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HomeMy WebLinkAboutAgenda Packet - Community Advisory Commission - 11/19/2020COMMUNIT Y ADVISORY COMMISSION MEETING November 19, 2020 - 6:00 PM In an effort to prevent the spread of COVID-19 and in accordance with Governor Newsom's Executive Order N-25-20 and N-29-20, this meeting is being conducted via teleconference. There will be no public location for attending this meeting in person. Members of the public may listen and provide public comment telephonically. Anyone wishing to join the meeting may do so using the following information: DIAL: 1-209-425-5876 and enter CONFERENCE ID: 526 937 171# You may also join by clicking HERE to connect and participate in the Microsoft Team Meeting AG ENDA CALL T O ORDER PLEDG E O F ALLEGIAN CE ROLL CALL O F COMMISSIO N MEMBERS PUBLIC COMMEN TS A ny person wishing to speak to the Board of Commissioners 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 Commission. Under the State of California Brown Act, the Board of Commissioners 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. DIS CUSSION/INFORMATIONA L ITEMS 1. Water and Wastewater Conveyance Rates Update 2. Review Draft Popular Annual Financial Report for Year Ended June 30, 2020 3. Sterling Natural Resource Center Project Update 4. Emergency Response and Grant Update 5. Set the day and time for holding regular Commission meetings 6.Commissioner Comments 7.Staff's Comments ADJOURN Pursuant to Government Code Section 54954.2(a), any request for a disability-related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above-agendized public meeting should be directed to the District Clerk at (909) 885-4900 at least 72 hours prior to said meeting. B O AR D AGE N D A S TAF F R E P ORT Agenda Item #1. Meeting Date: Novemb er 19, 2020 To: C ommis s io n Members F rom: G eneral Manager/C EO Subject: Water and Was tewater C onveyance R ates Update R E C O MME N D AT IO N: T his item is fo r info rmatio nal p urp o s es only. B AC KGR O UN D / AN ALYS IS : Water Dis trict's , like o ther rate s etting organizations in the S tate o f C alifornia, are required to conduct a C o s t of S ervic e Analys is at leas t every five years to evaluate the rates c harged to cus tomers . T he results of this s tud y are used to d evelop rec o mmendations for the G o verning Board to cons id er for ad optio n at a pub lic hearing cond uc ted purs uant to Artic le XI I D of the C alifo rnia C ons titutio n. A key element of c o ns ideration id entified within the C ost o f S ervic e Analys is inc ludes the c o ntinued need for infrastruc ture inves tments as p art of a sus tainab le p reventative maintenance p ro gram. T his on-going c o mmitment to the water sup p ly s ys tem is es s ential to avoiding ad d ed costs res ulting from deferred maintenanc e. T he Dis tric t is res ponsible fo r maintaining rates that meet the need s o f provid ing s ervic es to the pub lic. T he recent C o s t o f S ervic e Analys is and c o rrespond ing Draft R ate P ro p o s al reflec t the on-going c o mmitment o f the Dis tric t to maintaining world clas s service for this c o mmunity. A hearing had been o riginally s ched uled for Ap ril 8, 2020. Due to the S tay-at-Home order of the C O VI D-19 p andemic , the District po s tponed the hearing fo r a later d ate. G iven the availab le techno lo gy and inc reased level o f c omfo rt o f virtual interac tions as a means to enc ourage p ub lic engagement, the Dis tric t is lo o king to s ched ule a pub lic hearing in early 2021. S taff will rec o mmend that the hearing includ e water, was tewater c o nveyanc e, and wastewater treatment rates. Was tewater treatment rates will b e pres ented to the C ommis s ion at a later d ate. R ate s etting is a key p ro c es s to maintaining a fisc ally s o und organizatio n. T his s tructure lays the fo und atio n for revenues fo r the next five years and addresses the capital investments and o n-go ing operatio nal costs . T he Dis tric t emb rac es the trans p arenc y meas ures o utlined in the C alifornia C o nstitution and will c o nduc t outreach to the c o mmunity, s hould the G overning Bo ard s c hed ule a pub lic hearing date. In additio n to all pro p erty owners and res idents receiving a printed notificatio n, info rmation regard ing the potential rate change will b e availab le o n the Dis tric t’s web s ite. G iven the high d egree of technic al analys is invo lved in the rate d evelo p ment p ro ces s , s taff will b e available b y p ho ne to ans wer q ues tio ns from the community. AG E N C Y G O ALS AN D OB J E C T IVE S : R es p ec tfully s ubmitted : Kelly Mallo y Directo r o f S trategic S ervices G o al and O bjec tives I I - Maintain a C ommitment to S us tainab ility, Transparenc y, and Ac c o untability a) P rac tice Trans parent and Ac countab le F is cal Management d ) P rovide Q uality I nfo rmation to Enc o urage C o mmunity Engagement F IS C AL IMPAC T T here is no fis cal impac t as s o c iated with this agend a item. B O AR D AGE N D A S TAF F R E P ORT Agenda Item #2. Meeting Date: Novemb er 19, 2020 To: C ommis s io n Members F rom: Direc tor of S trategic S ervic es Subject: R eview Draft P opular Annual F inancial R eport for Year End ed June 30, 2020 R E C O MME N D AT IO N: T his item is fo r info rmatio n p urpo s es only. B AC KGR O UN D / AN ALYS IS : Attached is the Eas t Valley Water District PAF R for the fis cal year end ed June 30, 2020. T he PAF R is des igned to be a summarized, us er friend ly vers ion of the Dis tric t’s C o mp rehensive Annual F inancial R ep o rt (C AF R ), which was audited