HomeMy WebLinkAboutAgenda Packet - Finance & Human Resources Committee - 01/24/2017FINANCE AND POLICY COMMITTEE
January 24, 2017 - 3:30 PM
31111 Greenspot Road, Highland CA 92346
AGENDA
CALL TO ORDER
PLEDGE OF ALLEGIANCE
PUBLIC COMMENTS
NEW BUSINESS
1.Approve the October 5, 2016 Finance and Policy Standing Committee Meeting
Minutes
2.Review the Request for Proposal for Professional Auditing Services 2017
3.Review Wastewater Treatment Rate Changes
ADJOURN
PLEASE NOTE:
Pursuant to Government Code Section 54954.2(a), any request for a disability-related modification or
accommodation, including auxiliary aids or services, that is sought in order to participate in the above-
agendized public meeting should be directed to the District Clerk at (909) 885-4900 at least 72 hours prior
to said meeting.
Page 1 of 2
Minutes 10/5/2016 cmk
Subject to Approval
EAST VALLEY WATER DISTRICT October 5, 2016
FINANCE AND POLICY STANDING COMMITTEE MEETING
MINUTES
Ms. Koide called the meeting to order at 1:00 p.m. and Director Smith led the flag
salute.
PRESENT: Directors: Morales, Smith
ABSENT: None
STAFF: Brian Tompkins, Chief Financial Officer; Kerrie Bryan, Human
Resources/Risk & Safety Manager; Christi Koide, Administrative
Assistant
GUEST(s): Mr. Fred Yauger
PUBLIC COMMENTS
Ms. Koide declared the public participation section of the meeting open at 1:00 p.m.
Mr. Yauger stated he would like to hold his comments until after agenda item number
two is presented.
With no further comments the public participation section of the meeting closed at
1:04 p.m.
APPROVE THE JULY 28, 2016 FINANCE AND POLICY STANDING COMMITTEE MEETING
MINUTES
M/S/C (Morales-Smith) to approve the July 28, 2016 Finance and Policy Standing
Committee meeting minutes as submitted.
REVIEW DRAFT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR
2015-16
The Chief Financial Officer provided the Committee with an overview of the Financial
Statements for fiscal year 2015-16 and explained that the following factors occurred
and affected the numbers: preliminary costs associated with the Sterling Natural
Resource Center (CIP Project); water budget rates and conservation measures affected
water sales; implementation of direct-to-customer rebates.
Page 2 of 2
Minutes 10/5/2016 cmk
DISCUSS UPCOMING FINANCE AND POLICY STANDING COMMITTEE MEETINGS
The next scheduled Finance and Policy Standing Committee meeting will be held on
Tuesday, January 24, 2017.
ADJOURN
The meeting adjourned at 1:36 p.m.
James Morales, Jr., David E. Smith,
Governing Board Member Governing Board Member
STAFF REPORT
Agenda Item #2.
Meeting Date: January 24, 2017
Disc ussion Item
To: FINANCE AND POLICY COMMIT T EE
From: Chief F inancial Officer
Subject: Review the Req uest for Proposal for Professional Aud iting Servic es 2017
RECOMMENDATION:
This agend a item is pres ented fo r disc ussion and d irectio n fro m the Financ e and Polic y Standing Committee.
BACKGROUND / ANALYSIS:
Attac hed for review by the members o f the Financ e and Polic y Committee (Co mmittee) is a d raft Reques t for
Proposal for Dis tric t Aud it Servic es . Staff is sub mitting this agenda item for Co mmittee c o ns ideratio n as it has
b een s ix years s inc e the Dis tric t las t s o licited p ro p o s als for auditing services .
The Dis tric t’s c urrent audito r is Greg Fankhanel, CPA. Mr. Fankhanel c ond uc ted Dis tric t aud its for two years
as a partner with Teaman, Ramirez & Smith, Inc., and for the las t fo ur years as a p rinc ip al of Van Lant &
Fankhanel, LLP. Mr. F ankhanel and his as s oc iates are very effic ient in p erfo rming their aud it proc ed ures, and
he has b een instrumental in help ing the District obtain the GFOA Certificate of Achievement fo r Exc ellenc e in
Financ ial Reporting for the past four years .
If the Committee wo uld like to p ro c eed with send ing out Reques t fo r Proposals (RFPs), staff proposes to
s o licit proposals fro m s ix area firms , including Van Lant & Fankhanel, that have signific ant experience in
p ro viding aud it and as s urance s ervic es for loc al go vernmental agenc ies and water dis tricts .
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.
ATTACHMENTS:
Description Type
Request for Propo sal Backup Material
NOTICE INVITING BIDS
Professional Auditing Services
NOTICE IS HEREBY GIVEN that East Valley Water District is accepting bids for the
services listed above. Bids shall be submitted in a sealed envelope and identified as Bid
for “Professional Auditing Services 2017” and shall be sent to the:
East Valley Water District
Finance Department
31111 Greenspot Road
Highland, CA 92346
Bids are due no later than 5:00 P.M. on Tuesday, January 17, 2017 at which time said
bids shall be publicly opened. Bids by fax will NOT be accepted. Bids must be completed
on District forms.
Copies of the bid may be obtained at the East Valley Water District Office located at
31111 Greenspot Road in Highland, CA 92346. Said specifications and bid forms are
hereby referred to and incorporated herein and made a part by reference and all
quotations must comply therewith.
East Valley Water District reserves the right to accept in whole or part or reject any and
all proposals and to waive any informalities in the bid process, and all bids are binding for
a period of sixty (60) days after the bid opening and may be retained by the District for
examination and comparison, as specified in the quotation request documents.
Request for Proposal
Professional Auditing Services
Proposal Date
January ##, 2017
Proposal Deadline
January ##, 2017
East Valley Water District
31111 Greenspot Road
Highland, CA 92346
(909) 381-6463
- 1 -
Table of Contents
GENERAL INFORMATION ......................................................................................... - 2 -
BACKGROUND .......................................................................................................... - 3 -
MINIMUM QUALIFICATIONS ..................................................................................... - 4 -
ACCOUNTING SYSTEM ............................................................................................ - 4 -
SCOPE OF AUDIT ...................................................................................................... - 5 -
AGENCY RESPONSIBILITIES ................................................................................... - 5 -
REPORT REQUIREMENTS ....................................................................................... - 6 -
SUBMITTAL REQUIREMENTS .................................................................................. - 6 -
AUDIT FEES ............................................................................................................... - 8 -
AUDIT TIMELINE (Approximate)............................................................................... - 10 -
INSURANCE REQUIREMENTS ............................................................................... - 10 -
PROPOSAL RESPONSES ....................................................................................... - 11 -
INQUIRIES AND REQUEST FOR INFORMATION .................................................. - 12 -
EVALUATION PROCESS ......................................................................................... - 12 -
AFFIRMATION AND AUTHORIZATION ................................................................... - 13 -
- 2 -
GENERAL INFORMATION
The East Valley Water District, the East Valley Water District Financing Authority, and the
North Fork Water Company, all referred to herein as “the District,” is soliciting proposals
from qualified certified public accounting firms to provide annual audit services, referred
to herein as “Services.”
