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HomeMy WebLinkAboutAgenda Packet - Finance & Human Resources Committee - 04/09/2018F IN A N C E A N D HUMA N RES O URC ES C O MMIT T EE April 9, 2018 - 3:30 PM 31111 Greenspot Road, Highland C A 92346 AGE N D A C A LL TO O RD ER PLED G E O F A LLEG IA N C E PUBLIC C O MMEN T S N E W B U SI N E SS 1.Review Update to Investment Policy 7.6 2.Review Updates to the Compensation and Facility Use Policies 3.Discuss Upcoming Finance and Human Resources Standing C ommittee Meetings AD J O U RN P LEAS E NO T E: P urs uant to G overnment C ode S ec tion 54954.2(a), any reques t for a dis ability-related modification or ac commodation, including auxiliary aids or services, that is s ought in order to partic ipate in the above- agendized public meeting should be direc ted to the District C lerk at (909) 885-4900 at least 72 hours prior to said meeting. S TAF F R E P ORT Agenda Item #1. Meeting Date: April 9, 2018 Disc ussion Item To: F I NANC E AND HUMAN R ES O UR C ES C O MMI T T EE F rom: C hief F inancial O ffic er Subject: R eview Update to Inves tment P olicy 7.6 R E C OMME N D AT ION: S taff rec o mmends that the F inance and Human R es ourc es C ommittee (C o mmittee) review R esolution 2018.08 updating the S tatement of Inves tment P olicy 7.6 (P olic y) for fisc al year 2018-19. B AC KG R OUN D / AN ALYS IS: California G overnment C ode section 53646(a) requires that the C F O /T reasurer of a local agency annually render to the legislative body a Statement of Investment P olicy for consideration at a public meeting. P reviously, in April of 2017, staff presented to the B oard the P olicy that had been revised in accordance with suggestions resulting from a peer review by members of the C alifornia M unicipal T reasurers Association (C M TA). T he B oard adopted the revised P olicy, which was again submitted to the C M TA for review. I n O ctober 2017, the D istrict was notified that the P olicy had been awarded C ertification for compliance with state statutes governing investments of California local governments. A copy of the C ertification is attached. With the Certification, the C M TA reviewers had some additional minor suggestions which have been incorporated into the P olicy now submitted for the C ommittee’s review. C hanges to the P olicy can be found in the following sections: Ethics and C onflic ts o f Interes t (p age 3) - all p arties that p artic ip ate in a Dis tric t bond is s ue are not lis ted. Authorized Investments - LAI F (page 4) - the maximum deposit allowed by LAI F is now disc los ed. Internal C o ntro ls (p age 9) - T he Dis tric t C F O /Treasurer is not delegated the res pons ib lity for es tablishing internal c ontrols over investments . AG E N C Y G O ALS AN D O B J E C T IVE S : G oal and O bjectives I I - Maintain a C ommitment to S ustainability, Transparency, and Acc ountability a) P rac tic e Trans parent and Acc ountable F is cal Management R E VIE W B Y O T HE R S : T his agenda item has been reviewed by the Administration Department. F IS C AL IMPAC T T here is no fisc al impac t as s ociated with this agenda item. ATTAC H M EN TS: Description Type Attachments-Investment P olicy Backup Material East Valley Water District Resolution 2018.08 Page 1 of 2 RESOLUTION NO. 2018.08 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/CEO 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. 2016.10 adopted by the Board of Directors of the District on April 27, 2016. This Resolution shall take effect on July 1, 2017. PASSED, APPROVED and ADOPTED this 25th day of April, 2018 ROLL CALL: Ayes: Noes: Absent: Abstain: Ronald L. Coats, Board President East Valley Water District Resolution 2018.08 Page 2 of 2 April 25, 2018 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2018.08 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held April 25, 2018. John Mura, Secretary, Board of Directors EXHIBIT "A" Statement of Investment Policy 7.6 EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 25, 2018 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 (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 whi ch 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 agree ments 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: EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 25, 2018 Policy No: 7.6 Page 2 of 15 • Structuring the investment portfolio so that securities mature to meet 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 conditi ons 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 Original Approval Date: July 22, 2015 Last Revised: April 25, 2018 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 m arket 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 (CFO)/Treasurer. Such delegation shall expire and be renewed annua lly, 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 a bsence 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 pro cedures 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. All bond issue participants, inc luding but not limited to, underwriters, bond counsel, financial advisors, brokers, and dealers will disclose any fee sharing arrangements or fee splitting to the CFO/Treasurer prior to the execution of any transaction. Authorized Broker-Dealers EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 25, 2018 Policy No: 7.6 Page 4 of 15 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 u nder Securities and Exchange Commission Rule 15C33-1 (uniform net capital rule). 