and will be finalized in No vemb er. Mos t financ ial info rmation in the PAF R is p res ented in graphic form, and tec hnical no te d is clos ures are omitted . In additio n, as with the Budget and C AF R , the G overnment F inanc e O fficers Assoc iatio n (G F O A) produces guid elines fo r p ro d ucing an effec tive PAF R , and if an agenc y’s PAF R s ub s tantially meets o r exceeds thos e guid elines , the G F O A p resents the agenc y with an Award for O uts tand ing Ac hievement in P o p ular Annual F inancial R epo rting. T he Dis trict received the award for its June 2019 PAF R , and that award ap p ears on page 2 in the c urrent year repo rt. T he District will s ubmit the c urrent year PAF R fo r award cons ideratio n. S taff rec o mmends that the June 30, 2020 PAF R doc ument be presented to the Bo ard o f Directo rs in December to ap p ro ve and dis tribute to Dis trict ratep ayers . AG E N C Y G O ALS AN D OB J E C T IVE S : G o al and O bjec tives I I - Maintain a C ommitment to S us tainab ility, Transparenc y, and Ac c o untability a) P rac tice Trans parent and Ac countab le F is cal Management R E VIE W B Y O T HE R S : T his agenda item has been reviewed by the F inanc e and P ublic Affairs Dep artments . R es p ec tfully s ubmitted : Kelly Mallo y Directo r o f S trategic S ervices F IS C AL IMPAC T T here is no fis cal impac t as s o c iated with this agend a item. ATTACH M E N TS: Description Type Draft PAF R 2020 Backup Material HIGHLAND, CALIFORNIA FISCAL YEAR ENDED JUNE 30, 2020 FINANCE EDITION FINANCIAL REPORTPopular Annual Contents POPULAR ANNUAL FINANCIAL REPORTING AWARD The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to East Valley Water District, California for its Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2019. In order to receive this award, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability, and reader appeal. We believe our current PAFR continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another Award. We also welcome and encourage feedback from District ratepayers to help make this publication more useful and/or informative. 2 POPULAR ANNUAL FINANCIAL REPORT TRANSMITTAL LETTER .............................................1 Core Values .................................................................................1 About the District .......................................................................1 Organizational Structure .........................................................1 District Vision ..............................................................................1 District-At-A-Glance ..................................................................1 District-wide Goals ....................................................................1 Capital Improvement Projects ..............................................1 Sterling Natural Resource Center .......................................1 Community Involvement ........................................................1 FINANCIAL PERFORMANCE ...................................1 Revenue and Expenses ..........................................................1 Revenue by Sources ................................................................1 Breakdown of Expenses ........................................................1 Outstanding Long-Term Debt ...............................................1 Comparative Net Position ......................................................1 Award for Presented to East Valley Water District For its Annual June 30, 2019 Executive Director/CEO Financial Report for the Fiscal Year Ended Financial ReportingPopular Annual Achievement inOutstanding Text38:California Government Finance Officers Association Governing Board of Directors Chairman of the Board Vice Chairman DAVID E. SMITH PHILLIP R. GOODRICH Governing Board Member Governing Board Member RONALD L. COATS CHRIS CARRILLO Governing Board Member JAMES MORALES, JR. District Management General Manager/CEO District Clerk JOHN MURA JUSTINE HENDRICKSEN Chief Financial Officer Director of Strategic Services BRIAN TOMPKINS KELLY MALLOY Director of Engineering & Operations JEFF NOELTE, PHD, PE Director of Administrative Services KERRIE BRYAN Operations Manager PATRICK MILROY Core Values TRANSMITTALLETTER To Our Ratepayers and Community, We are pleased to present East Valley Water District’s (EVWD or District) Popular Annual Financial Report (PAFR) for the fiscal year ending June 30, 2020. This report summarizes financial information appearing in the 2020 Comprehensive Annual Financial Report (CAFR) and was created to provide valuable information related to District finances and the Capital Improvement Projects that support the expansion and improvement of our community’s distribution system. The PAFR is unaudited; however, the financial data presented in the PAFR is developed based on the audited CAFR which is consistent with Generally Accepted Accounting Principles also known as GAAP. This document can also be reviewed on the District’s website at www.eastvalley.org/PAFR2020. For more detailed information, the District’s Comprehensive Annual Financial Report is available for interested users at the District Headquarters, 31111 Greenspot Road, Highland, California 92346. It can also be viewed on the District’s website, along with other key financial documents, at www.eastvalley.org/CAFR2020. Questions comments and feedback regarding this report are encouraged, so please do not hesitate to contact Brian Tompkins, Chief Financial Officer, at finance@eastvalley.org or (909) 381-6463. On behalf of the District, thank you for the opportunity