The District proposes to commit to a three-year agreement for audit services commencing
with the fiscal year ending June 30, 2017, up to and including fiscal year ending June 30,
2019 with an option to extend the contract through June 30, 2021. This commitment is
contingent upon annual budget appropriations and mutual consent of both the District and
the audit firm selected, referred to herein as “Auditor.”
Proposals will be accepted only from parties that are free of all obligation and interests
that might conflict with the best interest of the District, and have the capacity to provide
services on a timely basis. The audit engagement, including the issuance of the
Independent Auditor’s Report, must be completed no later than November 30 of each
contract year.
The District reserves the right to reject any and all proposals. The District also reserves
the right to cancel the contract, due to unsatisfactory performance of audit services or any
other reason deemed appropriate by the District, between audit years with a 30-day
written notice.
All property rights, including publication rights of all reports produced by proposer in
connection with services performed under this agreement shall be vested in the District.
The proposer shall not publish or release any of the results of it examination without the
expressed written permission of the District.
During the evaluation process the Proposal Review Team reserves the right - where it
may service the District’s best interests - to request additional information or clarifications
from the proposers. At the discretion of the District, firms submitting proposals may be
requested to make oral presentations as part of the evaluation process.
The District reserves the right to retain all proposals submitted and to use any ideas in a
proposal regardless of whether the proposal was selected. Submission of a proposal
indicates acceptance by the firm of the conditions contained in this request for proposal,
unless clearly and specifically noted in the proposal submitted and confirmed in the
contract between the District and the firm selected.
There is no expressed or implied obligation for the District to reimburse responding firms
for any expenses incurred in preparing proposals in response to this request.
- 3 -
BACKGROUND
The East Valley Water District is a special district formed in 1954, as a result of an election
by local residents who desired water service by a public water agency. Later, as the
population increased, a modern wastewater system was needed to replace the septic
tanks used at the time. Citizens voted to give the District responsibility for that service.
The District encompasses an area of approximately 25 square miles and provides water
and wastewater service to the City of Highland, parts of the City of San Bernardino, and
unincorporated parts of the County of San Bernardino, California.
The East Valley Water District Financing Authority (Authority), and the North Fork Water
Company (Company) are component units of the East Valley Water District. A component
unit is an entity which is financially accountable to the primary government, either
because the primary government appoints a voting majority of the component unit's
board, or because the component unit will provide a financial benefit or impose a financial
burden on the primary government. The Authority, and Company are blended component
units. Only North Fork Water Company prepares separate financial statements.
The Authority was created in August 2010 by a joint exercise of powers agreement for
the purpose of financing public capital improvements. It is governed by a Board of
Directors comprised of the District's Board of Directors. The Authority issued debt in
October 2010 which is secured solely from installment payments under an installment
purchase agreement entered into by the District and the Authority.
The Company was established in February 1885 to deliver water, taken from the Santa
Ana River, to its property owner /shareholders. The Company is governed by a Board of
Directors comprised of, and elected by, Company shareholders. The District has
purchased shares of Company stock as they become available in order to secure rights
to the Santa Ana River water and have it delivered to the District's surface water treatment
plant. At June 30, 2016, the District owned 5,904.49 of 7,156 outstanding Company
shares.
Due to the number of Company shares owned, the District is able to appoint a majority of
the Company’s governing board and is therefore financially accountable for the Company.
In addition, management and staff of the District have complete responsibility for the
operations of the Company. As a result, the Company's financial statements have been
included in the accompanying financial statements as a blended component unit. Copies
of the Company's financial statements may be obtained from the District’s Finance
Department located at 31111 Greenspot Road, Highland, California 92346
The District has received awards for its Comprehensive Annual Financial Report (CAFR)
from the Government Finance Officers of America (GFOA) for the last 4 years in a row
- 4 -
and is awaiting news for the most recent CAFR submitted. A copy of the most recent
CAFR is available on the Financial Documents page of our web-site www.eastvalley.org.
The District contracts with CalPERS to provide a defined benefit pension plan for
employees in two tiers based on date of hire. Additionally, the District provides an OPEB
plan with funds in trust by the CalPERS Employee Retirement Benefits Trust (CERBT) to
qualifying employees.
The District maintains for its employees a deferred compensation plan structured in
accordance with provisions of Internal Revenue Code Section 457. Employee deposits
are transmitted to third parties who are responsible for plan administration.
MINIMUM QUALIFICATIONS
Only the proposals of those firms who demonstrate the following minimum qualifications
will be evaluated by the District.
1. Independence: The firm must be able to provide an affirmative statement that
it is independent of the District, in accordance with auditing standards generally
accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States.
2. License to practice in the State of California: An affirmative statement is
required that the firm and all assigned key professional staff are properly
registered and licensed to practice in the State of California.
3. Experience: Minimum five years’ experience conducting high quality audits of
water districts of comparable sizes.
4. Firm Capacity: Demonstrated capacity to devote the necessary personnel and
technical resources to complete the work in accordance with the scheduled
timeline on page 10.
ACCOUNTING SYSTEM
The District utilizes Incode 10, Tyler Technologies financial software for all District
accounting and utility billing functions. During fiscal year 2016, the District issued
approximately 2,000 payroll checks/direct deposit slips and 3,800 accounts payable
checks/electronic funds transfers.
- 5 -
SCOPE OF AUDIT
The Auditor shall examine all of the District funds and financial statements in accordance
with the following:
1. Auditing standards generally accepted in the United States of America.
2. The State Controller’s Minimum Audit Requirements for California Special
Districts.
The Auditor shall ensure that the CAFR is prepared in conformity with the most up to date
edition of the Governmental Accounting, Auditing, and Financial Reporting (GAAFR), the
GAAFR Update Supplement and Governmental Accounting Standards Board (GASB)
pronouncements.
It is expected that the auditor keep the District informed of any new state and national
developments affecting municipal finance and reporting standards and trends. This shall
include at least one formal updating session per fiscal year with the District’s Finance and
Accounting staff.
AGENCY RESPONSIBILITIES
1. The District staff will prepare closing entries including work papers supporting
asset and liability balances. Staff will prepare the financial statements, notes
to the financial statements, management’s discussion and analysis, and
statistical section.
2. The District staff will prepare the required financial statements for the District’s
Financing Authority, including the notes to the financial statements.
3. The District staff will prepare the required financial statements for the Frontier
Project Foundation, including the notes to the financial statements.
