HomeMy WebLinkAboutAgenda Packet - Finance & Human Resources Committee - 10/03/2018F IN A N C E A N D HUMA N RES O URC ES C O MMIT T EE
October 3, 2018 - 3:30 P M
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.Approve the J anuary 23, 2018 Finance and Human Resources Standing C ommittee
Meeting Minutes
2.Approve the February 27, 2018 Finance and Human Resources Standing C ommittee
Meeting Minutes
3.Review Auditor's C ommunication Letter with those C harged with Governance
4.Review Policy and Programs Manual and Board of Director's Handbook
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.
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Minutes 1/23/18 cmk
Subject to Approval
EAST VALLEY WATER DISTRICT January 23, 2018
FINANCE AND HUMAN RESOURCES STANDING COMMITTEE MEETING
MINUTES
Ms. Koide called the meeting to order at 3:31 p.m. and Ms. Bryan led the flag salute.
PRESENT: Directors: Coats, Morales
ABSENT: None
STAFF: Brian Tompkins, Chief Financial Officer; Kerrie Bryan, Human
Resources/Risk & Safety Manager; Justine Hendricksen, District
Clerk; Nate Paredes, Business Services Manager; Christi Koide,
Administrative Assistant
GUEST(s): Members of the public
PUBLIC COMMENTS
The Administrative Assistant declared the public participation section of the meeting
open at 3:33 p.m.
There being no written or verbal comments, the public participation section was closed.
APPROVE THE OCTOBER 19, 2017 FINANCE AND HUMAN RESOURCES STANDING
COMMITTEE MEETING MINUTES
M/S/C (Morales-Coats) to approve the October 19, 2017 Finance and Human
Resources Standing Committee meeting minutes as submitted.
UPDATES TO THE BOARD OF DIRECTORS’ EVALUATION POLICY AND THE GENERAL
MANAGER/CEO EVALUATION POLICY
In December 2016, staff presented two policies to the Board of Directors; the Board of
Directors’ Evaluation Policy; and the General Manager/CEO Evaluation Policy. The
Human Resources/Risk & Safety Manager explained that the only change to the Board
of Directors’ Evaluation Policy is to schedule evaluations for the Board of Dir ectors
every two years during even-numbered years in accordance with the statewide general
election held in November (EVWD Resolution 2017.05).
The Human Resources/Risk & Safety Manager explained the following changes made to
the General Manager/CEO Evaluation Policy: General Manager/CEO will complete and
submit to the Board of Directors a self-evaluation annually; the Board of Directors will
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Minutes 1/23/18 cmk
have the option to amend or extend the General Manager/CEO’s contract, and if so, a
360-degree evaluation will be completed and include ratings by senior management
and/or subordinate staff.
DISCUSS UPCOMING FINANCE AND HUMAN RESOURCES COMMITTEE MEETINGS
The next scheduled meeting dates are scheduled/rescheduled as follows: February 27,
2018 @3:30 p.m.; March 12, 2018 @3:30 p.m.
Discussed changing the regularly scheduled meeting days from the fourth Tuesday of
every month to the second Tuesday, starting in April.
ADJOURN
The meeting adjourned at 3:47 p.m.
James Morales, Jr., Ronald L. Coats,
Governing Board Member Governing Board Member
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Minutes 2/27/2018 ETB
Subject to Approval
EAST VALLEY WATER DISTRICT February 27, 2018
FINANCE AND HUMAN RESOURCES STANDING COMMITTEE MEETING
MINUTES
Ms. Bateman called the meeting to order at 3:30 p.m. and Director Morales led the flag
salute.
PRESENT: Directors: Smith, Morales
ABSENT: Kerrie Bryan, Human Resources/Risk & Safety Manager
STAFF: John Mura, General Manager/CEO; Brian Tompkins, Chief Financial
Officer; Justine Hendricksen, District Clerk; Eileen Bateman, Senior
Administrative Assistant
GUEST(s): None
PUBLIC COMMENTS
The Senior Administrative Assistant declared the public participation section of the
meeting open at 3:31 p.m.
There being no written or verbal comments, the public participation section was closed.
REVIEW THE FY 2017-18 MID-YEAR BUDGET REVISIONS
The Chief Financial Officer discussed the District’s budget to date including the water
fund summary, water sales, wastewater fund summary, and department goals. He
provided a detailed review of the District’s Capital Outlay, proposed adjustments to
the Capital Improvement Plan, and proposed staffing changes for the Administration,
Public Affairs, Finance, and Engineering Departments. He also provided an overview of
the District’s recent accomplishments.
ADJOURN
The meeting adjourned at 4:20 p.m.
James Morales, Jr., Ronald L. Coats,
Governing Board Member Governing Board Member
S TAF F R E P ORT
Agenda Item #3.
Meeting Date: O c tob er 3, 2018
Dis c ussion Item
To: F I N ANC E AND HUMAN R ES O UR C ES C O MMI T T E E
F rom: C hief F inancial O fficer
Subject: R eview Audito r's C o mmunication Letter with those C harged with G o vernanc e
R E C O MME N D AT IO N:
S taff rec o mmends that the F inance and Human R es o urc es S tanding C ommittee (C ommittee) review the
Aud itor C o mmunic ation Letter fro m C lifto n Lars o n Allen LLP (C LA) and the d raft C o mp rehensive Annual
F inanc ial R ep o rt (C AF R ) fo r F is cal Year 2017-18.
B AC KGR O UN D / AN ALYS IS :
O n July 10, 2018 C LA met with the C ommittee to review the auditing s ervic es to be provid ed during the aud it
fo r fis c al year ended June 30, 2018.
In ad d ition, C LA d es cribed the proc edures that were to b e used to perfo rm their aud it in acc o rd ance with
generally ac cepted auditing standard s (G AAS ).
No w that the aud it is c omplete the final requirement under S tatement o f Auditing S tand ard s 114 (S AS 114) is for
the aud itors to c o mmunic ate to those charged with go vernance:
T heir views abo ut q ualitative aspec ts o f the entity's signific ant ac counting prac tic es, inc luding acc o unting
p o lic ies , acc o unting es timates , and financ ial statement dis c lo sures
S ignific ant difficulties, if any, enc o untered during the aud it
Uncorrec ted misstatements , o ther than tho s e the aud itor b elieves are trivial, if any
Disagreements with management, if any
O ther findings or is s ues , if any, aris ing fro m the audit that are, in the audito r's p ro fes sional judgement,
s ignific ant and relevant to thos e charged with governance regarding their o vers ight of the financial
rep orting proc ess
Als o attached is a preliminary draft o f the 2017-18 C AF R fo r the C o mmittee’s review. T he 2017-18 C AF R will
receive an unmodified opinion fro m C L A. An unmodified opinio n ind ic ates the financ ial d ata of the Dis trict is
p res ented fairly ac c ording to G AAP. In ad d ition, the Dis tric t will apply fo r the G o vernment F inance O fficers
As s o ciation (G F O A), C ertific ate o f Ac hievement for Exc ellenc e in F inancial R ep o rting to ens ure the Dis tric t’s
C AF R o nc e again meets high s tand ards in go vernmental ac counting and financial reporting. Eas t Valley Water
Dis tric t has rec eived the G F O A award for s ix c o ns ec utive years and the prior year c ertificate is inc lud ed in the
2017-18 C AF R report.
R ecommended b y:
Jo hn Mura
G eneral Manager/C EO
R espec tfully sub mitted:
Brian Tomp kins
C hief F inancial O ffic er
AG E N C Y G O ALS AN D OB J E C T IVE S :
G o al and O bjec tives I I - Maintain a C ommitment to S us tainab ility, Transparenc y, and Ac c o untability
a) P rac tice Trans parent and Ac countab le F is cal Management
R E VIE W B Y O T HE R S :
T his agenda item has been reviewed by the Ad minis tratio n and F inanc e Departments.
F IS C AL IMPAC T
T here is no fis cal impac t as s o c iated with this agend a item.
ATTACH M E N TS:
Description Type
SAS 11 4 Conclusion Backup Material
Draft CAFR 201 8 Backup Material
Board of Directors
East Valley Water District
Highland, California
We have audited the financial statements of the East Valley Water District (the District) as of and for the
year ended June 30, 2018, and have issued our report thereon dated September 26, 2018. We have
previously communicated to you information about our responsibilities under auditing standards
generally accepted in the United States of America and Government Auditing Standards, as well as
certain information related to the planned scope and timing of our audit. Professional standards also
require that we communicate to you the following information related to our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Accounting policies
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by East Valley Water District are described in Note 1 to the financial
statements.
As discussed in Note 11 to the financial statements, in 2018 the District adopted new accounting
guidance, GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits
Other than Pensions. As a result of this implementation, the beginning net position of the financial
statements has been decreased $1,711,803 to recognize the beginning balance of the net OPEB liability
of $1,930,527 and deferred outflows of resources of $218,724. Our opinion was not modified with
respect to this matter.
Other than as described above, no other new accounting policies were adopted and the application of
existing policies was not changed during 2017-18.
We noted no transactions entered into by the entity during the year for which there is a lack of
authoritative guidance or consensus. All significant transactions have been recognized in the financial
statements in the proper period.
Accounting estimates
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management’s knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ
significantly from those expected. The most sensitive accounting estimates affecting the financial
statements were:
Board of Directors
East Valley Water District
Highland, California
Page 2
Management’s estimate of the useful lives of its capital assets and the related period of
depreciation which is based on historic knowledge of the assets and the frequency with which
capital assets must be replaced;
Management’s estimate of the fair value of investments based upon relevant information about
similar investments held in managed portfolios and used to determine the probable market value
of the investments;
Management’s estimate of pension liabilities and postemployment benefits based upon actuarial
assumptions; and
Management’s estimate of unbilled revenues which is based on the revenue cycle of the water
system and expected usage of water using historic information.
We evaluated the key factors and assumptions used to develop the sensitive accounting estimates
described above in determining that they are reasonable in relation to the financial statements taken as a
whole.
Financial statement disclosures
Certain financial statement disclosures are particularly sensitive because of their significance to financial
statement users. There were no particularly sensitive financial statement disclosures.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing
our audit.
Uncorrected Misstatements
Professional standards require us to accumulate all misstatements identified during the audit, other than
those that are clearly trivial, and communicate them to the appropriate level of management.
Management did not identify and we did not notify them of any uncorrected financial statement
misstatements.
Corrected Misstatements
Management did not identify and we did not notify them of any financial statement misstatements
detected as a result of audit procedures.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditors’ report. No such disagreements arose during our audit.
Board of Directors
East Valley Water District
Highland, California
Page 3
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated September 26, 2018.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves
application of an accounting principle to the entity’s financial statements or a determination of the type
of auditors’ opinion that may be expressed on those statements, our professional standards require the
consulting accountant to check with us to determine that the consultant has all the relevant facts. To our
knowledge, there were no such consultations with other accountants.
Significant Issues Discussed With Management Prior To Engagement
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to engagement as the entity’s auditors. However,
these discussions occurred in the normal course of our professional relationship and our responses were
not a condition to our engagement.
Other Audit Findings or Issues
Audit standards require that we communicate to you any internal control related matters and any other
audit findings or issues that are, in our professional judgment, significant and relevant to those charged
with governance in overseeing the financial reporting process.
Other Information in Documents Containing Audited Financial Statements
With respect to the required supplementary information (RSI) accompanying the financial statements,
we made certain inquiries of management about the methods of preparing the RSI, including whether the
RSI has been measured and presented in accordance with prescribed guidelines, and whether there were
any significant assumptions or interpretations underlying the measurement or presentation of the RSI.
We compared the RSI for consistency with management’s responses to the foregoing inquiries, the basic
financial statements, and other knowledge obtained during the audit of the basic financial statements.
Because these limited procedures do not provide sufficient evidence, we did not express an opinion or
provide any assurance on the RSI.
With respect to the supplementary information accompanying the financial statements, on which we
were engaged to report in relation to the financial statements as a whole, we made certain inquiries of
management and evaluated the form, content, and methods of preparing the information to determine
that the information complies with accounting principles generally accepted in the United States of
America, the method of preparing it has not changed from the prior period or the reasons for such
changes, and the information is appropriate and complete in relation to our audit of the financial
statements. We compared and reconciled the supplementary information to the underlying accounting
records used to prepare the financial statements or to the financial statements themselves. We have
issued our report thereon dated September 26, 2018.
Board of Directors
East Valley Water District
Highland, California
Page 4
This communication is intended solely for the information and use of the Board of Directors and
management of East Valley Water District and is not intended to be, and should not be, used by anyone
other than these specified parties.
CliftonLarsonAllen LLP
Glendora, California
September 26, 2018
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Comprehensive Annual Financial Report
Fiscal Year Ended
June 30, 2018
East Valley Water District
Prepared by: Finance Department
31111 Greenspot Road
Highland, CA 92346
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Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2018
Table of Contents
1
Page No.
Introductory Section
Letter of Transmittal .....................................................................................................................6
Organizational Structure ............................................................................................................10
Principal Officials .......................................................................................................................11
GFOA Certificate .......................................................................................................................12
Financial Section
Independent Auditor’s Report .............................................................................................. 15-17
Management’s Discussion and Analysis .............................................................................. 18-29
Basic Financial Statements
Statement of Net Position ................................................................................................. 31-32
Statement of Revenues, Expenses, and Changes in Net Position ................................... 33-34
Statement of Cash Flows .................................................................................................. 35-36
Notes to the Basic Financial Statements .......................................................................... 37-63
Required Supplementary Information
Schedule of Proportionate Share of the Net Pension Liability ................................................65
Schedule of Contributions .......................................................................................................66
Schedule of Changes in the Net OPEB Liability .....................................................................67
Schedule of OPEB Contributions ............................................................................................68
Supplementary Information
History and Organization ........................................................................................................70
Combining Schedule of Net Position................................................................................. 71-72
Combining Schedule of Revenues, Expenses, and Changes in Net Position .................. 73-75
Combining Schedule of Cash Flows ................................................................................. 77-78
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Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2018
Table of Contents
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Page No.
Statistical Information Section
Financial Trends
Changes in Net Position by Component – Last Ten Fiscal Years .................................... 83-84
Operating Revenue by Source – Last Ten Fiscal Years .........................................................85
Water Operating Expenses – Last Ten Fiscal Years ..............................................................86
Wastewater Operating Expenses – Last Ten Fiscal Years .....................................................87
Revenue Capacity
Water Sales and Production – Last Ten Fiscal Years.............................................................88
Revenue Rates for Water – Last Ten Fiscal Years ........................................................... 89-90
Revenue Rates for Wastewater – Last Ten Fiscal Years ................................................. 91-92
Active Services by Type – Last Ten Fiscal Years ...................................................................93
Principal Customers – Current Fiscal Year and Nine Years Ago ............................................94
Debt Capacity
Ratio of Outstanding Debt – Last Ten Fiscal Years ................................................................95
Debt Service Coverage – Last Ten Fiscal Years ....................................................................96
Demographic Information
Demographic and Economic Statistics – Last Ten Calendar / Fiscal Years ...........................97
Operating Information
Full-Time Equivalent Employees by Department – Last Ten Fiscal Years .............................98
Operating and Capacity Indicators for Water and Wastewater – Last Ten Fiscal Years ........99
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EAST VALLEY WATER DISTRICT
Letter of Transmittal
Year Ended June 30, 2018
6
September 26, 2018
To the Board of Directors and Customers of East Valley Water District,
We are pleased to submit the Comprehensive Annual Financial Report (CAFR) for East Valley Water District for
the year ended June 30, 2018. This report was prepared by District staff in accordance with standards established
by the Governmental Accounting Standards Board.
The District’s management is responsible for the presented data, and the completeness and fairness of the
presentation, including the note disclosures. We believe that the report presented is accurate in all material
respects, and that the financial statements and other information are presented in a manner that enables readers
to gain a full understanding of the District’s financial activities for the year. Readers should also refer to the
Management’s Discussion and Analysis in the Financial Section of the CAFR for a detailed discussion regarding
the District’s financial condition and results of operations.
The CAFR follows the guidelines recommended by the Government Finance Officers Association (GFOA) of the
United States and Canada. In November 2018, the District will, again, submit the CAFR to this organization for
review and possible recognition for achievement in reporting excellence.
Background
East Valley Water District was formed on January 18, 1954, and since then, has provided retail water service to
customers in an expanding service area which now covers 30.1 square miles. The District directly serves treated
water to approximately 102,000 people in the City of Highland, the eastern portion of the City of San Bernardino,
the San Manuel Band of Mission Indians, and portions of the County of San Bernardino. In 1964, the District began
providing wastewater collection services to the same service area.
As of June 30, 2018, the District had 21,613 active water connections and 20,581 active wastewater connections.
Water Supply and Reliability
The District’s water supply for the year ended June 30, 2018 includes groundwater (79.9 percent) and surface water
(20.1 percent). Groundwater is pumped from the Bunker Hill Basin, and surface water from the Santa Ana River is
diverted based on rights acquired from the North Fork Water Company.
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EAST VALLEY WATER DISTRICT
Letter of Transmittal
Year Ended June 30, 2018
7
Local Economy
East Valley Water District is located within San Bernardino County in a metropolitan area referred to as the “Inland
Empire”. Since 2009, the District’s population has grown by nearly 64 percent and currently, comprised of mostly
residential and commercial customers, with no major industrial users. Large consumers remain consistent year to
year with the San Bernardino City Unified School District, Patton State Hospital, City of Highland, San Manuel
Mission Indians, and the San Manuel Indian Bingo & Casino, forming the list of top five users.
In 2018, the average household income within the District’s service area was $47,016, approximately 16% percent
lower than the County of San Bernardino. Customers who reside in the City of Highland account for approximately
75 percent of the District’s customer base. These customers had an average household income of $54,117,
approximately 15% higher than the overall District average.
Financial Management
The District manages its resources conservatively in order to deliver safe and reliable services to its customers at
a fair and cost-effective price. It focuses on establishing fair rates, cost containment, long-term planning, maintaining
and upgrading infrastructure, and pursuing alternative source of funding. This approach has allowed the District to
undertake substantial capital improvement projects during tough economic times, while passing a series of modest
rate increases.
The keys to the District’s successful financial management are the District’s Capital Improvement and Financial
Plan (CIP), comprehensive reviews of water and wastewater rates, and the annual budget process. The CIP
provides a comprehensive view of infrastructure investments necessary over a seven year period to ensure that
water resources are adequate, water quality is maintained, and the water and wastewater service needs of current
and future customers are met. The CIP is reviewed annually by the District’s Board of Directors during the budget
79.9%
20.1%
Water Supply Sources
Groundwater
Surface Water
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EAST VALLEY WATER DISTRICT
Letter of Transmittal
Year Ended June 30, 2018
8
process, at which time the highest priority projects are adopted and receive authorization for expenditure along with
the District’s operating budget.
The District’s financial planning also includes the establishment and funding of reserves, and the pursuit of
alternative funding sources, both of which help reduce reliance on rates and rate increases. In recent years the
District has been very successful in pursuing project funding from the State Revolving Fund and FEMA, and have
applied for water and energy efficiency project funding from the Bureau of Reclamation and Edison.
Internal Control
District management is responsible for establishing a system of internal accounting controls designed to provide
reasonable assurances that assets of the District are safeguarded against losses from unauthorized use or
disposition, and theft. The District’s internal controls also ensure the proper recording of financial transactions, and
the preparation of financial statements in accordance with generally accepted accounting principles. The District’s
internal control structure is designed to provide reasonable assurance that these objectives are met. The concept
of reasonable assurance recognizes that 1) the cost of a control should not exceed the benefits likely to be derived
and 2) the valuation of costs and benefits requires estimates and judgments by management.
Budgetary Control
The District’s Board of Directors annually adopt a balanced operating and capital budget prior to the new fiscal year.
The budget authorizes expenditures and provides a basis for accountability over the District’s enterprise operations
and capital projects. Each quarter, management provides the Board with a quarterly budget review to allow Board
assessment of staff’s progress in meeting goals and objectives, and budget adjustments, if necessary, are
requested at the mid-year budget review in January.
Debt Administration
The District utilizes proceeds from long-term debt, along with reserves and contributions from the operating budget,
to finance major construction projects. Current debt consists of Revenue Bonds and loans from US Bancorp, the
State Revolving Fund, and the San Bernardino Valley Municipal Water District.
The District received a credit rating of AA- from Standard and Poor’s and Fitch when the Revenue Bonds were
issued in June 2013. This rating was affirmed by Fitch as the result of a review conducted in April 2017.
Investment Policy
The Board of Directors annually adopts an investment policy that conforms to California State Law, District
ordinances and resolutions, and the prudent person standard. The objectives of the policy are safety, liquidity, and
yield. District funds are normally invested in the State Treasurer’s Local Agency Investment Fund (LAIF), and
Federal government Treasury notes or agency obligations.
Audit and Financial Reporting
State law requires the District to obtain an annual audit of its financial statements by an independent Certified Public
Accountant. This year, the District’s Financial statements were audited by CliftonLarsonAllen LLP from Glendora,
California. Their audit opinion is included in the Basic Financial Statements section of this report.
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EAST VALLEY WATER DISTRICT
Letter of Transmittal
Year Ended June 30, 2018
9
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the District for its Comprehensive Annual Financial Report for
the fiscal year ended June 30, 2017. This was the six year that the District has achieved this prestigious award. In
order to be awarded a Certificate of Achievement, a governmental entity must publish an easily readable and
efficiently organized Comprehensive Annual Financial Report. This report must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive
Annual Financial Report continues to meet the Certificate of Achievement Program’s requirements and we are
submitting it to the GFOA to determine its eligibility for another certificate.
Acknowledgements
Preparation of this report was accomplished by the combined efforts of District staff. We appreciate the dedication
and professionalism that our staff bring to the District. We would also like to thank the members of the Board of
Directors for their continued support in the planning and implementation of the financial affairs of the District.
Respectfully submitted,
John Mura
General Manager
Brian W. Tompkins
Chief Financial Officer DR
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EAST VALLEY WATER DISTRICT
Organizational Structure
Year Ended June 30, 2018
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EAST VALLEY WATER DISTRICT
Principal Officials
Year Ended June 30, 2018
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Vision
Enhance and preserve the quality of life for our community through innovative leadership and
world class public service.
Core Values
Leadership: Motivating a group of people to act towards achieving a common goal or
destination.
Partnership: Developing relationships between a wide range of groups and individuals
through collaboration and shared responsibility.
Stewardship: Embracing the responsibility of enhancing and protecting resources
considered worth caring for and preserving.
East Valley Water District
Governing Board Members as of June 30, 2018
Name Title
Elected /
Appointed Current Term
Chris Carrillo Chairman of the Board Elected 2015 - 2020
David E. Smith Vice-Chairman of the Board Elected 2015 - 2020
Ronald L. Coats Governing Board Member Elected 2013 - 2018
James Morales, Jr. Governing Board Member Elected 2013 - 2018
Nanette Shelton Governing Board Member Appointed 2015 - Jan 2018
Phillip R. Goodrich Governing Board Member Appointed Feb - Nov 2018
Contact Information
East Valley Water District
John Mura, General Manager/CEO
31111 Greenspot Road
Highland, CA 92346
(909) 889-9501
www.eastvalley.org
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EAST VALLEY WATER DISTRICT
GFOA Certificate
Year Ended June 30, 2017
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EAST VALLEY WATER DISTRICT
Independent Auditor’s Report
Year Ended June 30, 2018
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EAST VALLEY WATER DISTRICT
Independent Auditor’s Report
Year Ended June 30, 2018
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EAST VALLEY WATER DISTRICT
Independent Auditor’s Report
Year Ended June 30, 2018
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EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2018
18
The District
East Valley Water District (District) is a California Special District established under section 30000 et seq. of the
California Water Code. The District is engaged in pumping, treating, and distributing water to its customers, as well
as maintaining a collection system for residential and commercial wastewater that is delivered for treatment at a
plant owned by the City of San Bernardino Water Department.
The District serves the City of Highland, and portions of the City of San Bernardino, and the County of San
Bernardino in California.
The Basic Financial Statements
East Valley Water District is a special-purpose government engaged in activities that are supported exclusively by
user charges. As such, the District’s financial statements are presented in the format prescribed for proprietary
funds by the Governmental Accounting Standards Board.
The following financial statements for the year ended June 30, 2018 (2017 for comparative purposes only) consist
of three interrelated statements designed to provide the reader with relevant, understandable data about the
District’s financial condition and operating results. They are the Statement of Net Position, the Statement of
Revenue, Expenses, and Changes in Net Position, and the Statement of Cash Flows.
The Statement of Net Position presents financial information on the District’s assets, liabilities, and deferred inflow
and outflows of resources, with the difference reported as net position as of the last day of the District’s fiscal year.
Over time, increases or decreases in net position can serve as a useful indicator of whether the financial position
of the East Valley Water District is improving or deteriorating.
The Statement of Revenues, Expenses, and Changes in Net Position presents information showing how the
District’s net position changed during the most recent fiscal year. All changes in net position are reported as soon
as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows.
The Statement of Cash Flows (direct method) conveys to financial statement users how the District managed cash
resources during the year. This statement converts the change in net position presented on the Statement of
Revenues, Expenses, and Changes in Net Position into actual cash provided by or used for operations. The
Statement of Cash Flows also details how the District obtains cash through financing and investing activities, and
conversely, how cash is spent for these purposes.
Summary Financial Information and Analysis
Financial Condition
During the year ended June 30, 2018, the District’s total assets increased by $0.8 million to 186.2 million– the net
effect of increases in Current and Restricted assets, and a decrease in Capital assets.
Current assets increased 23% to $24.0 million. This increase is substantially all in Cash and Investments which
accumulated while, for various reasons, capital spending slowed significantly. The primary reason for low capital
spending was long term planning, for example, in updating the District’s water and wastewater system master plans,
and in the design of a significant transmission pipeline that greatly enhance the District’s feasibility in delivering
water throughout the distribution system.
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Management’s Discussion and Analysis
Year Ended June 30, 2018
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Restricted Asset balances increased from $6.4 to $6.8 million with the receipt of capacity fees from small
development projects occurring within the District. The nature of Restricted Cash balances at June 30, 2018 are
further detailed in Note 3 of the financial statements.
2018 2017
Current Assets 24.0$ 19.5$
Restricted Assets 6.8 6.4
Other Assets 0.4 0.4
Capital Assets - Net 155.1 159.2
Total Assets 186.3 185.5
Total Deferred Outflow of Resources 4.5 3.2
Current Liabilities 7.4 8.0
Non-Current Liabilities 63.4 62.5
Total Liabilities 70.8 70.5
Total Deferred Inflows of Resources 0.6 0.5
Net Position
Net Investment in Capital Assets 103.2 104.7
Restricted 3.3 2.8
Unrestricted 12.9 10.2
Total Net Position 119.4$ 117.7$
Capital Assets decreased by $4.1 million during the 2017-18 fiscal year. This amount is a net between capital
additions of $3.0 million, and recognition of $7.0 million in charges for depreciation during the year. Additions to
capital assets during the year included completion of a state water project turnout and hydroelectric generation
facility at the District’s Plant 134, and continued planning efforts for the Sterling Natural Resource Center (SNRC)
water recycling plant.
Total Deferred Outflow of Resources increased $1.3 million reflecting pension contributions made subsequent to
the measurement date (June 30, 2017) and net differences between projected and actual earnings on pension plan
investments, as well as changes in assumptions.
While current assets have increased by $4.5 million, current liabilities decreased by $0.6 million. As a result, the
District’s current ratio has improved from 2.4:1 to 3.2:1, and the liquidity ratio from 1.6:1 at June 30, 2017, to 2.5:1
at June 30, 2018.
Non-Current Liabilities increased by $0.9 million, the net effect of:
$(2.6) million in principal payments on outstanding debt.
$3.5 million increase in employee post-retirement obligations calculated in accordance with Governmental
Accounting Standards Board (GASB) statements number 68 (pensions) and 75 (retiree medical).
2017-18 is the first year for which retiree healthcare benefit obligations, or OPEB (Other Post Employment Benefits)
is required to be shown on the Statement of Net Position. OPEB and Pensions are further discussed in Notes 8 and
11 accompanying the financial statements. Compensated absences and Long term debt are further explained in
financial statement Notes 6 and 5, respectively.
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Management’s Discussion and Analysis
Year Ended June 30, 2018
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The District’s total Net Position was $119.4 million at the end of fiscal year 2018, a $1.7 million increase compared
to the end of the previous fiscal year. Of the $119.4 million Net Position balance, $103.2 million is categorized as
Investment in Capital Assets, $3.3 million is Restricted for Capital Expansion Projects, and $12.9 million is
Unrestricted. The calculation of Net Position Invested in Capital Assets is included in Note 7 of the accompanying
financial statements. Restricted Net Position consists of developer capacity fees, and Unrestricted Net Position is
the amount available for encumbrance at June 30, 2018.
Looking at longer term results, the District’s total Net Position has increased $4.8 million, and $19.9 million over five
and ten year periods, respectively.
Activities and Changes in Net Position
Water Operations
East Valley Water District, and the rest of California, entered the 2016-17 fiscal year in a ‘state of emergency’
declared during five years of severe drought. Extraordinarily heavy rain and snowfall during the 2017 winter months
caused the California Governor to declare an end to the drought on April 7, 2017, and to relax drought restrictions
and emergency conservation mandates. The changing circumstances effected both water revenues and expenses.
Water sales for 2017-18 increased 17% to $17.1 million, the net result of rate increases at the beginning of the
fiscal year, offset by a decrease in customer consumption. The rate adjustment deployed was the third and final
phase of adjustments adopted in March 2015, however, adjustments were held to just 6%, half of the 12%
authorized in 2015. With respect to consumption, the District produced 18,361 acre feet of water and sold 17,305
acre feet to consumers during the year, a 5.7% decrease compared to the prior fiscal year. The difference between
water produced and water sold of 1,056 acre feet (9.5%) was the result of District flushing programs, water use at
District facilities, and system leaks.
Water System, or Meter Charge revenue, increased 0.6% to $8,999,756. No rate adjustments were effective for
these charges in 2017-18, so the revenue increase was due to small tract development and infill projects – 52 new
utility service connections were added by the District in 2017-18. DR
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Year Ended June 30, 2018
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$-
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Water Department Operating
Revenue versus Expenses
Revenue
Expenses
Though the drought ended in April 2017, the impacts on water supplies to Southern California agencies continued
past April and into fiscal year 2017-18. Low reservoir levels during the drought led to water quality issues with water
imported through the State Water Project, leading the District to rely more heavily on production from the local
groundwater basin.
The District’s shift to groundwater production offset some of the energy savings the District was realizing, as a result
of energy conservation measures implemented in 2014, but did not result in a large spike in power costs. Some
significant variances that did occur during the year include:
Source of Supply: costs decreased by $806 thousand (31.1%) due to the end of a regional program to buy
imported water for basin recharge after the 2017 winter storms. Power costs for wells did increase by 10%
due to the heavier reliance on groundwater production mentioned above.
Pumping: power costs for boosting water to higher pressure zones increased by 10%, again, because more
water was produced by wells, which are situated in the lowest elevations of the District, and had to be
boosted to higher elevations for distribution to customers.
Water Treatment: costs increased 29% during the 2017-18 with increases primarily in Labor and Contract
Services. Labor costs increased as Production staff was trained on operation of a Hydroelectric generation
facility at the District’s water treatment plant, and Contract Services increased as treatment facilities were
refurbished and re-coated to optimize efficient operations.
Transmission & Distribution (T&D): costs increased 14% as two additional staff were added to pipeline
repair crews to address system leaks. Identification of water leak sources and immediate repairs have
added emphasis due to the recent drought in California.
Throughout the year, the District analyzed possible solutions to overcome the water quality issues with imported
water, including tank mixers, new transmission mains, and upgrades to treatment processes at the District’s surface
water treatment plant. Multiple construction projects have been added to the District’s Capital Improvement Program
to address water quality issues.
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Management’s Discussion and Analysis
Year Ended June 30, 2018
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Wastewater Operations
Wastewater operating revenues consist of System Charges and Treatment Charges. System Charge rates are set
by the District to cover the cost of maintaining the District’s wastewater collection system and to cover a portion of
administrative and general expenses.
Treatment Charge rates are established by the City of San Bernardino Water Department, which treats the
wastewater generated by the District’s customers – the District currently has no wastewater treatment facilities. All
wastewater treatment revenues collected by the District are directly offset by remittance payments to the City of
San Bernardino Water Department, therefore, wastewater treatment has no net effect on the District’s operating
results.
During the 2017-18 fiscal year wastewater operating revenues increased 3.7%, from $12.9 to $13.4 million.
System charges, assessed by the District for maintenance of wastewater collection mains, decreased by 0.7% as
a result of lower water usage by commercial customers. Commercial customers, which include multi-family
residential complexes larger than 4 units, are billed for wastewater charges based on water consumption. Therefore,
the 5.7% decrease in water consumption discussed above, had a related impact on wastewater revenue. A
complete list of wastewater rates in effect for the last 10 years is included in the statistical section at the end of this
document.
Wastewater treatment revenues, and costs, both rose 7.0% to $8.7 million. The primary reason for the increase
was rate adjustments implemented by the City of San Bernardino. City treatment rates were increased in phases
over three years, with the final phase becoming effective during the 2017-18 fiscal year. Lower water usage by
commercial customers offset some of the increase in treatment charge revenue.
Wastewater collection line maintenance costs increased by 77% compared to the prior year as the District doubled
the number of full time employees dedicated to line maintenance to four. Accordingly, there were anticipated
increases in labor and benefits costs, and in contract services as well. In 2017-18 the District continued a contract
for tree root control to prevent intrusion into wastewater mains, began a new contract for the treatment of manhole
covers for insect control, and responded to ten emergency sewer repairs, a 40% increase over the previous year.
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Management’s Discussion and Analysis
Year Ended June 30, 2018
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$6
$7
$8
$9
$10
$11
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$13
$14
2014 2015 2016 2017 2018
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Wastewater Department Operating
Revenue versus Expenses
Revenue
Expenses
Costs related to Customer Accounts (Water & Wastewater Operations) increased $163 thousand, or 8.6%, due
primarily to increased labor and benefit costs. Benefit cost increases affected departments across the District as
explained below.
Administrative and general costs for the District increased by 28.1% to $10.7 million. The primary reason for the
increase was Salaries and Benefits which increased $1.5 million to $6.6 million. Salaries increased as positions
vacated in the previous year were evaluated and filled, and annual pay adjustments were awarded. Also, pension
expense increased as a result of growing unfunded pension liabilities with the California Public Employees
Retirement System (CalPERS). To address this liability, the District’s contributions to the CalPERS plan, both
required and voluntary, increased by 40% over the previous year.
Other significant changes in general and administrative costs included:
1. Legal Services increased 107% as the District settled or ended multiple legal disputes and expensed legal
costs that, in some situations, had accumulated in previous years. The District also remains committed to
dissolving old mutual water companies abandoning related infrastructure.
Depreciation expense recorded by the District’s water department increased from $5.7 million to $6.1 million, while
wastewater department depreciation increased from $0.8 million to $1.0 million. Prior year expense included
approximately $600 thousand in accelerated depreciation on certain assets whose remaining useful lives had been
shortened to align with District experience and standards published by the California State Controller. Affected
assets included pumps, valves and other mechanical components capitalized as part of a larger utility plant assets.
Wastewater department depreciation expense remained consistent at approximately $800 thousand.
Non-Operating Activities
The District’s non-operating revenue of $480 thousand includes investment earnings of $221 thousand, discussed
below, and $259 thousand in miscellaneous income and reimbursements. Non-operating expenses includes $1.78
million in interest on District long-term obligations.
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Year Ended June 30, 2018
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East Valley Water District Changes in Net Position
(in millions)
2018 2017
Water Revenues 26.9$ 24.5$
Water Operating Expenses (22.2) (20.5)
Wastewater Services 13.4 12.9
Wastewater Operating Expenses (13.8) (11.8)
Non-Operating Revenues 0.5 0.5
Non-Operating Expenses (1.8) (1.8)
Income Before Contributions & Special Item 3.0 3.8
Developer Contributions 0.5 0.5
Grant Funds Contributed - 2.0
Special Item - Abandon Projects - (1.6)
Special Item - Hazard Mitigation (0.2) -
Change in Net Position 3.3 4.7
Beginning Net Position, as Previously Reported 117.7 113.0
Cumulative Effect of Change in Accounting Principle (1.7) -
Ending Net Position 119.3$ 117.7$
Investment earnings increased 150% compared to the prior year due to an increase in the balance of investible
funds held at year end – the District typically holds investments to maturity. The increase was enhanced by earnings
on funds deposited with the California Local Agency Investment Fund, which raised the interest rate paid on
deposits by 98 basis points to 1.90% during fiscal year 2017-18.
Capital Contributions and Special Item
Contributions received during 2017-18 included $525 thousand in developer capacity fees. The District has also
recorded a one-time charge of $155 thousand to fortify and abandon a wastewater manhole that had been exposed
by soil erosion in the middle of a creek bed. The flow of the creek was altered during very heavy rains, shifting
course to so that the manhole was in its path. Costs to fortify this above ground pipe are included as a Special Item
for Hazard Mitigation and is further explained in Note 13 to the financial statements.
Components of Net Position
The District is required to present its net position in three categories: Net Investment in Capital Assets, Restricted,
and Unrestricted.
Net Investment in Capital Assets
The components comprising Net Investment in Capital Assets are presented in Note 7 to the accompanying financial
statements. The balance at June 30, 2018 is $103.2 million, a decrease of $1.5 million compared to June 30, 2017.
The decrease is the net result of the acquisition or construction of capital assets for $2.2 million and a $2.6 million
decrease in outstanding debt, offset by a net increase in accumulated depreciation of $6.3 million.
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Management’s Discussion and Analysis
Year Ended June 30, 2018
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Restricted
Restricted Net Position consists of unexpended development impact fees which may only be appropriated by
approval of the Board of Directors for a project included in the District’s Capital Improvement Program.
Unrestricted
Unrestricted Net Position is the balance after amounts to be classified as Invested in Capital Assets or Restricted
have been determined. Unrestricted Net Position increased $2.6 million to $12.8 million in 2017-18.
Capital Assets
The District spent approximately $2.9 million for expansion or replacement of property, plant, and equipment during
2017-18. These amounts are reflected in Utility Plant, or as additions to Construction in Progress, in the
accompanying financial statements.
Placed in Service
During the 2017-18 fiscal year, District staff, consultants, and contractors completed work on the following:
Completed abandonment of manhole in City Creek flow path.
Completed State Water Project turnout at District surface water treatment plant (134) and hydroelectric
generation facility to capitalize on head-pressure of water coming from the turnout.
Construction in Progress (CIP)
Construction in progress decreased $3.6 million to $12.7 million (see note 4) between June 30, 2017 and June 30,
2018. With approximately 15 jobs in progress, additions to CIP totaled $2.6 million, while $6.2 million was capitalized
and transferred to utility plant in service.
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Year Ended June 30, 2018
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Utility Plant in Service – June 30th
(in millions)
Department 2018 2017
Water
Source of Supply 18.5$ 16.6$
Pumping 14.4 14.4
Transmission & Distribution 98.8 98.4
Treatment 27.8 25.0
Wastewater
Collection Lines 26.8 27.0
General
Buildings & Improvements 17.9 17.4
Equipment 9.7 9.2
Total 213.9$ 208.0$
Of the $12.7 million remaining in CIP at June 30, 2018, 93% is related to two projects:
1. Conceptual design, environmental, legal and financing package costs related to the Sterling Natural
Resource Center water recycling facility. The facility will capture, treat, and recycle all of the wastewater
flows generated by District customers. Recycled water produced by the plant would be used to recharge
the Bunker Hill Basin from which the District produces groundwater.
