDIT QUALITY REQUIREMENTS FOR CFD BOND ISSUES ................................3
IV. DISCLOSURE REQUIREMENTS FOR PROSPECTIVE PROPERTY
PURCHASERS ....................................................................................................................5
V. EQUITY OF SPECIAL TAX FORMULAS AND MAXIMUM SPECIAL TAXES .........6
VI. APPRAISAL STANDARDS ...............................................................................................8
VII. SERVICES………………………………………………………………………………...9
VIII. DEPOSITS .........................................................................................................................10
IX. MINIMUM STANDARDS; WAIVER AND AMENDMENT .........................................11
EAST VALLEY WATER DISTRICT
Goals and Policies for Community Facilities Districts Page 1 of 11
Adoption: January 8, 2020
I. INTRODUCTION
As of January 1, 1994, the Mello-Roos Community Facilities Act (“Act”) requires any
public agency initiating proceedings to establish a Community Facilities District (“CFD”)
to first consider and adopt local goals and policies related to CFDs. At a minimum, these
goals and policies must include the following:
1. A statement of the priority that various kinds of public facilities will have for
financing through a CFD. Public facilities to be owned and operated by public
agencies other than the District must also be included in the statement of
priorities.
2. A statement concerning the credit quality which is to be required of CFD bond
issues. This statement must include criteria for evaluating credit quality.
3. A statement concerning the steps to be taken to ensure that prospective property
purchasers are fully informed about the special taxes imposed on the property
within any CFD.
4. A statement concerning the criteria to be used for evaluating the equity of tax
allocation formulas (i.e. special taxes allocated to different land use categories).
This statement must include the desirable and maximum special tax levels to be
levied against any CFD properties.
5. A statement establishing the criteria for preparing appraisals, including
definitions, standards, and assumptions to be used in appraisals.
6. A CFD may be established to finance any one or more types of services within
an area.
The following are the local goals and policies adopted by the East Valley Water District
(the “District”) and are intended to meet the requirements of the Act.
EAST VALLEY WATER DISTRICT
Goals and Policies for Community Facilities Districts Page 2 of 11
Adoption: January 8, 2020
II. PRIORITIES FOR CFD FINANCING
The priority for CFD financing shall be given to eligible public facilities as follows: (a) facilities
needed to serve approved development which is deficient in infrastructure or other public facilities
needed to develop the area as planned; (b) other facilities for which there is clearly a demonstrated
public benefit; and (c) other facilities as permitted by the Act.
The improvements eligible to be financed by a CFD must be owned and operated by a public
agency, and must have a useful life of five years or more, except up to five percent of the proceeds
of a tax exempt issue may be owned and operated by a privately-owned public utility. The
development proposed within a CFD must be consistent with the general plan and must have
already received legislative approvals such as zoning or specific plan approvals. The construction
of improvements pursuant to a CFD shall not vest any rights to future entitlements on any
properties, including those which are responsible for paying special taxes.
The funding of public facilities to be owned and operated by public agencies other than the District
shall not be included as eligible facilities with a CFD.
Prior to the initiation of CFD formation proceedings, the proponent(s) shall meet and confer with
District staff for the purpose of delineating a list of proposed facilities to be financed. As part of
any CFD application or property owner petition, all public facilities and services shall be described
and prioritized, including those District facilities and services that would be included in the CFD.
EAST VALLEY WATER DISTRICT
Goals and Policies for Community Facilities Districts Page 3 of 11
Adoption: January 8, 2020
III. CREDIT QUALITY REQUIREMENTS FOR CFD BOND ISSUES
Bonds to be issued by a CFD of the District must satisfy certain credit quality requirements.
Satisfaction of these requirements would not compel the District to issue bonds. The District may
apply other credit criteria in determining whether to issue bonds, and the District may disregard
certain criteria if it is determined that such action would not imperil the security of the bonds or
that the issuance of the bonds would accomplish a specified public policy goal.
A. Value to Debt Ratio
In order to minimize the likelihood of a CFD defaulting on its payment to bond owners,
all CFD bond issues shall require at least four to one property value to public lien ratio.