4. The District staff will be available to locate, reproduce, and re-file required or
requested documentation during the audit fieldwork.
5. The District staff will be available during the audit to assist the Auditor by
providing requested information, documentation and explanations.
6. The preparation of confirmations will be the responsibility of the District.
7. The District shall provide a reasonable work area (table and chairs),
telephones, photocopying facilities, facsimile machines, internet access and
electrical power to the Auditor for use during the audit.
- 6 -
REPORT REQUIREMENTS
Report Name Format Quantity
Required Items:
CAFR Opinion Letter
Electronic
1
North Fork Water Company Review
Electronic
1
State Controller Report / Submission
Electronic
1
Optional items (if completed):
Single Audit Report
Bound/Electronic 10/1
Report on Audit of Internal Controls
Over Financial Reporting – per
Statement on Auditing Standards 130.
Electronic 1
CAFR Document Electronic 1
Continuing Disclosure Annual Report
(CDAR)
Electronic 1
SUBMITTAL REQUIREMENTS
Responses to this Request for Proposal shall include 3 copies of the following:
1. Table of contents, identify the material by section and page number.
2. Letter of Transmittal
3. State, briefly, the firm’s understanding of the work to be done, and make a
positive commitment to perform the work within the proposed time-period.
4. Specific Audit Approach: The proposal should set forth a work plan, including an
explanation of the audit methodology to be followed to perform the services required
for this request for proposal. In developing the work plan, reference should be made
to such sources of information as District’s budget and related materials,
organizational charts, manuals and programs, and financial and other management
information systems.
Proposers will be required to provide the following information on their audit approach:
a. Proposed timeline of the engagement;
b. Level of staff and number of hours to be assigned to each segment;
- 7 -
c. Sample sizes and extent of the use of statistical sampling techniques;
d. Type and extent of analytical procedures to be used in the engagement;
e. Approach to be taken in determining laws and regulations that will be subject
to audit test work;
f. Approach to be taken to gain and document an understanding of the District’s
internal control structure; and
g. Approach to be taken in drawing audit samples for purposes of tests of
compliance
5. Provide the names of the individuals authorized to make representations for
the firm, their titles, California CPA Certificate numbers, addresses, and
telephone numbers.
6. Affirm that you meet the independence requirement of the General
Accountability Office (GAO).
7. State whether the firm is local, national, or international.
8. Give the location of the office from which the work is to be performed and the
number or partners, managers/principals, supervisors, seniors, and other
professional staff employed at the office.
9. Describe the range of activities performed by the local office, such as audit,
accounting, tax service, or management services.
10. Five references for which similar work has been performed, especially as it
pertains to water agency experience; include an overview of the work
performed, individual contact person, address and phone number. For water
agencies; include the number of water service accounts and the amount of the
annual operating budget. If five references are not available, list as many as
possible.
11. A copy of the firm’s most recent peer review report and copy of the
accompanying letter of comment, if any. State whether the firm has been the
subject of any disciplinary action within the last three years, or if any such action
is pending by state regulatory bodies or professional organizations. If such
conditions exist, provide information as to the circumstances and status of the
disciplinary action.
12. Clearly describe the scope of required services for the provisions of the Single
Audit Act Amendments of 1996 and the U.S. Office of Management and
Budget’s Uniform Guidance, Subpart F-Audit Requirements which supersedes
Circular A-133, “Audits of State, Local Governments, and Non-Profit
Organizations.”
- 8 -
AUDIT FEES
In recent years, the total payments for audit services and related supplies have been
based on a fixed fee. To allow the firms some flexibility in their proposal, we will accept
proposals that use either CPI indexing or fixed fees for each of the five years. Therefore,
your proposal should specify the fee method.
Contract language for the CPI indexing will read similar to the following:
The total payment for services and supplies for audit services shall be
based on a not to exceed basis for the fiscal year ending June 30,
2017. For subsequent years, this compensation will be adjusted to,
but shall not exceed, the Consumer Price Index for All Urban
Consumers for the Los Angeles/Riverside/Orange County areas on a
calendar year basis. The calendar year prior to the applicable fiscal
year will be the calendar year used for these calculations.
Any change in the cost of audit services due to a change in the scope
of work or other consideration will be subject to negotiation and
agreement of all parties involved.
- 9 -
Consultation between Auditor and District, and any Auditor familiarization with the District,
shall be included in the base fee.
In addition, include a schedule of hourly charges for principals and various staff levels to
be used as a basis for audit costs that are outside the scope of the basic auditing and
accounting services.
The firm shall breakdown the basic audit fees,
including all expenses as illustrated in this
example: Fee for Fiscal Year
Fee for optional
additional Fiscal Year
REQUIRED ITEMS: 2017 / 2018 / 2019 2020 / 2021
1. Financial Audit of THE DISTRICT $ $ $ . $ $ .
2. Separate financial review report for the North Fork
Water Company $ $ $ . $ $ .
3. State Controller Office Report and Submission $ $ $ . $ $ .
4. Travel Expenses $ $ $ . $ $ .
SUB-TOTAL REQUIRED ITEMS $ $ $ . $ $ .
OPTIONAL ITEMS:
A. Single audit examination of all federal grants $ $ $ . $ $ .
B. Compilation of the CAFR Document $ $ $ . $ $ .
C. Audit of Internal Controls $ $ $ . $ $ .
D. Continuing Disclosure Annual Report $ $ $ . $ $ .
SUB-TOTAL OPTIONAL ITEMS $ $ $ . $ $ .
GRAND TOTAL $ $ $ . $ $ .
- 10 -
AUDIT TIMELINE (Approximate)
Prior to June 30, 2017 Begin interim fieldwork
September 4, 2017 Begin final fieldwork
September 18, 2017
Exit conference—Draft AJEs and Management
Letter discussed
October 12, 2017 Documents due to District:
- CAFR changes
October 31, 2017
Final reports to District:
- CAFR Opinion Letter
- Audit Communication Letter
- Report on Internal Controls Letter
- Management Letter
November 2, 2017 Attendance of Finance Committee meeting for
presentation of CAFR and audit results
November 30, 2017 Final reports to District:
- Single Audit (if required)
February 20, 2018 Perform Review procedures for the Company
March 15, 2018 Issue the Company’s Review Report
INSURANCE REQUIREMENTS
The successful bidder shall maintain for the duration of the agreement minimum
insurance as listed:
1. General Liability – Commercial coverage no less than $1,000,000 per occurrence
for bodily injury, personal injury, and property damage.
2. Automobile Liability – Coverage no less than $1,000,000 per accident for bodily
injury and property damage.
3. Workers’ Compensation and Employers’ Liability – Limits of $1,000,000 per
accident for bodily injury or disease.
4. Professional Liability – Coverage no less than $1,000,000 per claim in Errors and
Omissions Insurance and Professional Liability coverage.
