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HomeMy WebLinkAboutAgenda Packet - Finance & Human Resources Committee - 03/29/2016Finance and Policy Standing Committee March 29, 2016 - 3:30 PM 31111 Greenspot Road, Highland CA 92346 AGENDA CALL TO ORDER PLEDGE OF ALLEGIANCE PUBLIC COMMENTS NEW BUSINESS 1.Approve the February 22, 2016 Finance and Policy Standing Committee Meeting Minutes 2.February 2016 Disbursements: Accounts payable disbursements for the period include check numbers 246898 through 247133, bank drafts, and ACH Payments in the amount of $3,444,331.65 and $315,584.55 for payroll. 3.Financial Statements for February 2016 4.Investment Policy Review 5.Administrative Policies Update ADJOURN P LEASE NOT E: P ursuant to Go vernment Co d e Sectio n 54954.2(a), any reques t fo r a d is ability-related modific ation or ac commod ation, inc luding auxiliary aid s o r s ervices , that is s o ught in ord er to participate in the ab o ve- agendized pub lic meeting s hould be d irected to the Dis tric t Clerk at (909) 885-4900 at leas t 72 ho urs prior to said meeting. 1 Minutes 2/22/2016 cmk Subject to Approval EAST VALLEY WATER DISTRICT February 22, 2016 FINANCE AND POLICY STANDING COMMITTEE MEETING MINUTES Director James Morales, Jr. called the meeting to order at 4:04 p.m. and led the flag salute. PRESENT: Directors: Morales, Smith ABSENT: None STAFF: John Mura, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Kerrie Bryan, HR/Risk & Safety Manager; Justine Hendricksen, District Clerk; Eileen Bateman, Sr. Administrative Assistant; Shayla Gerber, Administrative Assistant; Christi Koide, Administrative Assistant GUEST(s): There were no members of the public present. PUBLIC COMMENTS Director Morales declared the public participation section of the meeting open at 4:06 p.m. There being no written or verbal comments, the public participation section was closed. ESTABLISH GOALS AND OBJECTIVES FOR THE FINANCE/POLICY COMMITTEE The General Manager/CEO provided the Committee with an overview of the structure and the differences of an Ad-Hoc Committee and a Standing Committee; and stated that the Committee process provides the opportunity to conduct additional analysis prior to Board consideration. The Chief Financial Officer reviewed proposed future agenda items for the committee to discuss including Finance/Information Technology, Administrative and Financial Policies, Audits, Investments, Rates and Charges, Budget, Interim Financial Reporting and IT Project Updates. SET THE DAY AND TIME TO HOLD RECURRING COMMITTEE MEETINGS The Committee discussed and established that they will meet March 29th and will then proceed to meet on the fourth Tuesday of each month at 3:30 p.m. ADJOURN 2 Minutes 2/22/2016 cmk The meeting adjourned at 5:04 p.m. __________________________ ____________________________ James Morales, Jr., David E. Smith, Governing Board Member Governing Board Member STAFF REPORT Agenda Item #2. Meeting Date: March 29, 2016 Cons ent Item To: Financ e and P o licy S tand ing Committee Memb ers From: G eneral Manager/CEO Subject: February 2016 Dis b ursements: Ac c ounts payab le disburs ements fo r the p erio d includ e c hec k numb ers 246898 thro ugh 247133, bank d rafts, and ACH Payments in the amount of $3,444,331.65 and $315,584.55 fo r payro ll. RECOMMENDATION: Staff rec o mmend s that the Financ e and Po lic y Standing Committee review the Dis tric t's expens e disburs ements fo r the p erio d February 1, 2016 thro ugh Feb ruary 29, 2016 in the amount o f $3,759,916.20. BACKGROUND / ANALYSIS: In the continued effo rt to b e fisc ally trans p arent, the p ayment regis ter fo r s up p lies , materials , s ervic es , and p ayroll fo r February 2016 is attac hed fo r review and approval. T his proc es s provid es the Bo ard and the pub lic an o p p o rtunity to review the exp enses o f the District. Acc ounts P ayable is proc es s ed weekly, while payro ll is p ro cessed b i-weekly. Info rmation to jus tify eac h exp enditure is availab le thro ugh the F inance Department. Ac counts payab le d is b ursements fo r the period includ e c hec k numb ers 246898 through 247133, b ank drafts , and ACH Payments in the amo unt of $3,444,331.65 and $315,584.55 for p ayroll. Signific ant exp enses greater than o r equal to $50,000 are further exp lained below: AGENCY IDEALS AND ENDEAVORS: Id eals and End eavor II - Maintain An Environment Committed To Elevated P ublic S ervic e (E) - Practice trans parent & acc o untable fis c al management REVIEW BY OTHERS: This agend a item has b een reviewed by the F inanc e Department. FISCAL IMPACT : Sufficient funds have been bud geted in the adopted F Y 2015-16 Budget. Res p ectfully s ubmitted: Rec o mmended b y: Jo hn Mura General Manager / C EO Brian Tompkins Chief F inancial Offic er ATTACHMENTS: Description Type February 2016 P ayment Register Backup Material PAYMENT REGISTER FEBRUARY 1, 2016 - FEBRUARY 29, 2016 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 02/04/2016 246898 DORA M.JACINTO 2,500.00$ 02/04/2016 246899 JERRY SEAWRIGHT 1,942.00 02/04/2016 246900 JOHELEN WILLIAMS 2,206.00 02/04/2016 246901 JULIANA BONNEAU 1,928.00 02/04/2016 246902 MAKRAM A. MURAD-AL-SHAIKH 1,492.00 02/04/2016 246903 MARCOS GOMEZ 1,120.00 02/04/2016 246904 PHI-HUNG T. NGUYEN 2,500.00 02/04/2016 246905 ROBERT SCHUMACHER 1,546.00 02/04/2016 246906 SEVYN PROPERTY MANAGEMENT 11.57 02/04/2016 246907 PHOENIX ENTERPRISES LP II 616.98 02/04/2016 246908 PHOENIX ENTERPRISES LP II 931.33 02/04/2016 246909 LEE MEDEIROS 17.07 02/04/2016 246910 ODINE LIMANSKY 91.16 02/04/2016 246911 IMELDA CHAVARIN GUTIERREZ 90.33 02/04/2016 246912 SAURABH PATEL 39.04 02/04/2016 246913 YESENIA ROMAN 56.38 02/04/2016 246914 OASIS INVESTMENT PROPERTIES LLC 86.18 02/04/2016 246915 MELODY HORTON 46.96 02/04/2016 246916 MORENO FAMILY TRUST 41.66 02/04/2016 246917 YUKATA ENTERPRISES INC 13.83 02/04/2016 246918 LARRY J RIEDEL 33.72 02/04/2016 246919 VIANNA WARREN 13.98 02/04/2016 246920 RUBY FORBES 77.01 02/04/2016 246921 SP ASSETS LLC 56.46 02/04/2016 246922 NATIONSTAR MORTGAGE LLC 41.09 02/04/2016 246923 ACCOUNTEMPS 2,888.26 02/04/2016 246924 ALTERNATIVE HOSE INC 168.31 02/04/2016 246925 ASBCSD 42.00 02/04/2016 246926 BOARD OF WATER COMMISSIONERS 3,658.00 02/04/2016 246927 CALOLYMPIC SAFETY 172.46 02/04/2016 246928 CDW GOVERNMENT 714.50 02/04/2016 246929 COUNTY OF SAN BDNO FLEET 299.92 02/04/2016 246930 CSR AIR CONDITIONING & HEATING 200.00 02/04/2016 246931 CULLIGAN OF ONTARIO 100.00 02/04/2016 246932 DANIEL STRONG 71.00 PAYMENT REGISTER FEBRUARY 1, 2016 - FEBRUARY 29, 2016 Page 1 of 9 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 02/04/2016 246933 DIB'S SAFE & LOCK SERVICE 1,620.91 02/04/2016 246934 DINO PERUGINO, COMMERCIAL TRANSPORTATION SERVICES 531.52 02/04/2016 246935 DIRECTV 227.97 02/04/2016 246936 EVERSOFT, INC 192.28 02/04/2016 246937 FAIRVIEW FORD SALES,INC 116.31 02/04/2016 246938 GARY YOUNG 441.53 02/04/2016 246939 GE ANALYTICAL INSTRUMENT INC 4,980.00 02/04/2016 246940 HACH COMPANY 7,385.00 02/04/2016 246941 HARRINGTON INDUSTRIAL PLASTIC 245.17 02/04/2016 246942 HENRY SOWLE 451.46 02/04/2016 246943 HIGHLAND EQUIPMENT RENTAL 35.49 02/04/2016 246944 I.C.W.A.275.00 02/04/2016 246945 INLAND WATER WORKS SUPPLY CO 841.11 02/04/2016 246946 JZPC PARTY RENTALS 470.00 02/04/2016 246947 K & L HARDWARE 31.99 02/04/2016 246948 LAWSON PRODUCTS,INC 105.24 02/04/2016 246949 LOUIE CHECK 85.00 02/04/2016 246950 MICHAEL REARDON 451.46 02/04/2016 246951 NAPA AUTO PARTS 143.45 02/04/2016 246952 PACIFIC WESTERN BANK 19,765.73 02/04/2016 246953 POMONA VALLEY WORKSHOP 2,233.00 02/04/2016 246954 ROGERS, ANDERSON, MELODY & SCOTT, LLP 533.60 02/04/2016 246955 SAN BERNARDINO COUNTY PROBATION DEPARTMENT 100.00 02/04/2016 246956 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 549,870.81 02/04/2016 246957 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 250.00 02/04/2016 246958 SCN, SECURITY COMMUNICATION NETWORK, INC 492.50 02/04/2016 246959 STAPLES ADVANTAGE 273.56 02/04/2016 246960 STAR AUTO PARTS 26.23 02/04/2016 246961 TYLER TECHNOLGIES 6,250.00 02/04/2016 246962 UNITED PARCEL SERVICE 21.27 02/04/2016 246963 VALLEY OFFICE EQUIPMENT 125.35 02/11/2016 246964 KIMBERLY DRAKE 817.91 02/11/2016 246965 BRYAN LONDOT 350.00 02/11/2016 246966 DAVID CORNELIUS 90.20 02/11/2016 246967 DIANE MCCARLEY 1,374.00 02/11/2016 246968 EAST HIGHLANDS RANCH 88,350.00 02/11/2016 246969 EDWARD BURNS 150.00 02/11/2016 246970 ERNEST WONG 49.94 02/11/2016 246971 FRANK ROCHA 102.93 02/11/2016 246972 GREG WALLACE 100.00 02/11/2016 246973 JEFF STRYCULA 200.00 02/11/2016 246974 JENJILA ROBINSON 2,198.00 02/11/2016 246975 KELLY COLEY 248.00 02/11/2016 246976 LEONCIO ZALDARRIAGA 100.00 PAYMENT REGISTER FEBRUARY 1, 2016 - FEBRUARY 29, 2016 Page 2 of 9 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 02/11/2016 246977 MARY HOCKENBRAUGH 100.00 02/11/2016 246978 PAULA LUCERO 100.00 02/11/2016 246979 ROBERT SMITH 200.90 02/11/2016 246980 ROSENDO CARDENAS 200.00 02/11/2016 246981 THOMAS HOLLIHAN 100.00 02/11/2016 246982 THOMAS KLEIN 2,500.00 02/11/2016 246983 TOM GRISHAM 100.00 02/11/2016 246984 TOM WENDLANDT 100.00 02/11/2016 246985 WAYNE HARLACKER 100.00 02/11/2016 246986 WESLEY OKUMURA 150.00 02/11/2016 246987 YOLANDA PAHUA 2,272.00 02/11/2016 246988 ACCOUNTEMPS 1,395.16 02/11/2016 246989 ADP SCREENING 198.00 02/11/2016 246990 AT&T 362.20 02/11/2016 246991 BRANDON LOPEZ 105.00 02/11/2016 246992 BRINKS INCORPORATED 1,219.38 02/11/2016 246993 CAL DISPOSAL 257.80 02/11/2016 246994 CDW GOVERNMENT 3,619.66 02/11/2016 246995 CHARLES A SIMPSON, CHARLES FENCE COMPANY 3,450.00 02/11/2016 246996 CHEM-TECH INTERNATIONAL INC 2,291.88 02/11/2016 246997 CSMFO, CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS 220.00 02/11/2016 246998 DENTAL HEALTH SERVICES 644.70 02/11/2016 246999 EBIX/ A.D.A.M. PERSONAL BEST, TOP HEALTH 146.50 02/11/2016 247000 EWING IRRIGATION PRODUCTS INC 479.50 02/11/2016 247001 EXPERIAN 158.48 02/11/2016 247002 FRANCHISE TAX BOARD 36.00 02/11/2016 247003 FRANCHISE TAX BOARD 200.00 02/11/2016 247004 HUB CONSTRUCTION SPECIALTIES 90.61 02/11/2016 247005 INFRASTRUCTURE RESOURCES, LLC 900.00 02/11/2016 247006 INLAND WATER WORKS SUPPLY CO 1,673.56 02/11/2016 247007 MARILYN SHEPARD, INTERNATIONAL TRAINING & REHAB TECH, INC 3,600.00 02/11/2016 247008 METROPOLITAN LIFE INS CO 162.12 02/11/2016 247009 NAPA AUTO PARTS 104.70 02/11/2016 247010 PHOENIX LIFE INSURANCE COMPANY 163.72 02/11/2016 247011 POMONA VALLEY WORKSHOP 2,073.50 02/11/2016 247012 PROMANTEK, INC. C/O SYSTEM SIX BOOKEEPING 3,994.00 02/11/2016 247013 RS HUGHES CO INC 147.26 02/11/2016 247014 SAN BDNO AREA CHAMBER OF COMMERCE 220.00 02/11/2016 247015 SAN BERNARDINO COUNTY FLOOD CONTROL DISTRICT 723.36 02/11/2016 247016 SAN BERNARDINO COUNTY SHERIFF'S OFFICE 282.03 02/11/2016 247017 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 18,324.61 02/11/2016 247018 SCN, SECURITY COMMUNICATION NETWORK, INC 105.00 02/11/2016 247019 SOUTHERN CALIF OCCUPATIONAL 415.00 PAYMENT REGISTER FEBRUARY 1, 2016 - FEBRUARY 29, 2016 Page 3 of 9 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 02/11/2016 247020 SOUTHERN CALIFORNIA EDISON COMPANY 112,362.20 02/11/2016 247021 STAPLES ADVANTAGE 824.30 02/11/2016 247022 STAR AUTO PARTS 141.79 02/11/2016 247023 TELEPACIFIC COMMUNICATIONS 2,749.08 02/11/2016 247024 THE GAS COMPANY 1,221.91 02/11/2016 247025 TIM VITRANO 