Property value may be based on either an appraisal or on assessed values as indicated
on the county assessor’s tax roll. The appraiser shall be selected by the District, and the
appraisal shall be based on criteria as described below in Section V of these goals and
policies. The appraisal must be dated within three months of the date the bonds are
issued, or if dated more than three months of the date the bonds are issued, a “bring
down” or “update” letter from the appraiser shall be provided. The public lien amount
shall be based on the size of the bond issue currently being sold, plus any public
indebtedness currently existing against the properties to be assessed. Although it is not
required that the value to lien ratio be four to one on a parcel by parcel basis,
consideration must be given to this ratio when apportioning special taxes to different
parcels, to assure that CFD property owners will accept their responsibilities for paying
the special taxes of each parcel.
The portion of any bond issue related to escrowed proceeds shall be excluded from the
value to debt ratio agreement.
B. Reserve Fund
A reserve fund equal to the lesser of (i) ten percent of the original proceeds of the bond
issue, (ii) the maximum annual debt service on all outstanding bonds, or (iii) 125 percent
of the average annual debt service on all outstanding bonds shall be required for all bond
issues in CFDs where less than 95 percent of the buildable acreage has been developed.
Notwithstanding the foregoing, a smaller reserve fund may be permitted by the District
for bond issues in CFDs where a significant portion of the buildable acreage has been
developed and the value-to-debt ratio for undeveloped property is in excess of the ratio
required in IIIA above. The reserve fund may be funded with cash or an acceptable
reserve surety or other credit facility.
C. Property Tax Delinquency Rates
Property tax delinquency rates on parcels included in a CFD must be no greater than ten
percent on the date on which bonds are issued for that CFD.
EAST VALLEY WATER DISTRICT
Goals and Policies for Community Facilities Districts Page 4 of 11
Adoption: January 8, 2020
D. Development Feasibility
Each bond issue may require a current CFD absorption study prepared by a consultant
hired by the District, if the District determines that such objective data is necessary to
analyze the feasibility of the project. An inadequate property value to public lien ratio,
tax delinquencies in excess of ten percent, or projects of questionable economic viability
may cause the District, at its sole discretion, to disallow the sale of bond issues or require
additional credit enhancement prior to bond sale.
E. Exceptions
The District may consider exceptions to the above policies for bond issues that do not
represent an unusual credit risk, either due to credit enhancement or other reasons
specified by the District. Furthermore, the District will consider exceptions to these
policies for projects which meet the public policy goals relating to affordable housing
and creation of employment opportunities or tax revenues. Bond issues which have less
than a four-to-one value to lien ratio but are approved by the District for public policy
reasons must be approved by four-fifths of the members of the District’s legislative
body (the “Board”).
EAST VALLEY WATER DISTRICT
Goals and Policies for Community Facilities Districts Page 5 of 11
Adoption: January 8, 2020
IV. DISCLOSURE REQUIREMENTS FOR PROSPECTIVE PROPERTY PURCHASERS
A. Disclosure Requirements for Builders and Developers
In order to ensure that prospective property purchasers are fully informed about the
taxpaying obligations imposed under the Act, the District will require that the
requirements of disclosure to prospective property purchasers contained in the Act,
including, but not limited to Sections 53328.3, 53328.5 (including the referenced sections
of the California Streets and Highways Code), 53340.2 and 53341.5, be met.
B. Disclosure Requirements for the Resale of Homes or Lots
The person who is designated by the District to determine the special tax liability each
year shall also be designated to provide a notice of special taxes to sellers of property
(other than builders or developers) which will enable them to comply with their notice
requirements under Section 1102.6b of the Civil Code. This disclosure shall be in a form
substantially equivalent to that set forth in California Government Code Section 53340.2.
This notice shall be provided by the District within 5 working days of receiving a written
request for the notice. A reasonable fee may be charged for providing notice.
The person who is designated by the District to determine the special tax liability each year shall
also establish procedures to promptly respond to inquiries concerning current and future special tax
liability.