- 11 -
PROPOSAL RESPONSES
1. Proposal Due Date: Thursday, January ##, 2017
2. Mailing Instructions:
Please Mail Proposals to:
East Valley Water District
31111 Greenspot Road
Highland, CA 92346
Please Title Your Envelope:
Request for Proposal
Professional Auditing Services 2017
- 12 -
INQUIRIES AND REQUEST FOR INFORMATION
Contact Information:
Contact: Nathaniel Paredes, CPA Brian Tompkins, CPA
Title: Business Services
Manager
Chief Financial Officer
Phone Number: (909) 381-6463 (909) 381-6463
Fax Number: (909) 784-0285 (909) 784-0285
E-Mail: nparedes@eastvalley.org btompkins@eastvalley.org
EVALUATION PROCESS
Proposals will be evaluated by the District staff to ascertain which auditing firm best
meets the needs of the District. Factors that will be considered include:
1. The Request for Proposal was returned complete and in accordance
with bid requirements.
2. Professional qualifications of the firm and proposed audit team.
3. Professional experience of the firm, including similar experience in like-
sized water agencies.
4. Professional approach to assignment and willingness to work with the
District staff.
5. Quality of references as they pertain to firm’s ability to perform audit
services.
6. The audit fee.
Based on the evaluation of the proposals according to the above criteria, the most
qualified firms will be asked to participate in an oral interview.
- 13 -
AFFIRMATION AND AUTHORIZATION
Please sign and include this page with your proposal.
NAME OF BIDDER:
TITLE:
FIRM NAME:
STREET ADDRESS:
CITY, ZIP
FEDERAL TAX I.D.
TELEPHONE NUMBER:
FAX NUMBER:
E-MAIL ADDRESS
The undersigned declares that he/she is authorized to enter into an agreement on behalf
of the above named Company.
Signature:
_______________________________________________________
STAFF REPORT
Agenda Item #3.
Meeting Date: January 24, 2017
Disc ussion Item
To: FINANCE AND POLICY COMMIT T EE
From: Chief F inancial Officer
Subject: Review Was tewater Treatment Rate C hanges
RECOMMENDATION:
Review Res o lution 2017.01 up d ating the Dis tric t’s Sched ule of Water and Was tewater Rates and Charges to
reflect the City of San Bernard ino Was tewater Treatment Rate increases effec tive July 1, 2017.
BACKGROUND / ANALYSIS:
In 1957, the City of San Bernard ino (C ity) and the East Valley Water Dis tric t (Dis tric t) entered into a Joint
Exercise of P o wers Agreement (JPA) under whic h the City p ro vides was tewater treatment s ervic es to Dis tric t
cus tomers. The JPA s tip ulates that the City is res p o nsible fo r s etting was tewater treatment rates , and the
District is respons ib le fo r c harging the rates to Dis trict c usto mers , and then remitting the c o llected c harges to
the City.
In S ep tember 2015, the City adopted a three p hase increase in wastewater treatment rates b as ed o n a rate s tud y
cond uc ted b y F G Solutions , LLC. T he effec tive d ates o f the inc reas es were Octo b er 1, 2015, July 1, 2016,
and July 1, 2017. T he District has implemented the firs t two rate adjus tments utilizing a 5-year p as s thro ugh
p ro vision ad o p ted by the Dis tric t on Novemb er 22, 2011 in acc ordance with California Government Code
(CGC) §53756. However, the final p hase of rate ad justments , effec tive 7/1/2017, d o es no t fall within the 5-year
p as s through p erio d adopted in 2011. As a res ult, the District mus t adopt the City increase effective o n July 1,
2017 at a p ub lic hearing in acc o rd anc e with Propos itio n 218.
The c us to mer impac t of the p hase three rate increase will b e $0.70 p er hous ehold fo r s ingle family res idential
units, and from $0.04 to $0.10 per unit (HCF) of water us ed fo r no n-residential cus tomers. If the rate inc reas e
is no t ado p ted and c harged to Dis tric t c ustomers , the Dis tric t would no netheless have to p ay the inc reas ed
rates to the City beginning in July, creating a monthly operating d eficit of $21,000 per month with res p ect to
wastewater treatment s ervices.
Notices regarding the pub lic hearing on January 25th, 2017 were mailed o ut on Dec emb er 9, 2016, to all
p ro p erty owners and res idents who wo uld b e affec ted by the p ro p o s ed rate inc reas e, meeting the requirements
o f P ro p o s ition 218.
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 Adminis tratio n Department and Legal C o uns el.
FISCAL IMPACT :
Adoptio n of the City rate inc reas e will allo w the Distric t to remain revenue neutral with resp ec t to wastewater
treatment s ervic es . Not ad o p ting the rate inc reas e will result in the Dis tric t inc urring an operating defic it for
wastewater treatment of ap p ro ximately $21,000 per mo nth b eginning in fis c al year 2017-18.