105.00 02/11/2016 247026 VALERO MARKETING & SUPPLY COMP 8,021.54 02/11/2016 247027 VERIZON CALIFORNIA 55.37 02/11/2016 247028 VERIZON WIRELESS 4,636.26 02/11/2016 247030 ZEE MEDICAL INC.383.86 02/17/2016 247032 ACCOUNTEMPS 1,016.64 02/17/2016 247033 APPLIED MAINTENANCE SUPPLIES & SOLUTIONS LLC 989.20 02/17/2016 247034 DINO PERUGINO, COMMERCIAL TRANSPORTATION SERVICES 5,345.64 02/17/2016 247035 EYE MED VISION CARE 798.80 02/17/2016 247036 FLEET METAL BOX CORP 197.39 02/17/2016 247037 HATFIELD BUICK 19.85 02/17/2016 247038 INLAND DESERT SECURITY & COMMUNICATIONS, INC 576.60 02/17/2016 247039 K & L HARDWARE 9.61 02/17/2016 247040 NADERA MILBES 500.00 02/17/2016 247041 POMONA VALLEY WORKSHOP 1,078.00 02/17/2016 247042 PRINCIPAL FINANCIAL GROUP 6,512.90 02/17/2016 247043 PRO HOME CARE, JNS777 INC.1,164.40 02/17/2016 247044 ROBIN BISHOP 500.00 02/17/2016 247045 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 560,053.76 02/17/2016 247046 SUPER PENNY MARKET 500.00 02/18/2016 247047 NO NAME FOUND LLC 65.19 02/18/2016 247048 SB POD I LLC 55.99 02/18/2016 247049 TAH 2015-1 BORROWER LLC 22.34 02/18/2016 247050 MESA PROPERTY MANAGEMENT 49.02 02/18/2016 247051 TIANA LUGO 1.46 02/18/2016 247052 GALACTIC REAL ESTATE INVERSTMENTS LLC 4.37 02/18/2016 247053 ROSSTON INVESTMENTS INC 5.67 02/18/2016 247054 ALTON SINKFIELD 39.45 02/18/2016 247055 DEVIN HINDIN 33.50 02/18/2016 247056 SELENE IBARRA 5.95 02/18/2016 247057 THERESA VALDES 18.30 02/18/2016 247058 CELESTE BEECHAM 51.41 02/18/2016 247059 AUGUSTINE CALDERA JR.1,560.00 02/18/2016 247060 BENJAMIN MUDGETT 2,466.00 02/18/2016 247061 BRADLEY F KAENEL 2,500.00 02/18/2016 247062 DAVID L SISSON 1,614.00 02/18/2016 247063 DONALD B. LEIFFER JR.2,500.00 02/18/2016 247064 FLOYD JOSEPH DIBBLE 2,400.00 02/18/2016 247065 FRANCILIZA ZYSS 172.50 PAYMENT REGISTER FEBRUARY 1, 2016 - FEBRUARY 29, 2016 Page 4 of 9 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 02/18/2016 247066 JOHN G DIETERICH 2,500.00 02/18/2016 247067 KRISTOPHER SOVERS 1,908.00 02/18/2016 247068 MATTHEW ARTZ 1,306.00 02/18/2016 247069 RAZMIK SHABANY 1,638.00 02/18/2016 247070 RICHARD AGUILAR 2,500.00 02/18/2016 247071 RONALD LEE LOMBARD 2,062.00 02/18/2016 247072 YVETTE MARTINEZ 682.00 02/18/2016 247073 U.S. BANCORP SERVICE CENTER 10,465.41 02/18/2016 247077 RICHMOND AMERICAN HOMES OF MARYLAND, INC 331,108.00 02/25/2016 247078 CAROLYN WILSON 2,500.00 02/25/2016 247079 CITRUS VALLEY HIGH SCHOOL 100.00 02/25/2016 247080 GEOFFREY LANDERKIN 962.00 02/25/2016 247081 LENA PERSSON 2,376.00 02/25/2016 247082 ROBIN SOVERS 2,500.00 02/25/2016 247083 SANTY PRIETE 2,500.00 02/25/2016 247084 THOMAS SWANTEK 5,000.00 02/25/2016 247085 WADE HILLIARD 2,106.00 02/25/2016 247086 CAPITAL COVE LLC 2,068.35 02/25/2016 247087 CHRISTINA OKOREEH 24.03 02/25/2016 247088 JULIE A QUINTANA 35.62 02/25/2016 247089 MARISA BARAGAN 25.68 02/25/2016 247090 GUILLERMIN MEDINA 51.45 02/25/2016 247091 TOM STEARNS 61.40 02/25/2016 247092 C21 LOIS LAUER REALTY 32.36 02/25/2016 247093 SIGNATURE CAPITAL GROUP, INC 40.54 02/25/2016 247094 SCOTT BRINGMAN 71.28 02/25/2016 247095 JACOB FEENSTRA 49.16 02/25/2016 247096 TAH 2015-1 BORROWER LLC 54.82 02/25/2016 247097 ACCOUNTEMPS 1,710.80 02/25/2016 247098 BRADEN HEYWOOD DBA GENESIS INDUSTRIAL SUPPLY 130.00 02/25/2016 247099 BURGESS MOVING & STORAGE 869.38 02/25/2016 247100 CHEM-TECH INTERNATIONAL INC 2,380.65 02/25/2016 247101 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 265.86 02/25/2016 247102 CITY OF SAN BERNARDINO, PUBLIC WORKS DEPT 4,966.38 02/25/2016 247103 CONSOLIDATED ELECTRICAL DIST 108.25 02/25/2016 247104 COUNTY OF SAN BDNO FLEET 694.65 02/25/2016 247105 DAVID EVANS AND ASSOCIATES, INC.9,513.13 02/25/2016 247106 EMPLOYMENT DEVELOPMENT DEPT.221.00 02/25/2016 247107 ESRI 26,994.60 02/25/2016 247108 FRANCHISE TAX BOARD 200.00 02/25/2016 247109 FRANCHISE TAX BOARD 36.00 02/25/2016 247110 HARRINGTON INDUSTRIAL PLASTIC 432.13 02/25/2016 247111 HOSE-MAN, INC.371.34 02/25/2016 247112 HUB CONSTRUCTION SPECIALTIES 507.32 PAYMENT REGISTER FEBRUARY 1, 2016 - FEBRUARY 29, 2016 Page 5 of 9 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 02/25/2016 247113 INFO-TECH RESEARCH GROUP, INC 4,875.00 02/25/2016 247114 INLAND DESERT SECURITY & COMMUNICATIONS, INC 576.60 02/25/2016 247115 INLAND WATER WORKS SUPPLY CO 1,623.62 02/25/2016 247116 K & L HARDWARE 31.24 02/25/2016 247117 KONICA MINOLTA 696.40 02/25/2016 247118 KONICA MINOLTA BUSINESS 405.06 02/25/2016 247119 LAND ENGINEERING CONSULTANTS 2,000.00 02/25/2016 247120 MANTEK 1,831.23 02/25/2016 247121 METROPOLITAN LIFE INS CO 162.12 02/25/2016 247122 NAPA AUTO PARTS 6.66 02/25/2016 247123 PATTON'S SALES CORP 17.21 02/25/2016 247124 POMONA VALLEY WORKSHOP 1,155.00 02/25/2016 247125 SOUTH COAST A Q M D 467.98 02/25/2016 247126 STAPLES ADVANTAGE 2,035.64 02/25/2016 247128 TBU INC 20,156.17 02/25/2016 247129 THE GAS COMPANY 60.17 02/25/2016 247130 TYLER TECHNOLGIES 1,940.00 02/25/2016 247131 VERIZON CALIFORNIA 699.58 02/25/2016 247132 WEST VALLEY WATER DISTRICT 3,000.00 02/25/2016 247133 ZEE MEDICAL INC.253.70 BANK DRAFTS 02/02/2016 DFT0001344 CALPERS/ MEDICAL 71,555.55$ 02/03/2016 DFT0001353 MERCHANT BANKCD 6,479.61 02/03/2016 DFT0001356 VERIFONE INC 22.00 02/03/2016 DFT0001358 VERIFONE INC 22.00 02/03/2016 DFT0001359 VERIFONE INC 22.00 02/03/2016 DFT0001360 VERIFONE INC 22.00 02/04/2016 DFT0001346 AMEX DISCOUNT 355.20 02/09/2016 DFT0001347 CALPERS, 1959 SURVIVOR BENEFITS 2,730.00 02/10/2016 DFT0001348 CALPERS/ DEFERRED COMPENSATION 11,609.20 02/10/2016 DFT0001361 ACH DIRECT INC, ACH FEES 322.00 02/10/2016 DFT0001362 TRANSFIRST DISCOUNT 7,871.20 02/11/2016 DFT0001349 CALPERS/ RETIREMENT 38,251.34 02/11/2016 DFT0001350 CA SDI Tax 2,053.75 02/11/2016 DFT0001351 Federal Payroll Tax 27,553.07 02/11/2016 DFT0001352 Medicare 6,448.54 02/11/2016 DFT0001354 Social Security 136.22 02/11/2016 DFT0001355 State Payroll Tax 9,382.75 02/12/2016 DFT0001357 STATE DISBURSEMENT UNIT 3,248.97 02/17/2016 DFT0001374 VERIFONE INC 22.00 02/19/2016 DFT0001368 CBB 3,068.74 02/23/2016 DFT0001365 CALPERS, UAL PAYMENT 32,122.00 02/24/2016 DFT0001376 VERIFONE INC 22.00 PAYMENT REGISTER FEBRUARY 1, 2016 - FEBRUARY 29, 2016 Page 6 of 9 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 02/24/2016 DFT0001377 VERIZON CALIFORNIA 494.36 02/24/2016 DFT0001379 VERIFONE INC 22.00 02/25/2016 DFT0001366 CALPERS/ DEFERRED COMPENSATION 11,738.08 02/26/2016 DFT0001364 CA SDI Tax 2,049.58 02/26/2016 DFT0001367 CALPERS/ RETIREMENT 38,251.90 02/26/2016 DFT0001369 Federal Payroll Tax 27,404.66 02/26/2016 DFT0001370 Medicare 6,433.98 02/26/2016 DFT0001371 Social Security 722.66 02/26/2016 DFT0001372 STATE DISBURSEMENT UNIT 3,248.97 02/26/2016 DFT0001373 State Payroll Tax 8,790.71 ACH PAYMENTS 02/04/2016 10000992 ADS ENVIRONMENTAL SERVICES 1,500.00$ 02/04/2016 10000993 ALLIANT CONSULTING, INC 740.00 02/04/2016 10000994 AMERICAN-1 AIRTIGHT SECURITY COMPANY 2,751.84 02/04/2016 10000995 ASHOK K. DHINGRA 12,063.60 02/04/2016 10000996 AUTOMATED GATE SERVICE, INC.451.00 02/04/2016 10000997 BENJAMIN PAK 5,120.00 02/04/2016 10000998 CALIFORNIA TOOL & WELDING SUPPLY 72.41 02/04/2016 10000999 CHEMSEARCH 386.85 02/04/2016 10001000 CLEARFLY COMMUNATIONS 1,399.01 02/04/2016 10001001 CORA CONSTRUCTORS, INC.375,549.29 02/04/2016 10001002 DAVID HERNANDEZ 258.78 02/04/2016 10001003 EXCEL LANDSCAPE, ICN 12,200.00 02/04/2016 10001004 FERGUSON ENTERPRISES, INC.4,492.51 02/04/2016 10001005 FRED STAFFORD 567.78 02/04/2016 10001006 G & K SERVICES, INC 2,021.19 02/04/2016 10001008 GARY STURDIVAN 567.78 02/04/2016 10001009 GONZALEZ, QUINTANA & HUNTER, LLC 4,000.00 02/04/2016 10001010 GORDON GRANT 489.95 02/04/2016 10001011 JAMES BROWNING 650.00 02/04/2016 10001012 JANA FOX 458.71 02/04/2016 10001013 KATZ & ASSOCIATES, INC 431.25 02/04/2016 10001014 LANDS END INC 56.40 02/04/2016 10001015 MIKE HENDERSON 552.66 02/04/2016 10001016 MILLER SPATIAL SERVICES, LLC 7,887.50 02/04/2016 10001017 PSA PRINTING & MAILING SERVICES, INC 222.97 02/04/2016 10001018 REBECCA KASTEN 650.00 02/04/2016 10001019 SCHUBERT ENTERPRISES INC 110.00 02/04/2016 10001020 SPECIAL DISTRICT RISK MGMT 728.81 02/04/2016 10001021 STEVEN FARRINGTON 650.00 02/04/2016 10001022 THE WINNER INDUSTRIAL SUPPLY INC 124.58 02/04/2016 10001023 THOMAS P ORTON 377.23 02/04/2016 10001024 UNDERGROUND SERVICE ALERT 180.00 PAYMENT REGISTER FEBRUARY 1, 2016 - FEBRUARY 29, 2016 Page 7 of 9 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 02/04/2016 10001025 USA BLUE BOOK 473.55 02/04/2016 10001026 VULCAN MATERIALS COMPANY 1,047.99 02/04/2016 10001027 WAXIE SANITARY SUPPLY 566.18 02/12/2016 10001028 AMERICAN-1 AIRTIGHT SECURITY COMPANY 1,481.76 02/12/2016 10001029 ANTHONY'S IRRIGATION 18,600.00 02/12/2016 10001030 CLINICAL LAB OF S B 4,561.75 02/12/2016 10001031 CORELOGIC SOLUTIONS INC.315.00 02/12/2016 10001032 DIMENSION DATA NORTH AMERICA 105,461.75 02/12/2016 10001033 EXCEL LANDSCAPE, ICN 412.53 02/12/2016 10001034 FERGUSON ENTERPRISES, INC.11,528.08 02/12/2016 10001035 FILARSKY & WATT LLP 1,050.00 02/12/2016 10001036 FSA Only/East Valley Water District 1,583.81 02/12/2016 10001038 G & K SERVICES, INC 1,580.32 02/12/2016 10001039 G M SAGER CONSTRUCTION CO, INC 9,421.30 02/12/2016 10001040 ICMA RETIREMENT CORPORATION 250.00 02/12/2016 10001041 LINCOLN NATIONAL LIFE INS CO.1,185.75 02/12/2016 10001042 LINCOLN NATIONAL LIFE INS CO.755.43 02/12/2016 10001043 MC CRAY ENTERPRISES 2,105.31 02/12/2016 10001044 NETWORK FLEET, INC 195.00 02/12/2016 10001045 P.A.D. PALM AUTO DETAIL 1,050.00 02/12/2016 10001046 PARKHOUSE TIRE, INC 4,269.10 02/12/2016 10001047 POWERSTRIDE BATTERY CO.84.36 02/12/2016 10001048 PSA PRINTING & MAILING SERVICES, INC 3,052.71 02/12/2016 10001049 VULCAN MATERIALS COMPANY 2,006.86 02/12/2016 10001050 WAXIE SANITARY SUPPLY 244.39 02/17/2016 10001051 AMERICAN-1 AIRTIGHT SECURITY COMPANY 79.38 02/17/2016 10001052 ARCADIS U.S., INC 21,113.20 02/17/2016 10001053 ASHOK K. DHINGRA 11,912.88 02/17/2016 10001054 CIHIGOYENETCHE, GROSSBERG & CLOUSE 40,993.82 02/17/2016 10001056 ECS IMAGING INC.6,862.00 02/17/2016 10001057 G & K SERVICES, INC 1,338.69 02/17/2016 10001058 HIGHLAND AREA CHAMBER 40.00 02/17/2016 10001059 JOHN WITHERS ASSOCIATES 6,000.00 02/17/2016 10001060 LEGEND PUMP AND WELL 31,852.00 02/17/2016 10001061 MANAGED HEALTH NETWORK 235.20 02/17/2016 10001062 NETWORK FLEET, INC 124.75 02/17/2016 10001063 SAFETY COMPLIANCE COMPANY 400.00 02/17/2016 10001064 SHRED-IT US JV LLC 146.25 02/25/2016 10001065 AIRGAS, USA LLC 426.70 02/25/2016 10001066 BENJAMIN PAK 5,120.00 02/25/2016 10001067 BUCHALTER NEMER 577.50 02/25/2016 10001068 CALIFORNIA FUELS & LUBRICANTS 2,667.43 02/25/2016 10001069 CV STRATEGIES 100.00 02/25/2016 10001070 ENVIRONMENTAL SCIENCE ASSOCIATES/ESA 72,290.66 PAYMENT REGISTER FEBRUARY 1, 2016 - FEBRUARY 29, 2016 Page 8 of 9 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 02/25/2016 10001071 FARMER BROS. CO 479.85 02/25/2016 10001072 FERGUSON ENTERPRISES, INC.714.63 02/25/2016 10001073 FSA Only/East Valley Water District 1,583.81 02/25/2016 10001075 G & K SERVICES, INC 1,489.55 02/25/2016 10001076 HAAKER EQUIPMENT COMPANY 137.32 02/25/2016 10001077 INFOSEND, INC 45,037.52 02/25/2016 10001078 JOHN ROBERT HARGRAVES 2,500.00 02/25/2016 10001079 JOHNSON MACHINERY CO 3,054.93 02/25/2016 10001080 JOSE MILLAN 2,500.00 02/25/2016 10001081 LANDS END INC 229.79 02/25/2016 10001082 LESLIE'S POOL SUPPLIES, INC.31.80 02/25/2016 10001083 