to serve you. Respectfully submitted, John Mura General Manager/CEO 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. Core Values 3EAST VALLEY WATER DISTRICT santa a n a r i v e r sant a a n a r i v e r plun g e c r e e k plunge creek eld e r c r e e k cit y c r e e k city c r e e k sa n d c r e e k tw i n c r e e k tw i n c r e e k warm cr e e k cook creek mil l c r e e k 210 210 HIGHLAND SAN BERNARDINO SEVEN OAKS DAM About the District The District was formed through a local election of mostly citrus grove operators, to have water service provided by a public agency. EVWD is located in the foothills of the San Bernardino Mountains, 65 miles east of Los Angeles in the County of San Bernardino. District Service Area 4 POPULAR ANNUAL FINANCIAL REPORT Organizational Structure Presented to the right is an overview of the East Valley Water District’s organizational structure. The District employs 67 full-time positions. Ratepayers Governing Board Engineering General Manager/ CEO Chief Financial Officer Information Technology Customer ServiceOperations Water Maintenance Meter Services Wastewater Maintenance Water Production Facilities Maintenance Water Treatment Fleet Maintenance Water Quality Director of Engineering & Operations General Administration Human Resources Public Affairs Legal Counsel Finance Conservation PERSON/POSITION PROGRAM FTE: 3 FTE: 1 FTE: 4 FTE: 5 EO: 5 FTE: 5 FTE: 2 FTE: 7 FTE: 2 FTE: 2 FTE: 15 FTE: 6 FTE: 4 FTE: 2 FTE: 2 FTE: 2 FTE: 1 FTE: FULL TIME EMPLOYEES EO: ELECTED OFFICIALS Director of Strategic Services 5EAST VALLEY WATER DISTRICT &Enhance Preserve THE QUALITY OF LIFE FOR OUR CommunityTHROUGH INNOVATIVE LEADERSHIP &World ClassPUBLIC SERVICE District Vision District At-A-Glance EVWD provides water and wastewater services to residents within its 30.1 square mile area. This includes over 103,000 people within the cities of Highland and San Bernardino, portions of the unincorporated County of San Bernardino, the San Manuel Band of Mission Indians, and Patton State Hospital. 16,600,000 Average Gallons of Water Produced Daily28,977,000 Maximum Gallons of Potable Water Stored 6,000,000 Gallons of Sewage Conveyed Daily The District serves a population of over 103,000 FireHydrantsFlushed 625 ValvesExercised 1,500 30.1 Service Area 246 Leaks Repaired ActiveGroundWater Wells 15 Manual & 10,000 AMI AutomaticMeters ReadMonthly 13,000 Samples Collected 3,700 Miles ofSewer Monitored 74 Miles ofSewer Cleaned177Miles of Sewer Main 214 Miles of Water Main 300 Established 1954 sq. mi. 6 POPULAR ANNUAL FINANCIAL REPORT 1 Optimize Infrastructure Systems 2Financial Stability with Full Understanding of Operational Complexities 3 Protect Organizational Investments 4 Maximize the District’s Position 5Have Others See the District as a Premier Agency DISTRICT-WIDE GOALS & OBJECTIVES District-Wide Goals & Objectives As part of the annual budget process, District-wide goals are established by the Governing Board in order to identify priority programs and projects. More specific program goals were established for each program consistent with District-wide goals. Capital Improvement Projects The District achieved a number of different accomplishments during Fiscal Year (FY) 2019-20. As a results-oriented organization, each program has clearly defined goals and objectives. During this period, there were four priority projects that contributed to supporting not only the District-wide goals, but also the District-wide Vision. These projects are included in the Five-Year Capital Improvement Program. Each year as part of the budget process, the District’s Program Managers and Supervisors compile and submit a list of capital outlay requests for consideration. Staff reviews and prioritizes the list of equipment based on a needs assessment and the amount of funding available. Proposed Capital Improvement Projects for the budgeted fiscal year were submitted by the Engineering, Operations and Maintenance Programs in accordance with the anticipated needs of the District as outlined in the 2019 Wastewater Master Plan and 2014 Water Master Plan. Plant 108 Tank Mixer Addition Plant 134 Security Fence Upgrade Water Main Replacements Plant 134 Surface Water Treatment Plant Membrane Replacement Plant 39A Rehabilitation No.1 No.2 No.3 No.4 No.5 7EAST VALLEY WATER DISTRICT Plant 108 Tank Mixer Addition Installed tank mixers in the reservoir at Plant 108 to keep the water circulating and reduce the potential for TTHMs. DATE COMPLETED: May 2020 PROJECT COST: $28,394 PROJECT BENEFITS: Prevent taste and odor concerns within the District’s water supply. Plant 134 Security Fence Upgrade Removed existing 2,050 feet of 6-foot-tall chain-linked fence and replaced it with 8-foot-tall wrought iron. DATE COMPLETED: December 2019 PROJECT COST: $210,885 PROJECT BENEFITS: This perimeter fence addressed site security enhancements identified in the vulnerability assessment. Water Main Replacements Replaced approximately 2,530 feet of water main with limited access on Barton Street, and several cul-de-sacs that were served by under-sized polyvinyl chloride or PVC pipe. DATE COMPLETED: June 2020 PROJECT COST: $216,343 PROJECT BENEFITS: Reduced the potential for future water leaks in Barton Street caused by old water mains and virtually eliminated the need for staff time to repair them; and enhanced fire protection and water quality for 34 customer connections living on five different cul-de-sacs. Plant 134 Surface Water TreatmentPlant Membrane Replacement The Plant 134 Surface Water Treatment Plant has five treatment units or "trains" that consist of 180 membrane filters