EAST VALLEY WATER DISTRICT
Goals and Policies for Community Facilities Districts Page 6 of 11
Adoption: January 8, 2020
V. EQUITY OF SPECIAL TAX FORMULAS AND MAXIMUM SPECIAL TAXES
Special tax formulas shall provide for special tax levels which satisfy the following expenses of a
CFD:
• 110 percent of gross debt service coverage for all bonded indebtedness
• the reasonable and necessary administrative expenses of the CFD
Additionally, the special tax formula may provide for the following:
• lease payments for existing or future facilities
• the costs of remarketing, credit enhancement and liquidity facility fees
• the cost of acquisition, construction, furnishing or equipping of facilities
• the accumulation of funds reasonably required for future debt service
• any amounts required to establish or replenish any reserve fund established in association
with the indebtedness of the CFD
• amounts equal to projected delinquencies of special tax payments
• any other costs or payments permitted by law
• costs associated with the release of funds from an escrow account
The special tax formula shall be reasonable and equitable in allocating public facilities costs to
parcels within the CFD. Exemptions from the special tax may be given to parcels which are
publicly owned, are held by a property owners association, are used for public purpose such as
open space or wetlands, are affected by easements making impractical their utilization for other
than the purposes set forth in the easements, or have insufficient value to support bonded
indebtedness.
The total projected property tax levels for any residential parcel within a CFD shall not exceed two
percent (2.00%) of the projected initial sales price of a fully developed parcel (i.e., with a completed
structure). The total projected property tax level shall include ad valorem property taxes, special
taxes, all special assessments, and other direct and overlapping debt supported by property taxes.
Commercial properties which provide economic benefits to the District may exceed the two percent
(2.00%) property tax level if approved by the District. When issuing CFD Bonds, NTE two percent
(2.00%) with respect to AV or appraisal value, at the time of issuance of such CFD Bonds.
The maximum special tax for any developed residential parcel shall not increase at a rate greater
than two percent (2.00%) annually. The special tax formula should be structured such that special
taxes levied on developed property are consistent year to year and levied at 100% of the Assigned
Annual Special Tax rate each Fiscal Year. Any funds collected in excess of what is needed for
gross debt service and administrative expenses shall be deposited into a Surplus Facilities Fund and
used for District facilities as permitted by the Act. Changes in the special tax needs from year to
EAST VALLEY WATER DISTRICT
Goals and Policies for Community Facilities Districts Page 7 of 11
Adoption: January 8, 2020
year should, to the degree possible, be borne by undeveloped property. Under no circumstances
shall the special tax be levied on any parcel of developed property be increased by more than ten
percent (10%) as a consequence of delinquency or default by the owner of any other parcel.
Generally, the special tax formula for a CFD will be structured to allow full prepayment of special
taxes by property owners throughout the term of the special tax. Partial prepayment of special taxes
by property owners shall be allowed until the issuance of the Certificate of Occupancy and Property
Owner must partially prepay, on a pro-rata basis, all lots within a tract that are subject to a the
special tax.
EAST VALLEY WATER DISTRICT
Goals and Policies for Community Facilities Districts Page 8 of 11
Adoption: January 8, 2020
VI. APPRAISAL STANDARDS
A. Definition of Appraisal
An appraisal is a written self-contained report independently and impartially prepared by a
qualified appraiser setting forth an opinion of defined value of an adequately described property
as of a specific date, supported by the presentation and analysis of relevant market information.
B. Standards of Appraisal
A detailed complete appraisal shall reflect nationally recognized appraisal standards including,
to the extent appropriate, the Uniform Standards of Professional Appraisal Practice (USPAP)
of the Appraisal Foundation, the Code of Professional Ethics and the Standards of Professional
Appraisal Practice of the Appraisal Institute. An appraisal should also generally conform to
the Appraisal Standards for Land - Secured Financings provided by the California Debt and
Investment Advisory Commission ("CDIAC"). Appraisals undertaken to establish value-to-
lien ratios in CFD’s should value the fee simple estate, subject to special assessment and special
tax liens. The estimate of Market Value should be refined to reflect the Retail Value of fully
improved and occupied properties and the Bulk Sale Value of all vacant properties, including
both unimproved properties and improved or partially improved but unoccupied properties. An
appraisal must contain sufficient documentation including valuation data and the appraiser’s
analysis of the data to support his or her opinion of value. At a minimum, the appraisal shall
contain the following items:
a. The purpose and/or function of the appraisal, an identification of the property being
appraised, the intended use, the identity of the current and intended uses, and a statement
of the assumptions and limiting conditions affecting the appraisal.