MERLIN JOHNSON CONSTRUCTION 2,698.90 02/25/2016 10001084 MILLER SPATIAL SERVICES, LLC 4,772.50 02/25/2016 10001085 MUSICK, PEELER & GARRETT LLP 42,833.98 02/25/2016 10001086 OFFICIAL PAYMENTS CORP.28.45 02/25/2016 10001087 POWERSTRIDE BATTERY CO.95.61 02/25/2016 10001088 PSA PRINTING & MAILING SERVICES, INC 229.48 02/25/2016 10001089 SAFETY COMPLIANCE COMPANY 200.00 02/25/2016 10001090 SELECTRON TECHNOLOGIES, INC 2,250.00 02/25/2016 10001091 STUBBIES PROMOTIONS INC 3,492.46 02/25/2016 10001092 US BANCORP, GOVERNMENT LEASING AND FINANCE, INC 230,112.28 02/25/2016 10001093 VULCAN MATERIALS COMPANY 2,400.90 02/25/2016 10001094 WAXIE SANITARY SUPPLY 49.39 TOTAL 3,444,331.65$ PAYMENT REGISTER FEBRUARY 1, 2016 - FEBRUARY 29, 2016 Page 9 of 9 STAFF REPORT Agenda Item #3. Meeting Date: March 29, 2016 Cons ent Item To: Financ e and P o licy S tand ing Committee Memb ers From: G eneral Manager/CEO Subject: Financ ial S tatements for February 2016 RECOMMENDATION: Staff rec o mmend s that the Financ e and Po lic y Standing Committee review the attac hed financial s tatements as o f, and fo r the period ended, F eb ruary 29, 2016. BACKGROUND / ANALYSIS: Inc luded herewith fo r the Bo ard 's review is a s ummary o f Eas t Valley Water Dis trict's financ ial results, as of February 29, 2016. AGENCY IDEALS AND ENDEAVORS: Id eals and End eavor II - Maintain An Environment Committed To Elevated P ublic S ervic e (E) - Practice trans parent & acc o untable fis c al management REVIEW BY OTHERS: This agend a item has b een reviewed by the F inanc e Department. FISCAL IMPACT : There is no fis c al imp act assoc iated with this agend a item. Res p ectfully s ubmitted: Rec o mmended b y: Jo hn Mura General Manager / C EO Brian Tompkins Chief F inancial Offic er ATTACHMENTS: Description Type February 2016 Financial Statment Monthly Revie w Backup Material February 2016 Financial Statements Backup Material FINANCIAL STATEMENTS MONTHLY REVIEW – FEBRUARY 29, 2016 The following is a highlight summary of the District’s financial results as of February 29, 2016. Statement of Net Position Total assets at February 29, 2016 are $181.6 million. On February 24, 2016 the Board of Directors approved an early payoff of a $6.4 million inter fund loan between the Water and Wastewater fund. CLASSIFICATION WATER WASTEWATER DISTRICT TOTAL Cash and Cash Equivalents $ 5,343,252 $ 5,371,280 $ 10,714,532 Utility Plant, Net 107,115,581 19,368,406 126,483,988 Other Assets 33,121,960 11,310,709 44,432,669 Current Liabilities 4,556,046 974,599 5,530,645 Long Term Liabilities 52,220,016 6,780,818 59,000,834 Beginning Net Position 84,020,756 27,641,375 111,662,131 Change in Equity 5,374,571 820,182 6,194,754 Total Net Position $ 89,395,328 $ 28,461,557 $ 117,856,885 Below is a summary of the District’s net position as of February 29, 2016.   FINANCIAL STATEMENTS MONTHLY REVIEW – FEBRUARY 29, 2016 Cash and Investments are $22.6 million, decease $1 million from the prior month. The primary reason of the large decrease is due to the wastewater treatment payment due to the City of San Bernardino and a debt service payment. Comparing current assets to current liabilities, the District has a current ratio at February 29, 2016 of 3.69 to 1, with 2 to 1 being an indication of sound financial condition. Statement of Revenues & Expenses Operating results are presented in three ways in the attached financial statements for the eleven months ending February 29, 2016. First, is a one page summary with monthly and year-to-date totals for revenue, and expenses presented by Expense Category. Second is a one page summary with monthly and year-to-date totals for revenues and Expense by Program. Third is a Budget to Actual presentation of program expense detail. WATER WASTEWATER DISTRICT TOTAL Revenue $ 14,851,685 $ 7,845,483 $ 22,697,168 Expense 9,477,113 7,025,301 16,502,414 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 CASH & INVESTMENTS Restricted Unrestricted FINANCIAL STATEMENTS MONTHLY REVIEW – FEBRUARY 29, 2016 The Mid-Year Budget Review revealed needed modifications to the Water Sales Projections. Since the implementation of Water Budget Based Rates, Staff’s predictions on how customers’ would respond to water conservation differ with historical consumption trends and Staff’s estimations. Therefore, Water Sale Projections increased by $400,000, from $12 million to $12.4 million. Water Sales for February were $654,187, $24,187 (11%) over projection. Water sales year to date are over projections $516,833. Another area the Mid-Year Budget Review exposed needed modifications to Staff’s estimates related to operational costs associated with the delivery of water. Staff analyzed the cost components associated with water delivery and noted electricity cost were significantly under budget at Mid-Year. The two primary drivers for the cost savings are attributable to water conservation and the newly operational SCADA system. The combination of these two factors, provided a pathway to reallocate savings to other District programs. The overall reduction to the budget was $910K from $7.4 million to $6.5 million. $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 WATER REVENUE Actual Projection FINANCIAL STATEMENTS MONTHLY REVIEW – FEBRUARY 29, 2016 As of February 29, 2016 the cost of delivering water is at 58% or $3.7 million. DELIVERING WATER BY COST CENTER TOTAL BUDGET YTD ACTIVITY REMAINING AMOUNT Source of Supply/Wells $ 2,704,500 $ 1,496,289 $ 1,208,211 55% Pumps & Boosters 770,000 409,305 360,695 53% Treatment 866,000 530,942 335,058 61% Transmission & Distribution 2,143,000 1,303,663 839,337 61% Total $ 6,483,500 $ 3,740,199 $ 2,743,301 58% Wastewater System Charge revenue are on target with the budget. Wastewater Treatment Revenue collected and passed-through to the City of San Bernardino as of February 29, 2016 is $4,736,946 or 69% of the total budget. WATER WASTEWATER DISTRICT TOTAL Assets: Current Assets: 01 Cash and Cash Equivalents 5,343,251.99$ 5,371,280.05$ 10,714,532.04$ 02 Investments 2,660,201.02 2,439,110.91 5,099,311.93 03 Accounts Receivable, Net 3,120,390.53 387,057.65 3,507,448.18 04 ‐Interest Receivable - - - 05 Other Receivables 225,044.09 - 225,044.09 06 Due from other Governments 345,806.65 - 345,806.65 08 Inventory 409,930.60 6,721.16 416,651.76 09 Prepaid Expenses 69,065.70 8,423.35 77,489.05 12,173,690.58 8,212,593.12 20,386,283.70 Non-Current Assets: 10 Restricted Cash and Cash Equivalents 6,189,698.63 647,641.63 6,837,340.26 11 Capital Assets not being Depreciated 19,927,469.17 7,821,754.63 27,749,223.80 13 Capital Assets, Net 107,115,581.48 19,368,406.18 126,483,987.66 133,232,749.28 27,837,802.44 161,070,551.72 Total Assets:145,406,439.86 36,050,395.56 181,456,835.42 Deferred Outflow Of Resources yables Deferred Charge on Refunding 174,353.17 - 174,353.17 25 Deferred Outflows - Pensions 590,596.65 166,579.24 757,175.89 146,171,389.68 36,216,974.80 182,388,364.48 Current Liabilities: 22 Accounts Payable and Accrued Expenses 566,938.35$ 589,947.11$ 1,156,885.46$ 23 Accrued Payroll and Benefits 17,422.23 - 17,422.23 15 Customer Service Deposits 1,634,448.92 - 1,634,448.92 16 Construction Advances and Retentions 106,000.00 134,537.48 240,537.48 17 Accrued Interest Payable 448,005.83 57,006.25 505,012.08 18 Current Portion of Compensated Absences 223,102.32 85,150.50 308,252.82 19 Current Portion of Long-Term Debt 1,560,128.45 107,958.00 1,668,086.45 4,556,046.10 974,599.34 5,530,645.44 Non-Current Liabilities: 20 Compensated Absences, less current portion 219,021.94 94,327.38 313,349.32 21 Long Term Debt, Less Current Portion 50,739,650.73 6,327,119.01 57,066,769.74 27 Other Liabilities 178.87 3,658.00 3,836.87 Deferred Inflows Of Resources 26 Deferred Inflows - Pensions 1,261,164.29 355,713.71 1,616,878.00 52,220,015.83 6,780,818.10 59,000,833.93 56,776,061.93 7,755,417.44 64,531,479.37 31 Equity 84,020,756.45 27,641,374.99 111,662,131.44 84,020,756.45 27,641,374.99 111,662,131.44 Tot Total Revenue 14,851,684.70 7,845,483.18 22,697,167.88 Tot Total Expense 9,477,113.40 7,025,300.81 16,502,414.21 5,374,571.30 820,182.37 6,194,753.67 89,395,327.75 28,461,557.36 117,856,885.11 146,171,389.68$ 36,216,974.80$ 182,388,364.48$ Total Liabilities, Equity and Current Surplus (Deficit): Total Total Beginning Equity: Equity: Revenues Over/Under Expenses Liability: Total Current Liabilities: Total Non-Current and Deferred Inflows of Resources: Total Liabilities and Deferred Inflows of Resources: Unaudited As of February 29, 2016 Combining Schedule of Net Position Total Equity and Current Surplus (Deficit): Total Assets and Deferred Outflows of Resources: Total Current Assets: Total Non-Current Assets: AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 654,186.55$ 8,484,323.46$ 12,350,000.00$ -$ -$ -$ 12,350,000.00$ 3,865,676.54$ 42 Meter Charges 679,284.78 5,428,491.77 8,130,000.00 - - - 8,130,000.00 2,701,508.23 43 Penalties 34,684.90 393,662.25 500,000.00 3,195.11 29,937.61 50,000.00 550,000.00 126,400.14 44 Wastewater System Charges - - - 359,857.34 2,962,313.25 4,400,000.00 4,400,000.00 1,437,686.75 45 Wastewater Treatment Charges - - - 562,362.59 4,736,945.92 7,250,000.00 7,250,000.00 2,513,054.08 46 Other Operating Revenue 22,288.22 442,743.29 500,000.00 100.00 104,925.00 200,000.00 700,000.00 152,331.71 47 Non Operating Revenue 5,292.17 102,463.93 85,000.00 - 11,361.40 10,000.00 95,000.00 (18,825.33) 48 Gain or Loss on Disposition - - - - - - - - 56 Benefits 22.66 1,595.20 - 15.10 504.86 - - (2,100.06) 68 Depreciation - - - - - - - Revenue Total: 1,395,736.62 14,851,684.70 21,565,000.00 925,515.04 7,845,483.18 11,910,000.00 33,475,000.00 10,777,832.12 - - - - - Expense by Category 51 Labor 328,970.79 2,659,442.48 4,798,255.00 98,791.39 810,054.51 1,364,195.00 6,162,450.00 2,692,953.01 56 Benefits 129,601.11 1,132,998.19 1,822,710.00 599,906.38 5,063,671.49 7,323,790.00 9,146,500.00 2,949,830.32 63 Contract Services 207,776.84 1,610,126.10 3,167,511.00 59,964.61 621,055.55 1,236,619.00 4,404,130.00 2,172,948.35 65 Professional Development 7,490.53 98,356.33 206,934.00 8,513.77 44,945.58 82,686.00 289,620.00 146,318.09 53 Overtime 23,105.78 180,622.81 - 3,757.78 27,391.03 - - (208,013.84) 62 Materials and Supplies 230,582.48 864,928.21 2,140,150.00 8,893.09 56,956.95 80,350.00 2,220,500.00 1,298,614.84 64 Utilities 135,610.01 1,350,319.26 2,483,140.00 12,553.09 116,240.21 160,560.00 2,643,700.00 1,177,140.53 52 Temporary Labor 6,499.47 37,272.96 - 2,647.89 10,970.51 - - (48,243.47) 67 Other 7,060.36 184,866.70 218,690.00 3,025.87 78,465.81 93,510.00 312,200.00 48,867.49 54 Standby 2,100.00 18,194.95 - 480.00 6,100.65 - - (24,295.60) 61 Water Supply - 280,802.67 575,000.00 - - - 575,000.00 294,197.33 71 -Debt Service 41,707.72 917,451.19 3,605,000.00 - 114,012.50 320,000.00 3,925,000.00 2,893,536.31 81 -Capital Improvement - 141,731.55 1,717,360.00 - 75,436.02 1,230,540.00 2,947,900.00 2,730,732.43 82 -Capital Outlay - - 615,250.00 - - 17,750.00 633,000.00 633,000.00 83 -Accounting Income Add back - - - - - - - - Expense Total: 1,120,505.09 9,477,113.40 21,350,000.00 798,533.87 7,025,300.81 11,910,000.00 33,260,000.00 16,757,585.79 Total Surplus (Deficit): 275,231.53$ 5,374,571.30$ -$ 126,981.17$ 820,182.37$ -$ -$ -$ Unaudited Revenue and Expense Budget-to-Actual by Category Month Ended February 29, 2016 WATER WASTEWATER DISTRICT