per train. The manufacturer of the filters recommends replacing the filter every five to seven years. In Fiscal Year 2019-20 staff replaced one full train. DATE COMPLETED: January 2020 PROJECT COST: $248,146 PROJECT BENEFITS: Reduced staff time since new membranes decreased the repair work required compared to aging membranes. Plant 39A Rehabilitation Rehabilitated Plant 39A and replaced or rehabilitated booster motors, well and booster pumps, and the well motor. DATE COMPLETED: June 2020 PROJECT COST: $389,591 PROJECT BENEFITS: Reduced water leaks and spillage from the equipment and increased the plant's efficiency resulting in electrical savings. No.1 No.2 No.3 No.4 No.5 8 POPULAR ANNUAL FINANCIAL REPORT MAKING EVERY SOURCE A RESOURCE Capable of recycling up to 8 million gallons of water per day, the Sterling Natural Resource Center (SNRC) will create a sustainable new water supply for our region and enhance the quality of life for residents by providing new opportunities in the form of education and training, community space, and neighborhood improvements. The SNRC is being constructed on a 16-acre parcel of land located at North Del Rosa Drive between East 5th Street and East 6th Street, and strives to create a sustainable future by maximizing the use of resources. Benefits to the Community Picnic area, demonstration garden, walking paths, workshop space, and special events area. Water treated at the SNRC will recharge the local Bunker Hill Groundwater Basin. Hands-on training and career experiences in wastewater treatment available to students and residents. Improvements to the surrounding area include street paving, water lines, sidewalks, and more. 3 Yearsto construct Building a Community Partner While under construction, the SNRC is investing in future generations. Striving to inspire and prepare future water professionals, the SNRC has partnered with the San Bernardino City Unified School District and San Bernardino Valley College to develop a Water and Resource Management Pathway Program. The program offers local high school students with training and certifications in wastewater treatment at no cost. Now in its second school year, there are 17 students virtually participating in the program. The Sterling Natural Resouce Center is changing every day! Time-lapse construction videos for both east and west portions of the project can be viewed online at eastvalley.org/snrc. Watch Now *Funding for this Sterling Natural Resource Center project has been provided in full or in part by the Proposition 1 - the Water Quality, Supply, and Infrastructure Improvement Act of 2014 and the Clean Water State Revolving Fund through an agreement with the State Water Resources Control Board. California’s Clean Water State Revolving Fund is capitalized through a variety of funding sources, including grants from the United States Environmental Protection Agency and state bond proceeds. The Urban Greening Program is part of California Climate Investments, a statewide program that puts billions of cap-and-trade dollars to work reducing greenhouse gas emissions, strengthening the economy and improving public health and the environment—particularly in disadvantaged communities. The cap-and-trade program also creates a financial incentive for industries to invest in clean technologies and develop innovative ways to reduce pollution. California Climate Investment projects include affordable housing, renewable energy, public transportation, zero-emission vehicles, environmental restoration, more sustainable agriculture, recycling and much more. At least 35 percent of these investments are made in disadvantaged and low-income communities. For more information, visit California Climate Investments. GOVERNOR GAVIN NEWSOM Cap and TradeDollars at Work The SNRC is Funded in Part By: 3 Years 9EAST VALLEY WATER DISTRICT Maximizing Resources State-of-the-art co-digestion technology will give food waste a new purpose. Material remaining after the treatment of wastewater will be combined with food waste to create renewable electricity. Renewable electricity will offset the SNRC’s operating costs. Extra energy created will be transferred onto the electricity grid. Being Good Neighbors As part of the SNRC’s commitment to being a good neighbor, the project’s design includes extensive state- of-the-art vessel systems to help prevent unwanted odors. These systems will “scrub” the air so that there is no noticeable odor coming from the facility. Additionally, through the use of Membrane BioReactors, which is a process that combines filtration with biological treatment to dramatically reduce the amount of space needed to operate the facility. Therefore, allowing for the reclamation process to be completely self-contained. Water produced by the SNRC will be cleaned and disinfected through multiple processes. Recycled water is clear and has no smell. Southern California Edison’s Self Generation Incentive Program rewards new construction that offsets energy demands, resulting in approximately $3 million in construction incentives. If constructed at one time, most of the SNRC will be eligible for an exclusion from sales tax, when applicable, resulting in $3.5 million in sales tax exclusions. Project Saving Opportunities Striving to being stewards of rate payer dollars, the District continues to identify programs that offer incentives for projects like the SNRC. 10 POPULAR ANNUAL FINANCIAL REPORT Serving the Community The unexpected COVID-19 pandemic impacted the lives of communities around the world and residents served by East Valley Water District in ways that could not have been