HomeMy WebLinkAboutAgenda Packet - Finance & Human Resources Committee - 11/27/2017FIN A N C E A N D HUMA N RESO URC ES C O MMIT T EE
November 27, 2017 - 4:00 PM
31111 Greenspot Road, Highland C A 92346
AG E N D A
C A LL TO O RD ER
P LED G E O F A LLEG IA N C E
P UBLIC C O MMEN T S
N E W B U SI N E SS
1.Approve the September 26, 2017 Finance and Human Resources Standing
Committee Meeting Minutes
2.Review Update to C apital Assets Policy 7.4
3.Review Update to Employee Recognition Policy 5.4
AD J O U RN
P LEAS E NO T E:
P urs uant to G o vernment C ode S ectio 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 District C lerk at (909) 885-4900 at leas t 72 ho urs prior
to said meeting.
Page 1 of 2
Minutes 9/26/17 cmk
Subject to Approval
EAST VALLEY WATER DISTRICT September 26, 2017
FINANCE AND HUMAN RESOURCES STANDING COMMITTEE MEETING
MINUTES
Ms. Koide called the meeting to order at 3:33 p.m. and Director Smith led the flag
salute.
PRESENT: Directors: Smith, Morales
ABSENT: Kerrie Bryan, Human Resources/Risk & Safety Manager
STAFF: Brian Tompkins, Chief Financial Officer; Nate Paredes, Business
Services Manager; Rudy Guerrero, Accountant; Christi Koide,
Administrative Assistant
GUEST(s): Consultants from CliftonLarsonAllen LLP (CLA); Members of the
Public
PUBLIC COMMENTS
The Administrative Assistant declared the public participation section of the meeting
open at 3:35 p.m.
There being no written or verbal comments, the public participation section was closed.
APPROVE THE MAY 30, 2017 FINANCE AND HUMAN RESOURCES STANDING
COMMITTEE MEETING MINUTES
M/S/C (Smith-Morales) to approve the May 30, 2017 Finance and Human
Resources Standing Committee meeting minutes as submitted.
AUDITOR’S COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE
The Chief Financial Officer introduced staff from CliftonLarsonAllen LLP (CLA) to review
the District’s draft Communication Letter to those charged with governance; the final
requirement, under Statement of Auditing Standards 114 (SAS 114), for the District’s
audit.
CLA Partner discussed the following: qualitative aspects of accounting policies;
significant issues/findings discussed with management; and financial statement
disclosures.
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Minutes 9/26/17 cmk
REVIEW UPDATE TO THE PURCHASING/PROCUREMENT POLICY 7.1
The Chief Financial Officer gave an overview of this Policy and discussed the following:
responsibilities of staff to comply with this policy; authorization levels for
purchasing/procurement; procurement methods; bid procedures; exemptions from
competitive solicitation; change order process; unauthorized purchases; and
compliance with this policy is subject to review at any time , including by the District’s
external auditors.
DISCUSS UPCOMING FINANCE AND HUMAN RESOURCES STANDING COMMITTEE
MEETINGS
The Committee discussed and established that the next three meetings will be
rescheduled and/or canceled as follows: October 19, 2017 @1:30 pm; November 27,
2017 TBD; and December 26, 2017 meeting is canceled.
ADJOURN
The meeting adjourned at 4:44 p.m.
James Morales, Jr., David E. Smith,
Governing Board Member Governing Board Member
S TAF F R E P ORT
Agenda Item #2.
Meeting Date: November 27, 2017
Dis c ussion Item
To: F I NAN C E AND HUMAN R ES O UR C ES C O MMI T T EE
From: C hief F inancial O fficer
S ubject: R eview Update to C ap ital As s ets P olicy 7.4
R E C O MM E N D AT IO N:
S taff rec ommends that the F inanc e and Human R esources S tanding C ommittee review the attached C ap ital
Assets P o licy 7.4.
B AC KG R O UN D / AN ALYS IS :
T he Eas t Valley Water Dis tric t (Dis trict) is an infras truc ture-bas ed o rganization with o ver $131.3 millio n in net
Water and Was tewater capital as s ets . In addition to the c ap ital ass ets the Dis tric t already owns and o p erates , the
adopted F is c al Year 2017-18 C apital Bud get c o ntains $0.6 millio n in capital outlay expend itures and $6.8 million
in c apital improvement projects fo r a total C apital Budget of $7.4 millio n. T he Dis tric t has mad e, and will
c o ntinue to make inves tments in c ap ital ass ets to ens ure R atep ayers are p rovid ed the highest level o f public
s ervice.