WIDE AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 654,186.55$ 8,484,323.46$ 12,350,000.00$ -$ -$ -$ 12,350,000.00$ 3,865,676.54$ 42 Meter Charges 679,284.78 5,428,491.77 8,130,000.00 - - - 8,130,000.00 2,701,508.23 43 Penalties 34,684.90 393,662.25 500,000.00 3,195.11 29,937.61 50,000.00 550,000.00 126,400.14 44 Wastewater System Charges - - - 359,857.34 2,962,313.25 4,400,000.00 4,400,000.00 1,437,686.75 45 Wastewater Treatment Charges - - - 562,362.59 4,736,945.92 7,250,000.00 7,250,000.00 2,513,054.08 46 Other Operating Revenue 22,288.22 442,743.29 500,000.00 100.00 104,925.00 200,000.00 700,000.00 152,331.71 47 Non Operating Revenue 5,292.17 102,463.93 85,000.00 - 11,361.40 10,000.00 95,000.00 (18,825.33) 48 Gain or Loss on Disposition - - - - - - - - Revenue Total: 1,395,736.62 14,851,684.70 21,565,000.00 925,515.04 7,845,483.18 11,910,000.00 33,475,000.00 10,777,832.12 Progra 1000 - Board of Directors 7,132.03 59,992.59 206,500.00 2,684.49 28,111.85 88,500.00 295,000.00 206,895.56 Progra 2000 - General Administration 53,504.91 453,939.99 897,900.00 21,409.83 186,180.50 383,700.00 1,281,600.00 641,479.51 Progra 2100 - Human Resources 27,814.21 370,391.53 500,540.00 11,914.82 158,681.69 213,660.00 714,200.00 185,126.78 Progra 2200 - Public Affairs 22,268.69 221,276.89 369,650.00 9,064.89 81,263.35 153,750.00 523,400.00 220,859.76 Progra 2300 - Conservation 198,617.39 738,504.26 1,996,600.00 - - - 1,996,600.00 1,258,095.74 Progra 3000 - Finance 50,349.14 484,246.01 758,060.00 21,587.05 206,362.28 323,190.00 1,081,250.00 390,641.71 Progra 3200 - Information Technology 32,141.85 236,839.45 418,900.00 26,134.27 185,056.80 269,200.00 688,100.00 266,203.75 Progra 3300 - Customer Service 94,068.88 694,730.18 1,298,650.00 33,086.18 305,030.88 399,750.00 1,698,400.00 698,638.94 Progra 3400 - Meter Service 16,820.33 196,203.44 346,000.00 4,529.39 4,425.14 - 346,000.00 145,371.42 Progra 4000 - Engineering 84,692.73 446,003.08 749,990.00 39,253.61 235,306.41 339,734.00 1,089,724.00 408,414.51 Progra 5000 - Water Production 215,938.62 2,043,191.88 3,737,000.00 1,598.84 3,805.80 4,926.00 3,741,926.00 1,694,928.32 Progra 5100 - Water Treatment 37,086.60 518,561.85 809,000.00 - - - 809,000.00 290,438.15 Progra 5200 - Water Quality 21,639.92 188,394.95 344,000.00 - - - 344,000.00 155,605.05 Progra 6000 - Field Maintenance Administration 12,073.57 114,321.27 252,650.00 13,069.36 112,019.27 107,850.00 360,500.00 134,159.46 Progra 6100 - Water Maintenance 127,734.05 1,104,347.56 1,778,000.00 - - - 1,778,000.00 673,652.44 Progra 6200 - Wastewater Maintenance - - - 582,182.78 5,104,089.00 7,697,000.00 7,697,000.00 2,592,911.00 Progra 7000 - Facilities Maintenance 49,281.14 340,824.69 612,400.00 16,914.43 123,155.97 216,600.00 829,000.00 365,019.34 Progra 7100 - Fleet Maintenance 27,633.31 206,161.04 336,550.00 15,103.93 102,363.35 143,850.00 480,400.00 171,875.61 Progra 8000 - Capital 41,707.72 1,059,182.74 5,937,610.00 - 189,448.52 1,568,290.00 7,505,900.00 6,257,268.74 Expense Total: 1,120,505.09 9,477,113.40 21,350,000.00 798,533.87 7,025,300.81 11,910,000.00 33,260,000.00 16,757,585.79 Total Surplus (Deficit):275,231.53$ 5,374,571.30$ -$ 126,981.17$ 820,182.37$ -$ -$ -$ Revenue and Expense Budget-to-Actual by Program Month Ended February 29, 2016 Unaudited WATER WASTEWATER DISTRICT WIDE AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 654,186.55$ 8,484,323.46$ 12,350,000.00$ -$ -$ -$ 12,350,000.00$ 3,865,676.54$ 42 Meter Charges 679,284.78 5,428,491.77 8,130,000.00 - - - 8,130,000.00 2,701,508.23 43 Penalties 34,684.90 393,662.25 500,000.00 3,195.11 29,937.61 50,000.00 550,000.00 126,400.14 44 Wastewater System Charges - - - 359,857.34 2,962,313.25 4,400,000.00 4,400,000.00 1,437,686.75 45 Wastewater Treatment Charges - - - 562,362.59 4,736,945.92 7,250,000.00 7,250,000.00 2,513,054.08 46 Other Operating Revenue 22,288.22 442,743.29 500,000.00 100.00 104,925.00 200,000.00 700,000.00 152,331.71 47 Non Operating Revenue 5,292.17 102,463.93 85,000.00 - 11,361.40 10,000.00 95,000.00 (18,825.33) 48 Gain or Loss on Disposition - - - - - - - - 56 Benefits 22.66 1,595.20 - 15.10 504.86 - - (2,100.06) 68 Depreciation - - - - - - - Revenue Total: 1,395,736.62 14,851,684.70 21,565,000.00 925,515.04 7,845,483.18 11,910,000.00 33,475,000.00 10,777,832.12 Program: 1000 - Board of Directors - - - 51 Labor 5,762.45$ 41,810.15$ 73,500.00$ 2,469.64$ 17,918.78$ 31,500.00$ 105,000.00$ 45,271.07$ 56 Benefits 373.50 4,262.09 28,000.00 153.05 5,264.38 12,000.00 40,000.00 30,473.53 63 Contract Services - - 70,000.00 - - 30,000.00 100,000.00 100,000.00 65 Professional Development 996.08 13,920.35 35,000.00 61.80 4,928.69 15,000.00 50,000.00 31,150.96 Program: 1000 - Board of Directors Total: 7,132.03 59,992.59 206,500.00 2,684.49 28,111.85 88,500.00 295,000.00 206,895.56 Program: 2000 - General Administration - - - 51 Labor 30,072.41 203,004.11 398,100.00 12,888.18 87,001.71 169,500.00 567,600.00 277,594.18 53 Overtime 224.36 813.33 - 96.16 348.56 - - (1,161.89) 56 Benefits 11,594.64 103,777.14 147,000.00 3,448.27 36,110.79 63,000.00 210,000.00 70,112.07 62 Materials and Supplies 123.75 3,422.37 10,500.00 53.03 1,466.72 4,500.00 15,000.00 10,110.91 63 Contract Services 10,320.05 108,269.94 261,100.00 4,422.88 46,401.41 111,900.00 373,000.00 218,328.65 64 Utilities 137.44 1,844.85 4,200.00 58.91 790.64 1,800.00 6,000.00 3,364.51 65 Professional Development 1,032.26 32,808.25 77,000.00 442.40 14,060.67 33,000.00 110,000.00 63,131.08 Program: 2000 - General Administration Total: 53,504.91 453,939.99 897,900.00 21,409.83 186,180.50 383,700.00 1,281,600.00 641,479.51 Program: 2100 - Human Resources - - - - 51 Labor 10,234.57 85,315.43 149,000.00 4,386.24 36,563.62 63,000.00 212,000.00 90,120.95 52 Temporary Labor 515.55 4,124.10 - 220.95 1,767.47 - - (5,891.57) 53 Overtime 160.32 1,174.42 - 68.71 503.33 - - (1,677.75) 56 Benefits 4,300.15 38,166.33 58,800.00 1,837.37 16,350.30 25,200.00 84,000.00 29,483.37 62 Materials and Supplies 45.98 929.82 2,100.00 19.70 398.46 900.00 3,000.00 1,671.72 63 Contract Services 5,595.97 41,329.70 51,800.00 2,398.28 17,712.72 22,200.00 74,000.00 14,957.58 64 Utilities 26.61 286.97 350.00 11.40 122.97 150.00 500.00 90.06 65 Professional Development (125.30) 16,053.89 20,300.00 (53.70) 6,880.23 8,700.00 29,000.00 6,065.88 67 Other 7,060.36 183,010.87 218,190.00 3,025.87 78,382.59 93,510.00 311,700.00 50,306.54 Program: 2100 - Human Resources Total: 27,814.21 370,391.53 500,540.00 11,914.82 158,681.69 213,660.00 714,200.00 185,126.78 Program: 2200 - Public Affairs - - - - 51 Labor 13,673.66 112,148.35 197,520.00 5,860.13 39,847.71 79,980.00 277,500.00 125,503.94 52 Temporary Labor - - - - - - - - 53 Overtime 463.15 2,251.63 - 198.49 765.94 - - (3,017.57) Month Ended February 29, 2016 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended February 29, 2016 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE 56 Benefits 3,144.27 32,713.73 50,610.00 1,324.46 12,728.92 21,690.00 72,300.00 26,857.35 62 Materials and Supplies 3,956.73 14,134.38 19,250.00 1,332.23 4,926.31 8,250.00 27,500.00 8,439.31 63 Contract Services 639.84 52,878.47 91,000.00 213.28 20,523.79 39,000.00 130,000.00 56,597.74 64 Utilities 62.54 4,339.27 3,290.00 26.80 1,533.65 1,410.00 4,700.00 (1,172.92) 65 Professional Development 328.50 2,811.06 7,980.00 109.50 937.03 3,420.00 11,400.00 7,651.91 Program: 2200 - Public Affairs Total: 22,268.69 221,276.89 369,650.00 9,064.89 81,263.35 153,750.00 523,400.00 220,859.76 Program: 2300 - Conservation - - - - 51 Labor 15,998.62 125,158.23 263,000.00 - - - 263,000.00 137,841.77 52 Temporary Labor 1,400.00 2,072.00 - - - - - (2,072.00) 53 Overtime 174.15 1,543.58 - - - - - (1,543.58) 56 Benefits 4,357.14 36,557.44 87,600.00 - - - 87,600.00 51,042.56 62 Materials and Supplies 175,967.97 460,967.47 1,423,000.00 - - - 1,423,000.00 962,032.53 63 Contract Services 593.60 92,351.63 186,000.00 - - - 186,000.00 93,648.37 64 Utilities 88.83 17,017.95 30,000.00 - - - 30,000.00 12,982.05 65 Professional Development 37.08 2,835.96 7,000.00 - - - 7,000.00 4,164.04 Program: 2300 - Conservation Total: 198,617.39 738,504.26 1,996,600.00 - - - 1,996,600.00 1,258,095.74 Program: 3000 - Finance - - - - 51 Labor 30,121.90 271,213.58 452,850.00 12,909.39 116,221.18 192,600.00 645,450.00 258,015.24 52 Temporary Labor 3,774.71 19,585.65 - 1,617.73 8,393.83 - - (27,979.48) 53 Overtime 154.83 2,680.03 - 66.35 885.83 - - (3,565.86) 56 Benefits 13,052.89 121,487.86 186,200.00 5,602.94 50,945.85 79,800.00 266,000.00 93,566.29 62 Materials and Supplies 446.36 5,531.71 7,000.00 191.29 2,109.09 3,000.00 10,000.00 2,359.20 63 Contract Services 1,882.91 54,070.63 99,400.00 806.96 23,784.99 42,600.00 142,000.00 64,144.38 64 Utilities 154.50 1,119.26 2,800.00 66.22 479.69 1,200.00 4,000.00 2,401.05 65 Professional Development 761.04 8,264.26 9,310.00 326.17 3,541.82 3,990.00 13,300.00 1,493.92 67 Other - 293.03 500.00 - - - 500.00 206.97 Program: 3000 - Finance Total: 50,349.14 484,246.01 758,060.00 21,587.05 206,362.28 323,190.00 1,081,250.00 390,641.71 Program: 3200 - Information Technology - - - - 51 Labor 12,373.45 108,062.37 128,050.00 8,248.95 72,041.53 149,950.00 278,000.00 97,896.10 52 Temporary Labor - - - - - - - - 53 Overtime - - - - - - - - 56 Benefits 4,822.95 35,490.02 62,300.00 2,939.89 22,748.96 26,700.00 89,000.00 30,761.02 62 Materials and Supplies 2,939.79 9,049.11 15,400.00 2,939.77 9,201.47 6,600.00 22,000.00 3,749.42 63 Contract Services 11,821.90 81,408.22 196,700.00 11,821.91 79,463.17 84,300.00 281,000.00 120,128.61 64 Utilities 183.76 1,601.70 3,850.00 183.75 1,601.67 1,650.00 5,500.00 2,296.63 65 Professional Development - 1,228.03 12,600.00 - - - 12,600.00 11,371.97 Program: 3200 - Information Technology Total: 32,141.85 236,839.45 418,900.00 26,134.27 185,056.80 269,200.00 688,100.00 266,203.75 Program: 3300 - Customer Service - - - - 51 Labor 19,189.81 173,997.23 315,000.00 11,261.42 97,834.73 133,500.00 448,500.00 176,668.04 52 Temporary Labor 809.21 11,491.21 - 809.21 809.21 - - (12,300.42) 53 Overtime 311.05 1,906.36 - 162.94 767.64 - - (2,674.00) 56 Benefits 9,843.43 75,723.52 136,500.00 5,255.71 44,031.77 58,500.00 195,000.00 75,244.71 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended February 29, 2016 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE 62 Materials and Supplies 1,641.54 4,452.45 6,300.00 703.52 3,208.98 2,700.00 9,000.00 1,338.57 63 Contract Services 54,247.32 377,114.50 726,400.00 11,453.44 118,502.53 150,600.00 877,000.00 381,382.97 64 Utilities 8,015.18 46,394.81 105,700.00 3,435.08 37,638.08 45,300.00 151,000.00 66,967.11 65 Professional Development 11.34 2,087.30 8,750.00 4.86 2,154.72 9,150.00 17,900.00 13,657.98 67 Other - 1,562.80 - - 83.22 - - (1,646.02) Program: 3300 - Customer Service Total: 94,068.88 694,730.18 1,298,650.00 33,086.18 305,030.88 399,750.00 1,698,400.00 698,638.94 Program: 3400 - Meter Service - - - - 51 Labor 10,541.34 116,683.50 228,000.00 2,344.16 2,344.16 - 228,000.00 108,972.34 53 Overtime 1,221.20 8,216.04 - 398.35 398.35 - - (8,614.39) 56 Benefits 4,240.50 62,915.26 105,000.00 969.56 969.56 - 105,000.00 41,115.18 62 Materials and Supplies 69.28 603.44 3,000.00 69.28 - - 3,000.00 2,396.56 63 Contract Services 660.83 7,080.76 9,000.00 660.85 625.88 - 9,000.00 1,293.36 64 Utilities 87.18 704.44 1,000.00 87.19 87.19 - 