Preliminary concepts for the Sterling Natural Resource Center include a first phase with a capacity of 6
million gallons per day (mgd), expandable to 10 mgd in a second phase giving the District the capability to
provide treatment services to significant housing developments being planned within the District’s service
area. The project will also include ancillary pipelines and lift stations to deliver wastewater to the plant, and
recycled water pipelines to deliver the treated water to recharge basins.
2. The installation of automated metering infrastructure (AMI). Phase 1, which was funded by a grant from the
EPA was completed in June 2017. Phase 2 is currently in implementation and installations will be complete
in November 2018. Phases 3 through 6 will be funded and completed over the next five years with
completion of full AMI implementation anticipated by June 2021.
Future Capital Improvements - Water
The District’s ability to meet water quality requirements, promote water conservation, and increase efficiencies in
conducting District business are the driving forces by which District management develops long term capital plans.
To meet these objectives, the District’s 5-year Capital Improvement Plan includes the following projects:
Design and construction of additional storage tanks to allow pumping during hours of off-peak demand for
power and to enhance water availability during peak water use and for fire suppression.
Replacement of aging water distribution pipelines that require frequent repair and are suspected of causing
system water losses.
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Future Capital Improvements - Wastewater
The District maintains a list of recommended wastewater main replacements / rehabilitations based on assessments
of pipeline condition noted during video logging of the collections system. Pipelines assessed at the highest risk of
structural failure are prioritized on the District’s 5-year Capital Improvement Plan (CIP). The District will also update
its Wastewater Collection System Master Plan in fiscal year 2017-18 in order to identify wastewater pipelines that
are susceptible to surcharging during heavy rains. Undersized pipelines can impede new development and will be
included in discussions with developers as necessary.
Long Term Debt / Credit
The District’s long-term debt consists of Revenue Bonds issued through the East Valley Water District Financing
Authority (Authority), a blended component unit, design and construction loans from the California Department of
Water Resources (DWR), a capital lease purchase with US Bank for construction or installation of energy
conservation measures (ECM), and a loan from the San Bernardino Valley Municipal Water District (SBVMWD).
Outstanding balances as of June 30, 2018 were as follows:
2010 Refunding Bonds 24,715,000
2013 Refunding Bonds 12,085,000
SBVMWD Loan 3,870,000
AVAD Construction 84,526
EFAD Construction 325,402
Plant 134 Construction 6,301,767
Plant 150 Design 10,000
U.S. Bank Lease Purchase 2,522,306
Total 49,914,001$
As explained in Note 5 to the accompanying financial statements, proceeds from the 2010 and 2013 revenue bonds
were used to retire debt previously issued by the District (2010 bonds only) and to construct water and wastewater
capital projects.
DWR loans for the Arroyo Verde and Eastwood Farms water company consolidation projects are ultimately the
obligation of property owners within Assessment Districts that replaced these water companies previously operating
independently within the District’s service area. Semi- annual loan payments are paid from assessments on
property within the assessment districts.
Other DWR loans include $6,301,767, payable over 26 years at 0% interest, for upgrade of the District’s Plant 134,
and $10,000 at 0% interest to be paid in fiscal year 2018-19 remaining on a loan used to help pay for the design of
a new treatment plant in the District’s lower pressure zone.
The Lease Purchase Agreement with US Bank was entered into in November 2013 to finance the construction of
energy conservation projects recommended by an Energy and Operational Efficiency Study prepared by Honeywell.
The lease is payable in semi-annual installments over 10 years at an interest rate of 2.38%.
The loan with SBVMWD was entered into in January 2015 to finance the project discussed previously in the
Construction in Progress section. The loan is payable over 10 years at the Local Agency Investment Fund
apportionment rate, currently 1.90%.
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Year Ended June 30, 2018
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A new funding agreement with the State Water Resources Control Board, consisting of a $119.3 million loan at
1.8% and a $6.7 million grant, was finalized on June 26th, 2018. This funding was secured for the construction of
the Sterling Natural Resource Center water recycling plant. Debt service of $5.6 million and plant operating
expenses will be paid with $8.7 million currently paid to the City of San Bernardino Water Department for wastewater
treatment, and Local Resource Program payments received from the San Bernardino Valley Municipal Water
Department for the use of recycled water, produced by the plant, for groundwater recharge. A loan balance will be
recognized by the District as it draws on available loan funding to pay plant construction costs.
All scheduled debt payments for fiscal year 2017-18 were paid timely.
$-
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2014 2015 2016 2017 2018
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Outstanding Long-Term Debt June 30th
2013 Bonds
2010 Bonds
SBVMWD Loan
Inst Purchase
DWR Loans
Standard & Poor’s and Fitch rated the EVWDFA 2013 Revenue Bonds at the time of issuance. Both agencies gave
the bonds a rating of AA-. Fitch affirmed their rating of AA- in April 2017 after having conducted an agency specific,
review. Dun & Bradstreet, based on audited financial statements and creditor input, also rates the District. The
rating given by D&B is currently 5A1 accompanied by a financial condition assessment of ‘strong’, which is no
change from previous years.
Rate Increases
The District has contracted with Raftelis Financial Consultants to perform water and wastewater utility Cost of
Service Analysis’. The analysis wll determine the need for rate adjustments, if necessary, over the next 3 to 5 years
and should be complete by June of 2019.
Additional information about the District’s Water Budget based rate structure can be found on the District’s website
at www.eastvalley.org.
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Management’s Discussion and Analysis
Year Ended June 30, 2018
29
Contacting the District’s Financial Management
This financial report is designed to give our customers / ratepayers, creditors, and investors a general overview of
the District’s finances, and to demonstrate the District’s accountability for money it receives, and stewardship over
facilities it maintains.
If you have questions about this report, or need additional information, contact the District’s Finance Department at
31111 Greenspot Road, Highland, California 92346, or call (909) 381-6463.
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EAST VALLEY WATER DISTRICT
Statement of Net Position
June 30, 2018
The accompanying notes are an integral part of this statement.
31
For Comparative
Purposes Only
2018 2017
ASSETS
Current Assets:
Cash and Cash Equivalents 13,095,699$ 7,556,013$
Investments 5,350,547 4,995,176
Accounts Receivable, Net 4,541,364 4,519,062
Interest Receivable 89,549 37,233
Other Receivables 421,035 375,893
Due from Other Governments 16,145 1,401,449
Inventory 285,218 326,023
Prepaid Expenses 203,871 297,408
Total Current Assets 24,003,428 19,508,257
Non-Current Assets:
Restricted Cash and Cash Equivalents 6,788,132 6,474,787
Assessments Receivable 355,731 386,243
Capital Assets not being Depreciated 24,266,922 27,944,625
Capital Assets, Net (Note 4) 130,806,547 131,271,911
Total Non-Current Assets 162,217,332 166,077,566
Total Assets 186,220,760 185,585,823
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding 120,546 138,482
Deferred Outflows - Pensions 4,195,967 3,044,585
Deferred Outflows - OPEB 193,763 -
Total Deferred Outflows Of Resources 4,510,276 3,183,067
Total Assets and Deferred Outflows
of Resources 190,731,036$ 188,768,890$
(Continued)
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Statement of Net Position - Continued
June 30, 2018
The accompanying notes are an integral part of this statement.
32
For Comparative
Purposes Only
2018 2017
LIABILITIES
Current Liabilities:
Accounts Payable and Accrued Expenses 1,608,069$ 2,461,885$
Accrued Payroll and Benefits 483,730 362,999
Customer Service Deposits 1,588,918 1,670,446
Construction Advances and Retentions 109,500 119,250
Accrued Interest Payable 496,031 469,463
Current Portion of Compensated Absences 419,713 323,638
Current Portion of Long-Term Debt 2,696,748 2,632,902
Total Current Liabilities 7,402,709 8,040,583
Non-Current Liabilities:
Compensated Absences, Less Current Portion 532,533 398,275
Net Pension Liability 11,601,798 10,024,712
Net OPEB Liability 1,932,370 -
Long-Term Debt, Less Current Portion 49,304,441 52,062,321
Total Non-Current Liabilities 63,371,142 62,485,308
Total Liabilities 70,773,851 70,525,891
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Pensions 562,295 519,364
Deferred Inflows - OPEB 1,224 -
Total Deferred Inflows Of Resources 563,519 519,364
Total Liabilities and Deferred
Inflows Of Resources 71,337,370 71,045,255
NET POSITION
Net Investment in Capital Assets 103,210,762 104,659,796
Restricted for:
Future Capital Expansion Projects 3,334,940 2,847,924
Unrestricted 12,847,964 10,215,915
Total Net Position 119,393,666$ 117,723,635$
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Statement of Revenues, Expenses, and Changes in Net Position
Year Ended June 30, 2018
The accompanying notes are an integral part of this statement.
33
For Comparative
Purposes Only
2018 2017
OPERATING REVENUES
Water Sales 17,063,891$ 14,556,339$
Wastewater Treatment Charges 8,697,671 8,128,030
System Charges 13,668,679 13,648,091
Other Charges 860,884 1,116,089
Total Operating Revenues 40,291,125 37,448,549
OPERATING EXPENSES
Water Department:
Source of Supply 2,595,071 3,401,062
Pumping 683,296 646,940
Treatment 969,460 750,052
Transmission and Distribution 2,538,910 2,222,953
Customer Accounts 1,623,198 1,505,433
Total Water Department 8,409,935 8,526,440
Wastewater Department:
Wastewater Treatment 8,697,671 8,128,030
Wastewater Collection 753,000 425,944
Customer Accounts 417,399 372,587
Total Wastewater Department 9,868,070 8,926,561
Administrative and General 10,674,218 8,329,112
Operating Expenses Before Depreciation 28,952,223 25,782,113
Depreciation 7,027,876 6,517,474
Total Operating Expenses 35,980,099 32,299,587
Operating Income 4,311,026$ 5,148,962$
(Continued)
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Statement of Revenues, Expenses, and Changes in Net Position - Continued
Year Ended June 30, 2018
The accompanying notes are an integral part of this statement.
34
For Comparative
Purposes Only
2018 2017
NON-OPERATING REVENUES (EXPENSES)
Investment Income 221,359$ 69,237$
Other Income (Loss) 258,560 401,323
Interest Expense (1,777,852) (1,776,684)
Total Non-Operating Revenues (Expenses) (1,297,933) (1,306,124)
Income Before Contributions and
Special Item 3,013,093 3,842,838
CONTRIBUTIONS
Capacity Charges 525,004 473,164
Contributed Plant (1,086) -
Capital Grants - 1,972,954
Total Contributions 523,918 2,446,118
SPECIAL ITEM
Hazard Mitigation (155,177) (1,615,241)
CHANGE IN NET POSITION 3,381,834 4,673,715
TOTAL NET POSITION, BEGINNING (AS PREVIOUSLY REPORTED)117,723,635 113,049,920
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE (1,711,803) -
TOTAL NET POSITION, ENDING 119,393,666$ 117,723,635$
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Statement of Cash Flows
Year Ended June 30, 2018
The accompanying notes are an integral part of this statement.
35
For Comparative
Purposes Only
2018 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers 40,182,134$ 36,545,048$
Cash Payments for Employees Services (10,095,939) (9,170,392)
Cash Payments to Suppliers (18,761,838) (17,463,184)
Cash from Other Sources 137,689 615,049
Net Cash Provided by Operating Activities 11,462,046 10,526,521
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Grant Funds Received 1,384,218 587,650
Contributed Capital 525,004 473,164
Proceeds from Loan of Capital Debt - 4,367,926
Principal Paid on Capital Debt (2,594,349) (2,041,735)
Interest Paid on Capital Debt (1,751,304) (1,874,946)
Acquisition of Capital Assets (3,016,768) (11,814,780)
Net Cash Used for Capital and
Related Financing Activites (5,453,199) (10,302,721)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received from Investments 241,756 126,018
Acquisition of Investments (1,388,461) (3,694,267)
Proceeds from Sale of Investments 960,377 3,602,588
Loan Collections 30,512 27,391
Net Cash Provided (Used) by
Investing Activities (155,816) 61,730
Net (Decrease) Increase in Cash
and Cash Equivalents 5,853,031 285,530
Cash and Equivalents, Beginning of Year 14,030,800 13,745,270
Cash and Equivalents, End of Year 19,883,831$ 14,030,800$
RECONCILIATION TO STATEMENT OF NET POSITION
Cash and Cash Equivalents 13,095,699$ 7,556,013$
Restricted Cash and Cash Equivalents 6,788,132 6,474,787
Total Cash and Cash Equivalents 19,883,831$ 14,030,800$
(Continued)
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Statements of Cash Flows - Continued
Year Ended June 30, 2018
The accompanying notes are an integral part of this statement.
36
For Comparative
Purposes Only
2018 2017
Reconciliation of Operating Income to Net
Cash Provided by Operating Activities
Operating Income 4,311,026$ 5,148,962$
Adjustments to Reconcile Operating
Income to Net Cash Provided by
Operating Activities:
Depreciation 7,027,876 6,517,474
Other Income 258,560 615,049
Change in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable (22,302) (953,317)
(Increase) Decrease in Other Receivables (126,871) -
(Increase) Decrease in Inventory 22,463 (73,061)
(Increase) Decrease in Prepaids 93,537 (5,895)
(Increase) in Deferred Outflows of Resources - Pensions (1,126,421) (1,794,588)
Increase (Decrease) in Accounts Payable (835,477) (458,495)
Increase (Decrease) in Accrued Salaries
and Benefits 120,732 (243,198)
Increase (Decrease) in Compensated Absences 230,333 (48,051)
Increase in Net Pension Liability 1,577,086 2,096,539
Increase in Net OPEB Liability 54,910 -
Decrease in Deferred Inflows of Resources (32,128) (324,714)
Increase (Decrease) in Customer Deposits (81,528) 40,066
Increase (Decrease) in Developer Deposits (9,750) 9,750
Total Cash Provided by Operating Activities 11,462,046$ 10,526,521$
NON-CASH INVESTING, CAPITAL, AND NONCAPITAL
FINANCING ACTIVITIES:
Write off Abandoned Project Costs (155,177)$ (1,615,241)$
Fair Value Adjustments to Investments (72,713) (56,183)
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EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2018
37
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A) Reporting Entity
The East Valley Water District (the 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, 2018, the District owned 5,954.48 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 at 31111 Greenspot Road, Highland, California 92346.
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EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2018
38
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
The following condensed combining schedule shows how the District and its component units are blended in the
accompanying financial statements:
Table 1-1
Financing
District NFWC Authority Eliminations Total
Statement of Net Position
Current Assets 23,987,517$ 15,911$ 431,222$ (431,222)$ 24,003,428$
Capital Assets 153,646,109 2,946,542 - (1,519,182) 155,073,469
Other Assets 6,839,068 304,795 36,800,000 (36,800,000) 7,143,863
Deferred Outflows 4,510,276 - - - 4,510,276
Total Assets & Deferred Outflows 188,982,970 3,267,248 37,231,222 (38,750,404) 190,731,036
Current Liabilities 7,390,369 12,340 431,222 (431,222) 7,402,709
Long-Term Liabilities 63,371,142 - 36,800,000 (36,800,000) 63,371,142
Deferred Inflows 563,519 - - - 563,519
Total Liabilities & Deferred Inflows 71,325,030 12,340 37,231,222 (37,231,222) 71,337,370
Net Investment in Capital Assets 104,729,944 - - (1,519,182) 103,210,762
Restricted Net Position 3,154,062 180,878 - - 3,334,940
Unrestricted Net Position 9,773,934 3,074,030 - - 12,847,964
Total Net Position 117,657,940$ 3,254,908$ -$ (1,519,182)$ 119,393,666$
Statement of Changes in Net Position
Sales and Services 39,430,241$ -$ -$ -$ 39,430,241$
Other Operating Revenue 860,884 - - - 860,884
Operating Expenses 29,108,587 (156,364) - - 28,952,223
Depreciation 7,082,525 (54,649) - - 7,027,876
Operating Income 4,100,013 211,013 - - 4,311,026
Net Non-Operating Revenue
(Expenses)(1,605,641) 307,708 - - (1,297,933)
Capital Contributions 523,918 - - - 523,918
Special Items (155,177) - - - (155,177)
Change in Net Position 2,863,113 518,721 - - 3,381,834
Beginning Net Position,
as Previously Reported 116,506,630 2,736,187 - (1,519,182) 117,723,635
Cumulative Effect of Change
in Accounting Principle (1,711,803) - - - (1,711,803)
Ending Net Position 117,657,940$ 3,254,908$ -$ (1,519,182)$ 119,393,666$
- -
Statement of Cash Flows
Net Cash from Operating Activities 11,514,724$ (52,678) -$ -$ 11,462,046$
Net Cash from Capital and Related (5,453,199) - - - (5,453,199)
Financing Activities 23,388 (23,388) 3,169,863 (3,169,863) -
Net Cash from Investing Activities (155,663) (153) (3,169,863) 3,169,863 (155,816)
Beginning Cash and Equivalents 13,651,850 378,950 - - 14,030,800
Ending Cash & Equivalents 19,581,100$ 302,731$ -$ -$ 19,883,831$
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EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2018
39
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B) Measurement Focus, Basis of Accounting and Financial Statement Presentation
The accounting and financial reporting treatment is determined by the applicable measurement focus and
basis of accounting. Measurement focus indicates the type of resources being measured such as current
financial resources or economic resources. The basis of accounting indicates the timing of transactions or
events for recognition in the financial statements.
The District uses the economic resources measurement focus and the accrual basis of accounting.
Accordingly, revenues are recognized when they are earned and expenses are recorded when the liability
is incurred.
C) Comparative Data
Prior year data has been included where practical for comparison purposes only. The prior year data does
not represent a complete presentation in accordance with accounting principles generally accepted in the
United States of America.
D) Inventory Valuation
Inventories are valued at cost using the average-cost method.
E) Capitalization and Depreciation
Capital assets purchased or constructed by the District are recorded at cost. Donated capital assets are
recorded at acquisition value as of the date received. The District has a capitalization threshold of $5,000.
Depreciation is computed using the straight-line method over the estimated useful lives of the various assets.
Water canals, water, and wastewater lines are depreciated over 25 to 50 years; office equipment and vehicles
are depreciated over 5 years.
Water stock and rights contributed to the District are recorded at the same value the District is currently paying
for the purchase of similar stock.
F) Restricted Assets
Certain assets of the District are restricted in use by ordinance or debt covenant and accordingly are shown
as restricted assets on the accompanying statement of net position. Unexpended Bond proceeds are set
aside for capital improvements, District deposits into Bond trustee accounts are to be used for debt service,
and utility deposits must be returned to the customers at their request after their account has been paid timely
for 12 consecutive months, or when their account is closed.
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EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2018
40
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
G) Cash and Cash Equivalents
For the purposes of the statement of cash flows, cash and cash equivalents have been defined as demand
deposits and highly liquid investments purchased with an original maturity of 3 months or less. The District
invests funds with the Local Agency Investment Fund (LAIF) and Money Market Mutual Funds. Due to the
high liquidity of these investments, these funds are classified as cash equivalents.
H) Investments
The District has adopted the provisions of GASB Statement No. 72, Fair Value Measurement and Application.
The objective of this Statement is to enhance comparability of financial statements among governments by
measurement of certain assets and liabilities at their fair value using a consistent and more detailed definition
of fair value and accepted valuation techniques. The definition of fair value is the price that would be received
to sell and asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. This Statement establishes a hierarchy of inputs to valuation techniques used to measure
fair value.
I) Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position includes a separate section for deferred outflows
of resources. This separate financial statement element, deferred outflows of resources, represents a
consumption of net position that applies to future periods and so will not be recognized as an outflow of
resources (expense/expenditure) until then. The District has three items which qualify for reporting in this
category; Deferred Outflows Charge on Refunding, Deferred Outflows Related to Pensions, and Deferred
Outflows Related to OPEB.
In addition to liabilities, the statement of financial position includes a separate section for deferred inflows
of resources. This separate finanancial statement element, deferred inflows of resources, represents an
acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of
resources (revenue) until that time. The District has two items which qualify for reporting in this category:
Deferred Inflows related to Pensions and Deferred Inflows related to OPEB.
J) Compensated Absences
The District has a policy whereby an employee can accumulate unused sick leave and vacation. Sick leave
is to be used for extended periods of sickness; however, upon termination or retirement, a portion will be paid
as additional benefits to the employee. At retirement or termination, employees who have accumulated over
ten years of service will be paid between 50 to 70% of their unused sick leave (based upon their balance of
unused sick leave) at their regular payroll rates in effect at the date of termination. Also, employees can cash
out up to 300 hours of unused sick time, per calendar year, provided that a minimum of 160 hours is retained
after said cashout. The District has provided for these future costs by accruing a range of the earned and
unused sick leave and 100% of the earned and unused vacation.
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EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2018
41
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
K) Classification of Revenue
As an enterprise (proprietary) fund, the District classifies its revenues into three classifications: operating
revenue, non-operating revenue, and contributions.
Operating revenues are defined as revenues realized by the District in exchange for providing its primary
services of water distribution and wastewater collection to its customers. Non-operating revenues are those
derived from the investment of cash reserves and from the disposal of excess property, and also include those
resources received from entities other than customers, such as governmental agencies and developers, for
purposes not related to capital improvement. Donated plant and cash received for capital improvement without
the requirement that the District give resources in exchange are recorded as contributions.
L) Use of Restricted Resources
The District uses restricted resources, prior to using unrestricted resources, to pay expenses meeting the
criteria imposed on the use of restricted resources by a third party.
M) Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
N) Pension
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to
pensions, and pension expense, information about the fiduciary net position of the District’s California Public
Employees’ Retirement System (CalPERS) plans (Plans) are additions to/deductions from the Plans’ fiduciary
net position and have been determined on the same basis as they are reported by CalPERS. For this purpose,
benefit payments (including refunds of employee contributions) are recognized when due and payable in
accordance with the benefit terms.
O) Postemployment Benefits Other Than Pensions (OPEB)
During 2018, the Distrtict adopted new accounting guidance GASB Statement No. 75, Accounting and
Financial Reporting for Post Employment Benefits (GASB No. 75).
For purposes of measuring the District’s OPEB liability related to the California Employer’s Retirement
Benefits Trust (CERBT), deferred outflows of resources and deferred inflows of resources related to OPEB,
and OPEB expense, information about the fiduciary net position of the CERBT and additions to/deductions
from the CERBT fiduciary net position have been determined on the same basis as they are reported by
the CERBT. For this purpose, the CERBT recognizes benefit payments when due and payable in
accordance with the benefit terms. Investments are reported at fair value, except for money market
investments and participating interest earning investment contracts that have a maturity at the time of
purchase of one year or less, which are reported at cost.
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EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2018
42
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
P) Future Accounting Pronouncements
The applicable GASB Statements listed below will be implemented in future financial statements:
Table 1-2
GASB Statement Description Effective Date
Statement No. 83 Certain Asset Retirement
Obligations
The provisions in Statement 83 are effective for
reporting periods beginning after June 15, 2018.
Earlier application is encouraged.
Statement No. 84 Fiduciary Activities The provisions in Statement 84 are effective for
reporting periods beginning after December 15,
2018. Earlier application is encouraged.
Statement No. 87 Leases The provisions in Statement 87 are effective for
reporting periods beginning after December 15,
2019. Earlier application is encouraged.
Statement No. 88 Certain Disclosures
Related to Debt, including
Direct Borrowings and
Direct Placements
The provisions in Statement 88 are effective for
reporting periods beginning after June 15, 2018.
Earlier application is encouraged.
Statement No. 89 Accounting for Interest
Cost Incurred before the
End of a Construction
Period
The requirements of this Statement are effective
for reporting periods beginning after December 15,
2019. Earlier application is encouraged. The
requirements of this Statement should be applied
prospectively.
2) CASH AND INVESTMENTS
Cash and Investments as of June 30, 2018 are classified in the accompanying financial statements as follows:
Table 2-1
Cash and Cash Equivalents 13,095,699$
Restricted Cash and Cash Equivalents 6,788,132
Investments 5,350,547
Total 25,234,378$
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EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2018
43
2) CASH AND INVESTMENTS - Continued
Cash and investments as of June 30, 2018 consist of the following:
Table 2-2
Cash on Hand 5,250$
Deposits with Financial Institutions 2,788,849
Money Market Accounts with Financial Institutions 184,065
Investments with Local Agency Investment Fund 16,905,667
Investment in Debt Securities 5,350,547
Total 25,234,378$
Investments Authorized by the California Government Code and the District’s Investment Policy
The table below identifies the investment types that are authorized by the District's investment policy and in
accordance with Section 52601 of the California Government Code The table also identifies certain provisions
of the District's investment policy that address interest rate risk and concentration of credit risk.
Table 2-3
Authorized Investment Type
Maximum
Maturity
Authorized
Limit
Required
Rating
Bonds and Certificates of Participation by EVWD 5 years None None
U.S. Treasury Bills, Notes, or Bonds 5 years None None
State Registered Warrants, Notes, or Bonds 5 years 20% AA
Notes and Bonds of other Local California Agencies 5 years None None
U.S. Agencies 5 years None None
Negotiable Certificates of Deposits 5 years 30% None
Money Market Mutual Funds and Mutual Funds N/A 15% 2 - AAA
Collateralized Bank Deposits 5 years None None
Commerical Paper 270 days 15% A
Placement Service Deposit 3 years 25% None
Medium Term Notes 5 years 30% AA
Local Agency Investment Fund (LAIF)N/A None None
At June 30, 2018, the District had no investments in repurchase agreements and did not utilize this investment
media during the reporting year. As a matter of investment policy, the District does not borrow funds through the
use of reverse repurchase agreements.
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.
Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market
interest rates. One of the ways that the District minimizes its exposure to this type of risk is by investing in
investments with laddered maturity dates.
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EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2018
44
2) CASH AND INVESTMENTS – Continued
As of June 30, 2018, the District had the following investments and maturities:
Table 2-4
Investment Type Fair Value
Average
Maturity
Fannie Mae 1,166,513$ 3.01 years
Freddie Mac 1,756,285 2.78 years
Federal Home Loan Bank 789,832 2.98 years
US Treasury 1,251,928 3.25 years
Tenn Valley Authority 385,989 2.46 years
LAIF 16,905,667 N/A
Money Market Mutual Funds 183,912 N/A
Total Fair Value 22,440,126$
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of a rating by a nationally recognized statistical rating
organization. Presented below is the minimum rating required by (where applicable) the California Government
Code or the District’s investment policy, and the actual rating as of year end for each investment type.
Table 2-5
Investment Type Fair Value
Minimum
Legal Rating
Exempt From
Disclosure
Rating at Year
End AAA Not Rated
Fannie Mae 1,166,513$ N/A -$ 1,166,513$ -$
Freddie Mac 1,756,285 N/A - 1,756,285 -
Federal Home Loan Bank 789,832 N/A - 789,832 -
US Treasury 1,251,928 N/A 1,251,928 - -
Tenn Valley Authority 385,989 N/A - 385,989 -
LAIF 16,905,667 N/A - - 16,905,667
Money Market Mutual Funds 183,912 N/A - 183,912 -
22,440,126$ 1,251,928$ 4,282,531$ 16,905,667$
Fair Value Measurements
The District categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. These principles recognize a three-tiered fair value hierarchy, as follows:
Level 1: Investments reflect prices quoted in active markets;
Level 2: Investments reflect prices that are based on a similar observable asset either directly or indirectly,
which may include inputs in markets that are not considered to be active; and,
Level 3: Investments reflect prices based upon unobservable sources.
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Notes to the Basic Financial Statements
Year Ended June 30, 2018
45
2) CASH AND INVESTMENTS – Continued
The District has the following recurring fair value measurements as of June 30, 2018:
Table 2-6
Quoted Prices
in Active
Markets for
Identical Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Investments by Fair Value Level (Level 1) (Level 2) (Level 3) Total
Debt Securities
Fannie Mae -$ 1,166,513$ -$ 1,166,513$
Freddie Mac - 1,756,285 - 1,756,285
Federal Home Loan Bank - 789,832 - 789,832
US Treasury 1,251,928 - - 1,251,928
Tenn Valley Authority - 385,989 - 385,989
Total Investments Measured at Fair Value 1,251,928$ 4,098,619$ -$ 5,350,547$
Investments Measured at Amortized Cost
LAIF 16,905,667
Money Market Mutual Funds 183,912
Total Investments 22,440,126$
Fair Value Measurements Using
Disclosure Related to Concentration of Credit Risk
The District's policy places no limits on amounts invested in any given issuer beyond that stipulated by the
California Government Code. At June 30, 2018, there were no investments (other than external pools, U.S.
Government Securities and Money Market Mutual Funds) that exceeded 5% of the District's total investments.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a
government will not be able to recover its deposits or will not be able to recover collateral securities that are in the
possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure
of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. The California Government Code
requires California banks and savings and loan associations to secure deposits by pledging government securities
as collateral. Such collateralization of public funds is accomplished by pooling. As such, collateralized securities
are held by the pledging financial institution's agent on behalf of the District. The fair value of the pledged securities
must equal at least 110% of Districts deposits. California law also allows financial institutions to secure deposits
by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. The District
may waive collateral requirements for deposits which are fully insured by Federal depository insurance.
As of June 30, 2018, the District had $2,549,634 deposited with financial institutions that were in excess of federal
depository insurance limits. The federal deposit insurance limit is $250,000.
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EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2018
46
2) CASH AND INVESTMENTS – Continued
Investment in State Investment Pool
The management of the State of California Pooled Money Investment Account (generally referred to as LAIF) has
reported to its participating agencies that, as of June 30, 2018, the carrying amount (at amortized cost) of the pool
was $88,813,999,646 and the estimated fair value of the pool was $88,798,232,977. The District's proportionate
share of the fair value (as determined by LAIF) as of June 30, 2018, was $16,905,667. Included in LAIF's
investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed
securities, loans to certain State funds, and floating rate securities issued by federal agencies, government-
sponsored enterprises, and corporations.
3) RESTRICTED CASH AND CASH EQUIVALENTS
Restricted cash and cash equivalents at June 30, 2018 are restricted as follows:
Table 3-1
Held for Debt Service 1,632,920$
Capacity Fees from Developers 3,154,063
Customer Deposits 1,588,918
Construction Advances 109,500
North Fork Water Company 302,731
Total 6,788,132$
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Notes to the Basic Financial Statements
Year Ended June 30, 2018
47
4) CAPITAL ASSETS
A summary of changes in capital assets for the year ended June 30, 2018 is as follows:
Table 4-1
Beginning of End of
Year Additions Deletions Adjustments Year
Water Fund
Non-Depreciable Assets
Land and Easements 10,155,925$ -$ (22,332)$ -$ 10,133,593$
Water Rights 738,835 - (6,000) - 732,835
Construction in Progress 7,282,934 1,401,877 (5,892,607) - 2,792,204
Total Non-Depreciable Assets 18,177,694 1,401,877 (5,920,939) - 13,658,632
Depreciable Assets
Source of Supply 16,590,849 1,888,982 - - 18,479,831
Pumping Plant 14,384,825 91,965 - (119,140) 14,357,650
Treatment Plant 25,029,543 2,786,269 (9,919) 25,908 27,831,801
Transmission and Distribution Plant 98,379,359 577,486 (305,021) 119,140 98,770,964
General Plant 17,326,329 1,036,004 (47,326) (25,908) 18,289,099
Total Depreciable Assets 171,710,905 6,380,706 (362,266) - 177,729,345
Accumulated Depreciation
Source of Supply (5,920,313) (569,626) - - (6,489,939)
Pumping Plant (5,611,980) (578,322) - - (6,190,302)
Treatment Plant (8,668,947) (1,225,972) 9,919 - (9,885,000)
Transmission and Distribution Plant (35,614,215) (2,824,535) 305,021 - (38,133,729)
General Plant (4,326,392) (836,840) 47,326 - (5,115,906)
Total Accumulated Depreciation (60,141,847) (6,035,295) 362,266 - (65,814,876)
Water Fund Capital Assets, Net 129,746,752 1,747,288 (5,920,939) - 125,573,101
Wastewater Fund
Non-Depreciable Assets
Land and Easements 713,940 - - - 713,940
Construction in Progress 9,052,991 1,166,606 (325,247) - 9,894,350
Total Non-Depreciable Assets 9,766,931 1,166,606 (325,247) - 10,608,290
Depreciable Assets
Wastewater Collection Plant 27,047,561 47,354 (291,057) - 26,803,858
General Plant 9,246,154 112,122 (47,326) - 9,310,950
Total Depreciable Assets 36,293,715 159,476 (338,383) - 36,114,808
Accumulated Depreciation
Wastewater Collection Plant (13,787,891) (637,150) 291,057 - (14,133,984)
General Plant (2,802,971) (333,101) 47,326 - (3,088,746)
Total Accumulated Depreciation (16,590,862) (970,251) 338,383 - (17,222,730)
Wastewater Fund Capital Assets, Net 29,469,784 355,831 (325,247) - 29,500,368
Total Capital Assets, Net 159,216,536$ 2,103,119$ (6,246,186)$ -$ 155,073,469$
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Notes to the Basic Financial Statements
Year Ended June 30, 2018
48
5) LONG-TERM DEBT
The schedule below summarizes changes in long-term debt during the year ended June 30, 2018:
Table 5-1
Beginning
Balance Additions
Retirements/
Payments
Ending
Balance
Current
Portion
Long-Term
Portion
2010 Refunding Bonds 26,150,000$ -$ (1,435,000)$ 24,715,000$ 1,500,000$ 23,215,000$
Unamortized Premium 1,668,061 - (80,741) 1,587,320 80,741 1,506,579
2013 Refunding Bonds 12,085,000 - - 12,085,000 - 12,085,000
Unamortized Premium 553,946 - (20,300) 533,646 20,300 513,346
Unamortized Discount (35,133) - 1,353 (33,780) (1,353) (32,427)
U.S. Bank Lease Purchase 2,910,550 - (388,244) 2,522,306 397,090 2,125,216
SBVMWD Loan 4,367,927 - (497,925) 3,870,002 436,793 3,433,209
Dept Water Resources Contracts
AVAD Construction 91,288 - (6,762) 84,526 6,762 77,764
Plant 134 Construction 6,535,166 - (233,399) 6,301,767 233,399 6,068,368
Plant 150 Design 30,000 - (20,000) 10,000 10,000 -
EFAD Construction 338,418 - (13,016) 325,402 13,016 312,386
Total 54,695,223$ -$ (2,694,034)$ 52,001,189$ 2,696,748$ 49,304,441$
2010 Refunding Revenue Bonds
On October 29, 2010, the District issued $33,545,000 of East Valley Water District Financing Authority
Refunding Revenue Bonds, Series 2010 (2010 Bonds), with interest rates ranging from 2.00% to 5.00%. The
purpose for issuing the 2010 Bonds was to provide $16,000,000 for future capital improvements, and for
refunding virtually all of the Districts outstanding long-term debt. The refunded debt included 1) $5,935,000 in
2001 Certificates of Participation bearing interest rates ranging from 4.25% to 5.00%, 2) a $7,867,528 balance
on a 2004 Installment Sale Note bearing interest at 4.50%, and 3) a $5,109,854 balance on a 2006 Installment
Sale Note bearing interest at 4.95%.
The refunding portion of the 2010 Bonds ($17,170,000) were issued at a premium of $1,630,726, and after
paying issuance costs of $318,849, net proceeds were $18,481,877. The net proceeds, combined with a
$920,318 sinking fund for 2001 COP debt service, were sufficient to accomplish the refunding of the existing
debt.
The refunding resulted in a difference between the reacquisition price and the carrying amount of the old debt
of $259,548. This difference is included in the accompanying financial statements as a Deferred Outflows of
Resoures and is being charged to operations through the year 2024 using the straight-line method of
amortization.
2013 Revenue Bonds
On June 19, 2013 the District issued $12,085,000 of East Valley Water District Financing Authority Revenue
Bonds, Series 2013 (2013 Bonds), with interest rates ranging from 4.00% to 5.00%. The purpose for issuing
the 2013 Bonds was to provide financing for water and wastewater capital improvements, primarily construction
of a new administration and operations headquarters complex.
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Notes to the Basic Financial Statements
Year Ended June 30, 2018
49
5) LONG-TERM DEBT - Continued
US Bank Lease Purchase
On November 13, 2013 the District entered into a Lease Purchase Agreement with US Bancorp Government
Leasing and Finance, Inc. (US Bank), in order to implement Energy Conservation Measures (ECM) identified
in a comprehensive energy conservation and operational efficiency study prepared by Honeywell International,
Inc. (Honeywell). Honeywell has been contracted to install the facilities necessary to achieve the energy savings
identified in their study, and has guaranteed that the savings will be sufficient to pay the debt service on the
lease with US Bank. Project costs paid to Honeywell, and the amount borrowed from US Bank under the lease
agreement is $3,998,560 with an interest rate of 2.38%. Semi-annual payments are $226,398, to commence
on September 2014 through March 2024.
San Bernardino Valley Municipal Water District - City Creek Turnout and Plant 134 Hydroelectric Station
Loan
On January 20, 2015, the District entered into an agreement with the SBVMWD for the construction, financing,
and maintenance of a turnout by which the District’s surface water treatment plant can receive State Project
water. The total amount borrowed for construction of the project is $4,367,927 bearing interest at the State of
California Local Agency Investment Fund (LAIF) apportionment rate, which is 1.90% at June 30, 2018. Debt
service payments are to be made annually on February 1st over ten years.
Department of Water Resources Contract 00C412 - Arroyo Verde Assessment District (AVAD)
On June 30, 2004, the District entered into a Funding Agreement for replacement of distribution pipelines in the
section of the District's service area formerly served by the Arroyo Verde Water Company. The original loan
amount was $169,052 with an annual interest rate of 0%. Semi-annual payments of $3,381 are due through
January 2031 and are secured by annual assessments to property owners within the Arroyo Verde Assessment
District.
Department of Water Resources Contract 10CX110 - Plant 134
On December 21, 2010, the District entered into a Funding Agreement to upgrade treatment methods utilized
by the District's surface water treatment plant (Plant 134). The amount borrowed under the agreement is
$7,001,964 with an annual interest rate of 0%. Semi-annual payments of $116,699 are due through January
2045, and are secured by a pledge of net revenues of the District's water operating fund.
Department of Water Resources Contract 10PX102 - Plant 150 Design
On March 11, 2011 the District entered into a Funding Agreement to assist in financing the cost of studies and
planning of treatment facilities to address water quality issues threatening the District's lower zone wells (Plant
150). The amount of the loan is $100,000 with an annual interest rate of 0%. Semi-annual payments of $10,000
are due through July 2018 and are secured by a pledge of net revenues of the District's water operating fund.
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Notes to the Basic Financial Statements
Year Ended June 30, 2018
50
5) LONG-TERM DEBT - Continued
Department of Water Resources Contract 11CX101 - Eastwood Farms Assessment District
On June 15, 2011 the District entered into a Funding Agreement for replacement of distribution pipelines in the
section of the District's service area formerly serviced by the Eastwood Farms Water Users Association. The
amount of the loan is $390,482 with an annual interest rate of 0%. Semi-annual payments of $6,508 are due
for 30 years through January 2043. Repayment of the loan is secured by annual assessments to property
owners within the Eastwood Farms Assessment District. The aggregate debt service requirements to maturity
for long-term debt as of June 30, 2018 are as follows (excludes unamortized premiums/discounts):
Table 5-2
Year Ending
June 30, Principal Interest Total
2019 2,597,060$ 1,758,768$ 4,355,828$
2020 2,676,104 1,667,848 4,343,952
2021 2,755,349 1,581,212 4,336,561
2022 2,249,802 1,510,628 3,760,430
2023 2,309,466 1,448,566 3,758,032
2024-2028 8,811,295 6,360,094 15,171,389
2029-2033 6,963,981 5,182,511 12,146,492
2034-2038 8,370,075 3,769,504 12,139,579
2039-2043 10,359,076 1,774,993 12,134,069
2044-2048 2,821,793 58,875 2,880,668
Total 49,914,001$ 25,112,999$ 75,027,000$
Security for debt is as follows:
Table 5-3
Debt Security
2010 and 2013 Refunding
Revenue Bonds and Department
of Water Resources
Construction Loans
The District is required to maintain net revenues, as defined
by the revenue bond trust agreements and State of
California Department of Public Health Funding agreements
of at least 120% of District's annual debt service (principal
and interest). At June 30, 2018, net water revenues
represented 289% of the annual water debt service and net
wastewater revenues represented 301% of the annual
wastewater debt service.