O ne of the Dis trict’s O rganizational End eavors is to “Dedic ate Effo rt To ward S ystem Maintenance and
Mo d ernization,” whic h regularly lead s to the c o nstructio n, ac q uis ition, and maintenanc e o f District infras truc ture
and p roperty. Ad d itionally, the Dis tric t has d evelo p ed a p o licy review s c hedule to ens ure P o lic ies related to
financ ial matters are reviewed on a three-year c ycle. T he C apital As s ets P o lic y has b een s elec ted for review
b ec aus e the las t review was in S ep temb er 2013.
T he attached p olic y defines c riteria to ens ure adequate s tewards hip over Dis tric t res ourc es through c o ntro l and
ac countability o f c ap ital assets . In developing the policy, staff utilized C apitalizatio n T hresho ld s for C apital
Assets , a Bes t P ractic e S tatement published b y the G overnment F inanc e O ffic ers As s oc iation (G F O A).
AGE N C Y ID E ALS AN D E N DE AVO R S:
Id eals and Endeavor I I - Maintain An Enviro nment C ommitted To Elevated P ub lic S ervice
(E) - P ractice transparent & acc o untab le fis cal management
R E VIE W B Y O T HE R S :
T his agenda item has been reviewed by the Ad minis tratio n Department.
F IS C AL IMPAC T :
T here is no fis c al impact ass ociated with this agenda item.
ATTAC H M E NTS:
Description Type
Capital Assets P olicy 7.4 Backup Material
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Capital Assets Policy
Original Approval Date:
September 25, 2013
Last Revised:
December 13, 2017
Policy No:
7.4
Page
1 of 4
Purpose
This policy is established to provide guidelines to ensure adequate stewardship over District
resources through control and accountability of capital assets, and to collect and maintain
complete and accurate capital assets information required for preparation of financial
statements in accordance with generally accepted accounting principles.
Definitions
Capital assets are assets that are owned by the East Valley Water District (District) and are
used in District operations. They may be tangible (such as land, buildings, machinery,
equipment, and vehicles) or intangible (such as easements, software, and water rights).
Characteristically, capital assets:
• Have an initial useful life in excess of two years; and
• Have an acquisition cost of $5,000 or more.
The recorded value of the capital asset includes the purchase price plus sales tax, as well
as costs to acquire (shipping and handling), install (excluding site preparation costs),
secure, and prepare the asset for its intended use. Improvements to an existing asset that
extends the life of the asset are capitalized and depreciated over the remaining useful life
of the related asset.
Meters and service line components are an exception to the $5,000 limit as they are
significantly lower in price, but have esti mated useful lives of at least 10 years.
Policy
A. Improvement/Repair/Maintenance Expenses - Routine repair and maintenance costs
will be expensed as they are incurred and will not be capitalized. Major repairs will
be capitalized if they result in betterments/ improvements to the District’s capital
assets. To the extent that a project replaces the “old” part of a capital asset,
outlays will not be capitalized; and to the extent that the project is
betterment/improvement, outlays will be capitalized.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Capital Assets Policy
Original Approval Date:
September 25, 2013
Last Revised:
December 13, 2017
Policy No:
7.4
Page
2 of 4
B. Capital Improvement Projects - Capital improvement projects are projects with a
useful life greater than 5 years, and an estimated cost of more than $25,000.
Examples include construction or major renovations of buildings or utility systems.
Such projects will be included in the capital budget, rather than in operating. Upon
completion of the project, the value of the asset will be removed from the value of
“construction-in-process” and added to capital asset records and will be
depreciated appropriately.
Procedures
A. Tracking Capital Assets - All assets fitting descriptions of a capital asset shall be
recorded on asset listings maintained by the Finance Department. All asset s that are
disposed shall be removed from said listings.
A physical inventory of tangible capital assets will be taken at least once every five
years and reconciled with accounting records. Plant, automobiles, and other assets
that are reviewed annually for the purpose of maintaining insurance schedules will
be reconciled during the insurance review. Discrepancies between physical and
recorded assets will be investigated.
B. Depreciation Method and Expected Useful Life of Assets - All depreciable assets are
depreciated using the straight-line method of depreciation. Depreciation begins in
the year the capital asset was acquired. The estimated lives of acquired assets are
assigned in the following manner:
Financial Reporting Category Asset Type
Asset Life
(in years)
Land & Easements Land Infinite
Water Rights Water Stock Infinite
Source of Supply Water Wells 30
Source of Supply 30
Transmission and Distribution Reservoir 60
Tank 50
Pipeline 50
Meters & Service lines 20
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Capital Assets Policy
Original Approval Date:
September 25, 2013
Last Revised:
December 13, 2017
Policy No:
7.4
Page
3 of 4
Financial Reporting Category Asset Type
Asset Life
(in years)
Transmission and Distribution Fire Hydrant Meters 20
North Fork Pipeline 50
Pumping Plant Pumping Plant 25
Treatment Plant Treatment Plant 50
General Plant Buildings 50
Land and Building Improvements 15
Office Furniture 7
Software 3
Computers 5
General Equipment 5
Vehicles 5
Heavy Equipment 10
C. Disposal of Surplus Items - The Board adopted Policy 7.1.1 Surplus Property Policy
on June 14, 2017. The Surplus Property Policy addresses the District’s requirements
for proper disposal of property.