ATTACHMENTS:
Description Type
Powerpoint Prese ntation Backup Material
Resolution 201 7.0 1 Resolution Letter
Schedule of Wate r and Wastewater Rates and Charge s Exhibit
City of San Bernardino Sewer Treatment Rate Study Exhibit
•Treatment by San Bernardino Municipal Water Department
−City of San Bernardino City Council is Responsible for Rate Setting
2E A S T V A L L E Y W A T E R D I S T R I C T
WASTEWATER TREATMENT TODAY
EVWD is Obligated to Pay Fees Approved By the City
100% of Wastewater Treatment Fees Sent to the City Including Development Fees
EVWD Has No Ownership of Treatment Facilities
EVWD Has No Input in Long-Term Planning/Spending
90-Day Termination of Service Clause Outside City Limits
LONG-TERM CONTRACT
PASS THROUGH PROVISION
•California Government Code
Section 53756
•Allows for Pass-through of
Wholesale Water / Wastewater
Treatment Charges
−Provided Schedule of Rates and
Charges adopts automatic
adjustments
−Maximum of Five Years
3E A S T V A L L E Y W A T E R D I S T R I C T
AB 3030 / 2567
Wastewater Treatment
5 Years
January 2012
March 2016
July 2016
TREATMENT FEES
•Last EVWD Wastewater Rate
Hearing November 2011
−Avoided monthly deficit of $88,000
−Adopted 5 year pass through provision
•New Rates Based on 2015 Rate
Study and Capital Improvement Plan
•Beginning 2015 Separate Fees for
EVWD and Loma Linda
•City Adopted Rates September 2015
−Three phases
4E A S T V A L L E Y W A T E R D I S T R I C T
City of San Bernardino
Adopted Rates
Effective Date Increase Status
October 1, 2015 8.5%Implemented
July 1, 2016 8.5%Implemented
July 1, 2017 3.25%Pending Hearing
$21,000 Additional Monthly Cost
$.70 Cost Per Single Family Account
5E A S T V A L L E Y W A T E R D I S T R I C T
NOTICE OF PUBLIC HEARING
•Mailed to All Property Owners,
Customers Affected By Rates
•Explained Reason For Rate
Adjustments
•Gave Date and Time of Hearing
•Explained How Customers Can
Participate
−2 Protests Received prior to Hearing
6E A S T V A L L E Y W A T E R D I S T R I C T
PROPOSITION 218 COMPLIANCE
Notices
Mailed
•December 9,
2016
Receive & File
Protests
•December 9,
2016 through
January 25, 2017
Post Notice
•December 22,
2016
Public Hearing
•January 25, 2017
•Adopt Resolution 2017.01 Updating the District’s Schedule of Water and
Wastewater Rates and Charges to Implement Phase Three of the City of San
Bernardino’s Wastewater Treatment Rate Increases Effective July 1, 2017
7E A S T V A L L E Y W A T E R D I S T R I C T
RECOMMENDATION
East Valley Water District
Resolution 2017.01
Page 1 of 3
RESOLUTION 2017.01
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE EAST VALLEY WATER DISTRICT
ESTABLISHING A SCHEDULE OF FEES AND CHARGES RELATED TO THE
PROVISION OF WATER AND WASTEWATER SERVICE AND RESCINDING
RESOLUTION 2016.05
WHEREAS, East Valley Water District (“District”) is a county water district organized
and operating pursuant to California Water Code Section 30000 et seq.; and
WHEREAS, pursuant to applicable law, including but not limited to Water Code Section
31105, the District’s Board of Directors adopted Ordinance No. 389 on December 10, 2014,
establishing the rules and regulations for sewer service by the District; and
WHEREAS, pursuant to applicable law, including but not limited to Water Code Sections
31007 and 31101, the District’s Board of Directors is authorized to adopt rates for the provision
of sewer service by the District to yield an amount sufficient to pay the operating expenses of the
District, provide for repairs and depreciation of works owned or operated by the District, pay the
interest on any bonded debt, and, so far as possible, provide a fund for the payment of the principal
of the bonded debt as it becomes due; and
WHEREAS, the actions taken herein are necessary for setting rates, fees, and charges for
the provision of sewer service within the boundaries of the District and are therefore exempt from
the requirements of the California Environmental Quality Act as provided by Public Resources
Code Section 21080(b)(8); and
WHEREAS, the amount of the rates and charges hereby adopted do not exceed the
reasonable anticipated costs for the corresponding services provided by the District, and therefore
the fees imposed hereby do not qualify as a “tax” under Article XIIIC, Section 1(e), of the
California Constitution or Section 50076 of the California Government Code, and the actions taken
herein are exempt from the additional notice and public meeting requirements of the Brown Act
pursuant to Government Code Section 54954.6(a)(1)(A) and (B); and
WHEREAS, the District has satisfied all of the substantive and procedural prerequisites
of Article XIIID of the California Constitution in establishing the rates and charges set forth herein,
including but not limited to, the identification of the parcels upon which the rates and charges will
be imposed; the calculation of the rates and charges; the mailing of written notice to the record
owners of each parcel upon which the rates and charges will be imposed describing the amount
thereof, the basis upon which the rates and charges were calculated, the reason for the rates and
charges, and the date, time, and location of the public hearing to be held thereon; and the
conducting of a public hearing on the rates and charges not less than 45 days after mailing the
notice during which all protests against the fee were considered.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the East Valley
Water District as follows:
East Valley Water District
Resolution 2017.01
Page 2 of 3
Section 1. It is hereby found that the wastewater treatment rates established or increased
hereby do not exceed the estimated reasonable cost of providing the service for which they are
imposed and that said rates and charges do not constitute a tax pursuant to Article XIIIX Section
1(e) of the California Constitution.
Section 2. The new rates and charges are set forth in the revised Schedule of Water and
Wastewater Rates and Charges as set forth in Exhibit “A”, and the Sewer Treatment Rate Study
prepared by the City of San Bernardino Municipal Water Department in Exhibit “B” to this
Resolution.
Section 3. Future cost increases in wastewater services imposed by the City within five
years of the date of this Resolution may be automatically passed through to ratepayers in
accordance with the provisions of Government Code 53756 and other applicable provision of law.
Section 4. It is hereby found that the written protests against the wastewater treatment
rates and charges set forth in Exhibit “A”, that were received by the District prior to the close of
the public hearing hereon, represented less than a majority of the parcels subject to the rates and
charges set forth below and, thus, the District’s Board of Directors further finds and orders that the
public interest and necessity requires the adoption of the rates and charges for sewer service by the
District in accordance with Ordinance No. 389, as well as affirmation and ratification of all prior
rates and charges previously adopted by the District’s Board of Directors.
Section 5. Resolution 2016.05 is hereby rescinded:
This Resolution shall take effect as of the 1st day of July 2017.
ADOPTED this 25th day of January 2017.
ROLL CALL:
Ayes:
Noes:
Absent:
Abstain:
Ronald L. Coats
Board President
East Valley Water District
Resolution 2017.01
Page 3 of 3
January 25, 2017
I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2017.01
adopted by the Board of Directors of East Valley Water District at its Regular Meeting held
January 25, 2017.