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 depos itory 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 s: 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, however, LAIF does impose a maximum deposit of $65 million. 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 Fed eral agencies or United States government sponsored enterprises (CGC §53601(f)). Maximum maturity is limited to EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 25, 2018 Policy No: 7.6 Page 5 of 15 five years. There is no limitation as to the 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 Ca lifornia (CGC §53630 et. Seq.). A written depository contract is required with all institutions that hold District deposits 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 EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 25, 2018 Policy No: 7.6 Page 6 of 15 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)). Securities must have a debt rating of at least ‘AA’ by an Nationally Recognized Statistical Rating Organization (NRSRO). Maximum maturity is limited to five years from the 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 St ates 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 an y state and operating within the United States (CGC §53601(k)). EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 25, 2018 Policy No: 7.6 Page 7 of 15 Securities eligible for investment under this section shall be rate d ‘“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 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 D istrict’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 non-compliance identified through the review of the portfolio. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 25, 2018 Policy No: 7.6 Page 8 of 15 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. 2. A description of interest calculation and how it is distributed, and how gai ns 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 Distric ts custodial bank, and evidenced by safekeeping receipts. Diversification and Maximum Maturities EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 25, 2018 Policy No: 7.6 Page 9 of 15 The District will diversify its investment by security type and institution. With the exception of the US Treasury securitiesGovernment, its agencies and instrumentalities, and the Local Agency Investment Fund or other authorized pools, no more than 305% 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. Internal Controls The CFO/Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the District are protected from loss, theft , or misuse. The internal control structures shall be designed to provide reasonable assurance that these objectives are met. Internal controls shall be in writing and shall address the following: separation of transaction authority from accounting and record keeping, safekeeping of assets and written confirmation of telephone transactions for investments and wire transfers. 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 i s 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. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 25, 2018 Policy No: 7.6 Page 10 of 15 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 by the Board. 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. 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 b orrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 25, 2018 Policy No: 7.6 Page 11 of 15 Comprehensive Annual Financial Report (CAFR): The official annual report of the (East Valley Water District). It includes five c ombined statements for each individual fund and account group prepared in conformity with Generally Accepted Accounting Principles (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. 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. 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. 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). EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 25, 2018 Policy No: 7.6 Page 12 of 15 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 comp anies. 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 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 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 region al 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 siz e 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. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 25, 2018 Policy No: 7.6 Page 13 of 15 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 transaction s. 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. 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. 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. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 25, 2018 Policy No: 7.6 Page 14 of 15 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 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, and 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. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 25, 2018 Policy No: 7.6 Page 15 of 15 Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among 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. Revised: April 25, 2018 EXHIBIT "B" CMTA Certification S TAF F R E P ORT Agenda Item #2. Meeting Date: April 9, 2018 Disc ussion Item To: F I NANC E AND HUMAN R ES O UR C ES C O MMI T T EE F rom: HR /R isk & S afety Manager Subject: R eview Updates to the C ompensation and F acility Us e P olic ies R E C OMME N D AT ION: S taff rec o mmends that the F inanc e and Human R esources S tanding C o mmittee review the revis ed C ompens ation P rogram and F ac ility Use P olicies. B AC KG R OUN D / AN ALYS IS: S taff regularly cond uc ts comprehens ive reviews of ad ministrative polic ies and programs to determine if revisions are needed to imp ro ve the effec tiveness o r c larity of the polic y o r program. T he following were determined to need revis ion at this time: C ompensation P rogram P ay for P erformanc e C hanges – T his revis ion reflec ts P ay fo r P erformance c hanges ap p ro ved by the Board with the Memorand um of Und ers tand ing Between the East Valley Water Dis trict and the Eas t Valley Water Dis tric t Employee P artners hip 2017 - 2020 and the Non-R ep res ented Emp lo yees S alaries , Benefits, and R elated P rograms 2017 – 2020 document. Minor revis ions to terminology and formatting were als o included. F acility Us e P olic y Alcohol F ee revised to cons is t o f a c o s t range for b artend ers and s ecurity guards b as ed up o n the number of attendees and type of event. AG E N C Y G O ALS AN D O B J E C T IVE S : G oal and O bjectives I I - Maintain a C ommitment to S ustainability, Transparency, and Acc ountability a) P rac tic e Trans parent and Acc ountable F is cal Management R E VIE W B Y O T HE R S : T his agenda item has been reviewed by the Administrative team. F IS C AL IMPAC T T here is no fisc al impac t as s ociated with this agenda item. ATTAC H M EN TS: Description Type 2.3 Compensation P olicy 2018 with revisions Backup Material 6.4 Facility Use P olicy - with revisions Backup Material EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Compensation Program Original Approval Date: July 8, 2015 Last Revised: March 12May 9, 2018 Policy No: 2.3 Page 1 of 4 Purpose The East Valley Water District Compensation Program is designed to attract, retain, motivate, and reward the best possible work force in an equitable manner. To accomplish this, the District has established the following plan, provisions, and standards for employee compensation. Program The Compensation Program is designed to fairly compensate each employee at a salary that is determined by individual performance, funding, the competitive job market, job responsibilities, and the required level of expertise. The compensation program includes base salary, a Pay for Performance incentive component, and a competitive benefit program. Salary Ranges Salary ranges will exist for all classifications. Each range shall have five (5) steps, two and a half percent (2.5%) between steps. The salary ranges shall be established based on the competitive market median less five percent (5%). In order to maintain a competitive position within the labor market, the District shall consider adjustments to salary ranges. Adjustments to the ranges shall be based upon marketplace data and budget considerations. Adjustments to individual salaries based on range movement are not automatic. An employee must “meet expectations” in order to receive a step increase. If an employee “does not meet expectations” on the Performance Evaluation then a step increase may not be granted. Employee Increases A designated supervisor shall be responsible for 1) the annual review of each employee’s performance; and 2) recommendations for employee salary increases. Increase recommendations shall be within the District’s annual salary budget guidelines and based on the individual employee’s performance. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Compensation Program Original Approval Date: July 8, 2015 Last Revised: March 12May 9, 2018 Policy No: 2.3 Page 2 of 4 Guidelines for recommending increases: ➢ Range Minimum is the portion of the range where a new or less experienced employee would be placed. Progress through the range would occur as an employee moves towards the fully competent level (maximum of the range). There may be circumstances, such as hiring a highly experienced individual, which would warrant salary placement near or at the range maximum. Exceptions must be approved by the General Manager /CEO. ➢ The Range Maximum is the position of the salary range where an employee may normally expect to progress. Most employees will achieve and maintain a salary at this point of the range (fully competent). The achievement of full competency is determined by the ability to meet standards in the District’s core competencies and achievement of individually determined goals for the review period. Annual Increase Guidelines: Adjustments to an employee’s salary will be made based on the results of the Performance Evaluation. Salary adjustments shall be based on achievement of core competencies and goals and objectives. If an employee is evaluated as “meets expectations” or better, and is not yet at the top of the range, the employee will be granted a step advancement within 3 0 days of the annual performance review cycle. Timing of Increases Salary increases will be considered on an annual basis, in conjunction with the District’s fiscal year performance review cycle in July of each year. Start Salary Human Resources, in collaboration with the hiring manager, will determine the start rate of pay within the established range for a newly hired employee. New Hires • An employee shall be eligible for advancement in step at the satisfactory completion of his/her twelve (12) month probationary period as indicated on the Performance Evaluation. Advancement in step may be denied in the event of an extension of probation or an imposition of discipline. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Compensation Program Original Approval Date: July 8, 2015 Last Revised: March 12May 9, 2018 Policy No: 2.3 Page 3 of 4 • Individuals passing probation during the first nine (9) months of the annual rating period (July 1 – March 31) will be eligible to participate in the current District - wide annual performance review cycle (example below). o Employees hired from July 1st through March 31st Month of hire: January 2015 1st step increase: January 2016 2nd step increase: July 2016 – now on the District-wide annual performance review cycle Pay for Performance program eligibility begins: July 2016 • Individuals passing probation within the last three (3) months of the rating period, April 1st – June 30th (4th quarter) will be eligible to participate in the following year’s annual performance review cycle (example below). o Employees hired during the 4th quarter of the year April 1st through June 30th Month of hire: April 2015 1st step increase: April 2016 2nd step increase: July 2017 Pay for Performance program eligibility begins: July 2016 Promotions If an individual is promoted within the review period, performance in both positions will be evaluated for Pay for Performance purposes. Pay for Performance Program Guidelines: The Pay for Performance Program is a discretionary incentive program that allows for up to an additional five ten percent (10 5%) of base salary for management and five percent (5%) of base salary for all other employees, aligned with the performance review cycle, to be paid out annually in lump sum form for exceptional performance. Employees are eligible for the program upon completion of probation. Pay for Performance is utilized for those employees whose performance consistently meets or exceeds expectations as defined by efforts toward divisional and personal goal achievement, successful ratings on evaluation core competencies, and for those who have been identified as giving world class customer service, have estab lished more efficient business processes, or generate ideas resulting in cost savings for the District. An employee must at least “meet expectations” in all core competencies on their annual Performance Evaluation to be eligible for this program. It is at the supervisor’s discretion EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Compensation Program Original Approval Date: July 8, 2015 Last Revised: March 12May 9, 2018 Policy No: 2.3 Page 4 of 4 to determine the percentage recommendation for their staff’s Pay for Performance incentive. Also, an employee may not have received formal discipline during the rating period to be considered eligible for this program. ➢ Employees with performance that either “Meets Expectations,” “Exceeds Expectations,” or “Far Exceeds Expectations,” will have the opportunity to participate in the Pay for Performance Program and have the potential to earn a lump sum payment of up to 5% of base salary for employees and up to 10% of base salary for management. ➢ If base pay is above the maximum: Employees with pay frozen at or above the maximum of their range and perform at “Meets Expectations,” “Exceeds Expectations,” or “Far Exceeds Expectations,” will have the opportunity to participate in the Pay for Performance Program and have the potential to earn a lump sum payment up to 5% for employees and up to 10% for management above the range maximum. Pay for Performance Evaluation Procedure: The process for the Pay for Performance evaluation is as follows: 1) Core competencies, goals and objectives will be determined at the beginning of the fiscal year. 2) Supervisors and managers will meet with staff to communicate Department and individual goals and recommended actions staff should take to achieve these goals. 3) Prior to the end of the rating period (June 30th), staff will be asked to complete a self-evaluation relating to the core competencies, goals and objectives for their supervisor to review. 4) At the end of the rating period, a separate Pay for Performance evaluation will be completed to document each employee’s accomplishments relative to the competencies, goals and objectives to determine eligibility and percen tage recommended for incentive pay. Revised: April 26, 2016 September 27, 2017 March 12May 9,, 2018 EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Facility Use Policy Original Approval Date: May 28, 2014 Last Revised: May 9, 2018 Policy No: 6.4 Page 1 of 7 Purpose The purpose of this policy is to provide guidelines for the use of East Valley Water District facilities by both staff and outside organizations. It is intended to ensure that the use of the facility is granted in a fair and equitable manner for meetings, activities, and events, which are recreational, social, and/or civic in nature, offering services of interest and need to the community. Fees charged for the use of the facility are intended to reflect operation costs of each event. Policy The East Valley Water District (District) Headquarters campus (facility) has a 2,740 square- foot Board Room owned and operated by the District at 31111 Greenspot Road. The facility consists of the Board Room, which could also