predicted. Witnessing the amount of uncertainty and need for assistance during this critical time, the District partnered up with local organizations to lend a helping hand. Never wavering on its commitment to public service, District staff continued working throughout the pandemic to maintain services to the community. Sharing Important Resources During the COVID-19 outbreak, the need for previously underutilized resources became greater. Residents were faced with the challenge of researching resources available in their city while also dealing with concerns for their health and safety. Aiming to alleviate some of the stress, the District partnered with a local grocery store to provide residents with contact information to free mental support services, food distribution events, testing sites, infection prevention tips, and other community services. Supporting Local Non-Profits Together we can do more. Striving to make an impact on the lives of residents, East Valley Water District is proud to support local non-profit organization with fulfilling their mission of serving the community through its Surplus Vehicle Donation Program. This program provides fully functional vehicles to organizations that provide valuable services to the community. This fiscal year, the District donated a vehicle to Santa Claus Inc. Para Más Información Visite eastvalley.org/covid19resources Guí d Recurso Comunitario E Agu de Gif e Segur Par Bebe COMIDAS PARAS PERSONAS MAYORES El Centro Para Personas Mayores de Highland, en asociación con la Banda de Indios Misioneros de San Manuel, están proporcionando almuerzos calientes gratuitos a los mayores. Lunes a viernes de 11:30 AM a 12:30 PM. Pase por la linea de carros localizado en 3102 de Highland Ave., Highland. RESULTADOS DE LAS PRUEBAS El Departamento de Salud Pública del Condado de San Bernardino tiene una pagina de web que registra el numero de casos de COVID-19 en nuestro condado. Visite la pagina en: http://wp.sbcounty.gov/dph/coronavirus WWW NÚMEROS IMPORTANTES Línea de información pública del Condado de San Bernardino: (909) 387-3911 Distrito Escolar Unificado de la Ciudad de San Bernardino: (909) 888-5437 Centro Para Personas Mayores de Highland: (909) 862-8104 SERVICIOS DE ASISTENCIA Si usted o alguien que conoce se siente solo o necesita apoyo, llame o envíe un mensaje de texto para comunicarse con personal especializada del Departamento de Salud. Es gratis y confidencial. Llame al (909) 458-1517 o envíe un mensaje de texto al (909) 420-0560 NO NECESITA COMPRAR AGUA EMBOTELLADA East Valley Water District utiliza tecnología moderna y un método de ultrafiltración de tratamiento que tratar hasta 8 millones de galones de agua por día. No hay necesidad de almacenar agua embotellada. Usted tiene un suministro de agua segura en casa. JUNTOS PODEMOS PREVENIR LA INFECCION Evite Tocarse Su Cara Mantenga Su Distancia de Al Menos 6 pies Cubra Su Tos y Estornudos Lávese SusManos Con Frecuencia Opcione d Pag d Factura Gatuita 7 ELEVENSolo Efectivo, Recuerde Traer Su Factura (909) 889-9501VISA, Mastercard,Amex o E-Check TELÉFONO31111 Greenspot RoadCash, VISA,Mastercard o Amex KIOSCO DE PAGO eastvalley.orgVISA, Mastercardo Amex POR POR LÍNEA Senior Meal Events With residents asked to shelter in place, organizations like the Highland Senior Center were temporarily closed, leaving older adult residents in need of nutrition services. As a result, East Valley Water District and the San Manuel Band of Mission Indians partnered with the Center to provide free hot lunches through various drive-thru events. Over 100 meals where distributed each day from March 30 to April 11, 2020. The District also participated in contact-less grocery delivery to a local senior living facility in partnership with the City of Highland. For More Information V i s i t e a s t v a l l e y . o r g / c o v i d 1 9 r e s o u r c e s Communit Resource G u i d Ta Wate i Saf t Din CURBSIDE MEALS FOR SENIORS Highland Senior Cente r , i n p a r t n e r s h i p w i t h San Manuel Band of Mi s s i o n I n d i a n s , a r e providing FREE hot lunc h t o s e n i o r s o n fi r s t come, first serve basis. M o n d a y - F r i d a y from 11:30 AM - 12:30 P M . L o c a t e d a t 3 1 0 2 Highland Ave., Highlan d . TRACK COVID19 TESTING The San Bernardino C o u n t y Department of Public H e a l t h n o w h a s a dashboard to track CO V I D - 1 9 c a s e s i n our county. Access the d a s h b o a r d a t : http://wp.sbcounty.gov / d p h / c o r o n a v i r u s WWW IMPORTANT NUMBERS San Bernardino County P u b l i c Information Line: (909) 387-3911San Bernardino City U n i fi e d S c h o o l District: (909) 888-5437 Highland Senior Center : (909) 862-8104 SUPPORT SERVICES If you or anyone you kn o w i s f e e l i n g lonely or needs suppo r t c a l l o r t e x t t o connect with specially t r a i n e d s t a through the Departmen t o f B e h a v i o r a l Health. It’s free & confid e n t i a l . Call (909) 458-1517 or Text ( 9 0 9 ) 4 2 0 - 0 5 6 0 NO NEED FOR BO T T L E D W A T E R East Valley Water Distri c t u s e s t a t e - o f - t h e - a r t t e c h n o l o g y a n d a n ultra-filtration treatment m e t h o d t o t r e a t u p t o 8 m i l l i o n g a l l o n s o f w a t e r per day. With this muc h w a t e r b e i n g t r e a t e d p e r d a y , t h e r e ’ s n o n e e d t o stockpile bottled water. Y o u h a v e a s a f e w a t e r s u p p l y a t h o m e . LET’S WORK TOGETHER TO SLOW THE SPREAD AvoidTouchingYour Face Keep aDistanceof at Least6 Feet Cover aCoughor Sneeze Wash Your Hands Often Fe Bil Paymen Option Cash Only,Rememberto Bring Your Bill 7 