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Notes to the Basic Financial Statements
Year Ended June 30, 2018
51
6) COMPENSATED ABSENCES
Compensated absences are comprised of unused vacation leave and a limited amount of sick leave which is
accrued as earned in accordance with District policy. The District's liability for compensated absences is
determined annually. Current portions are determined based on estimates of usage, amounts in excess of 196
hours that will be voluntarily cashed out and amounts that will be cashed out upon termination of employment.
Table 6-1
Beginning
of Year Additions
Usage /
Payments End of Year
Current
Portion
Long-Term
Portion
Accrued Vacation Leave 326,121$ 527,015$ (361,999)$ 491,137$ 261,535$ 229,602$
Accrued Sick Leave 395,792 538,187 (472,870) 461,109 158,178 302,931
Total 721,913$ 1,065,202$ (834,869)$ 952,246$ 419,713$ 532,533$
7) NET INVESTMENT IN CAPITAL ASSETS
Net Investment in capital assets at June 30, 2018 consisted of the following:
Table 7-1
Non-Depreciable Capital Assets 24,266,922$
Depreciable Capital Assets 213,844,151
Accumulated Depreciation (83,037,606)
Loans Payable (13,114,000)
Bonds Payable (38,887,187)
Deferred Amount on Refunding 138,482
Total 103,210,763$
8) DEFINED BENEFIT PENSION PLAN (PERS)
A) General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the District’s Miscellaneous
Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the
California Public Employees’ Retirement System (CalPERS). Benefit provisions under the Plans are
established by State statue and East Valley Water District resolution. CalPERS issues publicly available
reports that include a full description of the pension plans regarding benefit provisions, assumptions, and
membership information that can be found on the CalPERS website.
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Notes to the Basic Financial Statements
Year Ended June 30, 2018
52
8) DEFINED BENEFIT PENSION PLAN (PERS) - Continued
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death
benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of
credited service, equal to one year of full time employment. Members with five years of total service are eligible
to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits
after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor
Benefit, or the Optional Settlement 2 W Death Benefit. The cost of living adjustments for each plan are applied
as specified by the Public Employees’ Retirement Law.
The Plans’ provisions and benefits in effect at June 30, 2018, are summarized as follows:
Table 8-1
Prior to On or after
Hire Date January 1, 2013 January 1, 2013
Benefit Formula 2.7% @55 2.0% @62
Benefit Vesting Schedule 5 years service 5 years service
Benefit Payments monthly for life monthly for life
Retirement Age 50 - 55 52 - 67
Monthly Benefits, as a % of Eligible Compensation 2.0% to 2.7% 1.0% to 2.5%
Required Employee Contribution Rates 8.0%6.5%
Required Employer Contribution Rates 11.388%6.625%
Miscellaneous
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer
contribution rates for all public employers be determined on an annual basis by the actuary and shall be
effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are
determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is
the estimated amount necessary to finance the costs of benefits earned by employees during the year, with
an additional amount to finance any unfunded accrued liability. The District is required to contribute the
difference between the actuarially determined rate and the contribution rate of employees.
For the year ended June 30, 2018, the contributions recognized as part of pension expense for the Plans
were as follows:
Table 8-2
Miscellaneous
Contributions - Employer $ 1,035,102
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Notes to the Basic Financial Statements
Year Ended June 30, 2018
53
8) DEFINED BENEFIT PENSION PLAN (PERS) - Continued
B) Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to
Pensions
As of June 30, 2018, the District reported net pension liabilities for its proportionate shares of the net
pension liability of the Plans as follows:
Table 8-3
Proportionate Share
of Net Pension
Liability
Miscellaneous $ 11,601,798
The District’s net pension liability for each Plan is measured as the proportionate share of the net
pension liability. The net pension liability of each of the Plans is measured as of June 30, 2017, and the
total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial
valuation as of June 30, 2016 rolled forward to June 30, 2017 using standard update procedures. The
District’s proportion of the net pension liability was based on a projection of the District’s long-term share
of contributions to the pension plans relative to the projected contributions of all participating employers,
actuarially determined. The District’s proportionate share of the net pension liability for each Plan as of
June 30, 2016 and 2017 was as follows:
Table 8-4
Prior to On or after
January 1, 2013 January 1, 2013
Proportion - June 30, 2016 0.115851%0.000025%
Proportion - June 30, 2017 0.116986%0.000025%
Change - Increase (Decrease)0.001135%0.000000%
Miscellaneous
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Notes to the Basic Financial Statements
Year Ended June 30, 2018
54
8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued
For the year ended June 30, 2018, the District recognized pension expense of $2,047,900. At June 30, 2018,
the District reported deferred outflows of resources and deferred inflows of resources related to pensions from
the following sources:
Table 8-5
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Difference between expected and actual
experience $ 14,154 202,775$
Changes in Assumptions 1,756,119 133,906
Net differences between projected and actual
earnings on plan investments 397,162 -
Change in employer's proportion 449,267 -
Difference between the employer's
contributions and the employer's proportionate
share of contributions - 225,614
Pension contributions subsequent to
measurement date 1,579,265 -
Total $ 4,195,967 $ 562,295
$1,579,265 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended June 30,
2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized as pension expense as follows:
Table 8-6
Year
June 30, Amount
2018 $ 492,900
2019 1,106,631
2020 672,928
2021 (218,052)
2022 -
Thereafter -
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Notes to the Basic Financial Statements
Year Ended June 30, 2018
55
8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued
Actuarial Assumptions
The total pension liabilities in the June 30, 2016 actuarial valuations were determined using the following
actuarial assumptions:
Table 8-7
Miscellaneous
Valuation Date June 30, 2016
Measurement Date June 30, 2017
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 7.15%
Inflation 2.75%
Payroll Growth 3.00%
Projected Salary Increase 2.75% (1)
Investment Rate of Return 7.00% (2)
(1) Depending on age; service and type of employment
(2) Net of pension plan investment expenses, including inflation
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2016 valuation
were based on the results of an April 2014 actuarial experience study for the period 1997 to 2011. Further
details of the Experience Study can found on the CalPERS website.
Discount Rate
The discount rate used to measure the total pension liability was changed from 7.65% to 7.15% due to a
decrease in the long-term expected rate of return. To determine whether the municipal bond rate should be
used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely
result in a discount rate that would be different from the actuarially assumed discount rate. Based on the
testing, none of the tested plans run out of assets. Therefore, the current 7.15% discount rate is adequate
and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of
7.15% will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results
are presented in a detailed report that can be obtained from the CalPERS website.
CalPERS continues the Asset Liability Management (ALM) process to expand its review of assets and
liabilities to ensure financial risks to the System are better understood, communicated, and mitigated. To
establish appropriate levels of risk, ALM is focused on investment and actuarial policies. These policies
include key decision factors that drive optimum asset allocations, while stabilizing employer rates, and
volatility of those rates year to year. Additionally, in order to better manage risks arising from terminating
agencies, CalPERS has enhanced its oversight of contracting public agencies' financial health through its
development of a standardized review criteria. These improvements include streamlining the collection and
termination process to reduce the timeframe, accelerating notifications to the Board and members, and
adopting a risk oversight process to improve early detection of financial hardship issues.
The long-term expected rate of return on pension plan investments was determined using a building-block
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Notes to the Basic Financial Statements
Year Ended June 30, 2018
56
8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued
method in which expected future real rates of return (expected returns, net of pension plan investment
expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-
term market return expectations as well as the expected pension fund cash flows. Using historical returns
of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short
term (first 10 years) and the long term (11+ years) using a building-block approach. Using the expected
nominal returns for both short term and long term, the present value of benefits was calculated for each
fund. The expected rate of return was set by calculating the rounded single equivalent expected return that
arrived at the same present value of benefits for cash flows as the one calculated using both short-term
and long-term returns. The expected rate of return was then set equal to the single equivalent rate
calculated above and adjusted to account for assumed administrative expenses.
The table below reflects the long-term expected real rate of return by asset class. The rate of return was
calculated using the capital market assumptions applied to determine the discount rate and asset allocation.
These rates of return are net of administrative expenses.
Table 8-8
Asset Class
New Strategic
Allocation
Real Return
Years 1 - 10(a)
Real Return
Years 11 + (b)
Global Equity 47.0%4.90%5.38%
Global Fixed Income 19.0%0.80%2.27%
Inflation Sensitive 6.0%0.60%1.39%
Private Equity 12.0%6.60%6.63%
Real Estate 11.0%2.80%5.21%
Infrastructure and Forestland 3.0%3.90%5.36%
Liquidity 2.0%-0.40%-0.90%
Total 100.0%
(a) An expected inflation of 2.5% used for this period
(b) expected inflation of 3.0% used for this period
C) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents East Valley Water District’s proportionate share of the net pension liability for each
Plan, calculated using the discount rate for each Plan, as well as what the District’s proportionate share of
the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower
or 1-percentage point higher than the current rate:
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Notes to the Basic Financial Statements
Year Ended June 30, 2018
57
8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued
Table 8-9
Miscellaneous
1% Decrease 6.15%
Net Pension Liability $ 6,807,515
Current Discount Rate 7.15%
Net Pension Liability $ 11,601,798
1% Increase 8.15%
Net Pension Liability $ 17,390,470
D) Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued
CalPERS financial reports.
E) Payable to the Pension Plan
At June 30, 2018, the District reported a payable of $0 for the outstanding amount of contributions to the
pension plan required for the year ended June 30, 2018.
9) COMMITMENTS AND CONTINGENCIES
Grant Awards
Grant funds received by the District are subject to audit by the grantor agencies. Such audit could lead to
requests for reimbursements to the grantor agencies for expenditures disallowed under terms of the grant.
Management of the District believes that such disallowances, if any, would not be significant.
10) RISK MANAGEMENT
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omission; injuries to employees; and natural disasters. The District participates in a joint powers agreement
(JPA) with the Special District Risk Management Authority (Authority). The Authority is a risk-pooling self-
insurance authority created under the provisions of California Government Code Section 6500 et. sec. The
Authority is governed by a Board consisting of 7 directors that are either a manager or board member of a current
member agency that were elected by members of SDRMA. The Board controls the operations of the Authority
including selection of management and approval of operation budgets. The relationship between the District and
the Authority is such that the Authority is not a component unit of the District for financial reporting purposes.
Settled claims have been immaterial and claims liabilities have not been reported in these financial statements as
of June 30, 2018, or in the previous two fiscal years.
The purpose of the Authority is to arrange and administer programs of insurance for the pooling of self-insured
losses and to purchase excess insurance coverage.
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Notes to the Basic Financial Statements
Year Ended June 30, 2018
58
10) RISK MANAGEMENT - Continued
At June 30, 2018, the District's participation in the self-insurance programs of the Authority was as follows:
Table 10-1
Description Deductible
Personal Injury and Property
Damage Liability Coverage -
General
10,000,000$ Per occurrence / aggregate
where applicable
$500 (property damage only)
Personal Injury and Property
Damage Liability Coverage -
Auto
10,000,000$ Per accident None
Public Officials and
Employees Errors and
10,000,000$ Per wrongful act / annual
member aggregate
None
Employment Practices
Liability
10,000,000$ Per wrongful employment
practice / aggregate limits
per member included with
Public Officials and
Employee Errors and
None up to $10,000, 50% co-
insurance from $10,000 to
$50,000, none for amounts
greater than $50,000
Employee Benefits Liability 10,000,000$ Per wrongful act / annual
member aggregate
None
Employee Dishonesty
Coverage
1,000,000$ Per loss None
Public Officials Personal
Liability
500,000$ Per occurrence / annual
aggregate per Board Member
$ 500
Automobile Physical Damage ACV Limits Replacement cost (stated
value adjusted for
depreciation on selected
$250/$500 or $500/$1,000
comprehensive / collision
(as elected per vehicle)
Uninsured Motorist Bodily
Injury Coverage
750,000$ Per accident None
Property Coverage 1,000,000,000$ Replacement cost for
scheduled property if
replaced (if not replaced
within two years, actual cash
value basis)
$ 1,000
Boiler and Machinery 100,000,000$ Replacement cost $ 1,000
Limits
11) CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
The beginning net position of the financial statements has been decreased $1,711,803 to recognize the
beginning balance of the net OPEB liability of $1,930,527 and deferred outflows of resources of $218,724
resulting from the implementation of GASB Statement No. 75. The beginning net position was not restated for
the effect of deferred inflows of resources as the amount was not practical to determine.
The partial comparative information presented for the fiscal year ended June 30, 2017 was not restated. GASB
statement No. 75 requires that beginning balances for other deferred outflows of resources and deferred inflows
of resources related to pensions be reported at transition date only if it is practical.
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Notes to the Basic Financial Statements
Year Ended June 30, 2018
59
12) POST EMPLOYMENT HEALTHCARE BENEFITS
The District provides post employment healthcare benefits for retired employees and eligible surviving spouses
in accordance with the plan as established by the District. As of June 30, 2018, the District’s total liability for
post-employment healthcare benefits and details of the plan are explained below:
Table 12-1
OPEB Plan Net OPEB Liability
Deferred Outflows
of Resources
Deferred Inflows
of Resources OPEB Expense
Retiree Benefits Plan 1,932,370$ 193,763$ 1,224$ 221,791$
Plan Description and Eligibility
The District contributes to the retiree health coverage of eligible retirees and eligible surviving spouses. As of
June 7, 2011, the District is part of the Public Agency portion of the California Employers’ Retiree Benefit Trust
Fund (CERBT), an agent multiple-employer plan administered by California Public Employees’ Retirement
System (CalPERS), which acts as a common investment and administrative agent for participating public
employers within the State of California. A menu of benefit provisions as well as other requirements is
established by State statute within the Public Employees’ Retirement Law. The District selects optional benefit
provisions from the benefit menu by contract with CalPERS and adopts those benefits through District
resolution. CalPERS issues a Comprehensive Annual Financial Report (CAFR). The CAFR is issued in
aggregate and includes the sum of all CalPERS plans. Copies of the CalPERS CAFR may be obtained from
the CalPERS Executive Office, 400 P Street, Sacramento, California 95814.
Membership in the health benefit plan consisted of the following at July 1, 2017, the date of the latest actuarial
valuation:
Table 12-2
Participant Type:
19
0
66
85
Inactive participants currently receiving benefits
Inactive participants entitled to but not yet receiving benefit payments
Active employees
Total
Number of
Participants
Funding Policy
The contribution requirements of plan members and the District are established and may be amended by the
Board of Directors. At retirement, the District provides the minimum employer contribution under the CalPERS
Health Program for eligible retirees and surviving spouses in receipt of a pension benefit from CalPERS. An
employee is eligible for this employer contribution provided they are vested in their CalPERS pension benefit
and commence payment of their pension benefit within 120 days of retirement with the District. Vesting requires
at least five years of service. The surviving spouse of an eligible retiree who elected spouse coverage under
CalPERS is eligible for the employer contribution upon death of the retiree.
Employees retiring with at least 10 years of District service will receive an additional District contribution through
attainment of Medicare eligibility age. The additional contribution is based on the negotiated dollar amount at
retirement (currently $700 per month). The surviving spouse of an eligible retiree is eligible for the District's
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Year Ended June 30, 2018
60
12) POST EMPLOYMENT HEALTHCARE BENEFITS - Continued
contribution upon the death of the retiree through the spouse's attainment of Medicare eligibility age.
The District’s funding policy is to contribute the Annual Determined Contribution (ADC) to their account within
the CERBT. For fiscal year ended June 30, 2017, the District paid $218,724 to the plan including the implicit
rate subsidy. The District contributed $193,763 including the implicit rate subsidy for retiree health benefits to
the Trust during the fiscal year ended June 30, 2018.
Net OPEB Liability
The table herein shows the components of the net OPEB liability of the District:
Table 12-3
Balance
June 30, 2018
Total OPEB Liability $ 2,537,882
Plan Fiduciary Net Position (605,512)
District's Net OPEB Liability (Asset) 1,932,370
Investments
As described above, at June 30, 2018, all Plan investments are held in the CERBT through CalPERS.
Actuarial Methods and Assumptions
The District’s net OPEB liability was measured as of June 30, 2017, and the total OPEB liability used to calculate
the net OPEB liability was determined by an actuarial valuation as of June 30, 2017. Liabilities in this report
were calculated as of the valuation date.
The total OPEB liability was determined by an actuarial valuation as of June 30, 2017, using the actuarial
assumptions shown herein, applied to all periods included in the measurement, unless otherwise specified.
Table 12-4
Actuarial Methods and Assumptions
Valuation Date June 30, 2017
Measurement Date June 30, 2017
Inflation 2.75%
Salary Increases 3.00%
Investment Rate of Return 6.50%
Health Care Trend Rate 6.00% HMO / 6.50% PPO
Mortality rates were based upon the rates under the CalPERS pensions plan updated to reflect the most recent
experience study.
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Notes to the Basic Financial Statements
Year Ended June 30, 2018
61
12) POST EMPLOYMENT HEALTHCARE BENEFITS - Continued
The long-term expected rate of return on Plan investments was determined using a building-block method in
which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan
investment expense and inflation) are developed for each major asset class. These ranges are combined to
produce the long-term expected rate of return by weighting the expected future real rates of return by the target
asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return
for each major asset class included in the OPEB plan’s target asset allocation at June 30, 2017 are shown
herein:
Table 12-5
Asset Class
Global Equity 40%5.50%
REITs 8%3.65%
US Fixed Income 39%2.35%
Commodities 3%1.75%
Inflation Assets 10%1.50%
Assumed Gross
Return
Percentage of
Portfolio
The discount rate used to measure the total OPEB liability was 6.50 percent. The discount rate assumes the
District continues to fully fund for its retiree health benefits through the CERBT under its investment allocation
strategy 1. The rate reflects the CERBT published median interest rate for strategy 2 of 6.73 percent with an
additional margin for adverse deviation.
Changes in the Net OPEB Liability
Table 12-6
Total OPEB
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net OPEB
Liability (Asset)
(a) - (b)
Balances at June 30, 2017 $ 2,449,423 $ 518,896 $ 1,930,527
Changes for the year:
Service Cost 97,138 - 97,138
Interest 160,045 - 160,045
Employer Contributions - 218,724 (218,724)
Net Investment Income - 36,877 (36,877)
Benefit Payments (168,724) (168,724) -
Administrative Expenses - (261) 261
Net Changes 88,459 86,616 1,843
Balances at June 30, 2018 $ 2,537,882 $ 605,512 $ 1,932,370
Increase (Decrease)
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Notes to the Basic Financial Statements
Year Ended June 30, 2018
62
12) POST EMPLOYMENT HEALTHCARE BENEFITS - Continued
The following presents the District’s net OPEB liability calculated using the discount rate of 6.50 percent, as
well as what the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point
lower (5.5 percent) or 1-percentage-point higher (7.5 percent) than the current rate:
Table 12-7
Discount Rate
Net OPEB Liability
(Asset)
2,204,444$
1,932,368$
1,699,799$
1% Decrease (5.50%)
Current Discount Rate (6.50%)
1% Increase (7.50%)
The following presents the District’s net OPEB liability calculated using the current healthcare cost trend rate of
4.0 percent, as well as what the net OPEB liability would be if it were calculated using healthcare cost trend
rates that are 1-percentage-point lower (3.0 percent) or 1-percentage-point higher (5.0 percent) than the current
rate:
Table 12-8
Healthcare Trend Rate
Net OPEB Liability
(Asset)
1,661,542$
1,932,368$
2,250,812$
1% Decrease (5.00% - 5.50% decreasing to 4.00% - 4.50%)
Current Healthcare Trend Rate (6.00% - 6.50%)
1% Increase (7.00% - 7.50% decreasing to 6.00% - 6.50%)
OPEB Expense
For the year ended June 30, 2018, the District recognized OPEB expense of $221,791 and recorded deferred
outflows of resources of $193,763 for contributions made during fiscal year 2018 after the measurement date.
The deferred outflows will be recognized in OPEB expense for the period ending June 30, 2019.
The District recorded $1,224 of deferred inflows of resources resulting from the differences between projected
and actual earnings on OPEB plan investments for the period ending June 30, 2017. The deferred inflows of
resources will be amortized and recognized in OPEB expense over three remaining periods ending June 30,
2021.
13) CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS
On June 26, 2018 the District entered into a Funding Agreement with the State Water Resources Control Board
to finance the cost associated with the planning, design, and construction of the “Sterling Natural Resource Center”
capital project. The agreement includes a loan for $119,257,875 at 1.8% interest rate and a Prop 1 grant for
$6,742,125 for a total of $126,000,000.
As of June 30, 2018, no activity related to the loan or grant has been recorded on the accompanying statement of
net position.
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Notes to the Basic Financial Statements
Year Ended June 30, 2018
63
13) CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS - Continued
The District has one siginiciant active construction project commitment as of June 30, 2018. The contract is related
to the consulting firm the District hired to furnish certain professional architectural and engineering services for the
Recycled Water Facility.
Table 13-1
Contractual Commitments Spent to Date
Remaining
Commitment
Project Management for the Wastewater Treatment Plant 340,958$ 609,042$
14) SPECIAL ITEMS – HAZARD MITIGATION
In 2010 the District experienced flooding which resulted in the realignment of City Creek, consequently leaving a
manhole exposed north of the flow of City Creek in the middle of the creek bed. The original manhole was designed
and constructed to exist below ground, with the manhole exposed, it put the wastewater collection system at risk
of contaminating the creek. The District consulted with several engineering firms to evaluate and provide a
permanent solution to this hazardous risk to the creek and public health.
In February 2017, the District received a recommendation to fill the exposed manhole with concrete and abandon
access to the sewer main located in the creek bed for a total project cost of $155,177.
Since the manhole was sealed and abandoned the cost incurred will no longer result in a Capital Asset and have
therefore been written off on the accompanying Statement of Revenues, Expenses, and Change in Net Position
as a Special Item.
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East Valley Water District
Schedule of Proportionate Share of the Net Pension Liability
Year Ended June 30, 2018
Last Ten Years*
65
2018 2017 2016 2015
Proportion of the Net Pension Liability 0.11699% 0.11585% 0.11551% 0.10632%
Proportionate Share of the Net
Pension Liability $ 11,601,798 $ 10,024,712 $ 7,928,173 $ 6,615,935
Covered - Employee Payroll $ 4,489,575 $ 5,097,156 $ 4,715,712 $ 4,436,236
Proportionate Share of the Net
Pension Liability as Percentage of
Covered-Employee Payroll
258.42% 196.67% 168.12% 149.13%
Plan's Fiduciary Net Position $ 27,706,747 $ 27,529,345 $ 28,045,198 $ 29,336,566
Plan's Fiduciary Net Position as a
Percentage of the Total Pension
Liability
71.37% 74.06% 78.40% 79.82%
* - Fiscal year 2015 was the first year of implementation, therefore only four years are shown.
Schedule of Proportionate Share of the Net Pension Liability
The schedule presents information on the District’s proportionate share of the net pension liability, the plans’ fiduciary
net position and, when applicable, the proportionate share of the net pension liability associated with the District. In
the future, as data becomes available, 10 years of information will be presented.
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East Valley Water District
Schedule of Contributions
Year Ended June 30, 2018
Last Ten Years*
66
2018 2017 2016 2015
Contractually Required Contribution
(Actuarially Determined)1,579,268$ 1,035,102$ 895,822$ 742,546$
Contributions in Relation to the
Actuarially Deteremined
Contributions
1,044,868$ 1,035,102$ 895,822$ 742,546$
Contribution Deficiency (Excess) (534,400)$ -$ -$ -$
Covered-Employee Payroll $ 5,447,702 $ 4,489,575 $ 5,097,156 $ 4,715,712
Contributions as a Percentage of
Covered-Employee Payroll 28.99% 23.06% 17.57% 15.75%
* - Fiscal year 2015 was the first year of implementation, therefore only three years are shown.
Schedule of Contributions
The schedule presents information on the District’s required contribution, the amounts actually contributed and any
excess or deficiency related to the required contribution. In the future, as data becomes available, 10 years of
information will be presented.
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East Valley Water District
Schedule of Changes in the Net OPEB Liability
Year Ended June 30, 2018
67
Total OPEB Liability 2018
Service Cost 97,138$
Interest 160,045
Benefit Payments (168,724)
Net Change in Total OPEB Liability 88,459
Total OPEB Liability - Beginning 2,449,423
Total OPEB Liability - Ending (a)2,537,882$
Plan Fiduciary Net Position 2018
Contributions - Employer 218,724$
Net Investment Income 36,877
Benefit Payments (168,724)
Administrative Expense (261)
Net Change in Plan Fiduciary Net Position 86,616
Plan Fiduciary Net Position - Beginning 518,896
Plan Fiduciary Net Position - Ending (b)605,512$
Net OPEB Liability (Asset) - Ending (a) - (b)1,932,370$
Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 23.86%
Covered-Employee Payroll 5,495,000$
Net OPEB Liability (Asset) as a Percentage of Covered-Employee Payroll 35.17%
Schedule of Changes in the Net OPEB Liability
Accounting standards require presentation of 10 years of information. However, the information in this schedule is not
required to be presented retroactively. Years will be added to this schedule as future data becomes available.
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Schedule of OPEB Contributions
Year Ended June 30, 2018
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OPEB Contributions 2018
Actuarially Determined Contribution (ADC)144,415$
Contributions in Relation to the ADC (218,724)
Contribution Deficiency (Excess)(74,309)
District's Covered-Employee Payroll 5,495,000$
Contributions as a Percentage of Covered-Employee Payroll 3.98%
Schedule of OPEB Contributions
Accounting standards require presentation of 10 years of information. However, the information in this schedule is not
required to be presented retroactively. Years will be added to this schedule as future data becomes available.
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East Valley Water District
History and Organization
Year Ended June 30, 2018
70
Formation of the District
The Board of Supervisors of San Bernardino County approved a petition in writing for the formation of the East Valley
Water District (formerly East San Bernardino County Water District) under Division 12 of the Water Code of the State
of California and ordered an election held January 12, 1954. The formation of the District was voted by the electors.
The Board of Supervisors of San Bernardino County, by action on January 18, 1954, approved the formation of the
District. Incorporation of the "East Valley Water District" was approved by the State of California on February 1, 1954.
East Valley Water District Financing Authority
The East Valley Water District Financing Authority (Authority) is a public body organized and existing under a Joint
Exercise of Powers Agreement, and under the Constitution and laws of the State of California, between East Valley
Water District and the California Municpal Finance Authority. The Authority was formed to assist in the financing and
refinancing of capital improvement projects of the District for the use, benefit, and enjoyment of the public.
Nature of Business
The District has been engaged in the furnishing of water service and wastewater transmission services to its customers
since inception.
Location
The District office is located at 31111 Greenspot Road, Highland, California. The office is situated within the District's
boundaries which encompass an area of approximately 27.7 square miles within the County of San Bernardino,
California.
Directors
Chris Carrillo Chairman of the Board
David E. Smith Vice-Chairman of the Board
Ronald L. Coats Governing Board Member
James Morales, Jr. Governing Board Member
Nanette Shelton Governing Board Member
Phillip R. Goodrich Governing Board Member
East Valley Water District
Ronald Coats President
Chris Carrillo Vice President
John Mura Secretary/Executive Director
Brian W. Tompkins Director of Finance
East Valley Water District Financing Authority
Management
John Mura General Manager/CEO
Brian W. Tompkins Chief Financial Officer/Treasurer
East Valley Water District
Professional Consultants
The JC Law Firm serves as general counsel for the District. Additionally, the firms Filarsky & Watt LLP and Musick,
Peeler & Garrett LLP served as special counsel for the District.
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East Valley Water District
Combining Schedule of Net Position
June 30, 2018
71
Water Wastewater Total
ASSETS
Current Assets:
Cash & Cash Equivalents 10,454,272$ 2,641,427$ 13,095,699$
Investments 3,497,834 1,852,713 5,350,547
Accounts Receivable, Net 4,264,963 276,401 4,541,364
Interest Receivable 68,979 20,570 89,549
Other Receivables 421,035 - 421,035
Due from Other Governments 16,145 - 16,145
Inventory 278,497 6,721 285,218
Prepaid Expenses 197,384 6,487 203,871
Total Current Assets 19,199,109 4,804,319 24,003,428
Non-Current Assets:
Restricted Cash & Cash Equivalents 5,801,781 986,351 6,788,132
Assessments Receivable 355,731 - 355,731
Capital Assets not being Depreciated 13,658,632 10,608,290 24,266,922
Capital Assets, Net (Note 4) 111,914,469 18,892,078 130,806,547
Total Non-Current Assets 131,730,613 30,486,719 162,217,332
Total Assets 150,929,722 35,291,038 186,220,760
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding 120,546 - 120,546
Deferred Outflows - Pensions 3,180,743 1,015,224 4,195,967
Deferred Outflows - OPEB 135,634 58,129 193,763
Total Deferred Outflows 3,436,923 1,073,353 4,510,276
Total Assets and Deferred
Outflows of Resources 154,366,645$ 36,364,391$ 190,731,036$
(Continued)
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East Valley Water District
Combining Schedule of Net Position – Continued
June 30, 2018
72
Water Wastewater Total
LIABILITIES
Current Liabilities:
Accounts Payable & Accrued Expenses 1,491,470$ 116,599$ 1,608,069$
Accrued Payroll & Benefits 384,293 99,437 483,730
Customer Service Deposits 1,588,918 - 1,588,918
Construction Advances and Retentions 106,000 3,500 109,500
Accrued Interest Payable 442,287 53,744 496,031
Current Portion of Compensated
Absences 340,321 79,392 419,713
Current Portion of Long-Term Debt 2,578,790 117,958 2,696,748
Total Current Liabilities 6,932,079 470,630 7,402,709
Non-Current Liabilities:
Compensated Absences,
Less Current Portion 95,898 436,635 532,533
Net Pension Liability 8,923,235 2,678,563 11,601,798
Net OPEB Liability 1,352,659 579,711 1,932,370
Long-Term Debt, Less Current Portion 44,686,700 4,617,741 49,304,441
Total Non-Current Liabilities 55,058,492 8,312,650 63,371,142
Total Liabilities 61,990,571 8,783,280 70,773,851
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Pensions 435,155 127,140 562,295
Deferred Inflows - OPEB 857 367 1,224
Total Deferred Inflows 436,012 127,507 563,519
Total Liabilities and Deferred
Inflows of Resources 62,426,583 8,910,787 71,337,370
NET POSITION
Net Investment in Capital Assets 78,446,093 24,764,669 103,210,762
Restricted for:-
Future Capital Expansion Projects 2,352,090 982,850 3,334,940
Unrestricted 11,141,879 1,706,085 12,847,964
Total Net Position 91,940,062$ 27,453,604$ 119,393,666$
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Combining Schedule of Revenues, Expenses, and Changes in Net Position
Year Ended June 30, 2018
73
Water Wastewater Total
OPERATING REVENUE
Water Sales 17,063,891$ -$ 17,063,891$
Wastewater Treatment Charges - 8,697,671 8,697,671
System Charges 8,999,756 4,668,923 13,668,679
Other Revenue 808,386 52,498 860,884
Total Operating Revenue 26,872,033 13,419,092 40,291,125
OPERATING EXPENSES
Source of Supply:
Salary & Benefits 410,817 - 410,817
Contract Services 376,361 - 376,361
Utilities 1,206,701 - 1,206,701
Insurance 4,471 - 4,471
Materials & Supplies 42,615 - 42,615
Purchased Water 315,037 - 315,037
Water Assessments 118,312 - 118,312
Chemicals 91,715 - 91,715
Professional Development 265 - 265
Taxes 28,777 - 28,777
Total Source of Supply 2,595,071 - 2,595,071
Pumping:
Salary & Benefits 127,484 - 127,484
Contract Services 67,793 - 67,793
Utilities 479,004 - 479,004
Materials & Supplies 9,015 - 9,015
Total Pumping 683,296 - 683,296
Water Treatment:
Salary & Benefits 404,815 - 404,815
Contract Services 310,344 - 310,344
Utilities 128,769 - 128,769
Materials & Supplies 20,347 - 20,347
Chemicals 105,185 - 105,185
Total Water Treatment 969,460 - 969,460
Wastewater Treatment:
Treatment Services - 8,697,671 8,697,671
Transmission & Distribution:
Salary & Benefits 1,809,787 - 1,809,787
Contract Services 432,801 - 432,801
Materials & Supplies 166,533 - 166,533
Chemicals 74,076 - 74,076
Permits 39,590 - 39,590
Tools 16,123 - 16,123
- - -
Total Transmission & Distribution 2,538,910$ -$ 2,538,910$
(Continued)
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Combining Schedule of Revenues, Expenses, and Changes in Net Position - Continued
Year Ended June 30, 2018
74
Water Wastewater Total
OPERATING EXPENSES - Continued
Wastewater Collection:
Salary & Benefits -$ 478,009$ 478,009$
Contract Services - 225,315 225,315
Materials & Supplies - 46,307 46,307
Tools - 3,369 3,369
Total Wastewater Collection - 753,000 753,000
Customer Accounts:
Salary & Benefits 875,584 244,973 1,120,557
Contract Services 633,860 126,887 760,747
Utilities 4,289 1,580 5,869
Materials & Supplies 5,943 1,611 7,554
General Office Supplies 4,599 710 5,309
Tools 1,301 - 1,301
Printing & Publishing 2,641 1,132 3,773
Postage 89,043 38,161 127,204
Professional Development 5,938 2,345 8,283
Total Customer Accounts 1,623,198 417,399 2,040,597
General & Administrative:
Salary & Benefits 4,610,620 1,958,361 6,568,981
Contract Services 1,271,679 514,211 1,785,890
Conservation Rebates 241,312 - 241,312
Utilities 239,930 48,884 288,814
Insurance 154,129 66,055 220,184
Materials & Supplies 201,159 92,976 294,135
General Office Supplies 12,310 13,035 25,345
Legal Services 667,751 141,773 809,524
Permits 74,135 14,205 88,340
Memberships & Dues 58,111 23,636 81,747
Tools 4,388 986 5,374
Printing & Publishing 60,202 28,525 88,727
Professional Development 116,833 41,916 158,749
Rents & Leases 11,967 5,129 17,096
Total General & Administrative 7,724,526 2,949,692 10,674,218
OPERATING EXPENSES BEFORE
DEPRECIATION 16,134,461 12,817,762 28,952,223
Depreciation 6,057,626 970,250 7,027,876
Total Operating Expenses 22,192,087 13,788,012 35,980,099
OPERATING INCOME (LOSS)4,679,946$ (368,920)$ 4,311,026$
(Continued)
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Combining Schedule of Revenues, Expenses, and Changes in Net Position - Continued
Year Ended June 30, 2018
75
Water Wastewater Total
NON-OPERATING REVENUES
Investment Income 178,534$ 42,825$ 221,359$
Other Income 245,462 13,098 258,560
Total Non-Operating Revenues 423,996 55,923 479,919
NON-OPERATING EXPENSES
Interest Expense 1,579,647 198,205 1,777,852
Total Non-Operating Expenses 1,579,647 198,205 1,777,852
INCOME BEFORE CONTRIBUTIONS 3,524,295 (511,202) 3,013,093
CONTRIBUTIONS:
Capacity Charges 241,043 283,961 525,004
Contributed Plant (1,086) - (1,086)
Capital Grants - - -
Total Contributions 239,957 283,961 523,918
SPECIAL ITEM:
Hazard Mitigation - (155,177) (155,177)
CHANGE IN NET POSITION 3,764,252 (382,418) 3,381,834
TOTAL NET POSITION, BEGINNING
(AS PREVIOUSLY REPORTED)89,374,072 28,349,563 117,723,635
CUMULATIVE EFFECT OF CHANGE
IN ACCOUNTING PRINCIPLE (1,198,262) (513,541) (1,711,803)
TOTAL NET POSITION, ENDING 91,940,062$ 27,453,604$ 119,393,666$
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Combining Schedule of Cash Flows
Year Ended June 30, 2018
77
Water Wastewater Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers 26,781,992$ 13,400,142$ 40,182,134$
Cash Payments for Employees Services (7,928,726) (2,167,213) (10,095,939)
Cash Payments to Suppliers (8,538,931) (10,222,907) (18,761,838)
Cash from Other Sources 124,590 13,099 137,689
Net Cash Provided by Operating Activities 10,438,925 1,023,121 11,462,046
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Grant Funds Received 1,384,218 - 1,384,218
Contributed Capital 241,043 283,961 525,004
Principal Paid on Capital Debt (2,499,349) (95,000) (2,594,349)
Interest Paid on Capital Debt (1,533,954) (217,350) (1,751,304)
Acquisition of Capital Assets (1,889,971) (1,126,797) (3,016,768)
Net Cash Used for Capital
and Related Financing Activities (4,298,013) (1,155,186) (5,453,199)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received from Investments 175,411 66,345 241,756
Acquisition of Investment Securities (698,676) (689,785) (1,388,461)
Proceeds from Sales of Investments 307,535 652,842 960,377
Loan Collections 30,512 - 30,512
Net Cash Provided (Used) by Investing Activities (185,218) 29,402 (155,816)
Net (Decrease) Increase in Cash
and Cash Equivalents 5,955,694 (102,663) 5,853,031
Cash and Equivalents, Beginning of Year 10,300,359 3,730,441 14,030,800
Cash and Equivalents, End of Year 16,256,053$ 3,627,778$ 19,883,831$
RECONCILIATION TO STATEMENT
OF NET POSITION
Cash and Cash Equivalents 10,454,272$ 2,641,427$ 13,095,699$
Restricted Cash and Cash Equivalents 5,801,781 986,351 6,788,132
Total Cash and Cash Equivalents 16,256,053$ 3,627,778$ 19,883,831$
(Continued)
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Combining Schedule of Cash Flows - Continued
Year Ended June 30, 2018
78
Water Wastewater Total
Reconciliation of Operating Income (Loss) to Net
Cash Provided by Operating Activities
Operating Income (Loss)4,679,946$ (368,920)$ 4,311,026$
Adjustments to Reconcile Operating
Income (Loss) to Net Cash Provided by
Operating Activities:
Depreciation 6,057,626 970,250 7,027,876
Other Income 245,462 13,098 258,560
Change in Assets and Liabilities:
Customer Receivables (3,353) (18,949) (22,302)
Other operating receivables (126,871) - (126,871)
Inventory 22,463 - 22,463
Prepaids 64,955 28,582 93,537
Deferred Outflow of Resources (788,494) (337,927) (1,126,421)
Accounts Payable - Supplier (724,996) (110,481) (835,477)
Salaries & Benefits Payable 104,889 15,843 120,732
Compensated absences (148,170) 378,503 230,333
Net Pension Liability 1,103,960 473,126 1,577,086
Net OPEB Liability 54,357 553 54,910
Deferred Inflows of Resources (16,161) (15,967) (32,128)
Customer Deposits (81,528) - (81,528)
Developer Deposits (5,160) (4,590) (9,750)
10,438,925$ 1,023,121$ 11,462,046$
NON-CASH INVESTING, CAPITAL, AND
NON-CAPITAL FINANCING ACTIVITIES:
Write-off of Abandoned Project Cost -$ (155,177)$ (155,177)$
Fair Value Adjustments to Investments (41,559) (31,154) (72,713)
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Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2018
Table of Contents
81
Page No.
Statistical Information Section
Financial Trends .................................................................................................................. 83-87
These schedules contain information to help the reader understand how the District’s financial
performance and well-being have changed over time.