b. An adequate description of the physical characteristics of the property being
appraised, location, zoning, present use, and an analysis of highest and best use.
c. Relevant and reliable approaches to value consistent with commonly accepted
professional appraisal practices. If a discounted cash flow analysis is used, it should be
supported with at least one other valuation method, such as a market approach using sales
that are at the same stage of land development, when possible. If more than one approach
is utilized, there shall be an analysis and reconciliation of approaches to value that are
sufficient to support the appraiser’s opinion of value.
d. A description of comparable sales, including a description of all relevant physical, legal
and economic factors such as parties to the transaction, source and method of financing,
and verification by a party involved in the transaction.
e. A statement of the value of real property.
f. The effective date of valuation, date of appraisal, signature and certification of the
appraiser.
EAST VALLEY WATER DISTRICT
Goals and Policies for Community Facilities Districts Page 9 of 11
Adoption: January 8, 2020
VII. SERVICES
The Services identified in the Act are not provided by the District; thus the District would not form
a CFD to provide them.
EAST VALLEY WATER DISTRICT
Goals and Policies for Community Facilities Districts Page 10 of 11
Adoption: January 8, 2020
VIII. DEPOSITS
The costs of the proceedings to form a CFD initiated by landowners will be borne by the landowner.
An initial deposit in an amount of not less than $75,000 for a CFD shall be required prior to the
District taking any actions related to the formation. The deposit shall be placed in a separate trust
account held by the District. All costs of the District and/or its consultants retained during the pre-
formation process, the formation process, and prior to the sale of any Bonds, are to be paid from
this account.
If, in the judgment of the District, the costs incurred or projected will cause the balance in this
account to fall below $5,000, a written demand shall be made to the applicant to advance additional
monies sufficient to bring the account to a balance that is projected to meet remaining costs required
to establish the CFD. Failure to advance the requested monies within ten (10) days of a written
demand by the District will result in all processing of the CFD to cease, and no further actions to
be taken toward establishing the CFD until the monies have been received. Waiver of these
requirements can be made only by formal action of the Board.
Monies held in the trust account are to be applied to pay the District and its staff in reviewing and
processing the CFD request as well as the costs of the bond counsel, financial advisor, special tax
consultant, appraiser, market absorption consultant, all publication expenses, and any other costs
determined by the District to be necessary to establish the CFD.
After formation of a CFD and issuance of CFD bonds, the landowners may be reimbursed from
bond proceeds for costs paid by the landowners, however, reimbursement will be limited to the cost
of CFD related consultants and staff costs approved by the District.
EAST VALLEY WATER DISTRICT
Goals and Policies for Community Facilities Districts Page 11 of 11
Adoption: January 8, 2020
IX. MINIMUM STANDARDS; WAIVER AND AMENDMENT
The policies set forth herein reflect the minimum standards under which the District will assist in
the development of property through the use of the Act. The District may, in its discretion, require
additional measures and procedures, enhanced security and higher standards in particular cases.
The District may, in limited and exceptional circumstances and to the extent permitted by law, in
its discretion, waiver any of the policies set forth herein in particular cases.
The goals and policies set forth herein may be amended at any time and from time to time by the
District.
B OAR D AG E N D A S TAF F R E P O RT
Agenda Item #4.
Meeting Date: January 8, 2020
To: G overning Board Memb ers
From: G eneral Manager/C E O
S ubject: C o ns id er the C ommunity F acilities Dis trict ("C F D") P etitio n for Highland Hills and Authorize
G eneral Manager/C E O to R equest Dep o s it
R E COMME N D AT IO N:
S taff rec o mmend s that the Board o f Directors acc ept the C F D petition fo r the Highland Hills p ro jec t and
authorize the G eneral Manager/C EO to request a depos it o f $75,000 fo r C F D fo rmatio n.
B AC KG R O UN D / AN ALYS IS :
O n November 27, 2019, the F irs t Americ an Title Insurance C omp any (“O wner”) s ubmitted a p etition to fo rm a
C F D enc omp as s ing property they own kno wn as the Highland Hills p ro jec t within the bo und aries of Eas t Valley
Water District. T he petition, attac hed as Exhib it A, was deemed c o mp lete by the s p ecial c o ns ultants engaged by
the Dis tric t. Highland Hills c o ns is ts of a maximum of 695 pro p o s ed res id ential units on about 542 acres in the
C ity o f S an Bernardino, eas t o f the intersec tio n o f Highland Avenue and C ity C reek R oad.