serve as a meeting space, reception hall, etc., outdoor meeting space, parking lot, and kitchen amenities. These areas are available in accordance with the terms of this Facility Use Policy, which is administered by the Public Affairs Division of East Valley Water District. Board Room-theater capacity: 150 Board Room-dining capacity: 120 Policy Approvals Original policy adoption: May 28, 2014 Revised policy adoption: January 13, 2016 Revised policy adoption: September 13, 2017 This policy shall be reviewed by the Board of Directors at least every two years, and may be revisited sooner should the need arise. Application Procedures A.An individual or representative of a group (Applicant) may inquire about the availability of a specific room, date and time as well as rental rates by telephone or in-person at the facility during regular business hours. An available date cannot be held for possible use by making an inquiry. B.An individual or representative of a group can hold a date for possible use by making an appointment with staff to submit a written application, to sign the contract, and to pay the required deposit for a specific room, date and time. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Facility Use Policy Original Approval Date: May 28, 2014 Last Revised: May 9, 2018 Policy No: 6.4 Page 2 of 7 C.All applicants must complete an East Valley Water District Facility Use Application (Application) and pay all applicable fees at the time of submitting the application. D.The applicant shall be classified and assigned a Group in accordance with the definition and priority rankings set forth in the section titled Group Priority Rating. E.Hours of operation are limited to staffing and scheduling availability at the District’s discretion. A one (1) hour clean-up may be requested at the end of each event for no additional charge. Time needed for set up of the event is to be reflected with the rental hours. F.Observed Holidays- Thanksgiving, Christmas Eve, Christmas Day, New Year’s Eve, New Year’s Day, Memorial Day, Labor Day, and Independence Day. No use shall be scheduled on observed holidays without written District approval. G.Upon approval of an application, the applicant may not transfer, assign, or sublet use of the Facility or apply for use on behalf of another person or organization. H.Applications shall be accompanied by proof of liability insurance consistent with the provisions of this Use Policy, a refundable cleaning deposit, and fees per the attached fee schedule. I.The District reserves the right to suspend use of a facility to those groups or individuals not complying with established rules and regulations. If event is found to be out of compliance, the applicant forfeits the deposit(s). J.The District reserves the right to cancel a permit issued for any event or activity. In the event of such a cancellation, notice shall be given as far in advance as possible and a full refund will be made. Please note that this facility has been designated as an emergency facility, which could result in event cancellation should an emergency occur. K.The applicant must check-in with the District’s on-site staff at the beginning time of the reservation and must be present for the duration of the event. Applicant must also checkout with on-site staff at the conclusion of the reservation and clean-up. Applicant must serve as or designate a point of contact for District staff during the event. L.Neither the District nor their agents, officials, employees, and/or volunteers will be held responsible for loss, damages or theft of equipment or articles owned by the applicant and/or guests. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Facility Use Policy Original Approval Date: May 28, 2014 Last Revised: May 9, 2018 Policy No: 6.4 Page 3 of 7 Group Priority Rating A.An individual or group seeking permission to utilize the Facilities will be classified in one of the following priority groups. These classifications are used to establish 1)priority of use, 2) applicability of a fee, and 3) amount of the fee, if any. The priority groups are as follows: a.Group A- Activities conducted and or sponsored by East Valley Water District b.Group B- Activities conducted by governmental agencies c.Group C- Non-profit service organizations or organizations sponsoring a public forum or candidate’s night, District residents, and District employees. B.Priority for use of the facility will be in alphabetical sequence, with Group A applicants receiving highest priority and Group C applicants the lowest priority. District customers that fall under Group C must provide proof of residency. Liability and Insurance A.All users of the facility shall procure and maintain, at their own expense and for the duration of the event covered, comprehensive general liability and property damage liability insurance, against all claims for injuries against persons or damages to property which may arise from or in connection with the use of the facility by the user, its agents, representatives or employees in the amount of one million dollars ($1,000,000) combined single limit and hold East Valley Water District harmless for any damage or injury. B.East Valley Water District must be named as “additional insured”. C.If alcohol is to be served, insurance coverage shall include coverage for serving alcoholic beverages. D.Liability and Insurance is due to District staff thirty days prior to the event rental date. General Operating Regulations A.Tobacco use of any kind or smoking is not permitted in the Facility. B.Incense, fog, hazer or smoke use is not permitted in the Facility at any time. Fire and open flame are strictly prohibited. Sterno heaters for food warming are allowed without a permit so long as heaters are placed under a chafing dish on a table with no guests seated at the table. C.Animals are not permitted inside the Facility except those designated as service animals. D.Any user group desiring to charge an admission fee and/or donation or sell any items must submit a written request with the Facility Use Application and receive written authorization from the District. Additional insurance may be required. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Facility Use Policy Original Approval Date: May 28, 2014 Last Revised: May 9, 2018 Policy No: 6.4 Page 4 of 7 E.Illegal activities shall not be permitted. All groups and individuals using the Facility shall comply with City, County, State, and Federal laws. Fighting, gambling, and lewd conduct are prohibited. F.Amplified music and/or sound systems, including public address systems, DJ’s, karaoke, bands, will not be permitted without prior written approval. G.Advertising materials may be left with the District for approval and may be displayed when deemed appropriate and as space permits. Any items posted which have not been approved will be removed and discarded. H.No signs or decorations are to be taped, nailed or otherwise attached to walls, windows, ceilings, or window coverings. No rice, birdseed, confetti, or similar items shall be thrown in or around the facility. Balloons must be secured and not released. No hay bales. I.Clean-up is the user’s responsibility. This includes the wiping of table tops and chairs, picking up trash from the areas used during the event and disposing of trash into proper receptacles, and removal of all user-owned or leased (non-District owned) items. Storage is not provided at the Facility. J.Food and beverage must remain in designated areas. K.Kitchen facilities, if applicable, are available for use. Use of ovens, refrigerators, etc. may be used only with specific advance approval and with the appropriate fee and deposits. Renters must provide all kitchen utensils. L.The District shall have the right to control and operate the Facility, including heating and air conditioning systems and common use areas, in a manner deemed best by the District. The District shall not rent, lease, or allow use of its public facilities by any person or organization that illegally discriminates based on race, religion, sex (including gender, gender identity, gender expression and pregnancy), national origin, ancestry, disability, medical condition, genetic characteristics or information, marital status, age, sexual orientation (including homosexuality, bisexuality, or heterosexuality), or any other protected classification as protected by law. M.Special events or requests not covered in this Use Policy must be submitted in writing and shall be reviewed by the Public Affairs Department to determine appropriate use, fees, and services. N.In the event of damage, destruction or defacement, the applicant shall be liable for all expenses required to repair, restore, or replace the facility’s furnishing, or equipment to its original condition. Any costs associated with this will be deducted from the deposit(s). If the cost of damage is greater than the deposit, we will defer to the insurance policy for coverage. Alcoholic Beverage Use and Service A.The use of alcohol in the Facility is exclusively by written permission in advance and must comply with applicable law and provisions of this Use Policy. Failure to comply EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Facility Use Policy Original Approval Date: May 28, 2014 Last Revised: May 9, 2018 Policy No: 6.4 Page 5 of 7 with any regulations will result in immediate revocation of the permission to use alcohol and termination of the event. Additional regulations and specifications may be required in the facility use permit for any event. a.“Alcohol use” refers to any beverage that contains any amount of alcohol. b.Security is required to be present at all events at which alcohol is served. Cost of the security is the responsibility of the user and payable to East Valley Water District. Events with over 150 guests, two guards will be required. Events may be required to have additional security, as determined by the District. c.Alcohol shall not be served to minors. The user’s failure to comply, monitor and enforce this provision is grounds for terminating the activity immediately and forfeiture of the refundable deposits and all the room fees. d.Permission to serve alcohol shall not be granted for any event where a majority (50% plus one) of guests in attendance will be under the age of 21. e.Alcohol may not be served or consumed in the parking lot. B.The service of alcohol at any event is limited to a maximum of five (5) consecutive hours. Serving of any alcoholic beverage must end one (1) hour before the close of the event. C.All alcohol must be distributed by a server from behind a table or bar, which must be monitored at all times. The server(s) must be an adult, over the age of 21 who is to be responsible for ensuring that no minors are served and that no guests are over-served. The server may not consume