ATTEST:
_____________________________
John Mura
Board Secretary
EXHIBIT “A”
EAST VALLEY WATER DISTRICT
SCHEDUL E O F
WATER AND WASTEWATER
RATE S AND CHARGES
UPDATED JANUARY 25, 2017
i
Table of Contents
Section 1: Water Service Charges............................................................ 2
Monthly Water System Charge ............................................................. 2
Commodity Charges: Potable Water ...................................................... 2
MWD Surcharge ................................................................................ 3
Private Fire Protection Service ............................................................ 4
1. Commercial Standby Charge ........................................................... 4
2. Fire Flow Testing ........................................................................ 4
Temporary Water Service Connection .................................................... 5
Monthly Service Charge ..................................................................... 5
1. Commodity Charge ...................................................................... 5
2. Meter Deposit ............................................................................ 5
3. Unauthorized use of Water Charge ................................................... 5
New Account Fees for Water Services .................................................... 6
1. Service Initiation Charge ............................................................... 6
2. Security Deposit.......................................................................... 6
Miscellaneous Water Service Charges and Fees ......................................... 6
1. Delinquency Charge ..................................................................... 6
2. Returned Payment Charge.............................................................. 6
3. Disconnection Notice Charge .......................................................... 6
4. Service Reconnect Charge (Business Hours) ......................................... 6
5. Service Reconnect Charge (After Hours) ............................................. 6
6. Meter Test Charge ....................................................................... 7
7. Annual Backflow Compliance Test (per device) ..................................... 7
8. Backflow Device Installation Fee ...................................................... 7
9. Backflow Device Annual Administration Fee (per device) ......................... 7
Section 2: Wastewater Service Charges .................................................... 8
Monthly Wastewater System Charge ...................................................... 8
Collection Charges ........................................................................... 8
ii
Treatment Charges .......................................................................... 9
Section 3: Developer Services ............................................................... 12
Water Connection Fees ..................................................................... 12
Wastewater Connection Fees.............................................................. 13
Fire Service Connection Charges ......................................................... 13
Developer Services Charges and Fees ................................................... 14
1. Front Footage Charge ................................................................. 14
2. Water Main Extension Charge ........................................................ 14
3. Fire Hydrant Installation Charge .................................................... 14
4. Special Facility Charge ................................................................ 14
5. Construction Inspection Charge ..................................................... 14
6. Water System Design Charge ......................................................... 15
7. Engineering Service Charges ......................................................... 15
8. Sewer Manhole and Valve Can Deposit ............................................. 15
9. Research Fee (flat rate, 4 hour minimum) ......................................... 15
10. Development Meeting Fee (after first meeting) .................................. 16
11. Annual Backflow Compliance Test (per device) ................................... 16
12. Backflow Inspection Fee (per inspection) .......................................... 16
13. Water Quality Sampling Fee (per sample) ......................................... 16
14. New Construction Chlorination and Flushing Fee ($225 minimum to actual
cost) .......................................................................................... 16
History of Revisions ............................................................................ 18
1
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2
Section 1 : Water S ervice Charges
Monthly Water S ystem Charge
The water system charge is the monthly availability charge applicable to all metered
water services, and shall apply whether or not premises served by the meter are
occupied. The charges, which vary by meter size, are established at the amounts listed
in the table below.
6/1/2015 7/1/2016 7/1/2017
5/8"20.96$ 23.06$ 24.67$
3/4"26.61$ 29.27$ 31.32$
1"37.92$ 41.71$ 44.63$
1 1/2"66.19$ 72.81$ 77.91$
2"100.12$ 110.13$ 117.84$
3"207.54$ 228.30$ 244.28$
4"365.85$ 402.44$ 430.61$
6"744.67$ 819.14$ 876.48$
8"1,366.62$ 1,503.28$ 1,608.51$
Meter Size
Rates Effective on:
Commodity Charges: Potable Water
Commodity Charges are billed on a per unit basis for water consumption registered by
the water service meter. One unit is 100 cubic feet (hcf) of water, which is equal to
748 gallons.
6/1/2015 7/1/2016 7/1/2017
Tier 1 - Indoor Use 1.45$ 1.63$ 1.83$
Tier 2 - Outdoor Use 2.07$ 2.32$ 2.61$
Tier 3 - Inefficient Use 2.89$ 3.24$ 3.64$
Tiers
Rates Effective on:
3
MWD Surcharge
The MWD surcharge rate (per hundred cubic feet) for all customer types is as follows
Effective 6/1/2015
Rate per HCF $0.00
The MWD Surcharge Rate represents increased costs associated with water imported
from the State Water Project. The charge to the District for State Water Project
imported water is established by the San Bernardino Valley Municipal Water District.
Since the District has no control over the adoption or imposition of MWD water charges,
imposed through San Bernardino Valley Municipal Water District for the delivery of
imported water to the District, EVWD may pass-through, for a five year period beginning
June 1, 2015 any increases in the cost of MWD imported water imposed by the San
Bernardino Valley Municipal Water District.
4
Private Fire Protection Service
1. Commercial Standby Charge
The fire service standby charge is the monthly charge assessed per inch diameter of
the District fire service meter. Water use through this service is limited to
emergency fire requirements only.
6/1/2015 7/1/2016 7/1/2017
1"7.97$ 8.78$ 9.40$
1 1/2"11.98$ 13.18$ 14.10$
2"15.97$ 17.57$ 18.80$
3"23.96$ 26.35$ 28.20$
4"31.94$ 35.14$ 37.59$
6"47.91$ 52.70$ 56.39$
8"63.88$ 70.27$ 75.19$
10"79.85$ 87.84$ 93.99$
Meter Size
Rates Effective on:
2. Fire Flow Testing
The fire flow test charge is a flat rate established to cover the District’s time and
effort for testing parts of the water system to obtain fire flow test data and
calculate results as requested. The District will charge a one-time fee of $100.00 to
administer fire flow tests.
5
Temporary Water Service Connection
A temporary service is available through the use of a fire hydrant. A customer deposit
for the temporary service will be required, and all other applicable service charges
shall apply.
Monthly Service Charge
Refer to the schedule of Monthly Water System Charges for three inch (3”) meters.
1. Commodity Charge
Commodity charges for temporary services shall be bill ed at the Tier 3 rates based
on the Potable Water Commodity Rates. When available, and feasible, recycled
water shall be used for temporary construction uses.
The Commodity Charge shall be as follows:
Area Rate/100 Cubic Feet
Potable Tier 3 Rate
Recycled TBD
2. Meter Deposit
A deposit equal to the replacement cost of the construction meter shall be collected
at the time of service application. Currently, the replacement cost is estimated to
be $1,800.00. The deposit will be applied to the closing bill and any remaining
amount refunded to the customer. Lost meters will result in forfeiture of the
deposit.
3. Unauthorized use of Water Charge
The unauthorized use of water charge shall be charged to any person, organization
or agency for each unauthorized use of District water or for tampering in any manner
with any meter belonging to the District where this tampering shall affect the
accuracy of such meter. The unauthorized use of water charge is hereby established
at the rate of $500.00 for a first occurrence and $1,000.00 for each subsequent
occurrence.
6
New Account Fees for Water Services
The following fees are applicable to all requests for new service, or transfer of an
existing account to a new location:
1. Service Initiation Charge
The service initiation charge is a non-refundable charge of $30.00 per account,
which covers the reasonable District costs for initiating water service.
2. Security Deposit
A deposit of $150.00 will be required until a one year payment history, with fewer
than two delinquencies, has been established . The deposit insures payment of
minimum District charges.
Miscellaneous Water Ser vice Charges and Fees
1. Delinquency Charge
Rates and charges which are not paid on or before the due dates shall be subject to
interest charges. Interest will be calculated at a rate of one and one -half percent
(1 ½%) on all amounts that remain unpaid at the end of each billing cycle.
2. Returned Payment Charge
A returned check charge is a charge which covers the reasonable administrative cost
and banking charges for processing a returned check.
3. Disconnection Notice Charge
The disconnect notice charge is the charge which covers reasonable District costs to
notify customers that their water service is subject to impending termination.
4. Service Reconnect Charge (Business Hours)
The service reconnect charge is the charge which covers the reasonable District
costs for disconnection and reconnection during regular business hours, of service
connections which are in violation of the provisions contained herein.