T he petitio n requests that the p ropos ed C F D be us ed to financ e the water and s ewer fac ilities c ons truc ted to
s erve the projec t, and the water and sewer c ap ac ity fees assoc iated with the p ro jec t. In ad ditio n, the C F D would
financ e any other exp ens es inc id ental to providing the necessary water and s ewer facilities and the c reatio n of the
C F D. Ac cording to the S tate code go verning C F Ds , the petitio ner is to depo s it funds with the Dis tric t fo r the
estimated c o s t of fo rming the C F D, whic h is $75,000.
AGE N C Y GOALS AN D OB J E C T IVE S:
G oal and O b jec tives I V - P romo te P lanning, Maintenanc e and P res ervation of Distric t R es o urces
b) E nhance P lanning E fforts that R espond to F uture D emands
R E VIE W B Y O T HE R S :
T his agend a item has been reviewed b y the F inanc e Department.
F IS CAL IMPAC T
R ec o mmend ed b y:
John Mura
G eneral Manager/C EO
R espec tfully s ubmitted:
Jeff No elte
Direc tor of Engineering & O perations
F IS CAL IMPAC T
T here is no fis cal imp ac t as s oc iated with this agend a item.
ATTAC H M E NTS:
Description Type
Exhibit 1-Highland HIlls C FD P etitio n Exhibit
B OARD AGE ND A S TAF F RE P ORT
Agend a Item #5.
Meeting Date: January 8, 2020
Dis cus s io n Item
To: G overning Bo ard Memb ers
From: G eneral Manager/C E O
S ubject: C ons id er S tand by G enerato r P urc has e
R E C OMME ND AT IO N:
S taff reco mmend s that the Bo ard of Direc tors approve a purc hase for three ad ditional s tand by generato rs .
B ACKGR O UN D / AN ALYS IS :
S taff is co mmitted to maintaining a reliable water s upp ly for our c ommunity and co ntinues to enhance emergency
prepared ness . P reparing for S o uthern C alifo rnia Edis on’s P ub lic S afety P o wer S huto ff program (P S P S ) has
pres ented staff with a new c hallenge. W hen this pro gram was firs t introd uc ed s taff did not have a c omplete
unders tanding o f what p lants co uld p otentially b e without po wer and the imp ac ts this wo uld have on water sup ply.
Now that we have a better unders tand ing of Ediso n’s grids , and know which plants will b e affec ted , staff has
determined it is nec essary to ad d three generato rs . T hes e generators will b e staged and ready to go at various p lants.
T hey will b e us ed to power boo s ter s tatio ns which is c ritic al to keeping our res ervoirs at a safe level in the event o f a
po wer shut o ff event.
S taff p repared the s pecifications fo r the purchase of generato rs and req uested quo tes with the following res ults :
S taff reviewed q uotes and doc uments for content and inves tigated vendor b ac kground. As a result, s taff has
determined that the low b id fo r the generato rs have met the requirements outlined in the req uest for propos als .
S taff rec ommends that the Board of Direc to rs award a purchas e to As so c iated P o wer Inc . for the purchas e of three
trailer mounted generato rs in the amo unt o f $272,721.00.
R ec ommended by:
John Mura
G eneral Manager/C E O
R es pectfully submitted:
P atric k Milro y
O perations Manager
AG E N C Y G OALS AN D O B J E CT IVE S :
G oal and O bjectives I II - Deliver P ublic S ervice with P urpo se W hile Embracing C o ntinuo us G rowth
a) Advance Emergenc y P reparednes s Efforts
G oal and O bjectives I V - P romote P lanning, Maintenanc e and P reservatio n o f Dis tric t R es ources
a) Develo p P ro jec ts and P ro grams to Ens ure S afe and R eliab le S ervices
R E VIE W B Y O T HE R S:
T his agenda item has been reviewed b y the Exec utive Management Team.
F IS C AL IMPAC T
T his item was not included in the c urrent b udget. Due to the urgency s taff is reques ting to purc hase the generators
with funds from the replacement res erve account.