ELEVEN(909) 889-9501VISA, Mastercard,Amex or E-Check PHONE31111 Greenspot RoadCash, VISA,Mastercard or Amex KIOSKeastvalley.orgVISA, Mastercardor Amex ONLINE 11EAST VALLEY WATER DISTRICT FINANCIALPERFORMANCE Revenue and Expenses Providing safe drinking water to over 103,000 customers every day is the District’s top priority and also one of its most significant expenses. The graphs below represent the District’s combined revenue and expenses for FY 2019-20. For comparison purposes, FY 2017-18 and FY 2018-19 revenue and expenses have also been included. Please refer to the District’s CAFR for a comprehensive breakdown of expenses, which includes the availability of additional details. How is Revenue Managed? The District utilizes revenue to fund daily operations, scheduled capital improvements and replacements, and principal and interest for debt financed construction projects. Remaining revenue is invested back into capital improvement projects to help maintain and improve the District’s system health so that EVWD may continue taking steps to support the Vision Statement of providing world class public service. Revenue also provides funding for conservation and rebate programs, which empowers customers to be efficient water users and encourages water savings indoors and out. Excess net revenue after covering expenses and payments is added to reserves, for capital replacements and unforeseen emergency expenses. -GrantsNon-OperatingOperating FY 2019-20 $50.42MILLION FY 2018-19 FY 2017-18 $41.50MILLION $41.29MILLION $37.92MILLION$37.58MILLION $37.83MILLION Revnue Expense Contributions -Non-OperatingOperating Special Items FY 2019-20 FY 2018-19 FY 2017-18 Fiscal Year 2019-20 Rae Revnue 42%WATER SALES 23%METER CHARGES 12%WASTEWATERCOLLECTION 21%WASTEWATERTREATMENT 2% OTHER CHARGES 12 POPULAR ANNUAL FINANCIAL REPORT Revenue by Sources The District uses revenue to fund day-to-day operations. East Valley Water District receives 97 percent of its revenue from user rates and fees; the District receives no increment from property or sales taxes. Rates and fees are reviewed on 3 to 5 year cycles and are adjusted as necessary to meet the costs of providing services to ratepayers. 26.9 25.5 26.6 25.4 25.9 13.4 13.8 13.2 13.6 13.8 10 15 20 25 30 FY 17-18 Actual FY 18-19 Actual FY 19-20 Actual FY 20-21 Projected FY 21-22 Projected Water Operating Revenue Wastewater Operating Revenue Revnue Hisry & Frecas (in milins) Note: The District’s water sales and meter charge revenue is expected to decrease through FY 2020-21. Due to rate increases, residents tend to reduce their water usage. Additional information regarding the approved rates can be found at eastvalley.org/rates. Meter charges are fixed monthly charges assessed to customers based on the size of the service connection to their property. Wastewater collection charges are 1) fixed monthly charges for single family residences, and 2) a combination of fixed and volumetric charges for commercial and multi-family customers. Wastewater treatment rates are established by, and revenue remitted to, the City of San Bernardino Municipal Water Department, which is currently contracted to treat all wastewater generated by District customers. Other charges are assessed according to an adopted fee schedule, but are only charged to users who request, or require, use of District resources beyond the scope of delivering normal water and wastewater services. Water sales are based on the volume of water used by a customer during the monthly billing period. 13EAST VALLEY WATER DISTRICT Breakdown of Expenses Expenses are the cost of providing water to meet customer demand and collecting and treating wastewater from customer residences or places of business. East Valley Water District strives to provide safe and reliable water delivery services. Despite the severity of the recent drought, the District has put forth significant effort to overcome the challenges of maintaining a fiscally sustainable and operationally dependable organization. Operating expenses are identified and accounted for at the department level. Source of Supply - Expenses related to the extraction of groundwater, and for procuring water from the Santa Ana River or State Water Project when supply is available. Pumping - Expenses related to moving water throughout the District’s water distribution system. Water Treatment - Expenses related to the treatment of water. Transmission and Distribution - Expenses for transmitting water to treatment plants and storage reservoirs for distribution to commercial and residential customers. Customer Accounts - Expenses related to the service of customer accounts including, postage, telephone, printing and publishing, and billing services. Wastewater Treatment - Expenses related to the contracted service currently provided by the City of San Bernardino Municipal Water Department. Wastewater Collection - Expenses for the operation and maintenance of the District’s system of wastewater collection pipelines. Administrative and General - Expenses related to the administration of District operations. For example, employee compensation, benefits, conservation rebates, office supplies, banking services, materials and supplies, utilities, fuel, permits, insurance claims, legal services, and printing and publishing. Depreciation - Expenses related to the use of capital assets over time. Other Expenses - Expenses not related to the District’s current cost of utility service delivery. Explanation of Expenses Expense 9 1 2 9 5 23 2 28 17 4 Source of Supply Pumping Treatment Trans & Distribution Customer Accts Wastewater Treatment Wastewater Collection Admin & General Depreciation Interest Expense This graph identifies how every dollar spent is allocated to cover expenses (in cents). 