Changes in Net Position by Component – Last Ten Fiscal Years .................................... 83-84
Operating Revenue by Source – Last Ten Fiscal Years .........................................................85
Water Operating Expenses – Last Ten Fiscal Years ..............................................................86
Wastewater Operating Expenses – Last Ten Fiscal Years .....................................................87
Revenue Capacity ............................................................................................................... 88-94
These schedules contain information to help the reader assess the District’s most significant
sources of revenue, water sales, meter charges, wastewater system charges, wastewater
treatment charges, and other charges.
Water Sales and Production – Last Ten Fiscal Years.............................................................88
Revenue Rates for Water – Last Ten Fiscal Years ........................................................... 89-90
Revenue Rates for Wastewater – Last Ten Fiscal Years ................................................. 91-92
Active Services by Type – Last Ten Fiscal Years ...................................................................93
Principal Customers – Current Fiscal Year and Nine Years Ago ............................................94
Debt Capacity ..................................................................................................................... 95-96
These schedules present information to help the reader assess the affordability of the District’s
current levels of outstanding debt and the District’s ability to issue additional debt in the future.
Ratio of Outstanding Debt – Last Ten Fiscal Years ................................................................95
Debt Service Coverage – Last Ten Fiscal Years ....................................................................96
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Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2018
Table of Contents
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Page No.
Statistical Information Section - Continued
Demographic Information ........................................................................................................97
These schedules offer demographic indicators to help the reader understand the environment
within which the District’s financial activities take place.
Demographic and Economic Statistics – Last Ten Calendar / Fiscal Years ...........................97
Operating Information ........................................................................................................ 98-99
These schedules contain service and infrastructure data to help the reader understand how the
information in the District’s financial report relates to the service provided by the District.
Full-Time Equivalent Employees by Department – Last Ten Fiscal Years .............................98
Operating and Capacity Indicators for Water and Wastewater – Last Ten Fiscal Years ........99
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Changes in Net Position by Component
Last Ten Fiscal Years
83
Year ended June 30,
2009 2010 2011 2012 2013
Change In Net Position
Operating Revenue 24,535,251$ 24,427,059$ 25,205,990$ 28,652,017$ 31,513,194$
Operating Expenses 22,867,601 24,015,104 24,368,478 24,664,829 24,859,076
Operating Income (Loss) 1,667,650 411,955 837,512 3,987,188 6,654,118
Non Operating Revenue
(Expenses)
Investment Income 235,826 61,192 87,589 84,094 55,310
Other Income 138,173 178,515 195,070 137,094 397,796
Interest Expense (1,094,926) (989,019) (1,286,352) (1,451,516) (1,445,981)
Amortization (37,956) (36,061) (32,851) (35,284) (69,038)
Loss on Disposal of Assets (110,944) (133,412) (140,301) - -
(869,827) (918,785) (1,176,845) (1,265,612) (1,061,913)
Special Item
Abandoned Projects - - - - -
Hazard Mitigation - - - - -
Capital Contributions 1,737,025 101,233 778,049 3,562,822 832,515
Change in Net Position 2,534,848 (405,597) 438,716 6,284,398 6,424,720
Prior Period Adjustment - - - 2,861,951 (537,099)
Cumulative Effect of Change
in Accounting Principles - - - - -
Net Position - Beginning 96,907,169 99,442,017 99,036,420 99,475,136 108,621,485
Net Position - Ending 99,442,017$ 99,036,420$ 99,475,136$ 108,621,485$ 114,509,106$
Net Position By Component
Invested in Capital Assets 93,342,590$ 93,380,410$ 95,251,762$ 96,919,789$ 95,258,164$
Restricted - - 103,029 416,250 920,554
Unrestricted 6,099,427 5,656,010 4,120,345 11,285,446 18,330,388
99,442,017$ 99,036,420$ 99,475,136$ 108,621,485$ 114,509,106$
(Continued)
SOURCE: East Valley Water District - Finance Department
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Changes in Net Position by Component - Continued
Last Ten Fiscal Years
84
Year ended June 30,
2014 2015 2016 2017 2018
Change In Net Position
Operating Revenue 32,620,577$ 30,743,445$ 33,024,082$ 37,448,549$ 40,291,125$
Operating Expenses 29,191,176 29,146,339 32,655,921 32,299,587 35,980,099
Operating Income (Loss)3,429,401 1,597,106 368,161 5,148,962 4,311,026
Non Operating Revenue
(Expenses)
Investment Income 49,846 100,830 146,874 69,237 221,359
Other Income 334,700 800,278 830,806 401,323 258,560
Interest Expense (1,917,676) (1,980,062) (1,843,440) (1,776,684) (1,777,852)
Amortization (99,688) - - - -
Loss on Disposal of Assets (606,085) - - - -
(2,238,903) (1,078,954) (865,760) (1,306,124) (1,297,933)
Special Item
Abandoned Projects - (2,413,478) - (1,615,241) -
Hazard Mitigation - - - - (155,177)
Capital Contributions 6,369,890 596,940 732,642 2,446,118 523,918
Change in Net Position 7,560,388 (1,298,386) 235,043 4,673,715 3,381,834
Prior Period Adjustment - (7,956,231) - - -
Cumulative Effect of Change
in Accounting Principles - - - - (1,711,803)
Net Position - Beginning 114,509,106 122,069,494 112,814,877 113,049,920 117,723,635
Net Position - Ending 122,069,494$ 112,814,877$ 113,049,920$ 117,723,635$ 119,393,666$
Net Position By Component
Invested in Capital Assets 101,757,787$ 98,091,685$ 103,222,160$ 104,659,796$ 103,210,762$
Restricted 2,274,769 2,322,238 2,276,695 2,847,924 3,334,940
Unrestricted 18,036,938 12,400,954 7,551,065 10,215,915 12,847,964
122,069,494$ 112,814,877$ 113,049,920$ 117,723,635$ 119,393,666$
SOURCE: East Valley Water District - Finance Department
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Operating Revenue by Source
Last Ten Fiscal Years
85
Wastewater Wastewater Total
Year Ended Water Meter System Treatment Operating
June 30, Sales Charges Charges Charges Other Revenue
2009 11,767,683 3,096,902 3,407,900 5,631,258 763,245 24,666,988
2010 11,638,234 3,215,189 3,509,254 5,665,046 399,336 24,427,059
2011 11,625,249 3,695,345 3,708,815 5,761,956 500,831 25,292,196
2012 13,426,700 4,175,522 4,114,621 6,470,322 464,852 28,652,017
2013 14,780,448 4,555,414 4,473,032 6,998,487 705,813 31,513,194
2014 15,351,609 4,704,036 4,649,212 7,197,418 718,302 32,620,577
2015 13,505,159 4,874,581 4,531,355 6,907,828 924,522 30,743,445
2016 11,927,523 8,063,077 4,286,594 7,165,655 1,581,233 33,024,082
2017 14,556,339 8,944,652 4,703,439 8,128,030 1,116,089 37,448,549
2018 17,063,891 8,999,756 4,668,923 8,697,671 860,884 40,291,125
SOURCE: East Valley Water District - Finance Department
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
Other
Wastewater
Treatement Charges
Wastewater System
Charges
Meter Charges
Water Sales
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Water Operating Expenses
Last Ten Fiscal Years
86
TransmissionCustomer Accts, Total
Year Ended Source of Water & General, & Water Oper
June 30, Supply Pumping Treatment Distribution Admin Expenses
2009 608,742 2,961,727 1,420,962 1,403,076 5,320,152 11,714,659
2010 815,349 2,971,681 1,453,365 1,586,237 5,112,974 11,939,606
2011 853,161 2,853,461 1,080,954 1,514,394 4,923,033 11,225,003
2012 658,481 2,700,867 1,412,079 1,449,491 5,203,981 11,424,899
2013 672,101 2,683,340 874,448 1,469,243 5,323,101 11,022,233
2014 2,875,518 992,555 1,516,412 1,437,831 6,397,534 13,219,850
2015 3,025,714 615,147 743,099 2,120,374 6,785,909 13,290,243
2016 2,442,061 696,432 799,947 2,327,185 8,782,957 15,048,582
2017 3,401,062 646,940 750,052 2,222,953 7,696,211 14,717,218
2018 2,595,071 683,296 969,460 2,538,910 9,347,724 16,134,461
SOURCES: East Valley Water District - Customer Service, Finance, and Operations Departments
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
Source of Supply Source of Supply
Water Treatment Transmission & Distribution
Customer Accts, General, & Admin
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Wastewater Operating Expenses
Last Ten Fiscal Years
87
Customer Accts,Total
Year Ended Wastewater Wastewater General, & Wastewater Oper
June 30, Collections Treatment Admin Expenses
2009 449,296 5,631,258 1,932,193 8,012,747
2010 474,244 5,665,046 2,621,931 8,761,221
2011 447,426 5,995,720 2,857,272 9,300,418
2012 310,834 6,800,369 2,389,631 9,500,834
2013 382,197 6,998,487 2,758,848 10,139,532
2014 312,193 7,197,418 2,953,997 10,463,608
2015 448,399 6,907,828 3,356,250 10,712,477
2016 407,913 7,302,389 2,752,779 10,463,081
2017 425,944 8,128,030 2,510,920 11,064,894
2018 753,000 8,697,671 3,367,091 12,817,762
SOURCES: East Valley Water District - Customer Service and Finance Departments
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
Customer Accts,
General, & Admin
Wastewater Treatment
Wastewater
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Water Sales and Production
Last Ten Fiscal Years
88
Water Sales Water Produced
(Acre Feet)(Acre Feet)
2009 21,660 23,700
2010 19,803 21,792
2011 18,712 20,605
2012 19,708 20,982
2013 20,036 22,308
2014 19,910 20,665
2015 17,431 18,494
2016 14,999 16,614
2017 16,223 17,922
2018 18,361 18,997
SOURCES: East Valley Water District - Finance and Operations Departments
Year Ended
June 30,
0
5,000
10,000
15,000
20,000
25,000
Water Produced
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Revenue Rates for Water
Last Ten Fiscal Years
89
Year ended June 30,
2009 2010 2011 2012 2013
Year ended June 30,
2009 2010 2011 2012 2013
10.45$ 10.45$ 11.54$ 12.58$ 13.71$
10.45 10.45 11.54 12.58 13.71
14.63 14.63 17.56 19.14 20.87
18.81 18.81 32.49 35.41 38.60
30.39 30.39 74.47 81.17 88.48
114.94 114.94 137.40 149.77 163.25
146.29 146.29 227.30 247.76 270.06
219.44 219.44 452.06 492.74 537.09
303.04 303.04 721.76 786.72 857.52
(Continued)
NOTES:
HCF = Hundred Cubic Feet = 748 gallons
* On June 1, 2015 the District adopted Water Budget Based Rates.
SOURCE: East Valley Water District - Water and Wastewater Rate Resolutions
1.62$ 1.77$
Water Monthly System Charges
Water Consumption Rates
Charge per HCF 1.35$ 1.35$ 1.49$
3/4
1
1 1/2
2
Meter Size
(inches)
3
4
6
8
5/8
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Revenue Rates for Water - Continued
Last Ten Fiscal Years
90
Year ended June 30,
2014 2015* 2016 2017 2018
Tier 1-$1.45 Tier 1-$1.45 Tier 1-$1.63 Tier 1-$1.73
Tier 2-$2.07 Tier 2-$2.07 Tier 2-$2.32 Tier 2-$2.46
Tier 3-$2.89 Tier 3-$2.89 Tier 3-$3.24 Tier 3-$3.44
Year ended June 30,
2014 2015* 2016 2017 2018
13.71$ 20.96$ 20.96$ 23.06$ 23.06$
13.71 26.61 26.61 29.27 29.27
20.87 37.92 37.92 41.71 41.71
38.60 66.19 66.19 72.81 72.81
88.48 100.12 100.12 110.13 110.13
163.25 207.54 207.54 228.30 228.30
270.06 365.85 365.85 402.44 402.44
537.09 744.67 744.67 819.14 819.14
857.52 1,366.62 1,366.62 1,503.28 1,503.28
NOTES:
HCF = Hundred Cubic Feet = 748 gallons
* On June 1, 2015 the District adopted Water Budget Based Rates.
SOURCE: East Valley Water District - Water and Wastewater Rate Resolutions
Water Monthly System Charges
1.77$
Water Consumption Rates
Charge per HCF
Meter Size
(inches)
5/8
3/4
1
1 1/2
2
3
4
6
8
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Revenue Rates for Wastewater
Last Ten Fiscal Years
91
Year ended June 30,
2009 2010 2011 2012 2013
Residential (1 to 3 units)
Flat Monthly Charge (per unit) 9.75$ 10.84$ 12.93$ 14.09$ 15.36$
Commercial
Flat Monthly Charge - - 3.28 3.58 3.90
plus,
Charge per HCF 0.49 0.55 0.46 0.50 0.55
Year ended June 30,
2009 2010 2011 2012 2013
Residential
Flat Monthly Charge
Residential (1 unit)15.25$ 15.25$ 16.00$ 18.50$ 18.50$
Multi-Family (2 units)15.25 15.25 16.00 37.00 37.00
Multi-Family (3 units)15.25 15.25 16.00 55.50 55.50
Commercial
Multi-family (4+ units)2.00 2.00 2.00 2.40 2.40
Non-Residential 2.00 2.00 2.00 2.40 2.40
plus,
Charge per HCF:
Multi-family (4+ units)0.87 0.87 0.95 1.25 1.25
Retail 1.79 1.79 1.90 2.10 2.10
Restaurants/Lounges 1.93 1.93 2.00 2.70 2.70
Laundromats 1.21 1.21 1.30 1.50 1.50
Dry Cleaners 1.79 1.79 1.90 2.10 2.10
Schools/Churches 0.65 0.65 0.70 1.10 1.10
Governments/Municipal 1.39 1.39 1.50 1.50 1.50
Convalescent Homes 0.88 0.88 0.95 1.35 1.35
Hotels 1.93 1.93 2.00 2.70 2.70
Ofc Bldgs/Motels 1.39 1.39 1.50 1.50 1.50
Auto Repair/Svc Stations 1.23 1.23 1.30 1.30 1.30
Car Wash 1.23 1.23 1.30 1.30 1.30
NOTES:(Continued)
HCF = Hundred Cubic Feet = 748 gallons
* On June 1, 2015 the District adopted Water Budget Based Rates.
SOURCE: East Valley Water District - Water and Wastewater Rate Resolutions
Wastewater Maintenance Charges
Wastewater Treatment Charges
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Revenue Rates for Wastewater - Continued
Last Ten Fiscal Years
92
Year ended June 30,
2014 2015* 2016 2017 2018
Residential (1 to 3 units)
Flat Monthly Charge (per unit) 15.36$ 15.36$ 15.36$ 15.36$ 15.36$
Commercial
Flat Monthly Charge 3.90 3.90 3.90 3.90 3.90
plus,
Charge per HCF 0.55 0.55 0.55 0.55 0.55
Year ended June 30,
2014 2015* 2016 2017 2018
Residential (Flat Monthly Charge)
Flat Monthly Charge
Residential (1 unit)18.50$ 18.50$ 19.18$ 20.85$ 21.55$
Multi-Family (2 units)37.00 37.00 38.37 41.72 43.10
Multi-Family (3 units)55.50 55.50 57.55 62.58 64.64
Commercial
Multi-family (4+ units)2.40 2.40 1.71 1.90 1.97
Non-Residential 2.40 2.40 3.18 3.42 3.52
plus,
Charge per HCF:
Multi-family (4 + units)1.25 1.25 1.36 1.48 1.53
Retail 2.10 2.10 2.28 2.47 2.55
Restaurants/Lounges 2.70 2.70 2.93 3.18 3.28
Laundromats 1.50 1.50 1.63 1.77 1.83
Dry Cleaners 2.10 2.10 2.28 2.47 2.55
Schools/Churches 1.10 1.10 1.19 1.29 1.33
Governments/Municipal 1.50 1.50 1.63 1.77 1.83
Convalescent Homes 1.35 1.35 1.46 1.58 1.63
Hotels 2.70 2.70 2.93 3.18 3.28
Ofc Bldgs/Motels 1.50 1.50 1.63 1.77 1.83
Auto Repair/Svc Stations 1.30 1.30 1.41 1.53 1.58
Car Wash 1.30 1.30 1.41 1.53 1.58
NOTES:
HCF = Hundred Cubic Feet = 748 gallons
* On June 1, 2015 the District adopted Water Budget Based Rates.
SOURCE: East Valley Water District - Water and Wastewater Rate Resolutions
Wastewater Maintenance Charges
Wastewater Treatment Charges
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Active Services by Type
Last Ten Fiscal Years
93
Year Ended Residential Multi-Family Total
June 30, (1 to 3 units) (4+ units) Commercial Irrigation Fire Svcs Service
2009 18,403 508 1,293 306 1,306 21,816
2010 18,562 496 1,277 310 1,324 21,969
2011 18,564 502 1,273 310 1,318 21,967
2012 18,584 497 1,268 313 1,321 21,983
2013 18,584 497 1,268 313 1,321 21,983
2014 18,584 497 1,268 313 1,321 21,983
2015 18,584 497 1,268 313 1,321 21,983
2016 19,500 463 949 275 1,330 22,517
2017 19,526 463 988 275 1,339 22,591
2018 19,526 463 988 275 361 21,613
SOURCES: East Valley Water District - Customer Service and Finance Departments
0
5,000
10,000
15,000
20,000
25,000
Fire Svcs
Irrigation
Commercial
Multi-Family
Residential
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Principal Customers
Current Fiscal Year and Nine Years Ago
94
Water Percentage Water Percentage
Consumed of Total Consumed of Total
Customer (AF) Rank (%) (AF) Rank (%)
San Bernardino City Unified School District 607 1 3.20% 636 1 2.68%
Patton State Hospital 388 2 2.04% 502 3 2.12%
City of Highland 377 3 1.98% 238 6 1.00%
San Manuel Mission Indians 300 4 1.58% 305 5 1.29%
San Manuel Indian Bingo & Casino 272 5 1.43% 416 4 1.76%
East Highlands Ranch 261 6 1.37% 588 2 2.48%
Village Lakes Homeowners Assoc 195 7 1.03% 156 8 0.66%
Stubblefield Mobile Home Parks & Offices 124 8 0.65% 222 7 0.94%
Lywood Owners Association 116 9 0.61%
Tuscany Apartments 104 10 0.55% 130 10 0.55%
Valencia Lea Mobile Home Park 146 9 0.62%
Total - Top 10 2,744 14.44% 3,339 14.10%
Total - District 18,997 100.00% 23,700 100.00%
SOURCES: East Valley Water District - Customer Service and IT Departments
20092018
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EAST VALLEY WATER DISTRICT
Ratio of Outstanding Debt
Last Ten Fiscal Years
95
Fiscal
Year
Revenue
Bonds
DWR
Loans
Capital Lease
and Loan
Certificates
of
Particaption
Installment
Note
Outstanding
Debt
$ Per
Capita
As a Share
of Personal
Income
2009 - - - 7,300,000 13,883,730 21,183,730 339 1.17%
2010 - - - 5,935,000 13,286,480 19,221,480 302 1.03%
2011 33,545,000 - - - - 33,545,000 518 1.69%
2012 32,490,000 3,460,760 - - - 35,950,760 546 1.74%
2013 43,400,000 7,101,964 - - - 50,501,964 540 1.69%
2014 42,195,000 7,091,964 3,998,560 - - 53,285,524 561 1.67%
2015 40,930,000 7,071,964 3,671,849 - - 51,673,813 508 1.43%
2016 39,615,000 6,818,565 3,299,108 - - 49,732,673 476 *
2017 38,235,000 6,565,166 7,278,478 - - 52,078,644 510 *
2018 36,800,000 6,311,767 6,453,441 - - 49,565,208 486 *
NOTE:
* This data was not developed in the format required for this fiscal year.
SOURCE: East Valley Water District - Finance Department
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
Revenue Bonds DWR Loans Capital Lease and Loan
Certificates of Particaption Installment Note
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Debt Service Coverage
Last Ten Fiscal Years
96
Gross Operating Net Available
Revenue (1)Expenses(2)Revenue Principal Interest Total
2009 15,510,043$ 11,714,619$ 3,795,424$ 1,865,373$ 1,035,456$ $2,900,829 1.31 %
2010 16,911,310 11,939,606 4,971,704 1,962,250 845,499 2,807,749 1.77
2011 18,286,850 11,129,387 7,157,463 1,347,250 828,894 2,176,144 3.29
2012 20,225,013 11,424,899 8,800,114 1,048,319 980,000 2,028,319 4.34
2013 27,397,559 11,022,233 16,375,326 1,095,000 1,382,013 2,477,013 6.61
2014 20,662,750 13,219,850 7,442,900 1,167,718 1,840,671 3,008,389 2.47
2015 20,662,750 13,290,243 7,372,507 1,546,490 1,813,348 3,359,838 2.19
2016 22,543,107 15,048,582 7,494,525 1,851,139 1,718,658 3,569,797 2.10
2017 25,565,417 14,506,205 11,059,212 1,926,956 1,653,322 3,580,278 3.09
2018 27,701,660 16,134,461 11,567,199 2,418,436 1,584,820 4,003,256 2.89
Gross Operating Net Available
Revenue (1)Expenses(2)Revenue Principal Interest Total
2009 * * * * * * *
2010 * * * * * * *
2011 * * * * * * *
2012 10,674,998$ 9,500,834$ 1,174,164$ 75,000$ 36,650$ $ 111,650 10.52 %
2013 11,600,800 10,139,532 1,461,268 80,000 35,100 115,100 12.70
2014 11,974,164 10,463,608 1,510,556 85,000 184,621 269,621 5.60
2015 11,578,742 10,712,477 866,265 85,000 229,725 314,725 2.75
2016 12,095,372 10,463,081 1,632,291 90,000 225,775 315,775 5.17
2017 13,134,564 11,064,894 2,069,670 95,000 221,625 316,625 6.54
2018 13,758,976 12,817,762 941,214 95,000 217,350 312,350 3.01
NOTES:
(1)
(2)Operating expenses, less depreciation, for the utility fund.
* Not Applicable
SOURCE: East Valley Water District - Finance Department
Wastewater Department
Coverage
Year Ended
June 30,
Debt Service
Water Department
Year Ended
Gross revenue includes all operating revenue, interest income, other non-operating revenue and connection
fees from the utility fund.
Coverage
Debt Service
June 30,
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EAST VALLEY WATER DISTRICT
Demographics and Economic Statistics
Last Ten Calendar / Fiscal Years
97
Personal Personal
Income Income
District Unemployment (thousands Per Capita
Population(3)Rate (1), (3)Population(2)of dollars)(2)(dollars)(2)
2009 62,455 10.5% 2,013,960 58,489,655 + 29,042 +
2010 63,567 13.4% 2,041,562 + 59,751,636 + 29,268 +
2011 64,698 13.3% 2,062,945 + 63,448,707 + 30,756 +
2012 65,850 12.2% 2,077,247 + 65,153,561 + 31,365 +
2013 93,500 10.6% 2,087,945 + 66,754,823 + 31,972 +
2014 95,000 8.9% 2,105,935 + 70,869,501 + 33,652 +
2015 101,733 7.2%** 2,122,545 + 75,619,404 + 35,627 +
2016 104,457 6.0% 2,140,096 + 78,830,801 + 36,835 +
2017 102,208 5.5%*** * *
2018 102,000 4.4% * * *
NOTES:
+ This data was revised in 2017
(2)
** This data was revised on April 20, 2018
(1)
* This data was not developed in the format required for this fiscal year.
SOURCES:
(1)U.S. Department of Labor, Bureau of Labor Statistics (BLS)
Census Bureau midyear population estimates.
(2)Bureau of Economic Analysis (BEA)
Computed using midyear population estimates.
(3)Fiscal Year ends on June 30 of the year that is shown.
SOURCE: East Valley Water District - Finance Department
June 30,
County of San Bernardino
Year Ended
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EAST VALLEY WATER DISTRICT
Full-Time Equivalent Employees by Department
Last Ten Fiscal Years
98
Year Ended District Engineering &
June 30, Administration Maintenance Operations Total
2009 20 38 10 68
2010 20 38 10 68
2011 21 35 10 66
2012 21 31 11 63
2013 25 27 11 63
2014 25.5 29 11 65.5
2015 27.5 28.5 11 67
2016 27 28 13 68
2017 27 29 12 68
2018 26.5 29 13 68.5
SOURCES: East Valley Water District - Finance and HR Departments
0
10
20
30
40
50
60
70
District Administration
Engineering & Maintenance
OperationsDR
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EAST VALLEY WATER DISTRICT
Operating and Capacity Indicators for Water and Wastewater
Last Ten Fiscal Years
99
Annual Average
Miles of Number of Production Production
Water Main Fire Hydrants (MG)(MGD)
2009 286 *7,058 19
2010 287 *6,453 18
2011 294 2,854 6,097 17
2012 297 2,854 6,422 18
2013 303 2,915 6,529 18
2014 297 2,976 6,488 18
2015 316 3,005 5,680 16
2016 316 3,005 4,887 13
2017 316 3,005 5,286 14
2018 300 3,018 5,983 16
Annual Daily
Miles of Service Sewerage Sewerage
Wastewater Connections (MG)(MGD)
2009 205 19,232 2,258.54 6.19
2010 208 19,333 2,129.43 5.83
2011 208 19,435 2,073.09 5.68
2012 224 19,477 2,247.66 6.16
2013 224 19,502 2,285.06 6.26
2014 223 19,504 2,595.08 7.11
2015 224 19,544 2,271.96 6.22
2016 224 19,572 2,167.71 5.94
2017 260 20,290 2,175.40 5.96
2018 225 20,581 2,149.85 5.89
NOTES:
* This data was not developed in the format required for this fiscal year.
SOURCE: East Valley Water District - Engi neering and IT Departments
Water System
Wastewater System
The District Wastewater Master Plan was updated in October 2013, providing more accurate
information on wastewater flows.
Year Ended
June 30,
Year Ended
June 30,
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S TAF F R E P ORT
Agenda Item #4.
Meeting Date: O c tob er 3, 2018
Dis c ussion Item
To: F I N ANC E AND HUMAN R ES O UR C ES C O MMI T T E E
F rom: HR /R is k & S afety Manager
Subject: R eview P olic y and P rograms Manual and Bo ard of Direc tor's Hand b o o k
R E C O MME N D AT IO N:
T his rep ort is p ro vided to the F inanc e and Human R es o urc es C ommittee for info rmation o nly.
B AC KGR O UN D / AN ALYS IS :
During the C alifo rnia S pec ial Dis tric ts Assoc iation (C S DA) annual conference o n S ep tember 26, 2018, the
Dis tric t was p resented with the S p ecial Dis tric t Leadership F o und atio n (S DLF ) Dis tric t Trans p arenc y
C ertific ate of Exc ellence
T he District Trans p arency C ertificate of Exc ellenc e program was c reated in an effort to p ro mo te trans p arency in
the o peratio ns and governanc e o f spec ial districts and to p ro vid e s pec ial d istricts with an o p p o rtunity to
s howcas e their effo rts in trans parenc y.
Dis tric t staff worked d iligently on completing the ap p lic ation and gathering s upporting d oc umentatio n needed to
ap p ly and were ho nored to be p resented with the certific ate at the C S DA annual c o nferenc e.
No w that the Trans p arency C ertific ate has been obtained , the Dis tric t c an move forward with applying fo r the
S DL F Dis tric t of Distinc tion ac creditatio n p ro gram. T his p rogram enab les spec ial dis tric ts to d emo ns trate to
their c o mmunities , the med ia and legislato rs , their commitment to o perate in a s ound, res ponsible manner.
O ne of the eligib ility req uirements for this program is to d emo ns trate that c urrent o p eratio ns confo rm to state law
as reflected in Dis tric t p o lic ies and pro cedures b y p ro viding sup p o rting doc umentation s howing Bo ard ap p ro val
and/o r review of a p o licy manual with the past year. Includ ed with this s taff rep ort for review is the
Ad minis trative P o lic ies and P rograms Manual and the Bo ard of Direc tor ’s Handbook.
Ad minis trative P o lic ies and P rograms Manual
O n July 26, 2015, the Bo ard of Direc tors ad o pted the Administrative P o licies and P rograms Manual in an effo rt
to c omb ine 29 revis ed and newly adopted p o lic ies to es tablis h b o und aries fo r acc ep table behavio r and p ro vide
guid elines fo r bes t practices in the wo rkplac e. T he manual has since grown to 44 polic ies whic h cons ist o f the
fo llo wing sec tions :
1. Emp loyment
2. P ayro ll P rac tic es and Ho urs of Work
3. Emp loyee C ond uct
4. Emp loyee Benefits
5. Training and Development
6. Workplac e and Build ing S tand ard s
7. F is c al P olic ies
8. C o mmunity P o lic ies
T he polic ies and p ro grams revis ed o r added within the p as t year includ e:
Volunteer P ro gram
P as s word P o lic y
O perating and C ap ital Budget P o lic y
P ublic R ec o rds R eq ues t P o licy
Board o f Directo r ’s Hand b o o k
T he Bo ard o f Direc to r’s Handbook was adopted on O c tob er 8, 2014 to educ ate and c o ntinually guide the
Board to a high level o f s trategic s ucc es s and ac hievement in acc o rd with best p ractic es . T he Hand b o o k
contains pertinent Dis tric t information, contro lling legis latio n, rules and regulations, as well as lo cal p o licies
enac ted b y the Board.
T he Bo ard o f Direc to r’s Handbo o k’s p o lic ies revis ed or added within the pas t year inc lude:
Bro wn Act C omp lianc e – O p en Meeting R eq uirements P olicy
Board of Direc tors Evaluatio n P o lic y
G eneral Manager/C EO Evaluation P olicy
After C o mmittee review, the Administrative P olic ies and P ro grams Manual and the Board of Directo r ’s
Handbook will b e brought before the full Board fo r c o ns id eration of approval. O nc e approved, this will fulfill
the P olic ies and P ro c ed ures eligib ility requirement fo r the District of Distinc tion Ac creditatio n.
AG E N C Y G O ALS AN D OB J E C T IVE S :
G o al and O bjec tives I I - Maintain a C ommitment to S us tainab ility, Transparenc y, and Ac c o untability
a) P rac tice Trans parent and Ac countab le F is cal Management
R E VIE W B Y O T HE R S :
T his agenda item has been reviewed by the Ad minis tratio n d ep artment.
F IS C AL IMPAC T
R ecommended b y:
Jo hn Mura
G eneral Manager/C EO
R espec tfully sub mitted:
Kerrie Bryan
HR /R is k and S afety Manager
F IS C AL IMPAC T
T here is no fis cal impac t as s o c iated with this item.
ATTACH M E N TS:
Description Type
Administrative P olicies and P rograms Manual Backup Material
Board o f Directors Handbook Backup Material
Board o f Directors P olicies Backup Material
EAST VALLEY WATER DISTRICT
ADMINISTRATIVE POLICIES AND
PROGRAMS MANUAL
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs Manual
Effective 07/27/18
Employment ......................................................................... 1
Equal Employment Opportunity Policy ............................................................. 1.1
Look-Back Measurement Affordable Care Act Policy ............................................. 1.2
Drug and Alcohol Testing for Employees with Commercial Driver’s Licenses Policy ........ 1.3
Payroll Practices and Hours of Work ........................................... 2
9-80 Alternative Work Schedule Program .......................................................... 2.1
Standby, Call Back, and Extended Overtime Policy . ............................................. 2.2
Compensation Program ................................................................................ 2.3
Employee Conduct ................................................................. 3
Harassment, Discrimination and Retaliation Policy .............................................. 3.1
Workplace Violence and Intimidation Policy ...................................................... 3.2
Workplace Dress and Grooming Policy ............................................................. 3.3
Field Uniform Policy .................................................................................. 3.4
Smoking Policy ........................................................................................ 3.5
Drug & Alcohol Policy ................................................................................. 3.6
Employee Benefits ................................................................. 4
Senior and Executive Management Cellular Telephone Policy .................................. 4.1
Paid Sick Leave Policy ................................................................................ 4.2
Training and Development ...................................................... 5
Education Assistance Program ....................................................................... 5.1
Computer Purchase Program ........................................................................ 5.2
Performance Evaluation Policy ...................................................................... 5.3
Employee Recognition Policy ........................................................................ 5.4
Cash Drawer and Payment Handling Policy ....................................................... 5.5
Cross-Training Program ............................................................................... 5.6
Employee Mentoring Program ........................................................................ 5.7
Volunteer Program .................................................................................... 5.8
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs Manual
Effective 07/27/18
Wellness Center Policy ............................................................................... 6.3
Facility Use Policy .................................................................................... 6.4
Recycling and Waste Reduction Policy ............................................................. 6.5
Social Media Policy .................................................................................... 6.6
Customer Service Department Standards Policy ................................................... 6.7
Safety and Security Policy ............................................................................ 6.8
2016/17 Employee Appreciation, Team Building, and Wellness Policy ........................ 6.9
Fiscal Policies ...................................................................... 7
Purchasing / Procurement Policy .................................................................... 7.1
Reserve Funds Policy .................................................................................. 7.2
Debt Management Policies ........................................................................... 7.3
Capital Assets Policy .................................................................................. 7.4
Fraud Prevention and Detection Policy ............................................................. 7.5
Investment Policy ...................................................................................... 7.6
Community Policies ............................................................... 8
Conservation Commission Policy ..................................................................... 8.1
Surplus Property Policy ..............................................................................7.1.1
Public Records Request Policy ........................................................................ 8.2
Record Retention Policy ............................................................................. 6.10
Email and Instant Messaging Acceptable Use Policy............................................ 6.11
Password Policy ...................................................................................... 6.12
Operating and Capital Budget Policy ............................................................... 7.7
Workplace and Building Standards ............................................. 6
Workplace and Building Standards Policy ......................................................... 6.1
Internet Policy ......................................................................................... 6.2
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Equal Employment Opportunity
Approval Date:
September 11, 2013
Policy No: 1.1 Page 1 of 1
Purpose
To provide fairness in hiring, advancement and other workplace practices for all
qualified individuals without fear of discrimination.
Policy
East Valley Water District prohibits discrimination against employees or applicants for
employment on the basis of race, religion, color, sex, gender, gender identity, gender
expression, national origin, ancestry, citizenship status, age, marital status,
pregnancy, physical or mental disability, medical condition, genetic characteristics or
information, sexual orientation (including homosexuality, bisexuality, or
heterosexuality), or any other basis protected by Federal and/or State law.
East Valley Water District will afford equal employment opportunity to all qualified
employees and applicants as to all terms and conditions of employment, including
compensation, hiring, training, promotion, transfer, discipline, and termination.
Employees who believe they have experienced any form of employment discrimination
are encouraged to report this immediately, using the complaint procedure provided in
pages 3-4 of the District’s Harassment, Discrimination, and Retaliation Policy.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Look-Back Measurement Affordable Care Act Policy
Approval Date:
April 8, 2015
Policy No: 1.2 Page 1 of 2
Purpose
East Valley Water District is committed to ensuring compliance with the Patient
Protection and Affordable Care Act (ACA) and the Internal Revenue Code Section
4980H Shared Responsibility for employers regarding Health Care Coverage. The
District will adopt the Look-Back Measurement Method Safe Harbor provision of the
ACA in order to determine the full-time status of employees where section 4980H
defines “full-time” status as “an employee who is employed on average at least 30
hours of service per week.”
Policy
Beginning January 1, 2014, the ACA will require the District to offer health insurance
coverage to at least ninety-five percent (95%) of employees who work, on average,
thirty (30) or more hours per week or pay tax penalties and show proof. The District
establishes the Look-Back Measurement Method Safe Harbor with regard to all ongoing
employees as follows:
Standard measurement period: November 1 – October 31
Administrative period: November 1 – December 31
Stability Period: January 1 through December 31
The District establishes the following periods for new, part-time, variable hour &
temporary employees:
Initial Measurement period: Twelve months (beginning on the first of the month
following the first date of work)
Administrative period: One month following the initial measurement period
Stability period: Twelve months following the administrative period
The District may amend the measurement periods, administrative period and the
stability period.
Procedure
Upon hire, the District will determine whether a new employee is expected to be a
full-time employee, part-time employee, variable hour employee, or a temporary
employee. If the employee is expected to be full-time, the District will offer the
employee health coverage the month following appointment.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Look-Back Measurement Affordable Care Act Policy
Approval Date: Policy No: Page 2 of 2
The Finance Department will provide Human Resources and department supervisors
with reports summarizing part-time hours worked. The Finance Department and
Human Resources will share the responsibility of providing Employer Notifications, as
required by the Department of Labor and in compliance with IRS reporting
requirements.
Allowable Hours
Allowable hours for all new, part-time, variable hour and temporary employees will
be less than 1,560 hours in the first twelve months of employment. Allowable hours
for ongoing, part-time, variable hour and temporary employees will vary by position
and depend on prior approval from the Manager or her/his designee. Supervisors are
responsible for ensuring their employees do not exceed the allowable number of hours
worked. If an employee works more than the allowable number of hours, the District
will offer medical coverage to the employee, during the administrative period.
All new, part-time hours worked will be measured over two periods:
1.During the twelve month period beginning on the first day of the month
following the date of employment
2.During the standard measurement period
The initial measurement period and the standard measurement period will be applied
to variable hour employees regardless of any break in service they may experience
during the periods.
If a break in service occurs, the District will calculate the average hours worked by
inputting hours of service for the special unpaid leave/break period at a rate equal to
average weekly hours of service.
Employment Status Change
If an ongoing employee’s employment status changes before the end of a stability
period, the change in employment status will not affect the employee’s medical
coverage status for the remaining stability period.
April 8, 2015
1.2
EAST VALLEY WATER DISTRICT
POLICY
ON
DRUG AND ALCOHOL TESTING
OF EMPLOYEES WITH
COMMERCIAL DRIVER'S LICENSES
1
EAST VALLEY WATER DISTRICT
POLICY ON DRUG AND ALCOHOL TESTING OF
EMPLOYEES WITH COMMERCIAL DRIVER'S LICENSES
POLICY STATEMENT
The East Valley Water District is committed to providing a safe and drug free
work environment. This commitment is placed in jeopardy when any employee
participates in the illegal use of drugs or the abuse of alcohol on or off the job.
Employees who abuse illegal drugs/alcohol, on or off duty tend to be less productive,
less reliable and prove to have greater absenteeism , more accidents, and injuries t o
themselves and others resulting in the potential for increased losses, delays, risks, and
liabilities .
The United States Omnibus Transportation ~mployee Testing Act of 1991
requires that all employees holding commercial driver's licenses be tested for alcohol
and drugs at certain times . The District's attached Policy on Drug and Alcohol Testing
was adopted pursuant to the Federal Department of Transportation's (DOT) regulations .
This policy applies only to employees with Commercial Driver's Licenses who are
covered under DOT regulations.
It states that you may be tested for drugs and/or alcohol if you are applying to
work for the District in a position which requires a commercial driver's license, or if you
are employed in such a position under the following conditions:
1 . Pre-employment/transfer into such a position .
2. Where there is reasonable individualized suspicion that you are impaired
by the use of drugs or alcohol.
3 . After an incident involving an accident while driving a commercial vehicle .
4. Upon your return to duty after a violation of the rules on drugs and
alcohol.
2
5 . Random testing .
6. Follow-up testing after it has been determined that you have a problem
related to alcohol or drug use .
If your test shows positive for drugs or alcohol, you may be disciplined or
terminated from your job. You may also be eligible for treatment or rehabilitation. It is
your responsibility to notify your supervisor if you are taking medication that may impair
your driving a vehicle covered under this policy.
If you do not understand what is contained in this policy, ask your supervisor to
explain it to you . Your Union Representative may also be helpful. You are entitled to
access to union representation as a result of suspected or confirmed substance abuse
violations leading to disciplinary action.
A person who refuses to be tested shall not be permitted to operate a
commercial vehicle . A refusal shall be t reated as a positive test, and that person
considered medically "unqualified" to drive.