alcohol while on duty. a.The server will be provided by the District. The cost of the server is the responsibility of the user and payable to East Valley Water District. b.Additional requirements may be needed for no-host bar events. D.License Requirements (when alcohol is to be sold) a.No sales or requests for donations for alcohol are permitted without a license from the State Alcoholic Beverage Control Board (ABC). i.State Alcoholic Beverage Control Board is located at 3737 Main Street, Suite 900, Riverside, California 92501. Their telephone number is (909) 782-4400. b.A copy of your contract must be furnished to ABC when applying for this license. c.A copy of the ABC license must be furnished to the District a minimum of seven (7) working days prior to the event and posted in plain view near the bar or where alcohol is being served. d.A one-day alcoholic beverage permit can only be issued to a non-profit organization and only if the proceeds are going back to the non-profit organization. e.Private parties shall not sell alcohol on their own, but must arrange this through a licensed caterer. The caterer must have a License (Type 47 or 48), which enables the caterer to sell beer, wine and distilled spirits (hard liquor). If the EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Facility Use Policy Original Approval Date: May 28, 2014 Last Revised: May 9, 2018 Policy No: 6.4 Page 6 of 7 caterer does not have this license the private party cannot sell alcohol, NO EXCEPTIONS. It is illegal for a private party to sell alcohol on their own. E.Injuries or damage caused to any person or property as a result of alcoholic beverages being served and/or consumed on District properties shall be the sole responsibility of the organization, its sponsor or the adult representative, who, as a condition of signing the use permit for the facility agree to indemnify the District for any such injury or damage. Equipment Use A.The District has a variety of equipment that can be requested for use at the Facility on a first come, first served basis. B.Tables and chairs will be included as part of the paid facility rental with the exception of the outside and lobby areas. Other amenities and equipment potentially available include: podium, overhead projector, projector screen, microphone, coffee pot. C.Kitchen amenities include: oven, refrigerator, dishwasher, counter space, microwave, and sink. Fees & Deposits A.To hold a date, a minimum deposit of 50% of the total fee must be made at the time of the reservation. The remaining balance due must be paid 30 days prior to the reservation date. All fees are payable to East Valley Water District. B.Activities, other than meetings where no food is served, require a $100 security deposit that must be paid at the time of reservation. C.A security guard(s) are required for events that are serving alcohol. The fees are based on a vendor contract and are subject to change. D.A server is required for events that are serving a host bar and will be provided by the District. The fees are based on a vendor contract and are subject to change. E.If the request for facilities is not approved, all initial deposit(s) will be returned within three (3) weeks of the denial. F.All facility use cancellations must be made by the Applicant at least five (5) working days in advance of the scheduled event. Failure to do so may result in a 10% loss of the fees paid to reserve the facility or $100, whichever is greater. G.The user shall be required to pay the full cost of breakage or damage (over and above the deposited funds), regardless of the amount. If damage occurs and it is less than the deposit, the difference shall be refunded. H.Deposit refunds will be processed within three (3) to six (6) weeks after event and will be sent in the form of a check to the applicant. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Facility Use Policy Original Approval Date: May 28, 2014 Last Revised: May 9, 2018 Policy No: 6.4 Page 7 of 7 Linens, cutlery, and decorations are not included with the room rental fee. Variance A.An applicant may request a variance from one or more of the rules set forth in this policy in writing at the time of the Facility Use Application. The request must set forth the unusual circumstances that justify a deviation from the ordinary rules. B.In the event a variance is granted, the applicant will pay any supplemental fee necessary to compensate the District for additional costs associated with the variance. Denial of a variance may be appealed within ten days to the General Manager/CEO. The General Manager/CEO’s decision will be final. Fee Schedule Group A Group B Group C Facility Use (Flat fee) No Charge (NC) $375/event $375/event Facility Use Rental (Hourly fee) NC NC $120/hour Security Deposit NC $100 $100 Alcohol Deposit** NC $500 $500 *Group C pays an hourly facility use fee in addition to the facility use flat fee **A security guard(s) and server is required for events that are serving host alcohol †Pass through fee based on vendor contract Additional Amenities Alcohol Fee† (Includes Security Guard and Bartender) Up to 150 guests † NC Ranges from $75/Hour to $120/Hour Based on Event $267.50/event $267.50/event Alcohol Fee† 150+ guests † NC $360/event $360/event Microphone/Projector Deposit NC NC $50 Flags NC NC NC Podium NC NC NC Tables and Chairs Set-up NC NC $100 Heaters NC NC $30/each Revised: January 13, 2016 May 9, 2018