1,000.00 208.37 65 Professional Development - - - - - - - - Program: 3400 - Meter Service Total: 16,820.33 196,203.44 346,000.00 4,529.39 4,425.14 - 346,000.00 145,371.42 Program: 4000 - Engineering - - - - 51 Labor 31,542.65 219,369.84 431,035.00 19,412.15 145,861.92 207,965.00 639,000.00 273,768.24 52 Temporary Labor - - - - - - - - 53 Overtime - - - - - - - - 56 Benefits 12,518.33 85,651.02 116,900.00 6,650.89 45,975.54 50,100.00 167,000.00 35,373.44 62 Materials and Supplies 289.52 5,022.94 8,400.00 289.50 3,541.27 3,600.00 12,000.00 3,435.79 63 Contract Services 38,785.86 109,485.07 159,411.00 12,510.76 31,819.87 68,319.00 227,730.00 86,425.06 64 Utilities 910.74 20,855.24 22,750.00 390.31 8,107.81 9,750.00 32,500.00 3,536.95 65 Professional Development 645.63 5,618.97 11,494.00 - - - 11,494.00 5,875.03 Program: 4000 - Engineering Surplus Total: 84,692.73 446,003.08 749,990.00 39,253.61 235,306.41 339,734.00 1,089,724.00 408,414.51 Program: 5000 - Water Production - - - - 51 Labor 45,879.55 372,130.48 625,000.00 - - - 625,000.00 252,869.52 53 Overtime 2,741.81 28,495.48 - - - - - (28,495.48) 54 Standby 1,120.00 9,411.43 - - - - - (9,411.43) 56 Benefits 17,844.85 152,467.04 235,000.00 - - - 235,000.00 82,532.96 61 Water Supply - 280,802.67 575,000.00 - - - 575,000.00 294,197.33 62 Materials and Supplies 5,166.14 129,529.46 236,000.00 - - - 236,000.00 106,470.54 63 Contract Services 34,636.22 85,737.32 270,000.00 - - - 270,000.00 184,262.68 64 Utilities 108,610.05 979,538.16 1,789,000.00 - - - 1,789,000.00 809,461.84 65 Professional Development (60.00) 5,079.84 7,000.00 1,598.84 3,805.80 4,926.00 11,926.00 3,040.36 Program: 5000 - Water Production Total: 215,938.62 2,043,191.88 3,737,000.00 1,598.84 3,805.80 4,926.00 3,741,926.00 1,694,928.32 Program: 5100 - Water Treatment - - - - 51 Labor 15,762.15 131,042.97 216,500.00 - - - 216,500.00 85,457.03 53 Overtime 530.30 8,991.27 - - - - - (8,991.27) 56 Benefits 5,214.58 57,578.98 81,000.00 - - - 81,000.00 23,421.02 62 Materials and Supplies 22,014.80 83,075.23 135,000.00 - - - 135,000.00 51,924.77 63 Contract Services (7,074.40) 123,648.29 165,500.00 - - - 165,500.00 41,851.71 64 Utilities 639.17 114,225.11 211,000.00 - - - 211,000.00 96,774.89 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended February 29, 2016 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 5100 - Water Treatment Total: 37,086.60 518,561.85 809,000.00 - - - 809,000.00 290,438.15 Program: 5200 - Water Quality - - - - 51 Labor 11,885.96 95,786.17 152,000.00 - - - 152,000.00 56,213.83 53 Overtime 23.12 1,980.82 - - - - - (1,980.82) 56 Benefits 4,500.82 37,888.54 60,000.00 - - - 60,000.00 22,111.46 62 Materials and Supplies 343.13 7,197.08 15,000.00 - - - 15,000.00 7,802.92 63 Contract Services 4,881.84 44,417.96 114,500.00 - - - 114,500.00 70,082.04 64 Utilities 5.05 1,124.38 2,500.00 - - - 2,500.00 1,375.62 Program: 5200 - Water Quality Total: 21,639.92 188,394.95 344,000.00 - - - 344,000.00 155,605.05 Program: 6000 - Field Maintenance Administration - - - - 51 Labor 3,787.05 64,864.95 165,500.00 3,787.01 64,864.40 70,500.00 236,000.00 106,270.65 52 Temporary Labor - - - - - - - - 53 Overtime - - - - - - - - 54 Standby 980.00 8,783.52 - 480.00 6,100.65 - - (14,884.17) 56 Benefits 2,544.79 29,374.28 67,200.00 1,880.62 28,041.74 28,800.00 96,000.00 38,583.98 62 Materials and Supplies 303.11 755.61 2,100.00 303.11 755.59 900.00 3,000.00 1,488.80 63 Contract Services - - - - - - - - 64 Utilities 594.72 4,164.64 10,500.00 594.72 4,164.62 4,500.00 15,000.00 6,670.74 65 Professional Development 3,863.90 6,378.27 7,350.00 6,023.90 8,092.27 3,150.00 10,500.00 (3,970.54) Program: 6000 - Field Maintenance Administration Tota 12,073.57 114,321.27 252,650.00 13,069.36 112,019.27 107,850.00 360,500.00 134,159.46 Program: 6100 - Water Maintenance - - - - 51 Labor 60,409.02 440,841.00 846,000.00 - - - 846,000.00 405,159.00 53 Overtime 15,986.04 112,613.26 - - - - - (112,613.26) 56 Benefits 25,767.79 210,484.50 325,000.00 - - - 325,000.00 114,515.50 62 Materials and Supplies 10,225.91 85,977.55 177,000.00 - - - 177,000.00 91,022.45 63 Contract Services 15,345.29 223,081.33 370,000.00 - - - 370,000.00 146,918.67 64 Utilities - 31,349.92 60,000.00 - - - 60,000.00 28,650.08 Program: 6100 - Water Maintenance Total: 127,734.05 1,104,347.56 1,778,000.00 - - - 1,778,000.00 673,652.44 Program: 6200 - Wastewater Maintenance - - - - 51 Labor - - - 9,743.48 83,785.12 158,000.00 158,000.00 74,214.88 53 Overtime - - - 2,166.15 18,389.60 - - (18,389.60) 56 Benefits - - - 4,969.36 41,039.92 64,000.00 64,000.00 22,960.08 62 Materials and Supplies - - - 130.00 9,859.45 22,000.00 22,000.00 12,140.55 Wastewater Treatment - - - 562,362.59 4,736,945.92 6,861,600.00 6,861,600.00 2,124,654.08 63 Contract Services - - - 2,811.20 214,068.99 591,400.00 591,400.00 377,331.01 Program: 6200 - Wastewater Maintenance Total:- - - 582,182.78 5,104,089.00 7,697,000.00 7,697,000.00 2,592,911.00 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended February 29, 2016 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 7000 - Facilities Maintenance - - - - 51 Labor 4,102.68 34,251.03 49,200.00 2,209.12 18,442.66 61,800.00 111,000.00 58,306.31 53 Overtime 1,115.45 9,688.82 - 600.63 5,217.02 - - (14,905.84) 56 Benefits 2,399.05 20,910.42 37,100.00 1,227.77 10,747.65 15,900.00 53,000.00 21,341.93 62 Materials and Supplies 4,128.58 21,990.57 33,900.00 1,356.63 6,009.62 8,100.00 42,000.00 13,999.81 63 Contract Services 29,660.58 178,734.42 344,200.00 7,344.18 42,669.30 73,800.00 418,000.00 196,596.28 64 Utilities 7,874.80 75,249.43 148,000.00 4,176.10 40,069.72 57,000.00 205,000.00 89,680.85 Program: 7000 - Facilities Maintenance Total: 49,281.14 340,824.69 612,400.00 16,914.43 123,155.97 216,600.00 829,000.00 365,019.34 Program: 7100 - Fleet Maintenance - - - - 51 Labor 7,633.52 63,763.09 108,000.00 3,271.52 27,326.99 45,900.00 153,900.00 62,809.92 53 Overtime - 267.77 - - 114.76 - - (382.53) 56 Benefits 3,081.43 27,550.02 38,500.00 1,283.90 11,770.19 16,500.00 55,000.00 15,679.79 62 Materials and Supplies 2,919.89 32,289.02 46,200.00 1,505.03 15,479.99 19,800.00 66,000.00 18,230.99 63 Contract Services 5,779.03 30,517.86 52,500.00 5,520.87 25,482.90 22,500.00 75,000.00 18,999.24 64 Utilities 8,219.44 50,503.13 88,200.00 3,522.61 21,644.17 37,800.00 126,000.00 53,852.70 65 Professional Development - 1,270.15 3,150.00 - 544.35 1,350.00 4,500.00 2,685.50 Program: 7100 - Fleet Maintenance Total: 27,633.31 206,161.04 336,550.00 15,103.93 102,363.35 143,850.00 480,400.00 171,875.61 Program: 8000 - Capital - - - 71 -Debt Service 41,707.72 917,451.19 3,605,000.00 - 114,012.50 320,000.00 3,925,000.00 2,893,536.31 81 -Capital Improvement - 141,731.55 1,717,360.00 - 75,436.02 1,230,540.00 2,947,900.00 2,730,732.43 82 -Capital Outlay - - 615,250.00 - - 17,750.00 633,000.00 633,000.00 83 -Accounting Income Add back - - - - - - - Program: 8000 - Capital Total: 41,707.72 1,059,182.74 5,937,610.00 - 189,448.52 1,568,290.00 7,505,900.00 6,257,268.74 Total Surplus (Deficit): 275,231.53$ 5,374,571.30$ -$ 126,981.17$ 820,182.37$ -$ -$ -$ STAFF REPORT Agenda Item #4. Meeting Date: March 29, 2016 Discussion Item To: Finance and Policy Standing Committee Members From: General Manager/CEO Subject: Investment Policy Review RECOMMENDATION: Staff recommends that the Finance and Policy Standing Committee review Resolution 2016.10 updating the Statement of Investment Policy 7.6 for fiscal year 2016-17. BACKGROUND / ANALYSIS: In July of 2015, staff brought a revised and updated Statement of Investment Policy for the Board’s consideration, which policy had been thoroughly reviewed for compliance with state statutes, and revised to include certain investment types that, although permitted by state guidelines, had not previously been included in the District’s investment policy. The revised investment policy was submitted to the California Municipal Treasurer’s Association (CMTA) for review, and for certification that the District’s policy is compliant with state statutes and industry best practices. The District received the certification (attached) along with suggestions from CMTA program reviewers to make the policy even stronger. Based on those suggestions, the following sections have been added to the proposed 2016-17 Investment Policy: Discussions on Interest Rate Risk and Credit Risk (page 1) Review of the Investment Portfolio to ensure ongoing compliance with the policy (page 7) Periodic review of Investment Pools/Mutual Funds to ensure underlying assets are in compliance with the policy (page 7) With the addition of these best practices, staff recommends adoption of Resolution 2016.10 adopting an updated Investment Policy for fiscal year 2016-17. AGENCY IDEALS AND ENDEAVORS: Ideals and Endeavor II - Maintain An Environment Committed To Elevated Public Service (E) - Practice transparent & accountable fiscal management FISCAL IMPACT : There is no fiscal impact associated with this agenda item. Respectfully submitted: Recommended by: John Mura General Manager / CEO Brian Tompkins Chief Financial Officer ATTACHMENTS: Description Type Resolution 2016.10 Resolution Letter Exhibit A - Statement of Investment Policy 7.6 Cover Memo Exhibit B - CMTA Certification Backup Material East Valley Water District Resolution 2016.10 Page 1 of 2 RESOLUTION NO. 2016.10 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ESTABLISHING AN INVESTMENT POLICY FOR PUBLIC FUNDS WHEREAS, the Board of Directors of the East Valley Water District (the District”) desires to maintain a formal policy regarding the investment of public funds pursuant to the requirements of Government Code Sections 5921 and 53600 et seq.; and WHEREAS, the Board of Directors of the District has employed qualified staff to invest those funds in accordance with the law and the terms of the District’s investment policy , as well as in a manner that advances the District’s investment objectives of safety, liquidity and yield; and NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the District that the East Valley Water District Investment Policy attached hereto as Exhibit “A” and incorporated in full herein by this reference is hereby adopted as the formal investment policy of the District; and BE IF FURTHER RESOLVED that the General Manager and the Treasurer/Chief Financial Officer of the District are hereby authorized and directed to invest the District’s funds in a manner consistent with the terms hereof and in accordance with any further directions of the District’s Board of Directors; and BE IT FURTHER RESOLVED that this Resolution supersedes Resolution No. 2015.08 adopted by the Board of Directors of the District on July 22, 2015. This Resolution shall take effect on July 1, 2016. PASSED, APPROVED and ADOPTED this 27th day of April, 2016 ROLL CALL: Ayes: Noes: Absent: Abstain: Ronald L. Coats, Board President East Valley Water District Resolution 2016.10 Page 2 of 2 April 27, 2016 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2016.10 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held April 27, 2016. John J. Mura, Secretary, Board of Directors EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Approval Date: Policy No: 7.6 Page 1 of 15      Purpose The purpose of this policy is to establish guidelines for the prudent investment of East Valley Water District funds in