PLEASE BE SURE YOUR QUESTIONS ARE ANSWERED SO THAT YOU
FULLY UNDERSTAND THIS POLICY.
PURPOSE
The East Valley Water District (the District) recognizes that its employees are its
most important resource. The purpose of th is document is to outline the District's policy
regarding drug and alcohol use and testing for employees who are required to have
commercial drivers' licenses to accomplish the following goals:
a) to provide a safe working environment for District employees.
b) to protect the safety of persons and property.
c) to provide the highest quality of public service.
d) to promote efficiency and productivity .
e) to prevent loss of public confidence and damage to the District's
reputation .
f) to encourage employees who are concerned about their alcohol and/
or drug use to voluntarily seek assistance .
3
-
g) to provide reasonable accommodation to those employees whose drug
and/or alcohol problem classifies then as disabled under Federal
and/or State law.
h) to comply with the Federal Omnibus Transportation Employee Testing
Act of 1991 .
DEFINITIONS
Pursuant to the maintenance of a safe and drug-free workplace , the following
definitions shall apply in support of enforcing the East Valley Water District's policy:
Accident -An occurrence involving a commercial motor vehicle operating on a public
road which results in :
1) A fatality
2) Bodily injury to a person who, as a result of the injury, immediately
receives medical treatment away from the scene of the accident; or
3) One or n:,ore motor vehicles incurring disabling damage as a result of
the accident, requiring the vehicle to be transported away from the
scene by a tow truck or other vehicle.
The term accident does not include:
1) an occurrence involving only boarding and alighting from a stationary
motor vehicle; or
2) an occurrence involving only the loading or unloading of cargo; or
3) an occurrence in the course of the operation of a passenger car or a
multi purpose passenger vehicle by a motor carrier and is not
transporting passengers for hire or hazardous materials that require
the motor vehicle to be marked or placarded .
Alcohol -Any beverage containing alcohol. The possession, transportation ,
distribuJ~on,. receipt, sale, purchase or arranging for the sale, purchase or distribution of
alcohol, including medicines containing alcohol (prescription or over the counter), is
prohibited. while on duty, unless, with respect to medicines, the packaging seal is
unbroken.
4
Commercial Driver's License(CDL) -Refers to Class A or 8 licenses.
Commercial Motor Vehicle -Vehicles weighing over 26,001 GVWR, DOT placarded
vehicles under hazardous material regulations or vehicles des igne d to transport more
than fifteen (15) passengers, including drivers .
Drugs/Controlled Substances -Defined as amphetamines , cocaine, marijuan a,
opiates and phencyclidine (PCP).
Employee -Means any employee of the District who operates a commercial moto r
ve hicle (CMV), and is required to have a COL.
Five (5) Panel Drug Test -There are five (5) categories of drugs established by th e
federal government which fall under "controlled substances ." They are amphetamines ,
coc aine, marijuana, opiates and phencyclidine (PCP). Use, sale, distribution and/or
manufacture of the se substances is against the law and a direct violation of th e
District's policy.
Panel 10 Drug Test -The test that evaluates the following ten drug categories : the five
panel test named above, plus barbiturates, benzodiazepines, m ethaqualon e,
methadone , and propoxphene.
Medical Review Officer (MRO) -Means a licensed physician certified to review and
i nte rpret all drug tests before they are reported to the employer.
Premises -Buildings, property, work areas , vehicles, parking lots and any place the
e mployee happens to be during the course and scope of the District's employment
during regular working hours, breaks or any pay status.
Pre-employment -Conducted before applicants are hired or after an offer to hire, b ut
before actually performing safety-sensitive functions for the first time. Also required
wh e n employees transfer to a safety-sensitive position .
Prescription Drugs -Any drug or medication prescribed by a licensed physician for a
medical condition . Use of prescribed drugs are not in direct violation of the District's
policy , howeve r, inappropriate use or prescribed use that m ay cause significant
impairment, thus creating a safety hazard on the job, is in direct violation of the District's
policy.
5
Safety-Sensitive Personnel -Means employees holding a commercial drivers license
and driving a commercial vehicle, on a full time, part time or intermittent basis.
Substance Abuse Professional (SAP) -Means a licensed physician, licensed or
certified psychologist, social worker, employee assistance professional or an alcohol
and drug abuse counselor certified by the National Association of Alcohol and Drug
Abuse Counselors (NAADAC) Certification Commission. All persons listed in the
definition must have specific knowledge of and clinical experience in the diagnosis and
treatment of alcohol and drug related disorders to qualify.
WHO IS AFFECTED BY THESE RULES?
Effective January 1, 1996, the Department of Transportation alcohol and drug
testing rules require that drivers be tested if they:
*
*
*
*
Hold a Commercial Driver's License (Class A or Class B) and are part of a
fleet of (50) or less drivers.
Drive vehicles of over 26,001 GVWR.
Drive DOT placarded vehicles under hazardous material regulations .
Drive vehicles designed to transport more than fifteen (15) passengers ,
including drivers.
DRUGS TO BE TESTED FOR
When drug screening is required under the provisions of this policy, a urinalysis
test will be given to detect the presence of the following drugs:
1. Marijuana (THC Metabolite)
2 . Cocaine
3 . Amphetamines
4 . Opiates (including heroin/codeine/morphine)
5 . Phencyclidine(PCP)
The testing is a two stage process. First, a screening test is performed. If it is
positive for one or more of the drugs, then a confirmation test is performed for each
identified drug using state of the art gas chromatography/mass spectrometry (GS/MS)
analysis. GC/MS confirmation ensures that over the counter medications or
preparations are not reported as positive results .
6
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ALCOHOL TESTING
The rules require breath testing using evidential breath testing devices (EST)
approved by the National Highway Traffic Safety Administration (NHTSA).
Two breath tests are required to determine if a person has a prohibited alcohol
concentration. A screening test is conducted first. Any result less than 0 .02 percent
alcohol concentration is considered a "negative" test.
If alcohol concentration is 0.02 percent or greater, a second or confirmation test
must be conducted . The employee and the individual conducting the breath test, a
breath alcohol technician (BAT), complete the alcohol testing form to ensure that the
res-ults are properly recorded . The confirmation test, if required, must be conducted
using an EBT that prints out the results, date and time, a sequential test number and
the name and serial number of the EST to ensure the reliability of the results. The
confirmatio n test results determine any actions taken .
PROHIBITED ACTS
Because alcohol is a legal substance, the rules define specific prohibited alcohol
related conduct. Performance of safety sensitive functions is prohibited :
* While having an alcohol concentration of 0.04 percent or greater as indicated
by an alcohol breath test.
* While using or processing alcohol on the job.
* Within four (4) hours after us ing alcohol.
* When refusing to submit to an alcohol test.
* When using alcohol within eight (8) hours after an accident or until tested (for
employees required to be tested.)
To further safeguard transportation safety, employees who have any alcohol
concentration (defined as 0 .02 percent or greater) in their breath , when tested just
before, during or just after performing safety sensitive functions , must also be removed
from performing such duties for eight (8) hours or until another breath test is
administered and the result is less than 0.02 percent. Commercial motor vehicle drivers
must be removed from driving for at least twenty-four (24) hours.
7
JOB APPLICANT/PRE-EMPLOYMENT
1 . All pre-employment health screens will include a urine drug screen and
alcohol breath test. All health screens will include a urine drugs-of-abuse screen for
marijuana, cocaine, phencyclidine, opiates and amphetamines. All alcohol tests will
include a breath test using an evidential breath testing device (EST).
2. All job announcements or other promotional material for covered positions
shall specify that drug/alcohol screening shall be part of the physical examination.
3. All applicants for said positions shall be given a copy of this policy at the
time of their offer of employment, and shall, as a prerequisite to employment, sign a
consent form and submit to pre-employment alcohol/controlled substance testing. Any
applicants who do not consent to such testing will not be considered for employment.
4 . If the consent form is signed, the pre-employment health screen is
conducted and the urine specimen collected or breath test administered using the EST.
5 . Results of any laboratory results will be sent to the General Manager.
6. In testing for the presence of illegal ctrugs, the District shall submit the first
specimen for testing using an immunochemical assay or radiommunoassay test on the
applicant's urine. If the initial test is positive for an illegal drug, the same specimen shall
be subjected to a confirmatory test using the gas chromatography, thin layer
chromatography or gas chromatography/mass spectrometry method (GC/MS) for
verification .
7. If a second test of the same sample yields positive results, the applicant
shall be so notified by the examining physician and given an opportunity to present
bona fide verification of a current valid prescription in the applicant's name for any
potentially impairing drug or medication identified in the positive drug screen . If the
applicant fails to present such evidence, or if the prescription is for a medication that
would not produce the results obtained in the test, the examining physician shall so
notify the applicant to give the applicant an opportunity to withdraw his/her application
for employment.
8
8 . After a second test, any applicant whose alcohol test is positive , or whose
controlled substance test does not indicate a verified negative result and the applicant
does not withdraw his/her application for employment, he/she shall be determined by
the MRO to be physically unfit for employment. Said results shall be forwarded to the
General Manager of the District and such applicants shall be disqualified for
employment with the District.
9 . Any applicant disqualified for employment pursuant to this policy shall be
permitted an opportunity to reapply after six (6) months for any position posted.
RANDOM SELECTION
Employees subject to random selection for the purpose of alcohol and drug
testing of controlled substances will include all covered employees.
The following items regarding the random selection and testing procedure will
apply:
1. The number of drug tests conducted annually shall equal or exceed 50 % of
the average number of employees for which testing is required . Random alcohol tests
s hall equal or exceed 25 percent of employees.
2 . The District shall use random selection process to select and request an
employee to be tested for the use of alcohol or controlled substances .
3 . An employee shall submit to alcohol or controlled substance testing when
sel ected by a random selection process used by the District.
To assure that the process is in fact random, all covered employees, whethe r or
not they have been chosen for testing in the past, will remain in the pool of employees
for each subsequent period . This procedure assures that the probability of an y
individual being selected each period is always the same , whether or not the individual
was selected in a previous period .
Selecting Employees for Drug Testing :
9
Covered employees shall be assigned numbers. A random selection of numbers
will be used to obtain a list of employees to be tested during the current t est period.
The selection process is repeated until the required number of employees are
selected . Once the list of test subjects is generated, employees should not be informed
that they have been selected until they must report for testing . ADVANCE NOTICE OF
TESTING SHALL NOT BE GIVEN. As in all types of tests, accurate records of the
details of testing must be kept and confidentially maintained at all times .
REASONABLE SUSPICION
The District shall require an employee to be tested, upon reasonable suspicion ,
for the use of drugs or alcohol.
An employee shall submit to testing, upon reasonable suspicion, for the use of
drugs or alcohol when requested to do so by their Supervisor.
The conduct must be witnessed by at least two Supervisors. The witnesses must
have received trainir:,g in the identification of actions, appearance or conduct of an
employee which are indicative of the use of drugs or alcohol.
The documentation of the employee's conduct shall be prepared and signed by
the witnesses, and the department head notified, utilizing the Observed Behavior -
Reasonable Suspicion Record Form (see attached), within twenty four (24) hours of the
observed behavior or before the results of the test are released, whichever is earlier.
"Reasonable Cause/Suspicion" means that the employer/supervisor believes that
the actions, appearance, speech, body odors or conduct of an on-duty employee are
indicative of the use of drugs, alcohol or other controlled substances. The witnesses
must directly observe the behavior. Hearsay or second-hand information is not
sufficient cause to require an employee to submit to a drug test. The determination that
a reasonable suspicion exists to require an employee to undergo an alcohol test must
be based on specific, objective, contemporaneous, articulable facts concerning
behavior, appearance, speech, or body odors of the employee. It must be based upon
observations of the supervisors making the determination, and may not b e based upon
10
hearsay. The supervisors witnessing the impairment must document the specific
observations upon which the reasonable suspicion is based.
Alcohol testing may be performed only if the observations upon which
reasonable suspicion are based are made during, just preceding or just after the period
of the work day that the employee is required to be in compliance. An employee may
be directed to undergo a reasonable suspicion alcohol test just before , during or just
after performing safety-sensitive functions.
If an alcohol test is not administered within two (2) hours following a reasonable
suspicion determination, the supervisor shall document the reasons for the delay. If an
alcohol test is not administered within eight (8) hours, the test shall not be administered ,
and the supervisor shall document the reasons .
If an alcohol test indicates a concentration of 0 .02 percent or greater, the
employee may not be permitted to perform any safety-sensitive functions until twenty-
four (24) hours have elapsed following the determination of reasonable suspicion .
Except as provided in this paragraph, the District shall not take any action against an
employee based solely on a test result indicating an alcohol concentration of less than
0.04 percent.
The attached Observed Behavior/Reasonable Suspicion Record should be used
to document reasonable suspicion.
(See Attachment A) Observed Behavior/Reasonable Suspicion Record
Once a reasonable suspicion determination is made, it is the responsibility of the
employer/supervisor to assure that the employee under suspicion is evaluated , and
when necessary, transported to a specimen collection site to provide a urine/breath
sample.
(See Attachment B) Procedures for Employees Believed Under the Influence
It is recommended the driver tested for reasonable cause be denied Commercial
Motor Vehicle (CMV) driving privileges until the test results are rece ived from the
Medical Review Office (MRO).
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POST ACCIDENT
As soon as practicable following an accident (as defined), alcohol and drug tests
shall be administered to every surviving driver:
1) If the accident involves the loss of human life; or
2) Who receives a citation under State or local laws for a moving traffic
violation arising from the accident.
The following criteria will be applied in conducting a drug/alcohol test due to
accidents:
1 . Post accident test must be given as soon as practicable during the eight (8)
hours following an accident/incident.
2 . The employee must be readily available for the test, or they will be deemed
to have refused the test. (Reference "Refusal to Consent").
3 . An alcohol test should be administered as soon as possible. If not within two
(2) hours, the Employer/Supervisor must prepare and maintain records
stating why . If eight (8) hours have passed, the attempts should be
discontinued. Again, the Employer/Supervisor must record why they were
unable to administer the test.
4 . If a controlled substance test is not administered within thirty two (32) hours
following the accident, the test may not be administered and the Supervisor
shall document the reasons .
5 . Following an accident, the employees shall remain available for such testing ,
or may be deemed to have refused to submit to testing . This rule does not
require the delay of necessary medical attention for injured people following
an accident, nor prohibit the employee from leaving the scene of the accident
to obtain assistance or necessary emergency medical care .
6 . An employee subject to post accident testing may not use alcohol within
eight (8) hours following the accident or before an alcohol test, whichever
comes first.
12
7 . Post-accident information, procedures and instruction shall be provided to
every employee for the first time prior to operating a CMV, and posted in
every District CMV.
RETURN TO DUTY
Employees who violate the East Valley Water District drug/alcohol policy
standards and are accepted into Return to Duty and Follow Up status will comply with
the following guidelines:
1. Employees who violate the District's drug/alcohol policies must have a return
to duty test that would require the employee to test negative for drugs or
alcohol.
2 . Such employees will be referred to the Substance Abuse Profess ional (SAP)
for further assessment.
FOLLOW UP TESTING
1. All employees identified by the Substance Abuse Professional (SAP) as
needing assistance will be subject to follow up testing upon returning to duty.
They will be subject to a minimum of six (6) unannounced tests over the
following twelve (12) months. The .SAP can direct additional testing during
this period or for an additional period up to a maximum of sixty (60) months
from the date the employee returns to duty. The SAP can terminate the
requirement for the follow up testing in excess of the minimum at any time , if
the SAP determines that the testing is no longer necessary and is supported
by the Employer.
2 . Follow up testing may include tests for other substances beyond the
employee's initial positive test of alcohol and/or drug when the SAP has
reason to suspect other drug or alcohol use during the follow up period .
CONSENT
Before a drug test is administered, employees and job applicants will be asked to
sign a consent form authorizing the test and permitting release of test results to those
District representatives with a need to know . The consent form shall provide a space
13
for employees and applicants to acknowledge that they have been notified of the
District's drug testing policy.
REFUSAL TO CONSENT
A job applicant who refuses to consent to a drug test will be denied employment
with the East Valley Water District.
An employee's refusal to submit to drug testing required by the District for any
reason may result in disciplinary action as provided for in Section 11 of the District's
Personnel Rules, up to and including termination.
Any supervisor or manager encountering an employee who refuses an order to
submit to a drug and/or alcohol screening shall remind the employee of the
requirements and disciplinary consequences that he/she has been so informed of.
Where there is reasonable suspicion that the employee is then under the
influence of alcohol or drugs, the manager or supervisor shall arrange for the employee
to be safely transported home. (The employee shall not be permitted to transport
him/herself.)
DISCIPLINE FOR WORK RELATED PROBLEMS
The East Valley Water District may,· at its sole discretion, impose disciplinary
measures, up to and including termination, upon employees for rule violations resulting
from alcohol/substance abuse, consistent with Section 11 of the District's Personnel
Rules dated October 1986. Employees may be asked to sign a Last Chance
Agreement similar to that provided in Attachment C.
CONFIDENTIALITY
1. Confidentiality is an essential element of this substance abuse policy. Any
employee violating this confidentiality shall be subject to discipline and, if the breach is
intentional , may also be civilly or criminally liable.
2 . The results of any testing done pursuant to this policy shall be used for
employment purposes only and shall not be released for use in the criminal justice
system, unless compelled by court order.
3 . All records pertaining to drug and alcohol testing of an employee shall be
contained in a separate confidential medical file that will be securely kept under the
14
control of the General Manager's office, separate from the employee's other personnel
records.
4 . Absent the employee's consent, test results may be disclosed only to District
management and only on a strictly need to know basis , and to the employee upon
request.
5. The District may disclose test results without the employee's consent only
when :
a . The information is compelled by law or by judicial or administrative
process.
b . The information has been placed at issue by the employee in a formal
dispute between the employee and the District.
c. The information is necessary to administer an employee benefit
plan; or
d. The information is needed by medical personnel for the diagnosis or
treatment of the patient who is unable to authorize disclosure.
6 . Any positive test results which are later refuted shall be removed from the
employee's file , ·and not used for any purpose.
COMPENSABLE TIME
1. Any time spent by an employee waiting to take a test shall be considered "work
time" and paid for by the District. This policy will also conform to all overtime provisions
specified in the District's Personnel Rules and current MOU .
2 . If an employee is placed "off-duty" pending the results of a test, then that time
shall be considered as paid administrative leave.
RECORD KEEPING
The General Manager's office of the East Valley Water District will keep the
following records for the periods specified . These records will be under the control of
the General Manager or his designee:
15
1 . Results of an employee 's alcohol test which indicates an alcohol
concentration level of 0 .02 percent or higher; results of an employee's controlled
substance test which is positive; documentation of any employee who refused to submit
to a required alcohol/drug test; calibration documentation; employee assessments and
referrals by substance abuse professionals. Retention period: 5 years.
2 . Records documenting the collection process for the alcohol and controlled
substance test. Retention period: 2 years
3. Results of any alcohol test which is less that 0.02 percent; documentation
of any negative or canceled drug test. Retention period: 1 year
SUBSTANCE ABUSE PROFESSIONAL SERVICES (SAP)
The East Valley Water District observes the U.S. Department of Transportation
(DOT) and the Federal Highway Administration (FHWA) drug and alcohol testing rules
published in the Federal Register on February 15, 199.4, and subsequently amended.
The District supports an opportunity for treatment to be made available to
covered employees. The District will advise a covered employee who engages in
conduct prohibited under this policy of the available resources for evaluation and
treatment of drug/alcohol problems, including the names, addresses and telephone
numbers of Substance Abuse Professionals (SAP's) counseling, treatment programs or
other available services. The District will provide for a SAP evaluation to assess
employees with drug and/or alcohol misuse problems .
Each covered employee who violates these rules must be evaluated to
determine whether the employee needs assistance resolving problems associated with
drug and/or misuse, and if necessary, a referral for further treatment.
Before returning to duty, each employee identified as needing assistance must:
(1) be evaluated again by a SAP to determine whether the employee has successfully
complied with the treatment program prescribed following the initial evaluation; (2)
undergo a drug and/or alcohol test to satisfy established acceptable results for return to
16
duty; and (3) be subject to a minimum of six (6) unannounced, follow up drug and/or
alcohol tests over the following twelve (12) months.
The District will only provide for an assessment by a SAP . The District has no
obligation to provide or pay for further treatment, this is the responsibility of the
e mployee.
NOTICE AND EFFECTIVE DA TE
All covered employees shall be given a copy of this policy at the time they
commence employment with the District. Anyone currently employed by the District at
the time this policy is adopted , shall be given a copy thereof within ten (10) days of its
adoption . This policy shall be posted immediately and is effective January 1, 1996.
17
(Attachment A)
OBSERVED BEHAVIOR-REASONABLE SUSPICION RECORD
This form applies only to employees with Commercial Drivers ' Licenses who are covered under
DOT regulations .
Employee: Name: _________ ldentification Number:. ______ _
Observation :
Date : ______ Time:(from) _____ am/pm: to ________ .am/pm
Location : ____________________________ _
(Street)
CAUSE FOR SUSPICION
(City) (State) (Zip)
1 . Presence of drugs and/or drug paraphernalia (specify):. ___________ _
2 . Appearance:_Normal _Puncture Marks _Bloodshot Eyes
_Disheveled _Dilated/Constricted Pupils _Dry/Mouth Symptoms
_Flushed _Profuse Sweating _Runny nose/sores
_Tremors _Inappropriate Wearing of Sunglasses
Other _________________________ _
3. Behavior:_Normal _Incoherent _Silent
Speech: Confused _Slowed _Whispering _Slurred
Other _________________________ _
4 . Awareness:_Normal _Confused _Mood Swings _Euphoria _Lethargic
_Lack of Coordination _Paranoid _Disorie nted
Other ________________________ _
5. Motor Skills/Balance: _Normal _Swaying_ Falling _Staggering
Other ________________________ _
6 . Walking & Turning : _Normal _Swaying _Arms Raised for Balance __ Stumbling
_Falling _Reaching for Support
7. Other Observed Actions or Behavior(specify):. _______________ _
18
QUESTIONS
1. Do you have any medical problems for which you are currently being treated? ----If yes, what are you being treated for? -------------------
What is your doctor's name, address and telephone number? ----------
2. Are you taking any medication? __ If yes, what medication and for what reason?
3 . Do you have any medical problems for which you are nQ1 currently being treated? __
If yes, describe
4 . Are you using any type of drug? If yes, what?
When? Where?
With Whom?
Witnessed by:
am/pm
(Signature) (Title ) (Date) (Time)
am/pm
(Signature) (Title) (Date) (Time)
This document must be prepared and signed by the witnesses within twenty four (24)
hours of the observed behavior or before the results of the tests are released, whichever
is earlier.
Work Performance
Date: _______ Time: ______ Location : ___________ _
Cause for Suspicion:
_Unusual or distinct pattern of absenteeism
and/or tardiness
_Frequent complaints of illness negatively
affecting work performance.
_Frequent l apses in concentration and/or judgment.
19
_Frequent accidents, mistakes
_Frequently misses deadlines or
takes more time to complete a
job than necessary.
_ Frequent comp laints from co-
workers .
_Frequently borrowing money from co-workers .
_Bringing domestic or personal problems to work.
_Constantly complaining.
Other: ________________________________ _
lncident(s) Observed: _________________________ _
Date: ____ _ Time : ____ am/pm Location : ------------
Comments: ------------------------------
Name: ____________ Signature : __________ Date: _____ _
(Please Print)
Supervisor's Comments: _________________________ _
Name:. ____________ Signature :. __________ Date:
(Please Print) ·-----
Employee's Response: _________________________ _
Name: ___________ Signature:. __________ Date:. _____ _
(Please Print)
20
(Attachment B)
TESTING PROCEDURES
There may be instances when supervisors have reasonable cause to believe that (1) an
employee has consumed drugs and/or alcohol on District premises; (2) reported to work under
the influence of drugs and/or alcohol. Under these circumstances, the supervisor must request
a urine/breath test ~ though the employee is not believed to be impaired. The drug/alcohol
test is not intended to prove impairment but to confirm the presence of the drug and/or alcohol.
Whether or not impairment is suspected, if the supervisor has reason to consider requiring a
drug-/alcohol test, use the following process to validate that reasons for considering a
drug/alcohol test.
1 . The supervisor should personally escort the employee to an office or other private area .
Have another supervisor present as a witness.
2 . Confront the employee with reasons for suspecting drug and/or alcohol policy violations.
Use the Reasonable Suspicion Record to question and document information from the
employee. Complete the form and in conversation with the employee, determine whether or not
the employee has either consumed drugs and/or alcohol on District premises or during work
duty and is under the influence, or whether the employee's off duty abuse of drugs and/or
alcohol has resulted in work related problems.
3 . If the employee does not appear to be under the influe nce of drugs, including
prescription drugs, has not consumed drugs during work duty or on District premises, ang_ the
employee is able to perform regular work duties, have him/her return to the work unit and
resume work.
21
4 . If it is believed that the employee is under the influence of, or has consumed drugs
and/or alcohol on District premises or during work duty, or that the employee's off duty abuse of
drugs and/or alcohol has resulted in work related problems , advise the employee that the
District rules have been violated and that he/she is being requested to provide a urine sample
for drug testing, plus the test for alcohol. Personally escort the employee (with another
supervisor when possible to the District approved drug/alcohol testing site . (The employee
shall not be permitted to drive him/herself to the testing facility).
s. Require the employee to read and sign a consent form available at the testing location
agreeing to the urinalysis test. Advise the employee that refusal to sign the form or give a
specimen will be treated as a refusal to obey a direct request, and will constitute an admission
that the suspicion is reasonable and may be grounds for discipline, up to and including
termination as provided for in Section 11 of the District's Personnel rules. Once the specimen
is taken and initialed by the employee, employee shall be placed on paid Administrative leave
pending the test results and a review of the circumstances .
6. Whenever an employee is required to provide specimens for testing, two (2) specimens
shall be collected at the same time in order to facilitate the testing procedures described herein.
7 . In testing for the presence of illegal drugs, the testing facility shall submit the first
specimen for testing using an immunochemical assay or radioimmuno assay test on th e
employee's urine. If the initial test is positive for an illegal drug, the same specimen shall be
subjected to a confirmatory test using the gas chromatography, or gas chromatography/mass
spe ctrometry m ethod (GC/MS) for verification .
8. The MRO will report results to the District via a signed , written communication, within
three (3) business days of completion of the MRO's review. The MRO will also report to the
District that he/she has made all reasonable efforts to contact the employe e . The District shall ,
22
as soon as possible, request that the employee contact the MRO prior to dispatching the
employee, or within twenty four (24) hours , whichever is earlier. At the time the employee
contacts the MRO, he/she may request that a second specimen be tested at another
laboratory,
9. If the employee fails to contact the MRO, or the employee does not request the testing
of the second specimen , or if the employee does request the testing of the second specimen
and it also tests positive for an illegal drug , rehabilitative/corrective action shall be taken as
specified in this policy.
1 o. At any time within twenty four (24) hours of being notified of a positive test result, the
employee may present bona fide verification if a current valid prescription in the employee's
name for any potentially impairing drug or medication identified in the positive drug screen.
11 . If it is believed that the employee is impaired, make arrangements to have the employee
taken home. Do not permit him/her to leave the premises or drive alone . If the employee
refuses any assistance, make sure the witnessing supervisor m verify that the employee
refused such assistance, If the employee cannot control his/her actions and departs without
assistance, immediately call the local police or law enforcement agency to inform them of the
employee's condition and refusal for assistance. Tell the law enforcement officials the
employee's name and a description of the automobile including the license number.
12. Each employee who has engaged in conduct prohibited under this policy will be advised
by the District of resources available in evaluating and resolving problems associated with the
misuse of alcohol and use of controlled substances .
13. Before an employee returns to duty requiring the performance of a safety sensitive
function, the employee shall undergo a return to duty alcohol test or a controlled substances
23
test. In addition , the employee shall be evaluated by a Substance Abuse Professional to
d etermine that he/she has properly followed any prescribed rehabil itat ion program .
14. The employee shall be subject to unannounced follow up alcohol and controlled
s ubstances t ests following the employee's return to duty, consisting of at least six (6) tests in
the first following twelve (12) months following the employee's return to duty.
NOTE: Employees invo!ved in a fatal accident or receive a citation for moving violation
are required to submit to a urinalysis test and the alcohol test. Consequently, steps 2
through 4, above do not apply.
24
(Attachment C)
LAST CHANCE AGREEMENT
I have received a copy of the East Valley Wate r District Policy on Drug and Alcohol Use,
and I full y understand its provisions and acknowledge that compliance with the Policy is a
condition of continued employment.
I hereby acknowledge that I have entered or will enter a treatment or rehabilitation
program for alcohol or drug abuse satisfactory to the East Valley Water District. I agree to
complete such program, perform the duties of my job in accordance with standards of
performan ce reasonably expected, and comply with the District's rules , including the Policy on
Dru g and Alcohol Use. agree to cons ent, for up to one year, to undergo physical or
psychologi c al examination , and/or random testing of my blood , urine or othe r body fluid
s pecimens for alcohol , drugs or their metabolites . I understand that a v iolation ·of said Policy or
a breach of this Agreement may re sult in disciplinary action , up to and including termination in
acco rdance with the Districts's Personnel Rules .
Employee's Name Date
Employee 's Signature
Witness Signature Date
25
Attachment D
Name of
EAST VALLEY WATER DISTRICT
POLICY ON DRUG AND ALCOHOL TESTING
OF EMPLOYEES WITH COMMERCIAL DRIVER'S LICENSES
ACKNOWLEDGMENT OF RECEIPT
Employee: ___________________________ _
I hereby acknowledge that I have received the East Valley Water District's Policy on Drug and
Alcohol Testing of Employees with Commercial Driver's Licenses, and I fully understand that I
will be expected to comply with its provisions .
Date :. __________ _
Employee Signature
Employee Name(Printrrype)
Witness' Signature
Department
26
POLICY ON DRUG AND
ALCOHOL TESTING
AGREED ON November 27, 1 995
San Bernardino Public Employees Association East Valley Water District
Jean 's PC/DrgAlcts
10/6/95
27
Attest:~ ,.RobeMain,Board
Secretary
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: 9/80 Alternative Work Schedule Program
Approval Date:
July 9, 2014
Policy No: 2.1 Page 1 of 3
Purpose
East Valley Water District recognizes the benefits that an alternative work schedule may
offer to employees. The purpose of this policy is to offer work schedules that assist staff
in balancing work, family and personal responsibilities while supporting the operational
needs of the District and its customers.
Policy
It is the policy of the District to offer flexible work hours and schedules to employees
while continuing to maintain operating efficiency, productivity, and effective service to
the public and other agencies.
Eligibility
Regular full-time employees are eligible to work the 9/80 alternative work schedule.
Temporary employees working a full-time schedule may be eligible to participate, if
approved by the General Manager. Eligibility to participate in the alternative program is
subject at all times to the needs of the District and may be modified as those needs
dictate. Certain positions may be ineligible for participation due to necessary work
schedules.
If District Management in its sole discretion concludes that the 9/80 work schedule is not
conducive to District operations, the District will meet and confer on the impact of
discontinuing the program. Thirty days’ notice will be provided to employees prior to the
termination of a 9/80 work schedule.
Work Schedule
In a standard 9/80 alternative work schedule, employees work nine (9) hours per day
Monday through Thursday. On alternating Fridays, employees either work eight (8) hours
or are scheduled off which results in 80 hours worked over nine (9) work days verses the
customary ten (10) work days. The alternating Friday off is referred to as the employee’s
flex day.
Supervisors and managers will determine which employees are assigned to Shift “A” and
which are assigned to Shift “B” to ensure appropriate coverage. Once employees are
assigned to a Shift, it is expected to be followed. Permanent changes between Shift “A”
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: 9/80 Alternative Work Schedule Program
Approval Date:
July 9, 2014
Policy No: 2.1 Page 2 of 3
and Shift “B” during the Fiscal year will be considered at the discretion of the General
Manager.
Temporary trading between flex days will be allowed after proper approval is obtained
by the employees’ immediate supervisor. Additionally, an approved temporary trade will
not entitle the employees to overtime compensation. Furthermore, the trade must occur
within the same pay period.
Work Period
For employees assigned to a 9/80 work schedule, the work week period will begin for
Office Staff at 11:30 a.m. and will begin for Field Staff at 10:30 a.m. each Friday. The
work week period will end the following Friday at 11:30 a.m. and 10:30 a.m.,
respectively. With a 9/80 work schedule, an employee shall work the following two
week-cycle:
Week One: Monday - Thursday (9 hours each day); Friday (8 hours)
Week Two: Monday - Thursday (9 hours each day); Friday (0 hours)
For purposes of calculating overtime, four hours of the Friday worked in week one will be
credited as hours worked in week one; the second four hours of the Friday worked in
week one will be credited as hours worked in week two. As a consequence, employees
will have forty hours scheduled in each work period.
Work Hours
Employee work hours shall be established by the District and are subject to change based
upon the needs of the District and upon a minimum of two (2) weeks notification to
employees. To ensure quality service levels to the District’s operations, the following
working schedules have been established for staff in the office and field:
Office Staff:
Monday through Thursday: 7:30 am – 5:30 pm
Alternating Friday 7:30 am – 4:30 pm
(One hour lunch)
Field Staff:
Monday through Thursday 6:30 am – 4:00 pm
Alternating Friday 6:30 am – 3:00 pm
(Thirty minute lunch)
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: 9/80 Alternative Work Schedule Program
Approval Date:
July 9, 2014
Policy No: 2.1 Page 3 of 3
Holidays
Employees are entitled to 13 paid holidays as defined in the Memorandum of
Understanding (MOU). If the holiday falls on a Monday thru Thursday, the employee will
receive 9 hours of holiday pay. Additionally, if the holiday falls on a Friday, the employee
will receive 8 hours of holiday pay.
Floating Holiday
A Floating Holiday is time off credit that is provided to an employee for a holiday that
falls on a flex day. At the beginning of each fiscal year, the District will give Floating
Holiday credit when the holiday falls on their flex day. Floating Holiday shall be credited
on an 8 hour per holiday basis. If an employee utilizes Floating Holiday credit on an 8
hour flex day, they will be charged 8 hours; if an employee utilizes Floating Holiday
credit on a 9 hour workday, they will be charged 9 hours (can be a combination of
Floating Holiday plus other leave accrual). Floating Holiday leave balance will start on
July 1st to be used at the employee’s discretion before the end of the fiscal year on June
30th.
District Holiday Closure
During the District Holiday Closure as defined by the MOU, employees will be given credit
for the hours they would have normally worked.
Timekeeping
Pay periods are bi-weekly, or 26 pay periods per year. It is required that full-time
regular employees have 80 hours in each two-week work cycle. Days off are to be
regularly scheduled. All employees will be required to report the hours worked and
approved time-off.
When an employee takes a vacation on a scheduled 9 hour day, 9 hours will be recorded.
When an employee takes vacation on a scheduled 8 hour day, 8 hours will be recorded.
The same procedures will be used for recording time off for other reasons (ex. sick, jury
duty, etc.).
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Standby, Call Back, and Extended Overtime Policy
Approval Date:
April 8, 2015
Policy No: 2.2 Page 1 of 4
Purpose
East Valley Water District is committed to providing exceptional service to customers and
businesses within our service area twenty-four hours a day, seven days per week. The
purpose of this policy is to ensure District staff are readily available for response outside
of standard working hours.
Standby
The District shall provide a twenty-four hour Standby program utilizing qualified
responders to ensure that customers and District infrastructure are continuously
protected. The roster of qualified Standby employees shall include a minimum of six
employees at all times. One employee is assigned as responder and coordinator for the
District’s Standby program every week.
Procedure
1.All employees placed on Standby shall carry a District Standby phone during
this time as well as conform to all requirements of the District policy.
2.All employees who report to work for Standby shall conform to all applicable
safety rules including the wearing of the District uniform and safety
equipment.
3.When on Standby, employees must adhere to the policies of the District
regarding the usage of alcohol or other intoxicants.
Qualified Responders
1.Trained representatives who have completed the department Standby training
program may participate in the Standby program. All employees in the Standby
program shall live within a distance that allows for a response time that does
not exceed a maximum of 30-minutes to our customers at any point within the
District’s service area.
2.Only permanent, eligible, full-time employees who have successfully
completed their probationary period are entitled to participate in the Standby
program.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Standby, Call Back, and Extended Overtime Policy
Approval Date:
April 8, 2015
Policy No: 2.2 Page 2 of 4
Compensation
1.All employees participating in the Standby program shall be compensated
according to the current Memorandum of Understanding (MOU).
2.Overtime compensation shall begin at the time the responder receives an after-
hours call. For calls requiring a site visit, responder will be compensated for a
minimum of two-hours overtime pay for calls lasting two-hours or less.
3.Calls or alarm acknowledgements resolved by phone or computer lasting thirty
minutes or less are compensated through the daily Standby stipend.
4.Calls or alarm acknowledgements resolved by phone or computer lasting more
than thirty minutes shall receive overtime compensation for actual time spent
to resolve the issue.
5.The Standby employee is responsible for completing all appropriate paperwork
immediately following a call-out. Overtime compensation shall end at the time
the paperwork is complete (i.e. overtime sheet, incident reports, service
orders).
Roster
Field Maintenance
1.The roster will be published two times per year for a six-month period: January
through June and July through December. Volunteers will be solicited at least
30 days in advance of the publication of the roster.
2.Employees volunteering for Standby duty shall commit to the six-month
schedule. If an employee wishes to no longer be included in the Standby
program, he/she must submit a written request to their supervisor.
3.The Standby roster must include a minimum of six employees. Should the roster
fall below six, the Standby program will become mandatory and the supervisor
or his/her designee shall assign qualified employees to the program.
4.Assignments will be made according to seniority, with the least senior eligible
employee assigned first, the second least senior next, etc. until all vacant slots
are filled. Seniority will be determined by classification and date of
appointment within the classification.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Standby, Call Back, and Extended Overtime Policy
Approval Date:
April 8, 2015
Policy No: 2.2 Page 3 of 4
Production/Treatment
1.The roster will be published once a year on July 1st.
2.The Standby program is mandatory for all Production/Treatment Operators.
Schedule
1.The Standby duty week will begin each Monday at 4:00 p.m. and end the
following Monday at 6:30 a.m. Employees will be scheduled on a rotating basis,
each assignment lasting one week.
2.In the event an employee is unable to fulfill the schedule obligation, it is
his/her responsibility to find a replacement. Both parties must report the
amended schedule to their supervisor. If both parties do not communicate the
change to their supervisor prior to the time of duty, the roster and
responsibility shall remain unadjusted.
3.If the Standby employee calls in sick during his/her scheduled Standby duty
week, a substitute employee will carry out the Standby duty until the
employee returns to work. The supervisor will assign the substitute.
Administrative Duties
1.It is the responsibility of the Standby employee to complete appropriate
paperwork immediately following a call-out.
2.Incident reports, overtime sheets and service reports must be submitted to the
office staff by 6:30 a.m. the first workday immediately following the call-out.
Call Back
Call back duty occurs when an employee is ordered to return to duty on a non-
regularly scheduled work shift. Call back does not occur when an employee is held
over from his/her prior shift or is working prior to his/her regularly scheduled shift.
Procedure
District employees called back to active duty after completing their normal tour of
duty and leaving the work site shall be entitled to call back compensation according
to the MOU. Call back compensation shall be paid for each call back occurrence
exclusive of any other premium pay provision. A minimum of two-hours overtime shall
be paid for each call back occurrence for calls lasting two hours or less. Call back
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Standby, Call Back, and Extended Overtime Policy
Approval Date:
April 8, 2015
Policy No: 2.2 Page 4 of 4
compensation shall not apply to employees assigned to standby duty pursuant to the
MOU, Standby.
Extended Overtime
To minimize safety concerns that may result from employees working extended
overtime, the following procedures have been established:
Procedures
1.Continuous Work Period: Any work performed for the District within a 24-hour
period starting from the beginning of the employee’s work shift to his/her next
work shift without a four-hour break shall be considered continuous work.