5. Service Reconnect Charge (After Hours)
The service reconnect charge is the charge which covers the reasonable D istrict
costs for disconnection and reconnection during non -business hours, of service
connections which are in violation of the provisions contained herein.
7
6. Meter Test Charge
The meter test charge is the charge which covers the District costs for removi ng,
bench testing, and reinstalling the water meter to be tested.
7. Annual Backflow Compliance Test (per device)
A fee of $5.00 per month will be charged to the customer when the annual backflow
compliance test is performed by District staff. The customer will only be billed as a
lump sum when District standards regarding the inspection, testing, and
maintenance of customer-owned backflow assemblies are not followed.
8. Backflow Device Installation Fee
Installation of new backflow prevention assemblies completed by the District will
be done at actual cost.
9. Backflow Device Annual Administration Fee (per device)
The District shall appoint at least one person trained in cross -connection control to
administer and ensure all District standards are met. This backflow device annual
administration fee will be assessed annually.
Charge or Fee Name Charge/Fee
Delinquency Charge 1.5%
Returned Payment Charge $20.00
Disconnect Notice Charge $23.00
Service Reconnect Charge (Business Hours)$70.00
Service Reconnect Charge (After Hours)$150.00
Meter Test Charge $75.00
Annual Backflow Compliance Test $ 60.00 ($5.00 per month)
Backflow Device Installations Actual Cost
Backflow Annual Administration Fee $20.00 (per device)
8
Section 2: Wastewater Service Char ges
Monthly Wastewater System Charge
Collection Charges
Collection charges were established to maintain the District's wastewater collection
lines.
A. Residential Customers (1 – 3 units)
The collection charge for residential customers is a monthly fixed cha rge.
Customer Class Charge
West of Boulder Avenue 15.36$
East of Boulder Avenue 17.36$
B. Commercial Customers
The collection charges for commercial customers include a small fixed charge plus
a volumetric charge (water usage). Commercial accounts east of Boulder have an
additional $0.09/hcf (hundred cubic feet) charge.
Customer Class Charge
Fixed Charge 3.90$
9
Volumetric Charge (per HCF):
West of East of
Customer Class Boulder Avenue Boulder Avenue
Multi-Family (4 or more units, Mobile Home Park)0.55$ 0.64$
Commercial/Retail (Non-Office, Bakery, Market)0.55$ 0.64$
Restaurant/Lounge 0.55$ 0.64$
Laundromat 0.55$ 0.64$
Dry Cleaner 0.55$ 0.64$
School/Church (Daycare, Nursery School)0.55$ 0.64$
Office Building/Motel (without a restroom,
Municipality)
0.55$ 0.64$
Convalescent Home 0.55$ 0.64$
Treatment Charges
The District pays treatment charges established by the City of San Bernardino for the
operation and maintenance of their wastewater treatment facilities. Any future
increases made by the City over the next five years following the previous public
hearing, held on January 25, 2017, may be automatically passed through and
incorporated herein by this reference, by action of the District’s Board of Directors to
the extent authorized by Government Code Section 53756 and any other applic able
provision of law.
A. Residential Customers
Treatment charges for residential customers are a monthly fixed charge.
7/1/2016 7/1/2017
Residential 20.85$ 21.55$
Multi-Family (2 Units)41.72$ 43.10$
Multi-Family (3 Units)62.58$ 64.64$
Customer Class
Rates Effective on:
10
B. Commercial Customers
Treatment charges for commercial customers include a small fixed plus a volumetric
charge (water usage) which varies depending on the nature of the commercial
entity.
Fixed Charges:
7/1/2016 7/1/2017
Multi-Family (4+ Units), Mobile Home Parks 1.90$ 1.97$
Non-Residential Customer Classes 3.42$ 3.52$
Customer Class
Rates Effective on:
Volumetric Charges (per HCF):
7/1/2016 7/1/2017
Multi-Family (4+ Units), Mobile Home Parks 1.48$ 1.53$
Commercial / Retail 2.47$ 2.55$
Restaurants / Lounges 3.18$ 3.28$
Laundromats 1.77$ 1.83$
Dry Cleaners 2.47$ 2.55$
Schools / Churches 1.29$ 1.33$
Governments / Municipal 1.77$ 1.83$
Convalescent Homes 1.58$ 1.63$
Hotels (with Restaurants)3.18$ 3.28$
Offices Buildings / Motels 1.77$ 1.83$
Auto Repair / Service Station 1.53$ 1.58$
Car Wash 1.53$ 1.58$
Rates Effective on:
Customer Class
11
Users other than Residential: Rates for users other than “residential” shall be
computed on the basis of actual consumption as reflected by water meter
readings for the billing period. Such water consumption may be reduced for the
purpose of establishing sewer service charges subject to “seasonal” or
“consumptive” use as recognized and approved by the Board of Directors.
Unmetered Commercial Dischargers: Unmetered co mmercial dischargers shall
be billed as follows:
Residential units in apartments, condominiums, and mobile home parks shall be
billed for each dwelling unit at the rate established for single -family dwelling
units. Other commercial dischargers shall be bil led at a rate determined by the
General Manager, based on experience from similar metered dischargers.
12
Section 3: Developer Services
Water Connection Fees
The water service connection charge is the charge for the type and size of water service
connection desired. Such regular charge shall be pai d in advance by the applicant.
Where there is no regular charge, the District reserves the right to require the applicant
to deposit an amount equal to the estimated cost of suc h service connection.
Harmony Non-Harmony
3/4"5,200.00$ 4,607.00$
1"8,684.00$ 7,694.00$
1 1/2"17,316.00$ 15,343.00$
2"27,714.00$ 24,556.00$
3"51,997.00$ 46,072.00$
4"86,741.00$ 76,858.00$
6"173,165.00$ 153,434.00$
8"311,983.00$ 276,434.00$
10"519,971.00$ 460,723.00$
Meter Size
Capacity Charge
Installation charges will be estimated by the District based on availab ility of District
staff to complete the work and site specific construction conditions and requirements.
If the applicant elects not to have District staff complete the installation then an
administrative fee of 5% of the estimate will be charged.
13
Wastewater Connection Fees
The sewer service connection charge is the charge for the type and size of service
connection desired. Such regular charge shall be paid in advance by the applicant.
Where there is no such regular charge, the District reserves the right to require the
applicant to deposit an amount equal to the estimated cost of such service connection.
The following charges are hereby established and shall be collected at the time of
application for sewer connection:
Charge or Fee Name
Permit Charge 25.00$ per connection
Inspection Charge 100.00$ per connection
District Conveyance Capacity Charge 3,099.00$ per EDU or portion thereof
Trunk Sewer Charge 158.00$ per EDU or portion thereof
Charge/Fee
The City of San Bernardino Water Reclamation Plant currently treats all wastewater
flows generated by residential and commercial dischargers within the East Valley Water
District service area. Accordingly, the City is responsible for establishing the
Wastewater Treatment Capacity fee collected by the District for new development.