Control Procedures for Certain Non-Capital Items
Some assets that do not meet the criteria for capitalization for financial reporting purposes
still require safeguarding in order to ensure their continued availability for use in District
operations. These assets include:
• Items requiring special attention to ensure legal compliance – Legal or contractual
provisions may require a heightened level of accountability over certain items (i.e.
- items acquired with grant funds).
• Items with a heightened risk of theft – Such items are easily transportable, are
readily marketable, and easily diverted to personal use (e.g. – laptop computers).
All non-capital assets meeting these criteria will be recorded on asset listings maintained
by the user department. Specific individuals within the departments should be assigned
the task of maintaining and updating asset listings. Such assignment should be documented
and communicated to the Finance Department.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Capital Assets Policy
Original Approval Date:
September 25, 2013
Last Revised:
December 13, 2017
Policy No:
7.4
Page
4 of 4
At the end of each fiscal year, the responsible individuals will su bmit an updated listing to
the Finance Department with explanations for any changes. The Finance Department will
verify the data reported on the assets listings no less than once every three years.
Terms & Definitions Utilized by the District:
• Capital Asset: Non-financial assets that are used in operations and have an initial
useful life more than one year.
• Capitalization Threshold: The minimum cost which an asset must exceed in order to
be capitalized.
• CIP (Capital Improvement Project): The District defines CIP as a long-term asset
account that accumulates the cost of a project that has not yet been placed into
service.
• Depreciation: The process of allocating the cost of an asset over a period of time.
• Depreciation Method: The District utilizes the straight-line method.
• Intangible Assets: An asset that is not physical in nature. The District most important
intangible asset is water rights.
• Tangible Assets: An asset that has a physical form.
• Useful Life: The amount of time that an asset is expected to provide benefit to the
District.
Revised: December 13, 2017
S TAF F R E P ORT
Agenda Item #3.
Meeting Date: November 27, 2017
Dis c ussion Item
To: F I NAN C E AND HUMAN R ES O UR C ES C O MMI T T EE
From: HR /R is k & S afety Manager
S ubject: R eview Update to Emp loyee R ecognition P olicy 5.4
R E C O MM E N D AT IO N:
T his rep ort is p rovid ed to the F inanc e and Human R es o urces S tanding C ommittee for review and information
o nly.
B AC KG R O UN D / AN ALYS IS :
S ince imp lementing the Employee R ecognition P o lic y, s ome modific atio ns/additio ns have been made to enhanc e
the recognition p ro gram for District emp lo yees and p ro mote a p o sitive o rganizational c ulture.
Mo s t impo rtant to highlight is the change from the Emp lo yee R ecognition C ommittee to the Eas t Valley
Employee Events As s oc iation (E VEEA). T his was not just a ceremo nial name change, ho wever, the group
ac tually fo rmed a 501(c )(4) no n-p ro fit o rganizatio n to promote c haritable ac tivities and p hilanthropy in the
c o mmunity alo ng with employee events and activities to b oost morale.
S ome o ther mo dific atio ns/ad ditio ns includ e:
Up d ates to the Employee o f the Year P ro gram
C larified that the G eneral Manager/C E O and Bo ard of Direc tors are not eligible to nominate
employees fo r awards. T he G eneral Manager/C EO will ap p ro ve the final rec o mmend atio n fro m the
C ommittee.
T he No minating C ommittee will b e referred to as the Employee o f the Year C o mmittee and will now
inc lud e the pas t five Employee of the Year rec ip ients in the selec tio n process rather than the last
three.
Awards and R ecognitio n
Updates were made to inc lude current mo netary values fo r award s and c urrent recognition
vis ib ilities .
Event Attendees
C larified that consultants and contract emp loyees would b e invited to District events at the
d is c retion o f the G eneral Manager/C EO .
AGE N C Y ID E ALS AN D E N DE AVO R S:
Id eals and Endeavor I I - Maintain An Enviro nment C ommitted To Elevated P ub lic S ervice
(B ) - P romote a positive organizational culture
(C ) - Id entify s trategies to attract and retain a high q uality wo rkforce
R E VIE W B Y O T HE R S :
T his agenda item has been reviewed by the Ad minis trative team.