14 POPULAR ANNUAL FINANCIAL REPORT Outstanding Long-Term Debt Much like how a mortgage is financed to spread costs over 30 years, East Valley Water District has incurred debt to fund large capital projects. The District has adopted a Debt Management Policy to clearly state that long-term borrowing is only to be used for Capital Improvement Projects that cannot be funded from current revenues. Similar to an individual’s credit score, public agencies have a bond rating used by investors to determine risk. The District has a bond rating of AA- by both the Fitch and the Standard and Poor’s rating services. This is considered a high quality investment grade. East Valley Water District’s long-term debt consists of bonds, loans and installment purchases. Explanin f Deb (in milins) 63.4%STERLING NATURALRESOURCE CENTER 1.7% US BANK LOAN 21.6%2010 BONDS 12.1%2013 BONDS 2.6% SBVMWD LOAN 6.2% STATE DEPT. OF WATER RESOURCE US Bank Loan - Issued for the purchase and installation of energy conservation equipment at several of the District’s water production facilities. Sterling Natural Resource Center Loan - Funded the design and construction of the District’s water recycling facility that will capture and treat District wastewater flows. Recycled water will be recharged to the Bunker Hill Groundwater basin. 2010 Bonds - Issued to refinance all previous outstanding long-term debt and to provide $16 million for water quality improvement projects. 2013 Bonds - Financed the construction of the District’s new administration and operations headquarters designed to serve as a resource for the community. State Department of Water Resources Loans - Funded the improvement and expansion of the District’s surface water treatment plant. SBVMWD Loans - Agreement with the San Bernardino Valley Municipal Water District for the construction, financing, and maintenance of a City Creek Turnout and Plant 134 Hydroelectric Station. The station provides the District with direct access to State Project Water, to be used for the surface water treatment plant. 15EAST VALLEY WATER DISTRICT Two-Year Comparative Net Position (In Millions) As an infrastructure based organization, the District directs significant resources in capital investments to maintain and improve its water and wastewater system. Comparative net position offers perspective of the District’s assets, liabilities, and equity. The information presented below applies to fiscal years ended June 30, 2020 and 2019. Current Assets - Cash and cash equivalents, customer utility receivables, inventory, prepaid expenses, and other liquid assets that can be readily converted to cash. Restricted Assets - Cash equivalents, grants and bonds restricted for a specific purpose and therefore not readily available to use. Other Assets - Special Assessments receivable from certain property owners for system improvements that benefit only their properties. Capital Assets - Any land, building, equipment, vehicles, inventory, treatment plants, pipeline, and water distribution systems owned by the District. Deferred Outflow of Resources - Use of net assets attributed to future reporting periods, such as prepaid items and deferred charges. Explanation of Assets Current Liabilities - Present financial obligations including, payments to vendors, payroll, and employee benefits. Non-Current Liabilities - Long-term financial obligations including payments for loans, bonds, and employee retirement benefits. Deferred Inflow of Resources - Receipt of net assets attributed to future reporting periods, such as deferred revenue and advance collections. Equity (Net Position) - Represents the excess of assets over liabilities. Explanation of Liabilities and Equity (Net Position) Ne Psin 2020 $276.1 MILLION TOTAL ASSETS Ne Psin 2019 $220.4 MILLION TOTAL ASSETS $39.5 $10.2 $0.3 $4.1 $222Current Assets Restricted Assets Other Assets Capital Assets Deferred Outflows of Resources Current Liabilities Non-Current Liabilities Net Position Deferred Inflows $276.1 MILLION LIABILITIES & EQUITY $220.4 MILLION LIABILITIES & EQUITY$18.5 $121 $0.70 $3.6 $135.9 $38.6 $169.7 $0.3 $8.2 $11.5 $123.2 $85 $0.70 Safe Reliable Water & Wastewater Service Provider East Valley Water District was formed in 1954 and provides water and wastewater services to over 103,000 residents within the cities of Highland and San Bernardino, and portions of San Bernardino County. EVWD operates under the direction of a 5-member elected Board. Office Hours Monday – Thursday 8:00am – 5:00pm 2nd and 4th Tuesday 9:00am – 5:00pm Friday 7:30am – 4:30pm Customer Service & After-Hours Emergency Service (909) 889-9501 District Headquarters 31111 Greenspot Road Highland, California 92346 (909) 889-9501 www.eastvalley.org District Board Meetings Second and Fourth Wednesday of Each Month To attend online or telephonically or through the Microsoft Teams App, visit www.eastvalley.org/AgendaCenter for details and login information. BOARD AGENDA STAFF REPORT Agenda Item #3. Meeting Date: November 19, 2020 To: Commission Members From: Director of Strategic Services Subject: Sterling Natural Resource Center Project Update RECOMMENDATION: This agenda item is for informational purposes only. BACKGROUND / ANALYSIS: Construction activities continues for the Sterling Natural Resource Center. Since the project is using the progressive design-build model, construction continues while design efforts are underway in a collaborative team environment with the project