The current fee established by the City is $3,500 per equivalent dwelling unit (EDU).
Fire Service Connection Charges
The fire service charge is the charge for the type and size of fire service connection
desired. Such regular charge shall be paid in advance by the applicant. Where there is
no regular charge, the District reserves the right to require the applicant to deposit an
amount equal to the estimated cost of such service connection.
Installation charges will be estimated by the District based on availability of District
staff to complete the work and site specific construction conditions and requirements.
If the applicant elects not to have District staff complete the installation then an
administrative fee of 5% of the estimate will be charged.
14
Developer Services Charges and Fees
1. Front Footage Charge
The front footage charge is a one-time reimbursement to the District for previously
constructed water mains adjacent to all sides of an unimproved property to be
serviced. This charge is hereby established at a rate of $30.00 per lineal foot.
2. Water Main Extension Charge
The water main extension charge is for the construction of a water main extending
to the far side of the property to be served. This charge shall be based on the
prevailing rates of time and material per District approved plans. The customer shall
be responsible to provide the plans and for all applicable Engineering Services
charges described below.
3. Fire Hydrant Installation Charge
Installation charges will be estimated by the District based on availability of District
staff to complete the work and site specific construction conditions and
requirements. If the applicant elects not to have District staff complete the
installation then an administrative fee of 5% of the estimate will be charged.
4. Special Facility Charge
A special facility charge shall be required for development of limited service
whenever special facilities, including pressure regulators are required. The charge
to be made to a developer or owner of land that is considered by the District to be
within a limited service area shall be based upon the developer’s or landowner’s
proportionate share of the cost for the installation of such Special Facility. Such
proportionate share to be borne by the developer or landowner shall be based on
the percentage of such development to the entire limited service area to be served
by the Special Facilities; and the same number of acres or area under normal
conditions and the cost of facilities to serve the acreage of area under special
conditions at a higher cost.
5. Construction Inspection Charge
Where a customer service connection or facility requires inspection by District
personnel, the customer shall be charged for such inspection at the rate of $900.00
per day. When District personnel are not available, inspection will be performed by
third party inspectors retained by the District. The hourly rate for third party
inspectors will be established at the beginning of each third party inspection
assignment.
15
6. Water System Design Charge
A water system design charge shall be required for all main ex tensions, service
connections and/or special facilities requiring the preparation of engineering plans
and drawings. The water system design charge is hereby established as that fee
charged by an engineering firm of the District’s choosing, plus an additio nal 10%
thereof for the District’s administrative costs. In the event the costs exceed the fees
charged, the additional cost will be billed to the customer.
7. Engineering Service Charges
The Engineering Services charge is a fee for the District’s time and ef fort spent on
assisting customers who have a requirement to construct water or sewer main
extensions, or other water and/or sewer facilities, which must meet District needs
and conform to District standards. This fee includes time and effort the District
spends on plan checking, plan and easement development, and all other related
work.
Prior to submission of any documents requiring work by the District, a non -
refundable minimum charge in the amount of 10% of the engineer’s estimated cost
for the project shall be submitted to the District. The work will be accomplished on
a time and effort basis. Should the District require more funds than the original
charge, the additional costs will be billed and must be paid prior to allowing water
and/or sewer service to the project.
8. Sewer Manhole and Valve Can Deposit
A refundable deposit of $1,500.00 per manhole will be charged for each sewer
manhole structure shown on the sewer construction plans. A refundable deposit of
$500 per valve can will be charged for each val ve can as shown on the water
construction plans. These deposits will be returned when all manholes and valve
cans are constructed to final grade by the developer’s contractor and verified by
the District.
As an alternative to the manhole and valve can depo sit, a guarantee bond may be
provided in the same amount as the deposit. The guarantee bond shall contain
covenants that are satisfactory to the District. Such bond shall remain in force until
all manholes and valve cans are constructed to final grade by t he developer’s
contractor and verified by the District.
9. Research Fee (flat rate, 4 hour minimum)
This $200.00 fee will provide funding for engineering staff to conduct research and
provide copies of materials to developer engineers ’ such as plans, easements, and
other development related materials. This would only apply to obtaining information
16
for developers that is unique to their development area and not general information
such as fee schedules or District design standards.
10. Development Meeting Fee (after first meeting)
This $250.00 per hour fee will provide funding for engineering staff to prepare for
and attend, meetings with developers regarding their projects beyond the initial
project consultation meeting and set-up. This fee will impact primarily larger more
complex developments which may require multiple coordination meetings with
staff.
11. Annual Backflow Compliance Test (per device)
A fee of $60.00 will be charged to the developer after newly installed and inspected
devices (performed by District staff) are complete.
12. Backflow Inspection Fee (per inspection)
A fee of $80.00 will be charged for each backflow inspection of newly installed
backflow prevention devices, in accordance with District standards.
13. Water Quality Sampling Fee (per sample)
A fee of $110.00 will be charged for each water quality sample taken for new
construction.
14. New Construction Chlorination and Flushing Fee ($225 minimum to actual cost)
A minimum fee of $225.00 will be charged for new construction disinfection plan
review, inspection, and flushing prior to sampling.
17
Charge or Fee Name Charge/Fee
Front Footage Charge $30.00 (per lineal foot)
Water Main Extension Charge
Fire Hydrant Installation Charge Actual cost or 5% of estimate
Special Facility Charge
Construction Inspection Charge $900.00 (per day) or actual cost
Water System Design Charge Actual cost + 10%
Engineering Service Charges 10% (of Engineer's estimated project cost)
Sewer Manhole and Valve Can Deposit $1,500.00 (per manhole); $500.00 (per valve can)
Research Fee $200.00 (flat rate, 4 hour minimum)
Development Meeting Fee $250.00 (per hour, after first meeting)
Annual Backflow Compliance Test $60.00 (per device)
Backflow Inspection Fee $80.00 (per inspection)
Water Quality Sampling Fee $110.00 (per sample)
New Construction Chlorination and Flushing Fee $225.00 (minimum to actual cost)
18
History of Revisions
DATE
ADOPTED RESOLUTION RESCIND REVISION
DATE
EFFECTIVE
01/25/17 2017.01 2016.05 Update Wastewater Treatment Fees and
Renew 5-Year Pass Through Provision
07/01/17
02/24/16 2016.05 2015.04 Update Wastewater and Miscellaneous Fees 04/01/16
03/25/15 2015.04 2014.32 Implement Water Budget Based Rates 06/01/15
03/25/15 2015.04 Ord 391 Update Wastewater Fees 06/01/15
Exhibit "B"