Breaks in continuous service are not compensated.
2.Required Rest Period: Any employee who works over 16 hours continuous work
shall receive no less than nine (9) hours of uninterrupted rest before reporting
back to work. Any employee who works over 24 hours of continuous work shall
receive no less than twelve (12) hours of uninterrupted rest before reporting
back to work. Should said rest period overlap the employee’s normal shift
time, the employee will receive paid leave for those hours during the required
rest period which overlap the employee’s normal scheduled work shift.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Compensation Program
Original Approval Date:
July 8, 2015
Last Revised:
May 23, 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.
Guidelines for recommending increases:
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Compensation Program
Original Approval Date:
July 8, 2015
Last Revised:
May 23, 2018
Policy No: 2.3 Page
2 of 4
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 30 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:
May 23, 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 ten percent (10%) 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 established more efficient
business processes, or generate ideas resulting in cost savings for the District.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Compensation Program
Original Approval Date:
July 8, 2015
Last Revised:
May 23, 2018
Policy No: 2.3 Page
4 of 4
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 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 percentage
recommended for incentive pay.
Revised: April 26, 2016
September 27, 2017
May 23, 2018
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Harassment, Discrimination and Retaliation Policy
Approval Date:
September 11, 2013
Policy No: 3.1 Page 1 of 6
Purpose
The purpose of this policy is to establish a strong commitment to prohibit and prevent
discrimination, harassment and retaliation in employment at East Valley Water District;
to define those terms; and to establish a procedure for investigating and resolving
complaints. East Valley Water District encourages all employees to report, as soon as
possible, any conduct that is believed to violate this policy.
Policy
Harassment or discrimination against an applicant or employee by a supervisor, manager,
employee, elected official, co-worker, member of the public, or contractor on the basis
of 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, will not be tolerated.
East Valley Water District has zero tolerance for any conduct that violates this policy.
Conduct need not arise to the level of violation of law to violate this policy. Instead, a
single act can violate this Policy and provide grounds for discipline.
This policy applies to all terms and conditions of employment. Any retaliation against a
person for filing a complaint or participating in the complaint resolution process is
prohibited. Individuals found to be retaliating in violation of this policy will be subject to
appropriate disciplinary action up to and including termination.
Definitions
A. Protected Classification: This policy prohibits harassment or discrimination because of
an individual’s protected classification. “Protected Classification” includes race,
religion, color, sex (including gender, gender identity, gender expression, and
pregnancy), sexual orientation (including heterosexuality, homosexuality, and
bisexuality), national origin, ancestry, citizenship status, marital status, pregnancy,
age, medical condition, genetic characteristics or information, and physical or mental
disability, or any other protected classification protected by law.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Harassment, Discrimination and Retaliation Policy
Approval Date:
September 11, 2013
Policy No: 3.1 Page 2 of 6
B. Policy Coverage: This policy prohibits East Valley Water District, elected officials,
employees or contractors from harassing or discriminating against applicants,
officials, employees or contractors because of: an individual’s protected
classification; the perception that an individual has a protected classification; or the
individual associates with a person who has or is perceived to have a protected
classification.
C. Discrimination: treating an individual differently because of the individual`s
protected classification as identified in this policy.
D. Under certain circumstances, harassment can also include conduct of those who are
not employees, such as elected officials, persons providing services under contracts,
or even members of the public. Harassment may include, but is not limited to, the
following types of behavior based on a person`s protected classification:
Speech: such as epithets, derogatory comments or slurs, and propositioning on the
basis of protected classification. This might include inappropriate comments on
appearance, including dress or physical features, or dress consistent with gender
identification, or race oriented stories and jokes.
Physical Acts: such as assault, impeding or blocking movement, offensive touching or
any physical interference with normal work or movement. This includes pinching,
grabbing, patting, propositioning, leering or making explicit or implied job threats or
promises in return for physical acts.
Visual Acts: such as derogatory posters, cartoons, emails, pictures or drawings related
to a protected classification.
Unwanted Sexual Advances: requests for sexual favors and other acts of sexual
nature, where submission is made a term or condition of employment, where
submission to or rejection of the conduct is used as the basis for employment
decisions, or where the conduct is intended to or actually does unreasonably interfere
with an individual`s work performance or create an intimidating, hostile, or offensive
work environment.
E. Guidelines for Identifying Harassment: To help clarify what constitutes harassment in
violation of this policy, use the following guidelines:
1. Harassment includes unwelcome conduct based on an individual’s protected
classification.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Harassment, Discrimination and Retaliation Policy
Approval Date:
September 11, 2013
Policy No: 3.1 Page 3 of 6
2. It is no defense that the recipient appears to have voluntarily “consented” to
the conduct at issue. A recipient may not protest for many legitimate reasons,
including the need to avoid being insubordinate.
3. Simply because one has not complained about a joke, gesture, pictures,
physical contact or comment does not mean that the conduct is welcome.
Harassment can evolve over time. Small, isolated incidents might be tolerated
up to a point. The fact that no one is complaining now does not preclude
anyone from complaining if the conduct is repeated in the future.
4. Even visual, verbal or physical conduct between two employees who appear to
welcome the conduct can constitute harassment of someone who observes the
conduct or learns about the conduct later. Conduct can constitute harassment
even if it is not explicitly or specifically directed at an individual.
5. Conduct can constitute harassment even if the employee engaging in the
conduct has no intention to harass.
F. Retaliation: Any adverse conduct taken because an applicant, employee or contractor
has reported harassment or discrimination, or has participated in the complaint and
investigation process described herein, is prohibited. Adverse conduct includes, but is
not limited to, taking sides because an individual has reported harassment or
discrimination, spreading rumors about a complaint, shunning and avoiding an
individual who reports harassment or discrimination, or real or implied threats of
intimidation to prevent an individual from reporting harassment or discrimination.
The following individuals are protected from retaliation: those who make reports of
harassment or discrimination, those who associate with an individual who is involved
in reporting harassment or discrimination, or those who are in the complaint or
investigation process.
Complaint Procedure
A. An employee, job applicant or contractor who believes he or she has been harassed
may make a complaint verbally or in writing with any of the following:
1. Immediate supervisor
2. Any supervisor or manager within or outside of the department
3. Department head
4. Human Resources Manager
5. General Manager
6. Legal Counsel
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Harassment, Discrimination and Retaliation Policy
Approval Date:
September 11, 2013
Policy No: 3.1 Page 4 of 6
B. Any supervisor or department head who receives a harassment complaint should
notify the Human Resources Manager immediately.
C. Upon receiving notification of a harassment complaint, the Human Resources Manager
shall:
1. Authorize and supervise the investigation of the complaint and or investigate
the complaint. The investigation will include interviews with the complainant,
accused harasser and others who have relevant knowledge concerning the
allegations in the complaint.
2. Review the factual information gathered through the investigation to
determine whether the alleged conduct constitutes harassment, discrimination
or retaliation giving consideration to all factual information, the totality of the
circumstances, including the nature of the conduct and the context in which
the alleged incidents occurred.
3. Report a summary of the determination as to whether harassment occurred to
appropriate persons, including the complainant, the alleged harasser, the
supervisor and the department head. If discipline is imposed, the level of
discipline will not be communicated to the complainant.
4. If conduct in violation of this policy occurred, prompt and effective action will
be recommended. The remedial action will be appropriate to the severity of
the offense.
5. Take reasonable steps to protect the complainant from further harassment,
discrimination, or retaliation.
D. East Valley Water District takes a proactive approach to potential policy violations
and will conduct an investigation if its officers, supervisors, or managers become
aware that harassment, discrimination, or retaliation may be occurring, regardless of
whether the recipient or third party reports a potential violation.
E. Option to Report to Outside Administrative Agencies: An individual has the option to
report harassment, discrimination, or retaliation to the U.S. Equal Employment
Opportunity Commission (EEOC) or the California Department of Fair Employment and
Housing (DFEH). These administrative agencies offer legal remedies and a complaint
process. The nearest offices are listed in the government section of the telephone
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Harassment, Discrimination and Retaliation Policy
Approval Date:
September 11, 2013
Policy No: 3.1 Page 5 of 6
book or employees can check the posters that are located on East Valley Water
District`s bulletin boards for office locations and telephone numbers.
Confidentiality
Every possible effort will be made to assure the confidentiality of complaints made under
this policy. However, due to the need to fully investigate and the duty to take effective
remedial action, complete confidentiality cannot occur. As a result, confidentiality will
be maintained to the extent possible. An individual who is interviewed during the course
of the investigation is prohibited from discussing the substance of the interview, except
as otherwise directed by a supervisor or the Human Resources Manager. Any individual
who discusses the content of an investigatory interview will be subject to discipline.
Responsibilities
Managers and Supervisors are responsible for:
1. Informing employees of this policy.
2. Modeling appropriate behavior.
3. Taking all steps necessary to prevent harassment, discrimination, or retaliation from
occurring.
4. Receiving complaints in a fair and serious manner and documenting steps taken to
resolve complaints.
5. Monitoring the work environment and taking immediate appropriate action to stop
potential violations, such as removing inappropriate pictures or correcting
inappropriate language.
6. Following up with those who have complained to ensure that the behavior has stopped
and that there are no reprisals.
7. Informing those who complain of harassment or discrimination of his or her option to
contact the EEOC or DFEH regarding alleged policy violations.
8. Assisting, advising or consulting with employees and the Human Resources Manager
regarding this policy and complaint procedure.
9. Assisting in the investigation of complaints involving employee(s) in their departments
and if the complaint is substantiated, recommending appropriate corrective
disciplinary action in accordance with East Valley Water District`s Personnel Rules up
to and including termination.
10. Implementing appropriate disciplinary and remedial actions.
11. Reporting potential violations of this policy regardless of whether a complaint has
been submitted to the Human Resources Department or the department head.
12. Participating in training and scheduling employees for training in order to maintain
compliance.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Harassment, Discrimination and Retaliation Policy
Approval Date:
September 11, 2013
Policy No: 3.1 Page 6 of 6
Each employee or contractor is responsible for:
1. Treating others with respect and consideration.
2. Modeling appropriate behavior.
3. Participating in training.
4. Fully cooperating with East Valley Water District`s investigations by responding fully
and truthfully to all questions posed during an investigation.
5. Maintaining the confidentiality of any investigation that East Valley Water District
conducts by not disclosing the substance of any investigatory interview except as
directed by the department head or the Human Resources Manager.
6. Reporting any act he or she believes in good faith constitutes harassment,
discrimination or retaliation as defined in this policy, to his or her immediate
supervisor, department head or Human Resources Manager.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Workplace Violence and Intimidation Policy
Approval Date:
September 11, 2013
Policy No: 3.2 Page 1 of 5
Purpose
The purpose of this policy is to establish a strong commitment to prohibit and prevent
violence and intimidation in the workplace and provide a safe and secure work environment
for East Valley Water District employees. East Valley Water District encourages all
employees to report as soon as possible any conduct that is believed to violate this policy.
Policy
East Valley Water District has zero tolerance for violent behavior of any kind, threats of
violence, or intimidation while in the workplace or conducting district business. Conduct
need not arise to the level of violation of law to violate this policy. Instead, a single act
can violate this policy and provide grounds for discipline.
This policy applies to all terms and conditions of employment. Any retaliation against a
person for filing a complaint or participating in the complaint resolution process is
prohibited. Individuals found to be retaliating in violation of this policy will be subject to
appropriate disciplinary action up to and including termination.
Definitions
A. Threat of Violence: An implicit or explicit remark or act that can be reasonably
interpreted as intimidating and causes another individual or group of individuals to
fear for their physical safety or property. The threat need not be directed to any
particular individual but may apply to a group or category of individuals. The
apparent ability to immediately act upon the threat is not required.
B. Intimidation: Any threatening behavior that causes others to become fearful or
afraid.
Prohibited Conduct
Violence in the workplace may include, but is not limited to the following list of prohibited
behaviors directed at or by a co-worker, supervisor or member of the public:
• Actual or implied threats of violence.
• Physical assaults of any kind.
• Expression of abuse or threat, either orally, in writing, or sent electronically.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Workplace Violence and Intimidation Policy
Approval Date:
September 11, 2013
Policy No: 3.2 Page 2 of 5
• Physical gestures or actions intended to threaten, intimidate, or coerce another
person.
• Possession, claiming to possess, brandishing, use, or threat of use, of firearms,
*knives, or other objects that could reasonably be construed as weapons.
• Behavior that subjects another individual to extreme emotional distress.
• Intentional damage or threat of damage to East Valley Water District property or
another person’s property.
• Yelling, screaming, and gesturing in a way that threatens or makes another
person fearful.
• Loud, disruptive, or angry behavior atypical of the work environment.
• Sabotage of another person’s work or property.
• Stalking others.
• Blatant or intentional disregard for the safety or well-being of others.
• Any other act that a reasonable person would perceive as a threat of violence.
*Knives with a three inch blade or smaller may be carried if there is a potential for work
related use during the course of the work day.
Retaliation
Any adverse conduct taken because an employee has reported workplace violence or has
participated in the complaint and investigation process described herein is prohibited.
Adverse conduct includes, but is not limited to, taking sides because an individual has
reported workplace violence or threats, spreading rumors about a complaint, and shunning
or avoiding an individual who reports violence in the workplace, or real or implied threats
of intimidation to prevent an individual from reporting said behavior. The following
individuals are protected from retaliation: those who make good faith reports of workplace
violence, and those who associate with an individual who is involved in reporting of
workplace violence or who is in the complaint or investigation process.
Complaint Procedure
A. An employee who believes he or she has been victimized or threatened may make a
complaint verbally or in writing to any of the following:
1. Immediate supervisor
2. Any supervisor or manager within or outside of the department
3. Department head
4. Human Resources Manager
5. General Manager
6. Legal Counsel
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Workplace Violence and Intimidation Policy
Approval Date:
September 11, 2013
Policy No: 3.2 Page 3 of 5
B. Any supervisor or department head who receives a complaint should notify the Human
Resources Manager immediately.
C. Upon receiving notification of a complaint, the Human Resources Manager shall:
1. Authorize and supervise the investigation of the complaint and/or investigate the
complaint. The investigation will include interviews with the complainant, the
accused party, and others who have relevant knowledge concerning the
allegations in the complaint.
2. Review the factual information gathered through the investigation to determine
whether the alleged conduct constitutes violence or intimidation. Consideration
shall be given to all factual information, the nature of the conduct and the
context in which the alleged incidents occurred.
3. Report a summary of determination to appropriate persons, including the
complainant, the alleged violator, the supervisor and the department head. If
discipline is imposed, the level of discipline will not be communicated to the
complainant.
4. If conduct in violation of this policy occurred, will recommend prompt and
effective action. The remedial action will be appropriate to the severity of the
offense.
5. Take reasonable steps to protect the complainant from further threats,
intimidation or violence and from retaliation as a result of communicating the
complaint.
D. East Valley Water District takes a proactive approach to potential policy violations and
will conduct an investigation if its officers, supervisors, or managers become aware that
workplace violence or intimidation may be occurring, regardless of whether the
recipient or third party reports a potential violation.
Confidentiality
Every possible effort will be made to assure the confidentiality of complaints made under
this policy. However, due to the need to fully investigate and the duty to take effective
remedial action, complete confidentiality cannot occur. As a result, confidentiality will be
maintained to the extent possible. An individual who is interviewed during the course of
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Workplace Violence and Intimidation Policy
Approval Date:
September 11, 2013
Policy No: 3.2 Page 4 of 5
the investigation is prohibited from discussing the substance of the interview, except as
otherwise directed by a supervisor or the Human Resources Manager. Any individual who
discusses the content of an investigatory interview will be subject to discipline.
Responsibilities
Managers and Supervisors are responsible for:
1. Informing employees of this policy.
2. Modeling appropriate behavior.
3. Taking all steps necessary to prevent workplace violence from occurring.
4.
5. Receiving complaints in a fair and serious manner and documenting steps taken to
resolve complaints.
6. Monitoring the work environment and taking immediate appropriate action to stop
potential violations.
7. Following up with those who have complained to ensure that the behavior has stopped
and that there are no reprisals.
8. Assisting, advising or consulting with employees and the Human Resources Manager
regarding this policy and complaint procedure.
9. Assisting in the investigation of complaints involving employee(s) in their departments
and if the complaint is substantiated, recommending appropriate corrective disciplinary
action in accordance with East Valley Water District`s Personnel Rules, up to and
including termination.
10. Implementing appropriate disciplinary and remedial actions.
11. Reporting potential violations of this policy regardless of whether a complaint has been
submitted to the Human Resources Department or the department head.
12. Participating in training and scheduling employees for training.
Each employee is responsible for:
1. Treating all employees with respect and consideration.
2. Modeling appropriate behavior.
3. Participating in training.
4. Fully cooperating with East Valley Water District`s investigations by responding fully
and truthfully to all questions posed during an investigation.
5. Maintaining the confidentiality of any investigation that East Valley Water District
conducts by not disclosing the substance of any investigatory interview except as
directed by the department head or the Human Resources Manager.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Workplace Violence and Intimidation Policy
Approval Date:
September 11, 2013
Policy No: 3.2 Page 5 of 5
6. Reporting any act he or she believes in good faith constitutes workplace violence or a
threat of workplace violence as defined in this policy, to his or her immediate
supervisor, department head or Human Resources Manager.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Workplace Dress and Grooming Policy
Approval Date:
February 12, 2014
Policy No: 3.3 Page 1 of 3
Purpose
The purpose of this policy is to provide guidelines on dress and appearance in order for
employees to project a positive and professional image to our customers and community
visitors.
Policy
East Valley Water District is a professional organization. All employees are expected to
present a professional appearance in order to promote a positive image to customers and
community visitors. Initial impression of professional credibility is often based on
employee appearance. The appropriateness of apparel and personal grooming as seen by
the public has a direct impact on how other agencies, customers and community visitors
view organizational professionalism.
This policy applies to all employees, regardless of classification, and is consistent with
community standards.
An employee’s religious beliefs or medical conditions, as defined by applicable law, that
require deviation from the standards set forth herein, will be considered on an individual
basis.
This policy is intended to provide guidelines on apparel and appearance and is not meant
to address all situations. There may be differences in some departments’ apparel
guidelines depending on the nature of the work performed, involvement with the public,
required uniforms, or other circumstances as defined by the department head or
designee.
Guidelines
A. Clothing
Clothing worn by employees must comply with the following:
1. Allow the employee to perform all duties within the job classification safely
and without creating disruption or complaints by co-workers or supervisors.
2. Project a professional appearance, be appropriate to the position held, be
clean and free of stains, and shirts that are meant to be tucked in must be
tucked in at all times.
3. Employees who are not required to wear uniforms are expected to wear
business clothing appropriate to the position held. Examples of acceptable
attire for women and men are as follows:
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Workplace Dress and Grooming Policy
Approval Date:
February 12, 2014
Policy No: 3.3 Page 2 of 3
• Women – dresses, skirts, suits, or slacks worn with blouses, polo shirts,
sweaters, and/or jackets. The length of dresses or skirts should be no
shorter than mid-thigh when seated.
• Men – suits or slacks worn with collared shirts, collared sport shirts, dress
shirts, polo shirts, sweaters, and/or jackets. When deemed appropriate,
neckties should be worn. Pants should be worn at the waist.
The following types of attire are considered unacceptable at all times unless an
exception is noted:
• Gym or workout attire, sweat pants and running/jogging suits (unless
employee is in transit to or from the District’s gym, or outside workout)
• Leggings (unless paired with a dress)
• Any outer garment made of spandex
• Excessively tight or revealing clothing
• Oversized (baggy) garments
• Shirts or dresses with spaghetti straps or halter tops (unless covered by an
outer garment)
• Clothing that exposes midriff or fits so low that one’s undergarments are
visible
• Overalls/coveralls (exception for field employees)
• Shorts of any type (exception for field employees as defined by the Uniform
Policy)
• Clothing with inappropriate or unprofessional messages
• T-shirts
• Denim jeans of any color
o Exception – denim jeans may be worn for the following
Field employee uniforms
Employees temporarily working outside or when the majority
of a day will involve tasks such as preparing for an office
move, relocating files or tasks similar in nature
B. Footwear and Accessories
Footwear and accessories worn by employees must comply with the following:
1. All footwear is expected to be appropriate to the employee’s position. Shoes
are to be neat, clean and in good repair. Heels should not be more than four
inches in height. Tennis shoes are prohibited unless an exception is made.
Casual sandals of any type that are commonly referred to as “flip-flops” or
plastic shoes are prohibited.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Workplace Dress and Grooming Policy
Approval Date:
February 12, 2014
Policy No: 3.3 Page 3 of 3
2. No bandanas, beanies or baseball caps are allowed except those issued by the
District or approved by the department head or designee.
C. Grooming and Personal Hygiene
All employees must comply with the following grooming and personal hygiene
guidelines:
1. Employees are expected to maintain appropriate and professional hairstyles.
All facial hair must be clean and neatly groomed. Hair must be properly
restrained for its length and job assignment. Hair coloring should be within the
range of natural hair colors.
2. Personal hygiene is essential; therefore, it is necessary that all employees
maintain a clean, presentable appearance. Personal hygiene includes a regular
bath or shower, use of deodorant and appropriate oral hygiene.
3. Strong odors caused by perfumes or colognes can be offensive or cause allergic
reactions, so they must be used in moderation out of concern for the comfort
of others.
D. Required Uniforms for Field Employees
Refer to the District’s Uniform Policy for field employee uniform requirements.
Responsibilities
A. Supervisors are responsible for explaining and enforcing the Workplace Dress and
Grooming Policy. Employees who report to work in unacceptable attire may be sent
home to change and must utilize their own leave balances for this time away from
work.
B. Consistent with this policy, Department heads or designees can make exceptions to
this policy on a temporary basis due to the nature of the work assignment or special
event.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Field Uniform Policy
Approval Date:
September 11, 2013
Policy No: 3.4 Page 1 of 2
Purpose
To purpose of this policy is to define uniform standards, enhance the professional image
of East Valley Water District (District) employees and to establish guidelines for the
issuing, wearing and returning of uniforms.
Policy
All District employees whose duties require regular work in the field are to wear
uniforms. Staff must present a neat, and professional appearance at all times. It is
important to note that when in uniform, employees must be in full uniform. It is not
acceptable to wear a uniform shirt or hat and have the remainder of one’s clothing not in
compliance with District uniform requirements. Equally important to note is that District
uniforms are only to be worn while on duty and while traveling to and from work.
District personnel who are off-duty shall not wear any portion of their uniform.
Eleven (11) District uniforms will be provided to each employee at the District’s expense.
District jackets will also be provided. Only District issued uniforms/jackets may be worn,
except as noted in this policy.
The Storekeeper/Buyer will issue uniforms to employees and maintain a current
inventory of uniforms assigned to staff. The Storekeeper/Buyer will also ensure that the
employee signs an acknowledgement for all uniform items issued.
Employees are responsible for their uniforms and must return stained, ill-fitting or worn-
out uniforms to the Storekeeper/Buyer for replacement. The employee must report lost
or damaged uniforms to their immediate supervisor as soon as detected, and coordinate
with the Storekeeper/Buyer for replacement. The employee may be required to assume
the replacement cost. Items damaged in the normal course of duty will be replaced at
the District’s expense.
Types of Uniforms
The District shall supply uniform shirts, pants, shorts, hats, jackets, and offer a safety-
toed shoe allowance.
Field Supervisors and Superintendents shall wear District issued button shirts, depicting
the District logo on the front. Shirts are to be worn with District-issued pants, denim
blue jeans or shorts. Superintendents are excluded from wearing shorts.
All field employees shall wear blue button shirts depicting the District logo and
employee’s first name on the front. Blue shirts are to be worn with blue District-issued
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Field Uniform Policy
Approval Date:
September 11, 2013
Policy No: 3.4 Page 2 of 2
pants, denim blue jeans or shorts. Blue T-Shirts, depicting the District logo, may be worn
in place of the button shirt during summer season. For the purpose of this policy,
summer season is defined as the period of Daylight Savings Time.
The District shall provide laundering of button shirts and District-issued pants weekly.
District employees shall be responsible for laundering jackets and T-Shirts.
Safety Components of Uniforms
The District shall supply safety vests, rain gear, and safety jackets to field employees.
Safety jackets/ vests are to be worn as required by the specific job and not as uniform
attire. Coveralls will be provided upon request. The District shall also provide baseball
style caps and summer hats depicting the District logo, as needed. Only District provided
baseball style caps, or summer hats may be worn while on duty, and caps must be worn
with the bill facing forward, except when otherwise necessitated by working conditions.
The District shall provide field employees with an allowance each year for the purchase
of safety toed shoes. All employees can refer to the Memorandum of Understanding
(MOU) for current safety-toed shoe allowance. The supervisor shall ensure that safety-
toed shoes are in good condition and worn daily by all those employees required to do so.
Safety-toed shoes deemed to be in need of replacement may not be worn and must be
replaced by the employee.
Appearance
District field employees must present a neat professional appearance at all times.
Uniform shirts must be tucked in and buttoned. Uniform shorts cannot exceed two (2)
inches in length above or below the knee at any time. Employees’ attire must fit
properly, be clean and in good repair. Employees may not wear stained, dirty, ill-fitting
or torn uniforms to work.
Employees reporting to work in unacceptable uniform attire will be sent home to change
and must utilize their own leave balances for this time away from work.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Smoking Policy
Approval Date:
July 9, 2014
Policy No: 3.5 Page 1 of 2
Purpose
East Valley Water District is committed to providing a safe, healthy, and pleasant
working environment for all employees. This policy is an effort to protect our employees
and customers from the potential health hazards and discomfort of exposure to smoke,
while also recognizing and respecting the rights of those who choose to smoke.
Responsibilities
1. All employees must follow the standards set forth in this policy.
2. Managers and supervisors are responsible for monitoring and ensuring compliance with
this policy.
Policy
1. No smoking is allowed within the headquarters facilities or other District facilities at
any time per Labor Code Section 6404.5 and Assembly Bill-13. Smoking will be
permitted in designated areas only.
2. California Assembly Bill - 846 bans smoking within 20 feet of the entrance or operable
window of a public building.
3. There will be no smoking in District vehicles at any time.
4. Smoking may be permitted during breaks, provided that it does not prevent
employees from satisfactorily carrying out their responsibilities and work duties.
5. All materials used for smoking, including cigarette butts and matches, will be
extinguished and disposed of in appropriate receptacles in the designated smoking
areas. If the designated smoking area is not properly maintained (for example, if
cigarette butts are found on the ground), it can be eliminated at the discretion of the
General Manager or designee.
Electronic Cigarettes
The use of e-cigarettes in workplaces and public places is a significant public health
concern, not only because of their unregulated elements and the potential health impact
of the vapor on users and bystanders, but also because e-cigarette use causes public
confusion as to where smoking is allowed, resulting in compliance problems with smoke-
free laws. Most local and state smoke-free laws were enacted before e-cigarettes were
on the market, so while such laws do not explicitly mention e-cigarettes, use of these
items are not permitted in smoke-free areas. E-cigarette use is only allowed in
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Smoking Policy
Approval Date:
July 9, 2014
Policy No: 3.5 Page 2 of 2
designated smoking areas located outside of the building, at least 20 feet away from
entrances and operable windows.
Enforcement
Employees who fail to comply with this policy will be subject to disciplinary action.
Visitors or members of the public who breach the policy will be asked to move to a
designated smoking area and will be asked to leave the premises if they fail to comply
with this request.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Drug & Alcohol Policy
Original Approval Date:
July 27, 2016
Last Revised:
Policy No: 3.6 Page
1 of 5
East Valley Water District is concerned about employees being impaired for the performance
of duty or under the influence of alcohol, drugs and/or controlled substances at work, and the
use of such substances in the work environment. The District’s position is that any measurable
amount of drugs or alcohol in an employee’s system while on District time is counter-productive
to the goals and vision of the District. The District is also concerned about the possession,
distribution, purchase and/or sale of illegal drugs and controlled substances in the workplace.
These activities may adversely affect work performance, efficiency, safety, and health. In
addition, they constitute a potential risk to the welfare and safety of others, risks of injury to
other persons, property loss or damage, and/or negative image for the District.
The District’s policy is designed to promote a drug-free workplace and to comply with
applicable state, federal and local laws. In recognition of the public service responsibilities
entrusted to District employees, and because drug and alcohol usage can hinder a person’s
ability to perform duties safely and effectively, the following policy has been implemented.
Purpose
The purpose of this policy is to establish the rules and procedures regarding the use of drugs
and/or alcohol as it pertains to employment and the procedures to be used to test for drug
and/or alcohol use (the District maintains a separate Drug & Alcohol Policy for employees with
commercial licenses who are regulated by the Department of Transportation).
The District provides reasonable accommodations as required by law to those employees whose
drug or alcohol problem classifies them as disabled. While the District will be supportive of
those who seek help voluntarily before they test positive, the District will be equally firm in
identifying and disciplining those whose substance abuse, even if enrolled in counseling or
rehabilitation programs, results in performance deficiencies, danger to the health and safety
of others and themselves, and/or violations of federal, state or District laws and/or policies.
Violation of Policy
All persons covered by this Policy should be aware that violations of the Policy may result in
discipline, up to and including termination.
Individuals Covered
This Policy applies to all District employees. The Policy will be included in the Administrative
Policies and Programs Manual and a copy will be distributed to all employees.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Drug & Alcohol Policy
Original Approval Date:
July 27, 2016
Last Revised:
Policy No: 3.6 Page
2 of 5
Confidentiality
Any information about an employee’s use of prescription or non-prescription medication, the
results of any reasonable suspicion drug and/or alcohol testing, and/or an employee’s past or
present participation in rehabilitation or treatment for substance abuse shall be considered
confidential personnel information. The information received in enforcing this Policy shall be
disclosed only as necessary for: disciplinary actions and appeals; interactive process meetings
and reasonable accommodation efforts; or resolving legal issues. Any reports or test results
generated pursuant to this Policy shall be maintained in a confidential file, accessible only by
those authorized to receive the information, and separate and distinct from the employee’s
personnel file.
Restriction on the Use of Alcohol
Employees may not use, be under the influence, or possess alcohol under any of the following
circumstances: while on District property during working hours, while performing their duties
(whether or not on District property), while driving a District vehicle, or at any time when use
of alcohol would impair, to any extent, the employee’s ability to perform his/her duties or to
operate any District equipment.
The only exception to this restriction is for after-hours social events, conferences, and/or
ceremonial events in which an employee may responsibly consume alcohol.
Prohibition Against the Use of Drugs
No employee shall possess, use, sell, transfer, manufacture, purchase or transport drugs or
attempt to do so or report to work with drugs in his or her system. No employee shall possess,
use, sell, transfer, manufacture, purchase or transport prescription drugs, or attempt to do so,
or report to work with prescription drugs in his or her system, unless the prescription drug has
been lawfully prescribed to the employee (if such a prescription alters an employee’s ability to
perform the essential functions of their position, such use must be reported to the appropriate
supervisor).
Criminal Drug Statute Convictions
To fulfill its obligations under the Federal Drug-Free Workplace Act of 1988, the District requires
any employee who is convicted of any criminal drug statute, for a violation occurring in or
outside of the workplace, to provide written notice of the conviction to the Department
Director no later than five (5) days after the conviction. The District is also required, and will
fulfill its obligations to educate employees on the harmful effects of using and abusing drugs
and/or alcohol.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Drug & Alcohol Policy
Original Approval Date:
July 27, 2016
Last Revised:
Policy No: 3.6 Page
3 of 5
Whenever the District has reason to believe that Federal, State or local drug laws are being
violated, the District may refer the matter to the appropriate law enforcement agencies for
investigation and possible criminal prosecution.
Medication Reporting Requirements
Employees shall, in the case of prescription drugs, ask the prescribing physician and/or in the
case of medication available over-the counter, to review product packaging, to determine
whether the use of a prescription drug or over-the counter medication may impair his/her
ability to perform his/her normal job duties or to safely operate District equipment. Any
employee taking any over-the counter medication or prescription marked “do not drive,” “do
not operate heavy equipment” or similarly labeled, shall inform the appropriate supervisor of
the use of the medication or drug prior to reporting for duty.
In the case of prescription drugs, the supervisor shall determine whether the employee may
work, full duty or light duty, based on the written opinion of the employee’s medical provider
that the use of the medication may impair the employee’s ability to perform specific duties.
The District reserves the right to send the employee to the District’s industrial clinic for further
review and opinion if deemed necessary for clarification. Notices or communications required
by this section shall be confidential and disclosed only to the supervisor and the other
employees specifically authorized to receive information pursuant to this Policy.
Indications for Alcohol and Drug Testing
Employees - The District may require an employee to submit to a drug and/or alcohol screen
test under the following circumstances:
1. Pre-Employment.
2. When a supervisor has reasonable suspicion to believe, based upon specific and
documented facts and observations that the employee may be under the influence of
drugs and/or alcohol.
3. When a supervisor has reasonable suspicion to believe, based upon specific and
documented facts and observations that the employee either possesses, uses, sells,
transfers, manufactures, purchases or illegally transports alcohol, drugs, and/or drug
related paraphernalia or attempts to do so.
4. Follow-up testing for employees who have returned to work following a positive test and
their participation in a drug and/or alcohol rehabilitation program.
5. When an on duty employee is contacted by a police officer who has reasonable suspicion
to believe the employee is under the influence of alcohol or drugs or employee has been
involved in an on-duty vehicle related incident and the officer suspects the employee is
under the influence of drugs and/or alcohol.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Drug & Alcohol Policy
Original Approval Date:
July 27, 2016
Last Revised:
Policy No: 3.6 Page
4 of 5
Positive Test or Refusal to Test- Employees who refuse to take a test after direction to do so,
or who test positive, will be subject to discipline up to and including termination. A refusal to
test is defined as any of the following:
1. Not providing the District a written consent to take the test
2. The employee does not supply enough quantity of laboratory required sample for alcohol
or drug testing without sufficient or valid medical explanation
3. Tampering with a specimen or collection process
4. Tardiness to reporting Collection Site after time allocated for applicant or employee to
report without valid explanation
Drug and Alcohol Testing
A. Administration
1. The Human Resources Manager or an assigned designee will be responsible for
overseeing implementation of this Policy and the testing procedures. The Human
Resources Manager will be responsible for reviewing all disciplinary actions resulting
from violations of this Policy to ensure that the action proposed or taken is consistent
with the District’s Policy.
2. Responsibilities
a. Communicate directly with a licensed physician regarding any drug and/or
alcohol tests
b. Oversee testing programs
c. Provide training to supervisors and employees
B. Procedures
1. Mandatory Reporting - Any employee who has reason to believe that another
employee may be in violation of this Policy shall immediately notify his or her
immediate supervisor. The supervisor should take whatever immediate action is
deemed prudent to ensure the safety of the public and employees. Should the
supervisor have reasonable suspicion to believe, based upon specific and
documented facts and observations, that the employee may be under the influence
of drugs and/or alcohol, the employee should be immediately removed from the
workplace and placed upon administrative leave with pay until such time as testing
results confirm or refute the presence of drugs and/or alcohol. The supervisor shall
use the Reasonable Suspicion Evaluation Form to assist in making this determination.
2. Collection, Integrity and Identification-
a. After the employee has been advised about the reason for the test by the
Human Resources Manager or assigned designee, the employee will be
properly identified and the collection site personnel will explain the
mechanics of the collection process.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Drug & Alcohol Policy
Original Approval Date:
July 27, 2016
Last Revised:
Policy No: 3.6 Page
5 of 5
b. Procedures for urine collection will allow for individual privacy unless there
is reason to believe the individual may alter or substitute the specimen to be
provided. Samples will be tested for temperature and subject to other
validation procedures as appropriate.
3. Chain of Custody
a. Procedures for the storage and transportation of test specimens shall
conform to the Mandatory Guidelines for Federal Workplace Drug Testing
Programs established by the Department of Health and Human Services as
amended from time to time.
b. The test laboratory shall maintain custody of the specimens.
4. Testing Methods
a. All non-DOT tests will be screened using a technique deemed appropriate by
the collection site. The District will test for cannabinoids (marijuana),
cocaine, amphetamines, opiates, barbiturates, benzodiazepines, and
phencyclidine (PCP) as well as alcohol.
5. Notification
a. Any employee who tests positive will be notified by the licensed physician or
the Human Resources Manager.
Rehabilitation
A. Voluntary Disclosure - Any employee with a drug and/or alcohol problem may voluntarily
disclose, prior to a positive test, the problem to the Department Head or Human
Resources Manager, who shall refer the employee to the Employee Assistance Program
(EAP). An employee requesting this assistance may, at the District’s discretion, be given
work restrictions or be placed on leave while receiving treatment and until the
employee is drug and/or alcohol free. An employee’s voluntary disclosure of a substance
or alcohol abuse problem will not terminate any investigation, criminal or
administrative, initiated prior to the disclosure. Each employee is responsible for
seeking assistance before the employee’s drug and/or alcohol problem leads to violation
of this policy, or before the employee is asked submit to a reasonable suspicion drug
and/or alcohol test.
B. Leave Time - Employees must use available sick accrual, vacation accrual, floating
holiday or request personal leave of absence without pay if time off from work is
necessary for any treatment or rehabilitation program. The costs of long-term
rehabilitation or treatment services, whether or not covered by the employee’s medical
plan, are the ultimate responsibility of the employee.
The Human Resources Department is responsible for policy interpretation, administration and
enforcement, and will ensure signed policy acknowledgement will be received by all employees.
East Valley Water District Employee Acknowledgment
I acknowledge that I have received and reviewed the Drug and Alcohol Policy.
Employee Name (Print) __________________________Date _____________________
Signature_______________________________________________________________
Drug and Alcohol Policy
Reasonable Suspicion Evaluation Form
Employee Name: ___________________________________________________________
Observation Date and Time: _________________________________________________
Location of Employee: ______________________________________________________
Location of Supervisor: ______________________________________________________
Others present during activities or observations: ________________________________
Incident observed which give cause for reasonable suspicion:
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
Factors that may be considered in combination with those listed in 1-6 below include:
takes needless risks, accident(s), disregard for safety of others, unusual/distinct
pattern of absenteeism/tardiness, and increased high/low periods of productivity,
lapses of concentration or judgment.
1. Presence of alcohol, alcohol container, drugs, and/or drug paraphernalia
(specify)
__________________________________________________________________
2. Appearance:
__Flushed
__Bloodshot/glassy eyes
__Dilated/constricted pupils
__Dry-mouth symptoms
__Puncture marks
__Tremors
__Runny nose/sores
__Inappropriate wearing of
sunglasses
__Disheveled
__Profuse sweating
__Smell of alcohol
__Other:
3. Behavior/Speech:
__Incoherent
__Confused
__Agitated
__Slurred
__Slowed
__Sleeping on the job
__Unconscious
__Hostile/confrontation
__Other:
4. Awareness:
__Confused
__Lethargic
__Lack of coordination
__Mood swings
__Paranoid
__Euphoric
__Disoriented
5. Motor Skills/Balance:
__Unsteady
__Staggering
__Swaying
__Stumbling
__Falling
__Reaching for support
__Arms raised for balance
__Other:
6. Other observed actions or behaviors:
____________________________________________________________________
____________________________________________________________________
Supervisors Comments:
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
Supervisor’s Name: _______________________________________ Date: ___________
Witness Name: ___________________________________________ Date: ___________
Signature: _______________________________________________ Date: ___________
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Senior and Executive Management
Cellular Telephone Policy
Approval Date:
May 1, 2013
Policy No: 4.1 Page 1 of 2
Purpose
East Valley Water District recognizes a need for all Senior and Executive Management to
be accessible at all times. To meet that need, employees holding such positions will be
given the option of a District owned cell phone or a cell phone allowance. East Valley
Water District requires that employees adhere to the guidelines set forth in this policy.