conformance with California Government Code requirements. Funds will be managed to provide for daily cash flow requirements and to meet the objectives of this policy. Policy It is the policy of the District to invest public funds in a manner which ensures the safety and preservation of capital while meeting reasonably anticipated operating needs, achieving a reasonable rate of return, and conforming to all state and local statutes governing the investment of public funds. Scope This policy applies to the investment of all operating funds; it does not apply to investments held in trust for the District retirement plan, or post-employment health benefits, as these investments are subject to policies established by the plan trustees. Indenture agreements specify how bond proceeds will be invested, but generally they will be invested in securities permitted by this policy. Invested funds are accounted for, and are identified in, the District’s Comprehensive Annual Financial Report. Objectives As specified in CGC §53600.5, when investing and managing public funds, the primary objectives, in priority order, of the District’s investment activities shall be: 1. Safety: Safety of principal is the foremost objective of the investment program. Investments of the East Valley Water District shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio by mitigating certain risks. Some of those risks are: A. Interest Rate Risk – the District will minimize the risk that the market value of securities in the portfolio will fall due to changes in general interest rates by:  Structuring the investment portfolio so that securities mature to meet EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Approval Date: Policy No: 7.6 Page 2 of 15      cash requirements for ongoing operation and avoiding the need to sell securities on the open market prior to maturity.  Investing operating funds primarily in short-term securities money market mutual funds, or investment pools. B. Credit Risk – the risk that an issuer or other counterparty to an investment will not fulfill its obligations, will be reduced by:  Limiting investments to higher rated securities as further described in this policy.  Diversifying the investment portfolio so that potential losses on individual securities will be reduced. 2. Liquidity: The investment portfolio will remain sufficiently liquid to enable the East Valley Water District to meet all operating requirements that might be reasonably anticipated. 3. Return on Investments: The investment portfolio shall be designed with the objective of attaining the best yield or returns on investments, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives. Prudence The standard of prudence to be used by District officials involved in the investment program shall be the “prudent investor” standard and shall be applied in the context of managing the overall portfolio. The meaning of the standard of prudent investor is explained in CGC Section 53600.3, which states that “when investing, reinvesting, purchasing, acquiring, exchanging, selling or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.” EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Approval Date: Policy No: 7.6 Page 3 of 15      The CFO/Treasurer and delegated investment officers, acting in accordance with written procedures and this Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. Delegation of Authority The authority of the District’s Board of Directors to invest District funds is derived from California Government Code (CGC) section 53601. Section 53607 of the CGC grants the Board the authority to delegate that authority to the District’s Chief Financial Officer/Treasurer. Such delegation shall expire and be renewed annually, by Board Resolution, in conjunction with the annual investment policy review. The CFO/Treasurer shall be responsible for all transactions undertaken, and shall establish a system of controls to regulate the activities of subordinate officials in the absence of the Treasurer. All transactions will be reviewed by the Treasurer on a regular basis to ensure compliance with this Policy. No Person may engage in an investment transaction except as provided under the terms of this Investment Policy and the procedures established by the Treasurer. Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the District’s General Manager/CEO any material financial interest in financial institutions that conduct business within the District, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the District. Authorized Broker-Dealers The CFO/Treasurer will maintain a list of approved financial institutions authorized to provide investment services to the public agency in the State of California. These may include primary dealers authorized to buy and sell government securities in direct dealings with the Federal Reserve Bank of New York, or regional dealers that qualify under Securities and Exchange Commission Rule 15C33-1 (uniform net capital rule). EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Approval Date: Policy No: 7.6 Page 4 of 15      All Broker Dealers who desire to conduct investment transactions with the District must supply the CFO/Treasurer with the following:  Audited Financial Statements  Proof of Financial Industry Regulatory Authority (FINRA) certification  Proof of State of California registration  Completed broker/dealer questionnaire (except Certificate of Deposit counterparties)  Certification of having read the District’s investment policy and depository contracts Authorized and Suitable Investments The East Valley Water District as empowered by California Government Code (CGC) §53600, et. Seq., establishes the following as authorized investment: A. Local Agency Investment Fund (LAIF). The District may invest in the Local Agency Investment Fund established by the State Treasurer for the benefit of local agencies (CGC §16429.1). The fund must have 24 hour liquidity. There is no limitation on the percentage of the District portfolio that may be invested with LAIF. B. United States Treasury Securities. United States Treasury notes, bonds, or bills for which the full faith and credit of the United States is pledged for the payment of principal and interest (CGC §53601(b)). There is no limitation as to the percentage of the District’s portfolio that may be invested in these securities, however, maximum investment maturities are limited to five years. C. Federal Agency Obligations. The District is permitted to invest in federal agency or United States government sponsored enterprise obligations, participations, mortgage backed securities or other instruments, including those issued by or fully guaranteed as to principal and interest by Federal agencies or United States government sponsored enterprises (CGC §53601(f)). Maximum maturity is limited to five years. There is no limitation as to percentage of the District’s portfolio that may be invested in agencies. D. Bank Depository Accounts. The District may invest in insured or collateralized certificates of deposit, savings accounts, market rate accounts, or other bank deposits issued by a state or national bank, savings and loan associations, or state or federal credit unions located in California (CGC §53630 et. Seq.). A written depository contract is required with all institutions that hold District deposits EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Approval Date: Policy No: 7.6 Page 5 of 15      requiring that deposits be collateralized in accordance with the CGC. The Treasurer may waive collateral requirement for the portion of any deposit insured pursuant to federal law. Securities placed in a collateral pool must provide coverage for at least 110 percent of all deposits that are placed in the institution. Acceptable pooled collateral is governed by CGC §53651. Real estate mortgages are not considered acceptable collateral by the District, even though they are permitted in CGC §53651(m). All financial institutions holding District deposits are required to provide the District with a regular statement of pooled collateral. This report will state that they are meeting the 110 percent collateral rule, a listing of all collateral with location and market value, plus an accountability of the total amount of deposits secured by the pool. Deposits are allowable in any institution that insures its deposits with the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), and a maximum deposit of up to the federal insurance limits may be deposited in any one institution without collateral. No bank shall receive District deposits in excess of the federal insurance limits that has a long-term debt rating by Moody’s investors Service, Standard & Poor’s, or Fitch Ratings of less that ‘A’. The maximum maturity is restricted to three years. In accordance with CGC §53638, no deposit shall exceed the shareholder’s equity of any depository bank, nor shall a deposit exceed the total net worth of any institution. No deposits shall be made at a state or federal credit union if a member of the Board of Directors or the General Manager/CEO or CFO/Treasurer of the District serves on the Board of Directors or a committee of the credit union. E. Municipal Securities. Registered treasury notes or bonds issued by the State of California or any of the other 49 states, including bonds payable solely out of the revenues from a revenue producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any states (CGC §53601 (c)(d)). Bonds, notes, or other evidence of debt issued by a local agency within the State of California, including issues by East Valley Water District. This includes bonds payable solely out of revenue form a revenue-producing property owned, controlled, or operated by the local agency, or by an authority of the local agency (CGC §53601 (a)(e)). EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Approval Date: Policy No: 7.6 Page 6 of 15      Securities must have a debt rating of at least ‘AA’ by an NRSRO. Maximum maturity is limited to five years from date of purchase, and holdings of this type of security are limited to a maximum of 20% of the District’s investment portfolio. F. Commercial Paper. Commercial paper of “prime” quality of the highest ranking of the highest letter and number rating as provided for by a Nationally Recognized Statistical Rating Organization (NRSRO) and must be issued only by general corporations that are organized and operating within the United States and have total assets in excess of $500 million. The general corporation must have an A rating or better on debt other than commercial paper, if any, assigned by an NRSRO (CGC §53601(h)). Purchases shall not exceed 5% of the outstanding paper of the issuing corporation, and maximum maturity is restricted to 270 days. This type of investment shall not exceed 15% of the District’s investment portfolio. G. Placement Service Deposits. The District may invest in Certificates of Deposit placed with a private sector entity that assists in the placement of deposits with eligible financial institutions located in the United States (CGC §53601.8). The full amount of the principal and the interest that may be accrued during the maximum term of each deposit shall at all times be insured by federal deposit insurance. Placement Service Deposits, in combination with bank certificates of deposit shall not exceed 25% of the value of the District’s investments at any time. The maximum investment maturity will be restricted to three years. H. Medium Term Notes. The District may invest in corporate and depository institution debt securities issued by corporations organized and operating within the United States, or by depository institutions licensed by the United States or any state and operating within the United States (CGC §53601(k)). Securities eligible for investment under this section shall be rate “AA” or better by an NRSRO. The maximum maturity is restricted to five years, and investment in this category of security shall not exceed 30 percent of the District’s investible funds, and not more than 5 percent from a single issuer. I. Money Market Funds. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission (CGC §53601(l)(2)). The Company shall either 1) have attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs or 2) retained an EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Approval Date: Policy No: 7.6 Page 7 of 15      investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years of experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000). A maximum of 15% of the District’s investible funds can be invested in Money Market Mutual funds. J. Local Government Investment Pools. Shares of beneficial interest in an investment pool created by a joint powers authority organized pursuant to CGC §6509.7 and that invest in securities and obligations authorized in the California Government Code (CGC §53601(p)). Investment is limited to pools that seek to maintain a stable Net Asset Value (NAV) and must be rated at least AA or better by an NRSRO. A maximum of 25% of the District’s portfolio may be invested in Local Government Investment Pools. K. Prohibited Investments. Under the provision of CGC §53601.6 and §53631.5, the District shall not invest any funds covered by this Investment Policy in inverse floaters, range notes, interest-only strips derived from mortgage pools or any investment that may result in a zero interest accrual if held to maturity. Review of Investment Portfolio The securities held by East Valley Water District must be in compliance with the above section “Authorized and Suitable Investments” at the time of purchase. Because some securities may not comply with this section subsequent to the date of purchase, the CFO/Treasurer shall at least quarterly review the portfolio to identify those securities that do not comply. The CFO/Treasurer shall establish procedures to report to the District’s Board of Directors, major and critical incidences of noncompliance identified through the review of the portfolio. Investment Pools / Mutual Funds When the District’s investment portfolio includes Investment Pools and Mutual Funds, as permitted in the section “Authorized and Suitable Investments”, the CFO/Treasurer shall as a matter of due diligence, monitor the assets held by the pools/funds. At least quarterly, the CFO/Treasurer will conduct an investigation to determine the following: 1. A description of eligible investment securities, and a written statement of investment policy and objectives. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Approval Date: Policy No: 7.6 Page 8 of 15      2. A description of interest calculation and how it is distributed, and how gains and losses are treated. 3. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. 4. A description of who may invest in the program, how often, what size deposit and withdrawal are allowed. 5. A schedule for receiving statements and portfolio listings. 6. Are reserves, retained earnings, etc. utilized by the pool/fund? 7. A fee schedule, and when and how it is assessed. 8. Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? Safekeeping and Custody Agreements To protect against potential losses caused by collapse of individual securities dealers, all securities owned by the East Valley Water District shall be kept in safekeeping by a third party bank trust department, acting as agent for the District under the terms of a custody agreement executed by the bank and the District. All securities will be received and delivered using standard delivery versus payment (DVP) procedures with the Districts custodial bank, and evidenced by safekeeping receipts. Diversification and Maximum Maturities The District will diversify its investment by security type and institution. With the exception of US Treasury securities, and the Local Agency Investment Fund or other authorized pools, no more than 30% of the District’s total investment portfolio will be invested in a single security type of with a single financial institution. To the extent possible, East Valley Water District will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the District will not directly invest in securities maturing more than 5 years from the date of purchase. Reserve funds may be invested in securities exceeding 5 years if the maturity of such investments is made to coincide as nearly as practicable with the expected use of the funds. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Approval Date: Policy No: 7.6 Page 9 of 15      Internal Controls The external auditors will annually review the investments and general activities associated with the investment program. This review will provide internal control by assuring compliance with the Investment Policy and District policies and procedures. Performance Standards The investment portfolio will be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints, and the cash flow needs. The District’s investment strategy is passive. The performance of the District’s investment portfolio will be evaluated and compared to an appropriate benchmark in order to assess the success of the investment portfolio relative to the District’s Safety, Liquidity, and Return on Investments objectives. Investment Reporting In accordance with California Government Code §53646, the CFO/Treasurer will prepare a quarterly Investment Report and render the report to the Board of Directors no later than 30 days after the close of each calendar quarter. The report shall provide the type of investment, issuers, the date of maturity, par values and market values of each investment, transactions occurring during the reporting period, and identification of funds managed by third party managers. The report will also include 1) certification that all investment transactions have been made in compliance with the District’s Investment Policy, and 2) a statement that the District has the ability to meet all of its expenditure requirements during the next six months. Policy Adoption Adoption. This policy shall be reviewed annually with the Board of Directors and adopted by Board Resolution. Amendments. Any changes to the policy, or persons charged with maintaining internal controls over investments, must be approved the Board. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Approval Date: Policy No: 7.6 Page 10 of 15      Glossary of Terms (Note: All words of a technical nature should be included. Following is an example of common treasury terminology.) AGENCIES: Federal agency securities and/or Government-sponsored enterprises. BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments. BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer. BROKER: A broker brings buyers and sellers together for a commission. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a Certificate. Large-denomination CDs are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report of the (East Valley Water District). It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Approval Date: Policy No: 7.6 Page 11 of 15      DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities, or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued a discount and redeemed at maturity for full face value (e.g., U.S. Treasury Bills.) DIVERSIFICATION: A Dividing investment funds among a variety of securities offering independent returns. DURATION: A measure of the sensitivity of the price (the value of principal) of a fixed- income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals (e.g., S & L’s, small business firms, students, farmers, farm cooperatives, and exporters). FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per entity. FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions, and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank. FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Approval Date: Policy No: 7.6 Page 12 of 15      corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks, and about 5,700 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA, or FHA mortgages. The term “pass-throughs” is often used to describe Ginnie Maes. LIQUIDITY: A liquidity asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase-reverse repurchase agreements that establishes each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller borrower. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Approval Date: Policy No: 7.6 Page 13 of 15      MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The marker in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool. PORTFOLIO: Collection of securities held by an investor. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker-dealers, banks, and a few unregulated firms. PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state-the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REPURCHASE AGREEMENT (REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Approval Date: Policy No: 7.6 Page 14 of 15      security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. REVERSE REPURCHASE AGREEMENT (REVERSE REPO): A reverse-repurchase agreement (reverse repo) involves an investor borrowing cash from a financial institution in exchange for securities. The investor agrees to repurchase the securities at a specified date for the same cash value plus an agreed upon interest rate. Although the transaction is similar to a repo, the purpose of entering into a reverse repo is quite different. While a repo is a straightforward investment of public funds, the reverse repo is a borrowing. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15(C)3-1: See Uniform Net Capital Rule. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Approval Date: Policy No: 7.6 Page 15 of 15      members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. STAFF REPORT Agenda Item #5. Meeting Date: March 29, 2016 Cons ent Item To: Financ e and P o licy S tand ing Committee Memb ers From: G eneral Manager/CEO Subject: Adminis trative Polic ies Up d ate RECOMMENDATION: Staff rec o mmends that the F inance and P o licy S tand ing Committee review the Custo mer S ervic e Department Standards Po lic y and Emp lo yee Safety and S ec urity Co mmittee P o licy. BACKGROUND / ANALYSIS: On June 24, 2015, the Board o f Direc tors ad o p ted the East Valley Water Dis tric t Adminis trative Polic ies & Programs Manual with an understanding that new and revised p o licies and programs wo uld b e added in the future as needed. At this time, s taff has c reated the fo llowing new polic ies for inclus io n in the Ad ministrative P o licies & Programs Manual: 1. Cus tomer Servic e Department Standard s Po licy – Over the p as t year and a half, the Cus to mer Servic e Department has s p ent a great d eal o f time fo cus ing o n their Cus tomer Service Exc ellenc e P ro gram. In an effo rt to s trive toward wo rld c las s pub lic relatio ns as well as review c urrent departmental proc ed ures for lo ng-term enhancement, staff c reated and implemented the Custo mer Service Strategic Plan. One of the ac tion items inc luded in the Cus tomer S ervic e Strategic Plan was to c reate a Cus tomer Service Dep artment Standards P o lic y. The purp o s e of this p o licy is to maintain an environment committed to elevated p ublic s ervice thro ugh the implementation of world class p ublic service s tandards and b ehavio rs . T he p o lic y inc ludes the department’s c o mmitment, staff respons ib ilities in carrying out that c o mmitment, ad d res s es training and the cus tomer feedbac k proc es s , and states that no mo d ific ations will b e made to any Cus tomer Servic e polic ies witho ut c o ns idering the imp act to the District’s c us tomers and o ur b usines s . 