F IS C AL IMPAC T :
T here is no fis c al impact ass ociated with this agenda item.
ATTAC H M E NTS:
Description Type
Emplo yee Reco gnition P olicy 5.4 Backup Material
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Employee Recognition Program
Original Approval Date:
January 21, 2014
Last Revised:
November 27, 2017
Policy No: 5.4 Page
1 of 3
Purpose
East Valley Water District recognizes employees as a valuable asset to the organization,
and that it is important for the spirit of the District to encourage and highlight employees
who consistently demonstrate a commitment to world class public service. Therefore, this
Employee Recognition Program is created to support the District’s strategic goals and
objectives, and will be conducted in accordance with the following guidelines.
Employee of the Year
All regular, full-time, non-probationary employees can nominate for Employee of the Year.
All regular, full-time, non-probationary employees are eligible to receive the award if they
are an employee in good standing with at least a “meets standards” performance review
and no pending disciplinary actions issued within the year.
The following classifications are not eligible to receive awards, however, may nominate
for awards:
• Executive and Senior Management
• Probationary Employees
• Temporary/Part-Time Employees
Each year Human Resources will distribute nomination forms during the month of
November. Nominations shall be submitted to Human Resources with any supporting
documentation by the designated date. Human Resources will verify that each nomination
submitted is an employee in good standing. If a nominated employee is found to not be in
good standing, that nomination will be removed. Human Resources will keep all
nominations sealed and confidential until the Employee of the Year Committee
(Committee) convenes.
The Committee will consist of the prior five (5) years of Employee of the Year recipients.
The Committee members are excluded from submitting nominations, however, they
evaluate nomination forms and make a recommendation to the General Manager/CEO of
who they feel should be selected as Employee of the Year. Upon receiving the approval of
the General Manager/CEO, the Committee will coordinate with Human Resources on the
purchase of the plaque and cash award.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Employee Recognition Program
Original Approval Date:
January 21, 2014
Last Revised:
November 27, 2017
Policy No: 5.4 Page
2 of 3
Those nominating co-workers for Employee of the Year should consider significant
contributions related to the following:
• Demonstrating high ethical standards in job performance.
• Working as an exemplary team member.
• Providing excellent public image/customer service.
• Reliability.
• Acting above and beyond their required job functions.
• Nominee(s) may have initiated change which resulted in greater efficiency or cost
savings in District functions.
Awards & Recognition:
• Recognition for the Employee of the Year
o Employee of the Year plaque and $250 cash award to be presented at the
Annual Awards Banquet.
o Photo of the Employee of the Year to be placed on the District’s Employee of
the Year perpetual plaque.
o Photo and accompanying article will be placed on the District’s website and
annual water quality publication.
• Service Awards
o Employees completing five-year increments of service will receive a service
pin and certificate at the Annual Awards Banquet.
o Employees completing twenty-five years of service will be presented with a
resolution and recognized by the Board of Directors at an East Valley Water
District Board Meeting.
o Employees completing thirty years of service will have the choice of receiving
a $300 cash award or engraved pocket watch at the Annual Awards Banquet.
• New Hires
o All new full-time, regular employees will be introduced to the Board of
Directors at a Board Meeting following their hire date.
East Valley Employee Event Association (EVEEA):
The EVEEA is responsible for the following:
• Planning employee events, including securing event location, creating the menu,
decorations, distributing invitations, and receiving RSVP’s.
• Developing event budget, marketing tickets, administering event finances, and
raising additional funds.
• Developing event program and coordinating to encourage participation.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Employee Recognition Program
Original Approval Date:
January 21, 2014
Last Revised:
November 27, 2017
Policy No: 5.4 Page
3 of 3
• Serving as a supportive function for employees by providing greeting cards, gifts
and/or plants to employees who have recently celebrated a birth, w edding,
retirement, or are grieving a death in the family.
• Developing financial record keeping pursuant to the Chief Financial Officer’s
direction.
• Organizing and facilitating charitable activities on behalf of District employees.
• It is important that the representatives of the EVEEA represent the entire
organization; the General Manager/CEO will ensure appropriate participation with
representatives from varying departments. Employees wishing to join the EVEEA
shall submit a request to the Administration Department. Administration will discuss
the request with the General Manager/CEO and the EVEEA, and will notify the
requesting employee of the decision.
Annual Awards Banquet Guests
Event guests include all District employees or guests designated by the General
Manager/CEO and Board of Directors. Each employee and Director is invited to bring one
guest to the Annual Awards Banquet.
Contract employees and consultants will be invited to participate in District events at the
discretion of the General Manager/CEO.
Policy Approvals
Original Policy adoption: January 21, 2014
Revised Policy adoption: October 24, 2015
Revised Policy adoption: November 27, 2017