Policy
The following employees are eligible to receive the option of a cell phone or cell phone
allowance:
• General Manager
• Executive and Senior Management
Eligible employees must identify which option they select and submit to Human
Resources. Human Resources will maintain this form on record in the employee’s
personnel file.
Option 1: District Owned Cell Phone
• When this option is elected, the employee may use the device for both business
and personal matters. The cell phone is considered District property and the
District will pay for the entire cost of the device and data usage. This option is
limited to a standard data plan and business related purchases. Non-business
related purchases such as applications, music, games, etc. are excluded. It is the
responsibility of the employee to reimburse the District for non-business related
purchases.
Option 2: Cell Phone Allowance
• When this option is elected, employees are responsible for purchasing and
maintaining their own cell phones. A monthly allowance of $100 will be provided
to the employee to cover the business use cost of the phone bill and data usage.
The phone remains the property of the employee and the employee is responsible
for paying the bill.
a) Employees electing this option will be provided a bi-annual reimbursement
of $200 to supplement the cost of replacing a lost or damaged phone or for
the purchase of an upgraded phone.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Senior and Executive Management
Cellular Telephone Policy
Approval Date:
May 1, 2013
Policy No: 4.1 Page 2 of 2
Formal Declaration of Option
Each employee will be required to formally declare which option they are electing by
completing the “Cellular Telephone Declaration Form.” This form will also be utilized
for employees with the Option 2 election to submit for their $200 bi-annual phone
replacement/upgrade. Forms will be maintained in the employee’s Personnel File.
Driving
Vehicle Code Section 23123: Hand Held Wireless Telephone Prohibited Use
V C 23123 (a) states the following: A person shall not drive a motor vehicle while
using a wireless telephone unless that telephone is specifically designed and
configured to allow hands-free listening and talking, and is used in that manner
while driving.
East Valley Water District employees are expected to adhere to all laws regarding cell
phone use while driving. To comply with V C 23123, East Valley Water District
employees are required to use a hands-free device at all times while talking on their
cell phones and driving.
In accordance with the Senior and Executive Management Cellular Telephone
Policy, an employee wishing to receive a District owned cellular phone or a phone
allowance shall complete and submit this form to Human Resources.
Section I: General Information
Employee Name Position Date
I elect the following option:
□ 1. District Owned Cell Phone □ 2. Cell Phone Allowance □ Bi-Annual Replacement or
Upgrade
Section II: Option Details
Options Description Allowance
1 District owned cell phone is designated for both personal and business
use
N/A
2 Employee is responsible for the purchase and maintenance of cell
phone
$100
2 (a) Bi-Annual cell phone replacement or upgrade $200
Section III: Cellular Plan Information
Service Provider
Cellular Number
I, _____________________________________________, hereby agree to the terms and conditions set forth
in the Senior and Executive Management Cellular Telephone Policy. I understand that I am to
comply with all terms and conditions of the policy. Should I neglect to abide by all terms of this
policy I understand that all privileges may be revoked at any time.
Employee Signature Date
Human Resources Manager Signature Date
CELLULAR TELEPHONE
DECLARATION FORM
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Paid Sick Leave Policy
Approval Date:
April 8, 2015
Policy No: 4.2 Page 1 of 5
Purpose
The purpose of this policy is to comply with the Healthy Workplaces, Healthy Families Act
of 2014 (Assembly Bill 1522 or AB 1522), which requires paid sick leave for employees of
the District, and to establish procedures for paid sick leave use in accordance with the
District’s legal obligations under AB 1522. The District reserves the right to modify this
policy to the extent the legal obligations under AB 1522 are further clarified by the
Legislature, a Court, or other regulatory body.
Policy
Paid Sick leave is provided by the District to promote the health and welfare of
employees. Sick leave is not an earned right to time off from work. Sick leave permits
the employee to be absent from duty without the loss of pay under certain conditions.
The first 24 hours or 3 days of paid sick leave, whichever is greater, an employee uses
each calendar year will be subject to the requirements of AB 1522. Any paid sick leave
used beyond the first 24 hours or 3 days of AB 1522 paid sick leave will be subject to the
general provisions of this policy.
Eligibility
Sick leave will be granted under one or more of the following conditions:
1.The diagnosis, care, or treatment of an existing health condition or preventative
care for the employee. When notified in advance, sick leave may be used for
medical, dental, or optical examinations or treatments; or
2.The diagnosis, care, or treatment of an existing health condition or preventative
care for the employee’s “family member” for the first 24 hours or 3 days of paid
sick leave used in each year of employment or the employee’s “immediate family
member” for paid sick leave beyond the first 24 hours or 3 days in each year of
employment; or
3.An employee has been exposed to a contagious disease and a physician has
determined that the employee’s presence on the job might endanger fellow
workers or is otherwise under quarantine for a contagious disease; or
4.For the first 24 hours or 3 days of paid sick leave used in each year of
employment, an employee who is a victim of domestic violence, sexual assault, or
stalking may use accrued paid sick leave to obtain any relief or services related to
being such a victim, including, but not limited to:
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Paid Sick Leave Policy
Approval Date:
April 8, 2015
Policy No: 4.2 Page 2 of 5
a)A temporary restraining order or restraining order.
b)Other injunctive relief to help ensure the health, safety or welfare of
themselves or their children.
c)To seek medical attention for injuries caused by domestic violence,
sexual assault, or stalking.
d)To obtain services from a domestic violence shelter, program, or rape
crisis center as a result of domestic violence, sexual assault, or stalking.
e)To obtain psychological counseling related to an experience of domestic
violence, sexual assault, or stalking.
f)To participate in safety planning and take other actions to increase
safety from future domestic violence, sexual assault, or stalking,
including temporary or permanent relocation.
Definitions
1.Family Member (AB 1522 definition): means (1) biological, adoptive, or foster
child, stepchild, legal ward, or a child to whom the employee stands in loco
parentis, regardless of age or dependency status; (2) biological, adoptive, or
foster parent, stepparent, or legal guardian of an employee or the employee’s
spouse or registered domestic partner, or a person who stood in loco parentis
when the employee was a minor child; (3) spouse, (4) registered domestic partner;
(5) grandparent; (6) grandchild; or (7) sibling.
2.Immediate Family Member (EVWD definition): means husband, wife, registered
domestic partner, mother, father, son, daughter, step relations, ward and when
residing in the employee's home, sister and brother.
3.Day: means calendar day unless otherwise stated.
4.24 hours or 3 days: for each employee, it means the greater amount of 24 hours or
3 work days of paid sick leave.
Use and Accrual
1.Paid sick leave is provided at the employee’s base hourly wage rate.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Paid Sick Leave Policy
Approval Date:
April 8, 2015
Policy No: 4.2 Page 3 of 5
2.Employees in regular positions shall accrue sick leave prorated on the basis of four
(4) hours for each full bi-weekly pay period (i.e., 13 days per year). Earned sick
leave shall be available for use as soon as it is earned and as soon as the employee
is eligible to use it. For employees hired prior to July 1, 2011, earned sick leave
can be carried over year to year, and can be accumulated without limitation. For
employees hired on or after July 1, 2011, earned sick leave can be carried over
year to year, and can be accumulated up to 960 hours.
3.Part-time and other employees who are not in regular positions shall accrue sick
leave at a rate of one hour for every 30 hours worked, beginning at the
commencement of employment, or July 1, 2015 (whichever occurs later), not to
exceed a maximum cap of 48 hours. Employees exempt from overtime under the
Fair Labor Standards Act are deemed to work 40 hours per workweek for purposes
of accruing sick leave. For non-exempt employees, the District will count actual
hours worked. Part-time and other employees who are not in regular positions
shall be entitled to accrue paid sick leave upon completion of thirty (30) days of
employment. Employees shall be entitled to use paid sick leave beginning on the
90th day of employment with the District.
4.If an employee is on sick leave on the day the District observes a holiday, that day
shall not be counted as a day of sick leave.
5.Sick leave benefits may be taken in one-quarter hour increments.
6.If an employee separates from District employment and is re-hired by the District
within one year of the date of separation, previously accrued and unused paid sick
leave hours shall be reinstated.
Notice
For the first 24 hours or 3 days of paid sick leave used in each year of employment, if
the need for paid sick leave is foreseeable, the employee shall provide reasonable
advance notice to his/her department head. If the need for paid sick leave is
unforeseeable, the employee shall provide notice to his/her department head as soon
as practicable.
For any paid sick leave used beyond the first 24 hours or 3 days in each year of
employment, when an employee is unable to perform his/her duties for reasons that
entitle him/her to the use of sick leave, he/she must notify his/her supervisor within
30 minutes of shift time on each day of absence in order to qualify for sick leave with
pay.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Paid Sick Leave Policy
Approval Date:
April 8, 2015
Policy No: 4.2 Page 4 of 5
For any paid sick leave used beyond the first 24 hours or 3 days in each year of
employment, each employee must also submit a leave request to his/her supervisor or
department head for approval.
An employee shall be responsible for informing his or her supervisor of his or her
health status until he or she returns to work.
Certification
A certificate from a health care provider is required for any sick leave absence in
excess of five (5) consecutive working days. The District may require additional
certificates for longer periods of absence, or for repeated absences, as determined at
the discretion of the General Manager.
Improper Use
Improper use of the sick leave privilege is cause for disciplinary action. If it appears
that the sick leave privilege is being abused or the employee is being dishonest about
the reasons for using paid sick leave, the District will conduct an investigation and the
employee may be subject to disciplinary action, up to and including termination.
Additional Provisions
1.When all sick leave is exhausted, an employee may be permitted to use other
accrued leave or an authorized leave of absence without pay upon the approval of
the General Manager.
2. Employees may cash out accrued sick leave as follows:
a) Employees may request reimbursement for up to eighty (80) hours of
accrued sick leave per year provided, however, that (1) a minimum of
156 hours (18 months accrual) is retained after said reimbursement and
(2) a request for reimbursement is submitted in writing no later than
December 1st of each year.
b) Employees who retire from the District may apply all accrued sick leave
balances toward their CalPERS account for retirement credit.
c) Upon retirement, death, or termination, employees with at least ten
(10) years of continuous service with the District (or the estate of an
employee) will be paid for unused sick leave accrued to the date of
termination according to the following formula:
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Paid Sick Leave Policy
Approval Date:
April 8, 2015
Policy No: 4.2 Page 5 of 5
Sick Leave Accrued as of
Date of Termination
Cash Payment % Of Hours
Accrued Sick Leave
480 Hours or Less 40%
481 Hours to 600 Hours 45%
601 Hours to 720 Hours 50%
721 Hours to 840 Hours 55%
841 Hours to 960 Hours 60%
961 Hours to 1,080 Hours 65%
1,081 Hours or More 70%
d) Upon separation from service, other than retirement, an employee will
be entitled to receive an amount computed by multiplying his/her then
daily rate of pay by one-half (1/2) of his/her then accrued sick leave.
Employees who receive a disability retirement due to permanent
incapacity to work shall be entitled to one hundred percent (100%) cash
payment of any unused sick leave balances, computed at their then
current base hourly rate, if they elect an early retirement in lieu of
exhausting such accrued sick leave balances. In the event of death
resulting from occupational injury, cash payment shall be made to the
employee's estate.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Education Assistance Program
Approval Date:
September 11, 2013
Policy No: 5.1 Page 1 of 2
The District maintains an Education Assistance Program and encourages its employees to
continue education directly related to their employment. Eligible employees that desire
to obtain tuition assistance from the District, in accordance with the provisions of the
District’s Education Assistance Program, must satisfy the eligibility requirements and
abide by the following policies and procedures prior to registering for coursework and
prior to receiving reimbursement.
Purpose
East Valley Water District recognizes the benefit that pursuing continuing education
offers. This policy encourages employees of the District to take educational courses or
training programs that will develop and broaden the performance of their job obligations
which will contribute to the overall success of the District. East Valley Water District
seeks to provide financial assistance to those eligible employees that are in pursuit of
professional growth as well as preparing them for future advancement opportunities
within the District.
Policy
The Education Assistance Program is available to employees who have completed their
initial probationary period with the District subject to the conditions below.
Education Assistance shall only be for courses, specialized training, or degree programs
that are “job related” to the employee’s position and/or will promote advancement
within the District.
To qualify for the Education Assistance Program, employees will meet with the General
Manager prior to beginning a new educational program. After meeting with the General
Manager, an Education Assistance Pre-approval Form, along with course description and
estimated cost listing, must be submitted to the employee’s supervisor and/or
department head prior to beginning the course(s).
Once reviewed and approved, the supervisor and/or department head will forward to the
Human Resources Manager for final approval. The employee will receive a copy of all
items submitted after final approval is processed.
The Education Assistance Program will operate on a fiscal year basis (July 1 through June
30) and shall be subject to the availability of funds as determined by the District. The
maximum reimbursement amount shall be $5,000 per fiscal year. Eligible fees include
tuition, on campus parking fees, textbooks, and school medical fees. All other
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Education Assistance Program
Approval Date:
September 11, 2013
Policy No: 5.1 Page 2 of 2
miscellaneous fees are subject to approval by the District. School supplies are not
reimbursable.
All course work must be completed while employed by East Valley Water District with a
passing grade of “C” or equivalent. If the employee either does not receive a “C” or
better or for any other reason does not finish the class, then the course will not be
eligible for reimbursement.
Employees will be reimbursed when proof of successful completion of the course is
submitted to Human Resources including an official grade report and all receipts. Upon
verification of the official grade report and receipts, Human Resources will forward a
Check Request Form authorizing the Accounting Department to process an Education
Reimbursement check. The check will be separate from District biweekly Payroll checks
and will be given directly to the employee.
The District reserves the right to investigate any school and approve or disapprove it for
advancement or reimbursement if such action appears warranted. Courses must be taken
at an accredited education institution, which is defined as any college or university which
has been accredited by a recognized government or professional accrediting body (as
determined by the District). Nontraditional online degree programs will be approved at
the discretion of the General Manager or designee. Additionally, the District reserves the
right to deny any course(s), specialized training, or degree programs determined by the
General Manager or designee to be non-job related.
In accordance with the Education Assistance Program, an employee wishing to enroll in an educational
program beneficial to his/her employment shall complete and submit this form and receive final approval
prior to the first day of class.
I, _____________________________________________, hereby agree to the terms and conditions of the Education
Assistance Policy.
Employee Signature Date
Section I: General Information
Employee Name Position Beginning Date of Class
Department School/College Ending Date of Class
Course of Study:
□ Undergraduate Degree
□ Graduate Degree
□ Individual Course
(not part of a degree program)
Term:
□ Fall
□ Winter
□ Spring
□ Summer
Via Internet:
□ Yes
□ No
Section II: Class Information
Course No. Course Title Units Cost
School Fees
Books
Parking
Other: (please specify)
TOTAL
Please attach separate sheet with course descriptions
Section III: Job Relation
How does the proposed course of study relate to your employment with EVWD?
Section IV: Approvals
Supervisor Signature Date
Human Resources Manager Signature Date
EDUCATION ASSISTANCE
PRE-APPROVAL FORM
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Computer Purchase Program
Approval Date:
July 9, 2014
Policy No: 5.2 Page 1 of 3
Purpose
East Valley Water District recognizes the benefit of personal computers for home use. By
working with a computer away from the office, employees will have the opportunity to
elevate computer literacy and become at ease with technology by means of “hands on”
training, and will be able to enhance District productivity efforts through increased use
of computers in their daily departmental activities.
Policy
It is the policy of the District to assist employees with the purchase of a District approved
computer and related equipment, by offering an interest free repayment plan through
payroll deduction. The Computer Purchase Program (Program) is available to regular,
full-time District employees who have met the eligibility conditions as stated below. Only
the options that are listed on the Loan Application and Order Form (Order Form) are
available for purchase through the Program. Once reviewed and approved, the Human
Resources Department will forward the Order Form to the Information Technology
Department for final approval and order placement. The employee will receive a copy of
all items submitted after final approval is processed. A written agreement is required for
the Program, as it outlines the conditions, payroll deduction arrangements, and the
responsibilities of the participant.
Eligibility
To be eligible for this program, you must meet all of the following conditions:
•Be a regular, full-time District employee
•Have completed the required probationary period
•Have no written disciplinary action within the 12 months preceding the request
•May not have an outstanding EVWD Computer loan
•Agree to comply with the provisions of this Program
Loan Process
1. The Participant must review a copy of the Computer Purchase Program.
2. The Participant must complete the Loan Application and Order Form and select
the options best suited for their needs.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Computer Purchase Program
Approval Date:
July 9, 2014
Policy No: 5.2 Page 2 of 3
3. The Participant must return the completed Loan Application and Order Form to
the Human Resources Department for eligibility determination.
4. Once a Participant is deemed eligible for the program, a loan agreement will be
provided to the Participant for approval and signature. This agreement will affirm
the total loan amount, including any taxes, the length of the loan, and the payroll
deductions that will occur over the loan period.
5. The Order Form will be forwarded to the Information Technology Department for
final approval and order placement; the loan agreement will be forwarded to
Finance to establish payroll deduction.
Restrictions
Each Participant agrees not to sell, trade, or otherwise dispose of the equipment until
the loan has been paid in full. The Participant also agrees that the usage of the
equipment shall be restricted to the Participant’s own usage or that of his/her
immediate family.
The District will not provide any technical advice, software, or hardware support and in
no event shall the Participant look to the District for any claims relating to warranties,
service, or maintenance.
Repayment
Loan payments made by the Participant to the District are made through payroll
deduction on a bi-weekly basis for a term not to exceed 24 months from the date the
agreement was approved. For loans $1,000 or less, the term shall not exceed 12 months.
Should the Participant be on a leave of absence or his/her bi-weekly paycheck is
insufficient to cover the payment stated in the agreement, the Participant is obligated to
make payments directly to the District for the amount that would have otherwise been
deducted from his/her paycheck.
Should employment terminate for any reason prior to the purchase being paid in full, the
total balance due to the District will be deducted from the Participant’s final paycheck.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Computer Purchase Program
Approval Date:
July 9, 2014
Policy No: 5.2 Page 3 of 3
The Participant may pay off the loan at any time during the loan period. The Participant
may do so by presenting cash or a check to the Finance Department, made payable to
East Valley Water District, for the remaining balance.
EAST VALLEY WATER DISTRICT
Computer Purchase Program
Loan Application and Order Form
Page 1 of 3
Name ______________________________
Department _________________________
Title _______________________________ Date of Hire _________________________
I am applying for a District-financed, interest free loan through the District’s Computer
Purchase Program to purchase a home computer and/or related equipment at a discounted
rate, which will be paid back through payroll deduction. I understand that upon approval
of my loan I will be required to sign the Loan Agreement which sets forth the terms and
conditions of the loan.
I would like to order the items checked below:
Selection Desktop Computers Cost
☐
Lenovo ThinkCentre
m93p 10AB w/24”
LED 1920x1080
Core i5, 8GB RAM, 256 GB SSD, HD
Graphics 4600
Monitor: Acer V226HQLAbd
$850/$900
☐
HP Workstation
Z230 w/24” Full HD
1920 x 1080
Xeon E3-1241V3 3.5 GHz - 8 GB
RAM - 1 TB, DVD
Monitor: Acer V226HQLAbd
$1300/$1400
☐
HP SB Workstation
Z230
w/27” 1920 x 1080
Core i7 @ 3.6Ghz, 16 GB RAM,
256Gb SSD, Quad Core, HD
Graphics 4600, Windows 7,
Monitor: ViewSonic VX2703mhLED
$1900/$2000
☐ Apple iMac 27”
Core i5 @ 3.2Ghz, 8 GB RAM, 1 TB
HDD, Wifi,
LED 27” Retina 5K Display
$1899/$2000
Selection Tablets Cost
☐ Samsung Galaxy
Tab S2
9.7",32GB, Wifi, Andriod 5.0, 2048
x 1536, Gold, Black, White
$400/$500
☐ Apple iPad Pro
12.9" Display, 32GB, Wi-Fi, 2732 x
2048, Space Gray, Gold, Silver
$800/$900
EAST VALLEY WATER DISTRICT
Computer Purchase Program
Loan Application and Order Form
Page 2 of 3
☐ Apple iPad Mini 4
7.9-Inch Multi-Touch Retina
Display, 2048 x 153664GB, Wifi,
Space Grey, Gold, Sliver
$500/$600
☐ Microsoft Surface
Pro 4
12.3”, 8 GB RAM, 256 GB SSD,
2736x1824, Windows 10
Keyboard: Surface Pro Type Cover
$1400/$1500
Selection Laptop Computers Cost
☐ HP ProBook 640G1
15.6” – 1366 x 768
Core i5 @ 2.5Ghz, 8GB RAM, 500
GB HHD , DVD, Wifi, Windows 7/8
Pro 64
$900/$1000
☐
Lenovo ThinkPad X1
Carbon 20A7 – 1600
x 900
Ultrabook, Core i5 @ 2.2Ghz, 8 GB
RAM, 256 GB SSD, Windows 7, No
CD/DVD
$1300/$1400
☐ Apple MacBook Air
13.3” – 1440 x 900
Core i5 @ 1.6 Ghz, 4 GB RAM, 256
GB SSD, No CD/DVD, Wifi $1200/$1300
☐ Apple MacBook Pro
13.3” – 2560 x 1600
Core i5 @ 2.6Ghz, 8 GB RAM, 256
GB SSD, No CD/DVD, Wifi $1400/$1500
☐ Apple MacBook Pro
15” – 2880 x 1800
Core i7 @ 2.2Ghz, 16 GB RAM, 256
GB SSD, No CD/DVD, Wifi $1900/$2300
Employee Selection/List Deviation
Selection Product Description Cost
☐
☐
EAST VALLEY WATER DISTRICT
Computer Purchase Program
Loan Application and Order Form
Page 3 of 3
Total Loan Amount: $
____________________________________________ __________________
Participant Signature
Date
____________________________________________ __________________
Human Resources Department
Date
____________________________________________ __________________
Information Technology Department Date
Reason if not approved: _________________________________________________________
RETURN TO THE HUMAN RESOURCES DEPARTMENT
EAST VALLEY WATER DISTRICT
Computer Purchase Program
Loan Agreement Form
Page 1 of 2
Name ____________________________
Department ________________________
Title _____________________________ Date of Hire ________________________
The above named employee of East Valley Water District has been provided a copy of the
EVWD Computer Purchase Program, and hereby elects to purchase a personal computer
and certain related equipment and participate in the financing arrangement offered
under the Program, and further agrees to and accepts the following terms and
conditions.
1. The total price of computer and/or related equipment to be purchased is
$__________ as identified on the attached Order Form.
2. The District agrees to make an interest free loan to the Participant in the amount
of $__________ for a term not to exceed 24 months from the date this agreement
has been approved. For loans $1,000 or less, the term may not exceed 12 months.
3. The Participant authorizes the District to deduct $_________ from each bi-weekly
paycheck of the Participant beginning __________ until the full amount identified
in Subsection 2 above has been paid. If for any reason, the Participant does not
receive a bi-weekly paycheck or his/her bi-weekly paycheck is insufficient to cover
the payment required pursuant to this agreement, the Participant is obligated to
make payments directly to the District for the amount that would have otherwise
been deducted from his/her paycheck. Participant may elect to pay the balance at
any time prior to the last payroll deduction.
4. Participant agrees not to sell, trade, or otherwise dispose of the Equipment until
the loan has been paid in full. Violation of these provisions will require Participant
to immediately pay to the District any remaining amount due on the loan.
5. Upon termination of employment, for any reason, the remaining amount to be paid
to the District under this Agreement shall immediately become due and payable.
EAST VALLEY WATER DISTRICT
Computer Purchase Program
Loan Agreement Form
Page 2 of 2
6. Participant hereby authorizes the District to withhold from his/her final pay,
including sick leave and vacation payoff, any amount remaining under this
Agreement. If the remaining amount due to the District exceeds the total final pay
amount, the additional amount due shall be paid to the District in a lump sum
payment by the Participant no later than the Participant’s last working day.
7. The District will not provide any technical advice, software, or hardware support
and in no event shall the Participant look to the District for any claims relating to
warranties, service, or maintenance.
8. This Agreement may be changed only by a written document signed by the District
and the Participant.
9. Participant agrees to comply with all conditions included in the Computer
Purchase Program, which is incorporated herein as if fully set forth and that is in
effect as of the date this Agreement is signed.
10. This Agreement supersedes any and all written or oral agreements, proposals, and
communications regarding the Computer Purchase Program.
11. In the event any action is brought the District to enforce the provisions of this
Agreement, the District shall be entitled to reasonable attorney’s fees and costs,
in addition to any other relief to which it may be entitled.
Agreed to in Full:
_______________________________________ _____________________
Participant Signature
Date
_______________________________________
Print Name
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Performance Evaluation
Approval Date:
February 10, 2016
Policy No: 5.3 Page 1 of 3
Purpose
The purpose of this policy is to motivate employees to work at their highest level by
outlining work responsibilities, jointly establishing goals and objectives, reviewing
progress, and subsequently planning for future development, and to provide a basis for
rewarding employees according to their achievement.
Policy
It is the policy of East Valley Water District to regularly evaluate employees regarding
general performance standards and specific aspects of their jobs.
Human Resources will recommend and provide the forms for this purpose as well as
monitor and amend these procedures to ensure that the system is fair and equitable to
employees and that it provides reliable information regarding job performance.
When an employee begins work with the District, his/her supervisor will discuss the
responsibilities and expectations of the position. Employees will be evaluated on an
annual basis unless stated otherwise in the following schedule.
Schedule for Evaluation
A. Each probationary employee or regular employee on a probationary status shall be
evaluated prior to completion of the first six months of employment, upon completion
of the nine month probationary period, and upon the completion of any extended
probationary period.
B. An annual Performance Evaluation Report shall be prepared for those employees who
have achieved regular status. The report shall be prepared and discussed with the
employee within a thirty (30) day period preceding the employee’s anniversary date
of regular status.
C. A Performance Evaluation Report will be required whenever a pay increase is
recommended. Special reports may be initiated to recognize and document
exceptional performance or to document a warning to the employee that, if
performance does not improve, disciplinary action could be initiated.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Performance Evaluation
Approval Date:
September 11, 2013
Policy No: 5.3 Page 2 of 3
Authority to Evaluate
The employee’s immediate supervisor, division manager, and/or department head shall
have the authority to evaluate. Such authority may be delegated to a supervisor who is
most familiar with the work of an employee in the absence of their immediate
supervisor.
Performance Evaluation Procedure
1. The supervisor, division manager, and/or department head (evaluator) will
prepare the appropriate Performance Evaluation Report.
2. The report will be forwarded to the department head for review and
comment. Upon completion of review and comment, the department head
will forward back to the evaluator for review.
3. The report will then be forwarded to Human Resources for final review.
Human Resources will contact the evaluator and department head to discuss
any suggested changes. Once complete, Human Resources will save the final
electronic copy and route for appropriate signatures prior to employee
review. The finalized signed report will be forwarded back to the evaluator
to prepare for the employee meeting.
4. The employee will be given the opportunity to review the report prior to
meeting with the evaluator.
5. The evaluator will conduct the evaluation meeting in a private, comfortable
location and will ensure enough time is allotted for discussion.
6. At the conclusion of the evaluation meeting, the employee will add
comments as desired and sign on the designated signature line.
7. The completed evaluation will be forwarded to Human Resources for
logging, preparing of the Personnel Action Form (when appropriate),
distribution of copies, and filing into the Personnel File.
Employee’s Signature
The employee’s signature is an acknowledgment that the evaluation meeting was
conducted. The signature does not necessarily mean that the employee agrees with the
evaluation content. The employee may enter remarks/comments in the space provided
or attach a separate written response specific to the evaluation.
Effects of Evaluation Criteria Not Meeting Expectations
In the event that an employee does not meet performance expectations on a specific
criterion or on the overall evaluation, a Performance Improvement Plan (PIP) will be
prepared and discussed with the employee.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Performance Evaluation
Approval Date:
September 11, 2013
Policy No: 5.3 Page 3 of 3
Details of the Performance Improvement Plan (PIP)
A. The Performance Improvement Plan (PIP) documents a plan for required performance
improvement and is used as a tool to monitor and measure below standard job
performance in an effort to assist the employee in improving their job performance.
The plan will consist of the following:
1. Listing of the evaluated performance criteria and the insufficiency identified
2. Expected outcome from the PIP
3. Action plan and goals (must be specific and measureable)
4. Timeline for improvement (Set follow-up review meeting for 30/60/90 days)
B. During the follow-up review, the employee will be made aware of progress achieved
towards the required improvement as described in the PIP. If the employee has not
achieved the required improvement, the supervisor, division manager, and/or
department head will discuss and document the identified continued deficiencies. If
necessary, disciplinary action may be initiated at this time, up to and including
termination.
Distribution of the Evaluation Report
One copy of the completed Performance Evaluation Report will be forwarded to the
employee, one copy will be forwarded to the supervisor, division manager, or
department head and Human Resources will retain the original report in the employee’s
Personnel File.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Employee Recognition Policy
Approval Date:
October 24, 2015
Policy No: 5.4 Page 1 of 3
Purpose
East Valley Water District recognizes that employees are a valuable asset to the
organization, and that it is important for the vitality and spirit of the organization to
encourage and highlight employees who consistently demonstrate a commitment to
excellence and dedication to providing quality service for our residents. 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.
The District has many exceptional employees who routinely demonstrate commitment to
their own continued professional development, respect for their fellow employees,
conscientious and professional performance of their duties, dedication to the
achievement of the organizational goals of the district, and serve as a positive
representative of the District.
Responsibility
The following employees are eligible to receive an award and submit nominations:
•All regular, full-time, non-probationary employees.
The following groups of employees are not eligible to receive awards, however, may
nominate eligible employees for awards:
•The General Manager and Board of Directors
•Executive and Senior Management
•Probationary Employees
•Temporary Employees
•Five previous “Employees of the Year.”
All Eligible District employees may nominate any other employee for an award. Human
Resources will distribute nomination forms. Nominations shall be submitted with any
supporting documentation to Human Resources. Human Resources will keep all
nominations sealed and confidential until the nominating committee is able to convene.
Human resources will verify that each submittal is an employee in good standing with a
“meets standard” performance review and no pending discipline issued within the year.
The nominating committee will consist of the prior three years’ Employees of the Year
and department heads. The Nomination Committee will evaluate and select the
“Employee of the Year” and present their nomination to the General Manager. Upon
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Employee Recognition Policy
Approval Date:
Policy No: 5.4 Page 2 of 3
receiving the approval of the Manager, the Recognition Committee will coordinate the
purchase of the plaque and awards.
Nominee(s) will have made significant contributions to the work environment by:
• Demonstrating high ethical standards in job performance.
• Working as an exemplary team member.
• Providing excellent public image / customer service.
• Demonstrating consistently good attendance.
• Acting above and beyond the required job functions for East Valley Water District.
• Nominee(s) may have initiated change which resulted in greater efficiency or cost
savings in District functions.
Awards & Recognition:
• 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.
• Recognition for the Employee of the Year
o Employee of the Year plaque to be presented at the annual awards banquet
o Letter from the Board acknowledging this recognition
o Picture of the Employee of the Year to be placed in the District’s offices.
o $100 cash award
o Photo and accompanying article on the Districts web page
o Service Awards
• Service Awards
o Employees completing five year increments of service will receive a service
pin at the annual awards banquet.
Employee Recognition Committee (committee name is subject to change):
• Responsible for planning employee events, including securing event location,
creating the menu, decorations, distributing invitations and receiving RSVP’s.
• Develops event budget, markets tickets, administers event finances, and raises
additional funds.
• Develops event program and coordinates to encourage participation.
• Serves as a supportive function for employees by provide greeting cards, gifts
and/or plants to employees who have recently celebrated a birth, wedding,
retirement, or are grieving a death in the family.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Employee Recognition Policy
Approval Date:
Policy No: 5.4 Page 3 of 3
• Develops financial record keeping pursuant to the Chief Financial Officer’s
direction.
• It is important that the committee is representative of the organization. Each
member will serve on the committee for at least one year with staggered terms so
that at least half of the committee will be comprised of returning members.
• Event guests include all District employees or guests designated by the General
Manager 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 at a price that
reflects the true cost of the event without contribution of district funds or funds
raised throughout the year.
• Organize and facilitate charitable activities on behalf of District employees.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Cash Drawer and Payment Handling
Approval Date:
April 8, 2015
Policy No: 5.5 Page 1 of 4
Purpose
The purpose of this policy is to define and outline the process for handling, receiving,
and reconciling payments and cash drawers.
Policy
Cash drawer variances (shortages and overages) should not occur with any more than a
$25.00 total variance in a fiscal quarter period. This level of accuracy is extended to
include processing credit card payments and checks at the Customer Service counter.
Cash Drawer Maintenance
The Customer Service Division is responsible for the maintenance of cash drawers as
follows:
1.Each Customer Service Representative will be assigned a cash drawer. The
Customer Service Representative is responsible for the contents, security
and keys for the cash drawer.
2.Each drawer when activated will contain $150.00.
3.The coin and cash should be arranged in the consistent manner. Separate
compartments shall be used for varying currency denominations (using
standard bank practice of locating smaller denominations to the far right
and larger denominations to the left helps prevent accidental distribution of
incorrect denominations; $20, $10, $5, $1).
4.Customer Service Representatives shall maintain adequate change in their
drawers. When necessary, change requests are to be made through the
Finance Department no later than 10:00 a.m.
Daily Operations
1.Each cash drawer will be reconciled at the end of the business day, with an
exception of Friday. Friday’s batches will be reconciled Monday morning.
Each Customer Service Representative will start a new batch each morning.
2.If a Customer Service Representative is not present, a supervisor will cash
out the drawer.
3.Each Customer Service Representative is responsible for the contents of
their assigned drawer. Cash drawers are never to remain unlocked when
the cashier is not present.
4.The amount of the cash in the drawer should balance the Balance Check
Listing from the system at all times. Customer Service Representatives will
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Cash Drawer and Payment Handling
Approval Date: Policy No: 5.5 Page 2 of 4
reconcile their receipts by using the End of Day Journal Register. Random
checks of cash drawers may be made at any time by a supervisor.
5.The Manager or Supervisor will verify the drawer content and reconcile the
daily receipts.
Procedure for Processing Forms of Payment
Cash
1.Recount in front of the customer to verify amount received or when giving
the customer change.
2.Leave the money in the customer’s view, but out of the reach of the
customer.
3.Counterfeit Money – check for watermarks, security thread, color shifting
ink, and by the feel of the paper. Use the money marker for all large bills.
If in doubt, call a supervisor to inspect the money (never leave your station
with money that you may think is counterfeit).
Check
1.Review all checks received to ensure accuracy:
a.Check is payable to East Valley Water District
b.Numeric value and hand written amounts match
c.Valid date
d.Valid signature
e.Customer account number
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Cash Drawer and Payment Handling
Approval Date: Policy No: 5.5 Page 3 of 4
2.The receipt must be issued for the amount that is hand written on the
check received.
3.No change may be given back from checks.
4.The District does not cash checks for customers.
Credit Card
1.The District accepts Visa, MasterCard, or American Express cards only.
2.Be sure to check the identification of the person paying with the credit card
to confirm that they match.
3.Be sure to check the expiration date.
4.Have the customer sign the credit card receipt.
5.No cash back may be given back from credit cards.
By Phone Using Credit Card
1.The District accepts Visa, MasterCard, or American Express cards only.
2.Manually enter credit card number, expiration date, and the zip code for
the card.
3.Be sure to request the credit verification code on the back of the credit
card.
4.Provide authorization or confirmation number to the customer.
5.The customer’s account number will be written on the credit card receipt.
Handling Receipts
1.Customers must be given a copy of their receipt for every transaction.
2.In the case of a system failure, hand written receipts will be issued. Each
receipt should include date, name, account number, total paid, and type of
payment. Once payments can be entered, the receipt will be stapled to the
copy from the receipt book. All receipts will be turned in for reconciliation
of cash drawer.
Reconciliation of Cash Drawers
Customer Service Representatives will reconcile their drawers daily. Variances will be
adjusted at that time.
Final Reconciliation of Cash Drawers/Preparation of Bank Deposit
1.The Manager or Supervisor will verify cash, checks, and credit cards by using
the End of Day Journal Register from each Customer Service Representative.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Cash Drawer and Payment Handling
Approval Date: Policy No: 5.5 Page 4 of 4
2.The cash drawer should balance with the End of Day Journal Register minus
the beginning cash balance of $150.
3.In the event of a discrepancy, the cashier will be required to reconcile the
following procedure:
a.Compare each check and credit from the End of Day Journal
Register and ensure correct amount is entered.
b.If entered incorrectly, the change will be made by a supervisor
and a new End of Day Journal Register will be printed.
c.Verify that credit card transactions are settled. Ensure total
settlement amount matches the End of Day Journal Register.
d.Recount cash.
4.Once reconciled, if necessary the Cash Overage/Shortage form is to be
completed and submitted to the manager or supervisor.
5.The Customer Service Supervisor will submit final cash variances to the
Finance Department quarterly.
6.The bank deposit slip must be completed and placed in a deposit bag to
enclose cash, checks, and original deposit slip.
7.One copy (yellow) of the deposit slip will be provided for the Finance
Department. Two copies (pink and white) will be filed with the money that
goes in the deposit bag. Money from the Kiosk will have a separate deposit
slip.
8.Attach all credit card settlement receipts to the yellow deposit slip.
9.File all receipts, End of Day Journal Registers, and yellow copy of deposit
slip in the manila envelope.
10. Add all totals on the manila envelope.
11. Post the batches.
12. Deposit of checks will be processed electronically on site.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Cross-Training Program
Approval Date:
February 10, 2016
Policy No: 5.6 Page 1 of 3
Purpose
The purpose of this policy is to establish an interdepartmental training program to
expand employees’ knowledge and skill base throughout the District. Offering employees
the opportunity to experience training in different departments will enhance District
productivity efforts and support the District’s succession plan when the need to fill
future vacancies arises.
Policy
Cross-training is available to employees who have a desire to increase or elevate their
level of expertise, prepare for promotional opportunities, or obtain a higher level
certification. Employee eligibility is contingent upon the needs of the District and the
departments involved. In order for the cross-training to occur, both supervisors of each
department must agree the training is valuable and will not only benefit the employee
but also the District.
Supervisors will set and agree on a term for the cross-training to take place. Cross-
training should not create an undue burden on any department, however, shall allow for
employees to gain experience that can be beneficial to both departments. Employees
assigned to a training department will report to the appropriate training supervisor
delegated when the cross-training begins.
Policy Objectives
A. Provide opportunities for employees to expand knowledge and skills for mutual
benefit.
B. Allow for an exchange of knowledge between employees to leverage our ability to
respond to growing business needs.
C. Create an atmosphere of sharing and learning that will promote leadership
experience for employees who participate in the program.
D. Support the District’s Succession Plan.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Cross-Training Program
Approval Date:
February 10, 2016
Policy No: 5.6 Page 2 of 3
Eligibility
To be eligible for this program, employees must meet all of the following conditions:
Be a regular, full-time District employee.
Have completed the required probationary period.
Have no written disciplinary action within the 12 months preceding the
request.
Show interest and/or gain education/certification in the department in which
the cross-training will occur.
Complete proper documentation requesting cross-training.
Agree to comply with the provisions of this program.
Restrictions
The employee’s immediate supervisor, division manager, and/or department head shall
have the authority to end the cross-training opportunity if the employee is needed in
his/her original department or area of responsibility. Employees will not receive a pay
increase for participating in this program.
Authority to Evaluate
Employees who participate in this program will be evaluated on their overall job
performance at the completion. The cross-training review will consist of feedback from
the cross-training supervisor (if applicable), and input from those who participated in the
employee’s training. The employee is not eligible for any step increase or promotion at
this evaluation. The cross-training evaluation will be included in the employee’s annual
performance review to allow the supervisor to evaluate the employee’s growth and
recommend any additional training that may be desired. The immediate supervisor may
use information provided in the cross-training review to evaluate the employee’s
readiness for promotional opportunities that may occur in the future. Evaluation
authority may be delegated to a supervisor who is most familiar with the work of an
employee in the absence of their immediate supervisor.