2. Employee Safety and Sec urity Committee Polic y – The Dis tric t currently p artners with Safety Complianc e C o mp any to c o nduct our OS HA mandated s afety trainings and meetings fo r both field and o ffice s taff. Staff would like to enhanc e our s afety program and b egin fo cus ing on a sec urity p rogram, s o the Emp lo yee Safety and Sec urity C o mmittee P o licy has been c reated . The purp o s e of this polic y is to b ring employees together in a c o o p erative effort to p ro mo te s afety and s ecurity in the wo rkplac e by help ing to red uc e the ris k o f wo rkplac e injuries , illnesses, and threats agains t emp loyees and District as s ets. The c o mmittee will also as sist the Dis trict in ensuring comp lianc e with lo cal, s tate and federal health and s afety regulations . AGENCY IDEALS AND ENDEAVORS: Id eals and End eavor I - Encourage Inno vative Inves tments To P ro mo te Sus tainable Benefits (C) - Enhanc e emergency preparednes s programs Id eals and End eavor II - Maintain An Environment Committed To Elevated P ublic S ervic e (A) - Strive to p ro vide world class cus tomer relatio ns Id eals and End eavor IV - F ully Understand C hallenges To Cultivate Effec tive Solutions (A) - Support o ngo ing bus iness p ro cess improvement REVIEW BY OTHERS: This agend a item has b een reviewed by the s enio r and executive management team. FISCAL IMPACT : There is no fis c al imp act assoc iated with this agend a item. Res p ectfully s ubmitted: Rec o mmended b y: Jo hn Mura General Manager / C EO Kerrie Bryan HR/Ris k and Safety Manager ATTACHMENTS: Description Type Customer Servic e Department Standards Policy Backup Material Employee Safety and Security Committee Policy Backup Material EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Customer Service Department Standards Policy Approval Date: Policy No: 6.7 Page 1 of 2      Purpose The purpose of this policy is to maintain an environment committed to elevated public service through the implementation of world class public service standards and behaviors. The mission of the Customer Service Department is to serve our community with dignity and respect by providing prompt, courteous and world class customer relations. Our Commitment In fulfilling our mission, the Customer Service Department strives at all times to provide accurate information to our customers. We are committed to assisting our customers with the utmost professionalism. Providing Service to our Customers The Customer Service Department is committed to excellence in serving our customers and community and will carry out our functions and responsibilities in the following areas: 1. Reliability – Always do exactly what we tell the customer, if not more. 2. Efficiency – We will greet customers as soon as possible and explain the current situation and reason for a wait, if any, and share the attention equally. 3. Presentation – Good grooming and personal presentation are expected at all times. Presentation should be neat and appropriate for the workplace. Voices should be projected at a reasonable tone and should portray professionalism and confidence. 4. Professionalism – Knowledge and accuracy, combined with a customer-focused attitude, will ensure that professionalism is maintained while building customer relations. 5. Courtesy and Tact – Always treat customers with respect and courtesy. Thank them for their business and share our appreciation for them. 6. Flexibility – Maintain a “can-do” attitude. If the request is unusual, think outside the box about how we can satisfy the customer’s needs or provide an alternative option. 7. Communication – Keep customers well informed of adjustments that may impact them. Let them know of delays and be apologetic if they are inconvenienced. Make sure they know we are concerned about their experience. Build a rapport EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Customer Service Department Standards Policy Approval Date: Policy No: 6.7 Page 2 of 2      without intruding and communicate with other staff to ensure messages are consistent. Ensure the appropriate mode of communication is tailored to each individual customer (i.e. email or telephone). Training for Customer Service Staff Training will be provided to all Customer Service staff and will include the following:  The East Valley Water District vision, core values and customer service standards.  Department policies, practices and procedures.  Ways to provide world class customer service. Feedback Process The ultimate goal is to exceed the customer’s expectations. Comments on our services regarding how well those expectations are being met are welcomed and appreciated. Feedback regarding the way the department provides service to the customers can be made through surveys provided in the office or on the website. All feedback will be directed to the Customer Service Supervisor. Modifications to policies We are committed to developing Customer Service policies that will help accommodate our customer’s and our business needs. Therefore, no changes will be made to any policy before considering the impact of our customers and our business. EAST VALLEY WATER DISTRICT Administrative Policies & Programs   Policy Title: Employee Safety and Security Committee Policy Approval Date: Policy No: 6.8 Page 1 of 2      Purpose The purpose of the Safety and Security Committee (Committee) is to bring employees together in a cooperative effort to promote safety and security in the workplace by helping to reduce the risk of workplace injuries, illnesses, and threats against employees and District assets. The Committee will also assist the District in ensuring compliance with local, state and federal health and safety regulations. Function: The Committee will review accidents, incidents, injuries, threats, and potentially dangerous situations (including near misses). After review, the Committee will discuss findings and make recommendations to eliminate unsafe working conditions, employee injuries, reduce vehicle accidents, prevent property damage, and safeguard the District from threats. General safety inspections will be made by two (2) Committee members on a semi-annual basis or as needed. The results of this inspection will be reported to the Committee and follow-up items will be corrected in a timely manner. The Committee will evaluate employee safety suggestions, make recommendations and verify corrective action is taken to remove/correct any unsafe condition. In addition, employees may at any time report an unsafe condition or hazard to a Committee member, their department supervisor, anonymously by depositing their comments in the Suggestion Box located in the employee lounge, or directly to Human Resources. Committee Make-up The Committee is comprised of representation from a majority of the District’s departments. Committee members must be devoted for a full-year period. The Safety Committee Chairperson leads and maintains the order and course of the meetings and prepares the agenda for the meetings. Scheduled Meetings: The Committee will meet on the third Wednesday of each quarter. If necessary, this date may be adjusted to allow for the timely review of the occurrence of an unsafe work condition, incident, accident, employee injury, or threat to the District. EAST VALLEY WATER DISTRICT Administrative Policies & Programs   Policy Title: Employee Safety and Security Committee Policy Approval Date: Policy No: 6.8 Page 2 of 2      Review Process: Any incident or accident that is subject to review by the Committee will include an evaluation of the occurrence, possible determination of causation and assessment of needed policy or procedural changes. The Committee will also determine if other corrective action, such as additional training or new equipment, should be implemented to eliminate unsafe working conditions, employee injuries, reduce vehicle accidents, prevent property damage, and safeguard the District from threats. During the review process, the Committee will determine whether an accident or incident could have been prevented and if it was a direct result of an employee's negligence, carelessness, inattention to duties, or violation of safety rules or regulations. If it is determined that the occurrence was a direct result of one of the items listed above, the Safety Chairperson will notify the Human Resources/Risk and Safety Manager. The Human Resources/Risk and Safety Manager, along with the department director, will determine the appropriate course of corrective action for the employee. During the review process involved employees’ names will be kept confidential. If the Committee is to review an incident report or employee statement, the names will be redacted to ensure employee privacy unless prior approval is given. EAST VALLEY WATER DISTRICT Employee Safety and Security Committee Agenda      1. Call to order 2. Introduction of Visitors (if applicable) 3. Reporting of Critical Information 4. Old Business 5. New Business 6. Reports on Inspections 7. Assignments for next meeting 8. Adjournment EAST VALLEY WATER DISTRICT Employee Safety and Security Committee Action Plan      Action Person Resources Needed Completion Date EAST VALLEY WATER DISTRICT Employee Safety and Security Committee Action Plan      Hazard Recognition: Categories/Types of Hazards Everyone may be exposed to a variety of hazards on and off the job. Hazards may be categorized by four types: chemical, physical, biological and ergonomic. These categories, and related kay points about each hazard type, are profiled in the chart below. In addition to the information provided belpw, see the American National Standard for Information Management for Occupational Safety – ANSO Z16.2 and the Occupational Injury and Illness Classification Manual developed by the Bureau of Labor Statistics for hazard categories and definitions. Chemical Hazards Physical Hazards Inhalation Skin Contact Absorption Injection Ingestion Electrical Fire/Explosion Noise Radiation Thermal Stress Caught in/on/between; pinch points Slips/Falls Striking Against Struck by Biological Hazards Ergonomic Hazards Blood borne pathogens Brucellosis Building-Related Illness (BRI) Legionnaires’ Disease Mold Plant and insect poisons Tuberculosis (TB) Water and Wastewater Repetition Forceful Exertions Awkward Postures Contact Stress Vibration Work Area Design Tool or Equipment Design