partners. The design team is incorporating the bio-energy enhancement into the various elements of the treatment process, offsite improvements, and pipeline. Efforts continue to work through the various regulatory approvals necessary for the project, working closely with Southern California Edison, the Regional Water Quality Control Board, and the cities of Highland and San Bernardino. This is an on-going process in tandem with the construction effort. The District continues to provide information through website content, social media posts and bill inserts. October marked the two-year anniversary for the community ground breaking celebration, which was an ideal opportunity to highlight construction progress on social media during the week of October 18. Additional outreach is being sent bi-monthly to residents living in the vicinity of the site. Staff maintains dialogue with the community in spite of the C OVID restrictions and gathering limitations. AGENCY GOALS AND OBJECTIVES: Goal and Objectives II - Maintain a Commitment to Sustainability, Transparency, and Accountability d) Provide Quality Information to Encourage Community Engagement FISCAL IMPACT There is no fiscal impact associated with this update. Respectfully submitted: Kelly Malloy Director for Strategic Services B O AR D AGE N D A S TAF F R E P ORT Agenda Item #4. Meeting Date: Novemb er 19, 2020 To: C ommis s io n Members F rom: G eneral Manager/C EO Subject: Emergency R esponse and G rant Update R E C O MME N D AT IO N: T his item is fo r info rmatio n o nly, no actio n is req ues ted at this time. B AC KGR O UN D / AN ALYS IS : Eas t Valley Water Dis tric t is committed to pro viding wo rld c lass p ublic s ervice, this includ es going to great lengths to meet the needs o f the c o mmunity d uring b o th normal and emergenc y situatio ns . O ver the last year, a team o f s taff members have b een wo rking to up d ate the Dis trict's emergency prep ared nes s d o cuments. T his inc lud es an evaluation o f the hazard s that could oc cur within the servic e area, development of p lanned res pons es to emergencies, and identificatio n of projec ts that could mitigate the imp act o f future emergenc ies . At this point in time four separate d o cuments have been updated to b e c o ns is tent with the Dis tric t’s vision alo ng with S tate and F ederal requirements. T he Dis trict has develo p ed a d raft Bus iness C ontinuity P lan, which foc us es s p ec ifically on resuming and maintaining o p eratio ns d uring and after an emergency. T his d o cument is c urrently in the final s tages of internal review. T he info rmatio n compiled in these d o cuments is no w b eing used to d evelop a multi-millio n d ollar grant to help mitigate d amage to the s ystem from emergenc ies like earthq uakes and wild fires by rep lacing rigid p ip eline in s p ecific areas o f the c o mmunity. T his extens ive pro cess is und erway with a collaborative effo rt b etween Dis tric t s taff members. W hile this p ro ces s has b een underway, the Dis tric t has been adapting to the unique circ umstanc es c aused by the C O VID-19 pandemic . O peratio nal ad jus tments were implemented at the Distric t level to comply with regulato ry guid elines while maintaining s ervice level for the c o mmunity. T his inc luded the District p ro claiming a lo c al state o f emergenc y, whic h allo ws for the mo d ific ation o f daily o p eratio ns to meet the needs o f the o rganizatio nal vision. T his emergenc y has b een an o p p ortunity fo r s taff to utilize the proc es s es and procedures that have been p ut in p lace based on fed eral s tand ard s . G iven the cost o f res p o nding to this emergency the Dis tric t has s ubmitted o ver $130,000 in C O VI D-19 related exp ens es to the C alifornia O ffic e of Emergenc y S ervices. T he Dis tric t has continued providing s ervic e to the c o mmunity, while maintaining a s afe work environment. S inc e Marc h 2020 the Dis trict has b een operating with a hyb rid staffing plan through a comb inatio n o r both res tric ted o n-site and remo te wo rk. F or ac tive wo rk areas the Dis tric t is us ing enhanc ed cleaning meas ures. R es p ec tfully s ubmitted : Kelly Mallo y Directo r o f S trategic S ervices In ad d ition to C O VI D-19, the Dis tric t respond ed to the rec ent wind event which imp acted S o uthern C alifornia. Maintaining p o wer is a c ritic al c omponent to d elivering water to o ur c o mmunity, which requires active monitoring and the us e o f alternative energy eq uip ment. T he District rec ently s ubmitted a grant applic atio n for a stationary generator at a lo catio n in the fo o thills. In the mid s t of the real-wo rld emergenc ies , the Dis tric t c o ntinues to train s taff and practice the plan. R ec ently, the District partic ip ated in the wo rld wid e G reat S hakeout event. During this event the Dis tric t cond uc ted an evac uatio n drill, c hec k of the staff communicatio n s ys tems , and ab ility to log into the C o unty's emergenc y s ystem. T he District will continue to res p o nd to emergenc ies and take step s to b e prepared fo r ones in the future. An effective emergency preparednes s program requires o n-going attention and ad jus tments by s taff thro ughout the o rganizatio n. AG E N C Y G O ALS AN D OB J E C T IVE S : G o al and O bjec tives I I I - Deliver P ublic S ervic e with P urpose W hile Emb rac ing C ontinuo us G rowth a) Ad vanc e Emergency P repared ness Effo rts d ) Embrace an Environment of Active Learning and Knowled ge S haring F IS C AL IMPAC T T here is no fis cal impac t as s o c iated with this item.