Employee Commitment
Employees should recognize that the Cross-Training Program is a privilege. All employees
who participate in the program should do so with the intent of professional development
or adding to their current skill set. The employee who desires to participate in cross-
training agrees to make every effort to be consistent with their attendance during the
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Cross-Training Program
Approval Date:
February 10, 2016
Policy No: 5.6 Page 3 of 3
duration of the program and will limit their time off to allow for the training to be
completed in the time frame set by the supervisors for each department. In the event
the employee needs to take time off that is unexpected, the supervisors will discuss
whether or not the employee should continue with the cross-training when they return, if
the term should be extended, or if the employee should return to their assigned position.
The employee reserves the right to discuss any issues or concerns regarding the cross-
training with their immediate supervisor. If the immediate supervisor and employee find
that it would be more beneficial to terminate the program, the immediate supervisor will
notify Human Resources and the supervisor over the department in which they are cross-
training. The employee further reserves the right to consult with Human Resources
regarding any concerns throughout the program.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Employee Mentoring Program
Approval Date:
February 10, 2016
Policy No: 5.7 Page 1 of 5
Purpose
East Valley Water District values every employee and is committed to their
professional and personal development. As such, the District’s Employee Mentoring
Program (Program) is designed to establish a career-focused course that will allow for
the transferring and sharing of professional knowledge, skills and experience between
two employees. In addition to identifying leaders and building leadership capacity,
the program aims to increase employee satisfaction and retention within the District.
Employee Mentoring Program Overview
The District’s Mentoring Program creates a trusting professional relationship between
two existing employees. The partnership results in a mutually rewarding relationship
offering career growth, experience and development.
The Program is designed to:
• Provide employees with growth and developmental opportunities.
• Institutionalize mentoring and support the District’s values.
• Address employees’ desire to engage in mentoring relationships.
• Identify leaders and potential leaders.
• Build leadership capacity.
• Provide training and resources.
• Establish a support and recognition network for those seeking growth and
professional development opportunities.
The following outlines an overview of the Mentoring Program:
• The Program is open to employees who have completed their initial
probationary period and have received no formal disciplinary action within the
last year.
• The program is voluntary; participants are required to submit an application for
consideration.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Employee Mentoring Program
Approval Date:
February 10, 2016
Policy No: 5.7 Page 2 of 5
• Once an application is submitted, applicants will be put on an eligibility list
which will be maintained and updated by the Program Coordinator.
• The Program Coordinator is responsible for the review of applications and
matching participants based on skills, professional career interests, and goals.
• Participation in the program requires a 6 month commitment. The mentor and
mentee are expected to meet twice a month at their own convenience.
• Both the Mentor and Mentee are to attend an orientation at the start of the
Program. This orientation is geared to teach the fundamentals for a successful
partnership.
• The Mentor and Mentee are responsible for creating a development plan
outlining the goals and objectives of the partnership.
• The Program Coordinator will schedule a meeting with participants to assess
the progress of the partnership at the half-way point of the Program.
• The Mentee will present a completed assignment showcasing what he or she
has learned. This can be in the form of a presentation, paper, project, etc.
• Participants will submit a program evaluation at the end of the partnership to
determine the satisfaction and effectiveness of the program.
Mentor Responsibilities
A Mentor is someone who exemplifies a strong commitment to the goals; objectives
and vision of the District. They desire to share their skills, knowledge, and insight to
teach future leaders. Mentors will provide support to Mentees looking at careers in
special districts and help them find and develop areas of specialty or gain overall
professional development and leadership. The following qualifications and criteria will
be considered in selecting suitable mentors:
• Members of the District’s management team as well as interested supervisors
and those who showcase a special skillset and leadership role.
• Willingness to invest time and energy in the process; positive sharing of
professional knowledge and experience relevant to the Mentee’s career goals.
• Strong communication skills and a comprehensive understanding of the
District’s mission and culture, goals, policies, procedures, and organizational
structure in order to convey this to Mentees.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Employee Mentoring Program
Approval Date:
February 10, 2016
Policy No: 5.7 Page 3 of 5
• Be able and willing to commit to 6 months participation in the Mentoring
Program.
• Possess a positive attitude about their job and the District in general.
Other responsibilities and eligibility criteria include:
• Mentors will be committed to the mentoring process.
• Mentors will serve as a coach, advisor, and role-model.
• Mentors will set aside time to discuss assignments, projects, etc.
• Mentors will monitor Mentees development, progress and goals throughout the
program.
• Mentors will provide constructive feedback on mentoring progress and program
design to the Program Coordinator.
• Mentors will provide opportunities to work on challenging and significant
projects.
• Mentors will respect Mentee’s current job and responsibilities.
• Mentor will be available to act as a respected resource from which the Mentee
can draw knowledge, experience, and insight.
Mentee Responsibilities
A Mentee is someone who has a strong commitment to the goals; objectives and vision
of the District. A Mentee showcases a desire to learn and improve. Moreover, a
Mentee exhibits proactive behavior within his or her current position.
The following criteria will be used to select good candidates for the Mentoring
Program:
• Job attendance and performance.
• Ability to take initiative, be self-motivated, be willing to take on new
challenges, and is genuinely interested in enhancing professional career goals.
• Be receptive to constructive feedback; coaching and guidance from Mentor.
• Willing to commit to 6 months in the Program.
• Positive attitude about current position and the District.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Employee Mentoring Program
Approval Date:
February 10, 2016
Policy No: 5.7 Page 4 of 5
Other responsibilities and eligibility criteria include:
• Mentees will be committed to the mentoring process.
• Mentees will be open to coaching for their professional growth.
• Mentees will display a desire to learn.
• Mentees will set aside time for the mentoring process.
• Mentees will be open to meeting and communicating with mentor on a regular
basis.
• Mentees will complete an assignment at the end of the partnership showcasing
skills learned.
• Mentees will be receptive to constructive feedback.
Mentor and Mentee Pairing
The Program Coordinator is responsible for pairing a Mentor to a Mentee by reviewing
all applications submitted. Once the partnerships are finalized, all participants must
attend an orientation meeting directed by the Program Coordinator. This orientation
will highlight the tools necessary for a successful partnership. Applicants have the
ability to request a mentor based on career learning aspirations and developmental
goals, however they ultimately may not be matched with that person due to limited
availability. Mentees will not be matched with their current supervisors or managers.
Program Time Commitment
Time commitment is fundamental for a rewarding experience in the Program. As such,
both the Mentor and Mentee are expected to commit to the 6 month period. The
Mentor and Mentee are to meet at least twice a month, in order to maximize learning
opportunities. Mentees must consult with current supervisors to meet with Mentor
during normal work hours. If a conflict of schedule prohibits meetings, the Mentor and
Mentee must find a way to exchange ideas to compensate for any missed meetings.
This may include emails, phone calls, or meetings outside of work.
Ending Program
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Employee Mentoring Program
Approval Date:
February 10, 2016
Policy No: 5.7 Page 5 of 5
The Mentor and Mentee partnership will formally end after 6 months. The Mentor and
Mentee should meet to revisit and evaluate goal setting accomplishments and finalize
any remaining objectives. A final meeting with the Program Coordinator and all other
program participants will be held. During this meeting, participants will receive and
submit program evaluations. Additionally, Mentees will have the opportunity to
present their assignments and share what was learned throughout the Program. If the
partnership becomes problematic, the Mentor and Mentee should have an honest
discussion as to the reasons the partnership is not working and end amicably.
Following the discussion, the outcome must be communicated to the Program
Coordinator.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Volunteer Program
Original Approval Date:
August 8, 2018
Last Revised:
Policy No: 5.8 Page
1 of 3
Purpose
East Valley Water District is committed to promoting community involvement and embracing
an environment of active learning and knowledge sharing. As such, the purpose of the Volunteer
Program (Program) is to provide community members an opportunity to learn about District
operations, gain valuable work experience, meet new people, and form mutually rewarding
partnerships.
Program
The Program will match volunteer applicants with available opportunities within the District’s
various departments. Individuals may volunteer for a one-time project or event, or a long-term
assignment. Assignments will vary and offer a wide selection of working environments.
Recruitment
Volunteers will be recruited by the District with the intent of broadening community
involvement and providing an environment of active learning and knowledge sharing. Volunteers
may be recruited through an interest in a specific department or event, or solely through a
general interest in volunteering.
Volunteer opportunities will be posted through various channels including the District’s
website, social media, local community centers and local educational institutions.
Eligibility
To be considered for a volunteer position, applicants must be sixteen (16) years of age or older
and consent to a background screening and pre-volunteer assignment physical.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Volunteer Program
Original Approval Date:
August 8, 2018
Last Revised:
Policy No: 5.8 Page
2 of 3
Application
Those interested in available volunteer positions are to complete and submit the Volunteer
Application through the District’s website to be considered. On the occasion that an application
is received when a volunteer position is not available, the application will be kept on file for
one (1) year and considered for future opportunities. Human Resources will process all
volunteer applications and applicants may refer to Human Resources as a point of contact.
Interview
Brief interviews will be conducted of volunteer applicants to assess their interest and suitability
for volunteer opportunities. The interview will determine the interests of the applicant, any
experience or qualifications, his or her commitment to fulfill the requirements of the volunteer
position, and provide an opportunity for the applicant to ask questions.
Screening
Selected volunteer applicants will undergo a criminal background screening process as well as
a pre-volunteer assignment physical. The screening process will be considered complete once
the background check and physical have been completed and approved by Human Resources.
The individual may begin volunteering once this process is complete and they attend the
volunteer orientation.
Available Opportunities
The Program will offer a variety of ways to engage with the District and in the community.
Volunteer opportunities will be listed under Volunteer Program or the District’s Human
Resources webpage.
In placing a volunteer, consideration will be paid to the interests and capabilities of the
volunteer as well as the requirements of the volunteer position. Assignments will vary and
offer a variety of work experience among the various District departments.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Volunteer Program
Original Approval Date:
August 8, 2018
Last Revised:
Policy No: 5.8 Page
3 of 3
Volunteer Schedules
Volunteer schedules are flexible and may vary depending on the needs of the assignment and
the volunteers’ availability.
Orientation
Once a volunteer is selected and given an assignment, they will participate in an orientation
program designed to inform volunteers about East Valley Water District as an organization, its
policies, procedures, and programs. This session is designed to assist volunteers in their new
role within the District. Additionally, volunteers will engage in an on-the-job orientation and
training by their designated supervisor.
Duration
The duration of volunteer assignments will vary with each assignment and may depend on the
needs of the department, the requirements of a specific project or event, or the specific
outcome the volunteer wishes to gain from the Program. The volunteer relationship may be
terminated by either party at any time.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Workplace and Building Standards
Approval Date:
February 12, 2014
Policy No: 6.1 Page 1 of 4
Purpose
East Valley Water District is a professional organization. It is important that we strive to
keep our workplace structured in a professional manner in order to promote a positive
image to customers and community visitors, as well as provide a pleasant work
environment for all employees.
This policy is intended to provide guidelines on workplace and building standards that are
acceptable at East Valley Water District. This policy does not address every situation or
circumstance that may arise, however, employees are expected to use good judgment
and seek approval when necessary.
Responsibilities
1. All employees must follow the standards set forth in this policy.
2. Managers and supervisors are responsible for monitoring and ensuring
compliance with this policy.
General Standards
1. Work areas shall be maintained in a visually neat and orderly manner, one
which reflects a professional work environment.
2. No storing of bulky items or excessive clutter under furniture and desks or on
top of files, cabinets or credenzas.
3. Pictures, certificates, etc. should be in good taste, appropriate for a public
agency and appropriately framed and mounted. Unframed posters, loose
pictures, etc. may not be tacked or taped on walls.
4. Computer speakers shall be placed on silent or on low.
5. It is at the discretion of the manager to allow radios or other music devices to
be played in the work area. If music is allowed, it must not be loud or
disruptive and must not travel beyond the individual work area.
6. Telephone rings/speaker volume shall be high enough to hear but not loud or
disruptive beyond the users work area. All phone ringers shall be set to
professional tones.
7. Individual floor or space heaters are not allowed in the building.
8. Individual mini refrigerators are not allowed in work areas.
9. No items shall be placed on windows or windowsills, including workstation
windows.
10. Outer workstation walls shall not be used to tack, tape or staple items.
11. No items shall be tacked, taped or stapled to walls.
12. Plants should be appropriately sized, maintained in a healthy condition, pest-
free, and placed on a sealed ceramic or hard plastic waterproof coaster.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Workplace and Building Standards
Approval Date:
February 12, 2014
Policy No: 6.1 Page 2 of 4
13. Holiday décor will be provided by the District for each lobby and counter area.
Personal workstation and private office decorations are allowed but shall be in
good taste and shall be removed immediately after the holiday. Decorations
shall not be displayed outside or above workstations or offices.
14. Personal birthday decorations are allowed, but shall be removed after one
week. Decorations shall not be displayed outside or above workstations or
offices.
15. Vase flowers shall be fresh looking, un-wilted, and in clean water.
16. Consuming food at one`s desk is discouraged; especially if the items emit foul
odors. Employees are encouraged to take meal breaks in the employee break
room.
17. Protect work surfaces by using a coaster for beverages on desks and all
conference room tables. Spills shall be wiped up immediately.
18. Perishable food shall not be stored in employee workspaces. Dry food, such as
crackers, cookies, nuts, etc. shall be kept out of sight, either in a workspace
drawer/cabinet or in a tightly sealed container.
19. Personal fundraisers may be posted only in the break room or at individual
work stations.
20. Only service animals are permitted in the headquarters facility. For the health
and comfort of the members of the community, as well as employees, no pets
are allowed in the facility, unless approved by the General Manager.
21. The glass public notice case shall be used for District postings only. Documents
are to be reduced in size and old documents shall be removed by the
originating department after meeting/hearing date.
22. Any spills are to be mopped up and reported immediately to the Facilities
Maintenance Department and/or janitorial staff.
23. Watching television in conference rooms is not permitted, unless used for
District business.
Public Areas and Workstations Visible from Public Counters
1. These areas provide the first impression of the workplace to the public. The
physical appearance of public counters shall be neat, orderly and attractively
arranged to convey the impression of an efficient and effective public agency.
2. All art/plants shall be District approved for all lobbies, conference rooms,
break rooms, etc.
3. All requests to display information to the community utilizing District
resources, such as bulletin boards, placement of flyers at public counters,
banners and televisions at the headquarters facility shall be coordinated
through the Administrative Office.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Workplace and Building Standards
Approval Date:
February 12, 2014
Policy No: 6.1 Page 3 of 4
Conference Rooms
1. It is the responsibility of all employees to maintain conference rooms in a neat,
clean and orderly fashion.
2. When reserving a conference room, the user shall make sure to include
preparation and clean-up time as part of the reservation. The employee in
charge of setting up for the meeting is responsible for cleaning the conference
room immediately following the meeting to prepare for the next user.
3. If the conference room is used for a working lunch, any trash should be
removed immediately following the meeting; any crumbs, watermarks, etc.
shall be wiped off the table. It should not be obvious to the next conference
room user that food was consumed in the conference room.
4. If employees rearrange a conference room for a special purpose, it is their
responsibility to arrange or make arrangements to restore the room back to its
original setup immediately following the use.
5. In the event any audio visual equipment is not functioning in the conference
rooms, it shall be immediately reported to the IT Department for repairs.
6. Use and scheduling of Conference Rooms/Board Room is as follows:
a) All conference room reservations shall be made through the Outlook
Conference Calendar, or through the appropriate Administrative Assistant.
b) Board Room reservations shall be made through the Administrative Office.
c) District headquarters facilities are available to the public for rent; all
reservations shall be made through the Administrative Office.
d) Executive Assistants and support staff shall be in charge of the overall
neatness, and cleanliness of conference rooms.
Break Room / Coffee Areas
1. These areas are designed for all employees to use and will be available for rent
by the public.
2. Personal dishware, utensils, or storage containers are to be washed and
removed from the kitchen immediately after each use and not left on
countertops or in sinks to dry.
3. Microwave spills shall be cleaned up by the person responsible.
4. If you bring a snack to share with everyone, you must also take the
responsibility to make sure it is cleaned up by the end of the day.
5. Any floor spills shall be cleaned up immediately. For spills on carpet, wipe up
excess and notify the Facilities Maintenance Department immediately.
6. No personal items shall be stored in break room / coffee area cabinets.
7. Conference rooms and the Board Room are not to be used by employees for
personal use.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Workplace and Building Standards
Approval Date:
February 12, 2014
Policy No: 6.1 Page 4 of 4
8. Due to space constraints in the refrigerator, food or beverages for personal
consumption shall be limited to what will be consumed in one day. Food items
remaining in the refrigerator at the end of the week will be discarded.
9. The inside door of the refrigerator shall be used for storing condiments.
Employees shall label each item with name and date. If the refrigerator
becomes overcrowded because of these types of items, employees will be
asked to remove them.
10. No refrigerators, microwaves, toasters, or coffee makers shall be placed in
areas not previously designated for such use.
Break Room Bulletin Boards
1. Bulletin Boards are for District and employees use only. No personal notices
shall be posted in the area reserved for District notices.
2. Employees shall not post notices that are inappropriate for the work
environment. All notices must be dated. Any personal notices shall be removed
after the expiration of the notice or after a one (1) month period by the
employee who posted the notice. All postings shall be dated and first approved
by the Administrative Office.
3. All bulletin boards will be monitored and inappropriate or outdated notices
shall be removed.
Quiet Room
1. In accordance with US Code 207(r), a quiet room is provided for female
employees in the Women’s Locker Room. This room shall remain locked while
in use. Please make sure personal items are removed after using the Quiet
Room.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Information Systems, Internet, Email, and Electronic
Communications, Ethics, Usage, and Security Policy
Approval Date:
August 13, 2012
Policy No: 6.2 Page 1 of 13
Purpose
The District has established this ethics, usage, and security policy to ensure that all
District employees use the computer resources which the District has provided its
employees, such as software, hardware, Internet, and email in an ethical, legal, and
appropriate manner. This policy establishes what is acceptable and unacceptable use of
the software, hardware, Internet, email, and other electronic communications, and the
possible consequences of misuse.
All employees must read and adhere to these guidelines and policies. Failure to follow
this policy may lead to discipline up to and including immediate suspension and
termination.
Summary of the Information Systems Security Policy
A. All access to computers must be authorized.
B. Users should only be allowed to access data that relates to their jobs, tasks,
projects, or assignments.
C. Any changes in employee status must be immediately reported to the Information
Systems Manager.
D. Except in circumstances specifically authorized by the Information Systems
Manager, there shall be only one user per user ID and password. Passwords are
considered confidential and are not to be shared.
E. Only software approved and purchased by the District is allowed on the District’s
computers.
F. Information Systems oversees the computer system and is responsible for the
integrity and backup of data on the network servers. However, each user retains
responsibility for the validity of their data.
G. Information Systems is responsible for security administration on the network.
However, each personal computer user is responsible for security administration
on the individual PC system used.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Information Systems, Internet, Email, and Electronic
Communications, Ethics, Usage, and Security Policy
Approval Date:
August 13, 2012
Policy No: 6.2 Page 2 of 13
H. Information Systems is responsible for technical support.
I. Only Information Systems personnel and their designees are authorized to relocate
or remove hardware, software/hardware upgrades to servers, microcomputers,
workstations, or miscellaneous hardware peripherals; install or remove software,
perform maintenance repairs; and request assistance for qualified vendors for
specialized services, which will be coordinated by the Information Systems
Department.
J. Internal recording of access will be monitored and any attempted variance from
the authorized use of system resources will be reported.
Security Policy for all Computers, Computer Equipment, and Related Computer Items
It is the intent of the District to protect all its resources. These resources include
computer hardware, software, data, and all computer related items. This document will
set forth the policy of maintaining logical security, protecting the software and
utilization of systems by persons with legitimate access rights.
Policy Objectives
A. Maintain the integrity of the data and programs on all computer systems and
microcomputers in the District.
B. Protect production systems and data against unauthorized disclosure,
modification, or destruction.
C. Uniquely identify each user of the computer resources to guarantee
accountability.
D. Stop access and use of computer resources to any individual user who cannot be
positively identified and authenticated by the system.
E. Limit a user’s data access privileges to:
1. Data designated by the District Management as necessary to accomplish
assigned work.
2. Data previously approved by the District Management responsible for the
validity of that data.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Information Systems, Internet, Email, and Electronic
Communications, Ethics, Usage, and Security Policy
Approval Date:
August 13, 2012
Policy No: 6.2 Page 3 of 13
F. Audit actions affecting authorizations to computer resources.
Definitions of Resource Responsibility and Authority
The District retains the exclusive right of ownership and use of all its computer assets.
Protection of data is the responsibility of the Information Systems Manager, and the end-
user.
Information Systems will be responsible for the integrity of data while said data is under
Information Systems control. Information Systems cannot be responsible for the accuracy
of said data.
During the period of time that any data is under Information Systems’ control,
Information Systems shall have sole responsibility for the integrity and maintenance of
security as requested by the District.
Information Systems shall take required measures to maintain security and integrity of
the District’s data, based on the nature of the data, as instructed by the District’s
management.
Assignment of Resource Responsibility
To determine and establish the level of protection required for each resource,
responsible authority under Information Systems must be assigned. The assignment is
based on the type of resource to be protected and the requirement/authorizations set
forth by the District’s management.
A. Security Administration – Information Systems is responsible for the overall
administration of coordinating and establishing resource protection. This
protection is based on established and approved security procedures that include
the development and establishment of logical security procedures, and
coordination of user requirements.
B. Technical Support – The Information Systems Manager supports all computer
hardware throughout the District. This responsibility includes the maintenance of
hardware, software, and operating environments, promoting the efficient user of
computer resources, and protection of the District’s programs and data. Local
Area Network (LAN) administration will also be managed by the Information
Systems Division.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Information Systems, Internet, Email, and Electronic
Communications, Ethics, Usage, and Security Policy
Approval Date:
August 13, 2012
Policy No: 6.2 Page 4 of 13
C. Internal Production Audit – The Information Systems Manager is responsible for the
monitoring and evaluation of all activities performed by users on the network to
ensure that all activities are performed pursuant to the established and authorized
procedures.
User Identification and Verification
Identification is established through the user of a user ID. Verification is established
through the use of a password. The combination of a user ID/Password shall be unique
and ensures personal accountability for activities performed. Users should never reveal
their ID and password to another person.
Screen Savers
If a user chooses to apply a screen saver to the system, the screen saver should not be
password protected.
Resource Authorization Checking
Having identified and verified user authenticity, Information Systems then controls
interaction between the user and the system resources. Control extends not only to
which resources are accessed, but also how they are accessed. (For example, read only
vs. edit rights). Information Systems is also responsible for ensuring that data is
accessible only to those individuals who have been granted access by the District’s
management.
Logging and Reporting of Variations
Once the identity of the user has been authenticated, Information Systems limits the user
to authorized resources. The system may record all activity, which occurs for a given user
ID. Information Systems may also log and report any user activities and/or system events,
which do not conform to the authorized user of system resources.
Computer Audit Trail
The network servers may record all terminal transactions for each end user. This form of
audit is extremely valuable for recovery if the system goes down, if the user experiences
problems, or if security violations are noted.
Software Licensing Guidelines
The District has established certain guidelines for the purchasing of computer software.
Only software purchased or authorized by the District’s management is allowed on
District computers, including microcomputers. Software and hardware, may not be
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Information Systems, Internet, Email, and Electronic
Communications, Ethics, Usage, and Security Policy
Approval Date:
August 13, 2012
Policy No: 6.2 Page 5 of 13
purchased by petty cash, voucher request, or credit card without prior approval of the
District’s management is allowed on District computers, including microcomputers.
Software and hardware, may not be purchased by petty cash, voucher request, or credit
card without prior approval of the District’s management. This policy applies to public
domain and shareware software, as well as commercially available programs. It is the
District’s policy to pay for any shareware software used on District computer systems.
Downloading unauthorized, unlicensed, or inappropriate software from the Internet is
prohibited.
Absolutely no games or software not owned by the District are to be installed on District
computers, whether or not these games or software will be used on breaks, lunch hours,
or after hours. No testing of software from other sources will occur at any time without
Information Systems involvement. Information Systems will assist the user in testing and
evaluating all software. This is necessary to ensure that computer viruses are not
introduced into District owned computer systems and to maintain software continuity.
If Information Systems encounters any software that was not purchased and installed by
the District, the user will be requested to provide documentation authorizing the use of
the software in question.
If the user is unable to provide written authorization, Information Systems will discuss
the matter with the District’s management for direction on the appropriate action to
take to rectify the situation.
Hardware, Software, and Cables Ownership
All computers, computer equipment, software, hardware, and related peripherals (i.e.,
mouse, printer, scanner, etc.) are the property of the District and are administered and
supported by the Information Systems Division.
When hardware or software has been installed, no employee is allowed to move, transfer
or copy it. When there is a need for hardware to be moved to a more convenient
location, the action should be requested through Information Systems. Only Information
Systems personnel are authorized to perform these tasks.
When new software has been acquired, a request to install the software must be
submitted to Information Systems.
Written approval must be obtained from the District’s management before any hardware
or software may leave the District’s offices. Upon approval, the employee is solely
responsible for that hardware or software, including providing insurance to cover loss or
theft.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Information Systems, Internet, Email, and Electronic
Communications, Ethics, Usage, and Security Policy
Approval Date:
August 13, 2012
Policy No: 6.2 Page 6 of 13
Diskettes brought to the work place from an outside source must be scanned for viruses
by Information Systems before it may be loaded on any District system.
Maintenance and Repair
The maintenance and repair of any computers or related peripheral shall be performed
by the Information Systems Department, or a contracted service provider. No one else
will be allowed to attempt any maintenance or repair functions. When an incident
occurs, a service request should immediately be submitted to Information Systems
indicating the circumstances surrounding the failure and any other pertinent information.
If computer failure interferes with production, action will be taken on an emergency
basis.
The Information Systems Manager has the authority to take whatever steps are deemed
necessary to remedy user’s problems.
Employee Resignation, Termination, or Reassignment
As part of the employee’s separation process, the District’s management shall notify the
Information Systems Manager so the appropriate action may be taken to remove the
employee’s access to the District’s computer systems. This notification should take place
prior to the employee’s last day of work.
If an employee is involuntarily terminated by the District, this notification should occur
simultaneously as the employee is advised of the termination to accommodate the
immediate deletion of the employee’s login and password, for both the District’s and
employee’s protection.
For employees who are assuming new job responsibilities, the District’s management will
request Information Systems to make the necessary modifications to the user’s access
rights.
Computer Guidelines
It is the responsibility of each employee to follow the guidelines of the Computer
Procedures for all District computer systems, hardware, and software.
Access to the District’s computer systems will be prohibited until an employee has been
authorized by the District’s management, who will request a login (user ID) and password
be assigned on the appropriate systems.
A. Either the District’s management or the Information Systems Manager will indicate
the access rights of a user.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Information Systems, Internet, Email, and Electronic
Communications, Ethics, Usage, and Security Policy
Approval Date:
August 13, 2012
Policy No: 6.2 Page 7 of 13
B. Users are not to share login information with other employees. These are assigned
to specific individuals and must only be used by the one user for whom it was
assigned.
C. When a user encounters a variance in the normal processes of utilizing applications
Information Systems must be notified immediately. The user should stop
processing at the first indication of a problem, leaving the information on the
screen intact for review by the appropriate Information Systems staff. This will
ensure data accuracy and prevent any major discrepancy within the system.
D. All users will perform functions allocated to them by the menu systems, and not
deviate from this approach. If a user is forced out from the menu system,
Information Systems should be notified, as in “C” above.
E. File creations, changes, or deletions must be made in conjunction with duties
assigned to the user’s job classification.
F. Those users who have addition, modification, or deletion privileges through
applications will be authorized to update files for accuracy. Deletions,
modifications, or additions to personally benefit oneself or others, corrupt or
misrepresent data within an application is strictly prohibited and is grounds for
disciplinary action up to, and including, termination and possible legal action.
G. Foreign software and access to bulletin boards or the Internet are not allowed on
District equipment without prior written approval of the District’s management.
H. There shall be no downloading of files, which are unauthorized, illegal, or
inappropriate. Files, which will be downloaded, must first be scanned for viruses.
I. Normal processing includes the proper logging out of all systems and the shutting
down of microcomputers at the completion of the user tasks. If the user is to be
away from the workstation, logging out of the system is required to prevent
unauthorized use of the user ID. This is the responsibility of the assigned login
user.
J. All modem access either direct or through the modem pool, requires written
approval.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Information Systems, Internet, Email, and Electronic
Communications, Ethics, Usage, and Security Policy
Approval Date:
August 13, 2012
Policy No: 6.2 Page 8 of 13
K. District personnel shall not use outside equipment for access to District
applications without prior written approval. Outside access is to be performed only
through the use of a District-owned modem line established and set-up with the
required “call-back” procedure.
L. Any employee who notices any unauthorized use of computer equipment or
software should notify Information Systems immediately.
M. Caution should be exercised when eating or drinking in the vicinity of personal
computers. Items of this nature dropped on a keyboard can cause malfunctions,
which are not covered by service contracts and warranties.
N. Floppy disks should always be handled with care:
1. Always store disks in a protective jacket.
2. Do not touch the magnetic media inside the sleeve.
3. Protect the disk from being bent or otherwise mishandled; do not force disks
into disk drives.
4. Avoid contact with magnetic fields such as telephone handsets and computer
monitors.
5. Do not write on disk, either directly or through the jacket/sleeve.
6. Do not leave disk in hot areas; do not expose to heat or sunlight for extended
periods of time.
7. Do not leave disks in any vehicles or other areas where unauthorized persons
can pick them up.
O. Compact Disks should always be handled with care:
1. Always store in protective case.
2. Avoid contact with the data-entrenched surface; hold by the edges only.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Information Systems, Internet, Email, and Electronic
Communications, Ethics, Usage, and Security Policy
Approval Date:
August 13, 2012
Policy No: 6.2 Page 9 of 13
3. Do not leave disks in hot areas; do not expose to heat or sunlight for
extended periods of time.
4. Report CD-ROM malfunctions to Information Systems right away.
5. Do not leave disks in any vehicle or other area where they can be picked up
by unauthorized persons.
P. Always perform recommended shut-down procedures before powering off. Not
doing so may damage the disk or the drive read/write heads of the fixed disk
devices, or may result in damage or destruction to data files.
Q. The mistreatment of computer equipment is not covered by normal maintenance
agreements.
Off-Site Use of District-Owned Equipment
When an employee needs to use District-owned equipment or software at home, prior
written approval must be obtained from the District’s management.
The employee will be required to sign a log on the day the equipment is taken and again
when it is returned. The log is necessary so that Information Systems can maintain
continuous control of all District computer assets.
Laptop and Notebook computers may be taken off the premises for periods less than one
week with the approval of the District’s management.
Non-District Owned Computer Equipment on District Premises
Computer equipment and peripherals not owned by the District will not be attached to
District computer or communications systems. District owned or licensed software will
not be installed on computer systems not owned by the District, unless specifically
permitted by the software licensing agreement.
Internet, Email, and Electronic Communications Guidelines
A. Employees shall not use the Internet or email in an inappropriate manner.
Inappropriate use of the Internet and email includes, but is not limited to:
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Information Systems, Internet, Email, and Electronic
Communications, Ethics, Usage, and Security Policy
Approval Date:
August 13, 2012
Policy No: 6.2 Page 10 of 13
1. Accessing Internet sites that contain pornography, exploit children, or sites
that would generally be regarded in the community as offensive, or for which
there is no official business purpose to access.
2. Participating in any profane, defamatory, harassing, illegal, discriminatory, or
offensive activity, or any activity that is inconsistent in any way with District
policies (i.e. policy on sexual harassment).
3. Exploiting security weaknesses of the District’s computing resources and/or
other networks or computers outside the District.
B. Personal use of the District’s computer system and access to the Internet and
email is not a benefit of employment with the District. Internet access is to be
used for District business purposes. Employees may access the Internet and email
for other than District business in accordance with this policy if the employee is on
an authorized break. Use of the Internet should not interfere with the timely and
efficient performance of job duties.
C. Employees do not have any right to privacy in any District computer resources,
including email messages produced, sent, or received by District computers or
transmitted via the District’s servers and network. Employee access to the
Internet and email is controlled by use of a password. The existence of a password
does not mean that employees should have any expectation of privacy. The
District may monitor the contents of all email messages to promote the
administration of the District, its business, and policies. Employee access to and
use of the Internet, email, and other electronic communications will be monitored
frequently.
D. Use of another employee’s name/account to access the District’s network or the
Internet is strictly prohibited without express permission of Information Systems.
E. Personal use of the District’s computer resources for personal commercial activity
is strictly prohibited.
F. The District will not be responsible for maintaining or payment of personal
Internet accounts or related software. To maintain the integrity and firewall
protection of the District’s system, personal Internet accounts may not use the
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Information Systems, Internet, Email, and Electronic
Communications, Ethics, Usage, and Security Policy
Approval Date:
August 13, 2012
Policy No: 6.2 Page 11 of 13
District’s network system, telephone system, modem pool, or communication
server to access the Internet.
G. The Internet and email provide means by which employees of the District may
communicate with its customers, consultants and other official person, and
retrieve valuable information. Messages and downloaded information through the
District’s system may be considered part of the District’s business records and
should be treated as such.
H. Deleting an email message does not necessarily mean the message cannot be
retrieved from the District’s computer system. For a specific period of time, the
District retains backup copies of all documents, including email messages
produced, sent, and received on the District’s computer system.
I. The vast majority of District records are public documents. Do not transmit
information in an electronic mail message that should not be written in a letter,
memorandum, or document available to the public. Email and any attachments are
subject to the same ethical and legal concerns and standards of good conduct as
memos, letters, and other paper-based documents. Email can be forwarded to
others, printed on paper, and is subject to possible discovery during lawsuits in
which the District may be involved.
J. Use of electronic mail or the Internet to send offensive messages of any kind is
prohibited.
K. Downloading software and programs for other than District-authorized tasks is
strictly prohibited. When required to download authorized software or programs
for the District, the following procedures will be followed:
1. Computer viruses can become attached to executable files and program files
and result is significant losses to the District. Receiving and/or downloading
executable files and programs via electronic mail or the Internet without
express permission of the Systems Administrator is prohibited. This includes,
but is not limited to, software programs and software upgrades. This does not
include email and/or documents received via email and the Internet.
Employees are to scan all downloaded materials before using or opening them
on their computers to prevent the introduction of computer viruses.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Information Systems, Internet, Email, and Electronic
Communications, Ethics, Usage, and Security Policy
Approval Date:
August 13, 2012
Policy No: 6.2 Page 12 of 13
2.Employees will respect all copyright and license agreements regarding software
or publications they access or download from the Internet. The District will not
condone violations of copyright laws and licenses and the employee will be
personally liable for any fines or sanctions caused by the license or copyright
infringement. Any software or publication, which is downloaded onto District
computer resources, becomes the sole property of the District.
Failure to Abide
Failure to follow the prescribed procedures and policies may lead to discipline, up to and
including immediate termination. Disciplinary action may include the removal of Internet
and email access from the employee’s computer or termination of employment.
Liability
The District makes no warranties of any kind, whether expressed or implied, for the
service that is the subject of this policy. In addition, the District will not be responsible
for any damages whatsoever which employees may suffer arising from or related to their
use of any District electronic information resources, whether such damages be incidental,
consequential, or otherwise, or whether such damages include loss of data resulting from
delays, non-deliveries, mistaken deliveries, or service interruptions whether caused by
either the District’s negligence, errors, or omissions. Users must recognize that the use
of District electronic information resources is a privilege and that the policies
implementing usage are requirements that mandate adherence.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Information Systems, Internet, Email, and Electronic
Communications, Ethics, Usage, and Security Policy
Approval Date:
August 13, 2012
Policy No: 6.2 Page 13 of 13
Consent Form
By this document, I hereby represent that I have read, understand, and agree to comply
with the District’s Information Systems, Internet, email, and electronic communications,
ethics, usage, and security policy. I understand and agree that all computer and
electronic activity, including but not limited to electronic mail and Internet network
activity, being conducted with District resources is the property of the District.
I acknowledge and consent to the District’s right to monitor, log, access, and review all
such activity, with or without notice, and, therefore, I have no expectation of privacy in
the use of these resources. I understand that such monitoring may include printing and
reading all electronic mail and data entering, leaving, and/or stored on the District’s
equipment.
Finally, I understand that violation of this Policy may subject me to discipline, up to and
including termination of employment.
Date Signature
Employee’s Name
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Wellness Center Policy
Approval Date:
February 12, 2014
Policy No: 6.3 Page 1 of 4
Purpose
East Valley Water District strives to develop a workplace culture supportive of
employees’ decisions to maintain a healthy lifestyle. It is recognized that a strong and
healthy workforce is better prepared to serve our community to the high standards set by
the District.
This policy is intended to provide guidelines to protect the experience of each employee
opting to use the Wellness Center, (herein after referred to as “Center”) and its
contents. Use of the Center is a privilege; therefore employees are required to observe
the following guidelines:
Before an employee is granted authorization to use the Center and/or equipment each
employee must:
A. Participate in the Center orientation provided by the District designated
fitness trainer.
B. Acknowledge receipt and understanding of Policy.
C. Acknowledge and sign the Consent and Release of Liability Form.
D. Realize that the District reserves the right to change these Guidelines as
it sees fit without notice.
Responsibilities
1. All employees must follow the standards set forth in this policy.
2. Managers and supervisors are responsible for monitoring and ensuring compliance with
this policy.
Rules
1. Employee access and use of the Center is a privilege, as such, the privilege may be
revoked by management when guidelines are not followed.
2. Use of the Center is not a condition of employment; it is voluntary. Employees
choosing to utilize the Center and/or equipment do so at their own risk.
3. Only authorized full-time and part-time active employees may be granted use of the
Center. NO GUESTS, PERSONAL TRAINERS, FAMILY MEMBERS, OR MINORS ARE
ALLOWED IN THE CENTER AT ANY TIME.
4. Employees must be in good health and have no physical or medical condition that
would prevent participation in Center activities.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Wellness Center Policy
Approval Date:
February 12, 2014
Policy No: 6.3 Page 2 of 4
5. Employees may access and use the Center on their own time; use of the Center is not
considered an approved job duty or responsibility.
6. The Center will be open 24 hours a day, seven days a week; however employees may
only use the Center before and/or after an employee’s scheduled work hours, during
scheduled lunch breaks, or on weekends/holidays.
7. For personal safety and to prevent accidents and incidents, employees are
encouraged not to work-out alone, especially when using heavy free-weights.
Additionally, employees using heavy free-weights are encouraged to use a spotter.
8. Employees using the Center toilet, lavatory and shower areas are responsible to clean
up after each use.
9. The District is not responsible for any employee injury occurring during use or access
to the Center. Any injuries sustained while using the Center will be considered non-
industrial per Labor Code § 3600 (a) (9) and Title 8, California Code of Regulations
9880.
10. Personal belongings must be stored in provided lockers. Bags or large articles must
not be placed on the floor of the Center, as not to obstruct the area around
equipment and in walkways. The District is not liable for lost or stolen items.
11. All employees are expected to be courteous and respect the privacy of fellow
employees while using the Center. Use of cameras or the camera function on cell
phones in the Center is strictly prohibited.
12. Employees using individual radios, mp3 players, etc. must use headphones.
13. No food or drinks, other than water (in sealed containers) shall be allowed in the
Center. Should a spill occur the employee causing the spill shall immediately dry the
affected area and notify Facilities Maintenance if necessary.
14. For sanitation and professional purposes, employees utilizing the locker rooms should
ensure that soiled gym apparel is not stored for long periods of time to cause
potential odors or unsightly appearance.
15. Should Employees witness an unsafe condition in the Center they shall immediately
report the situation to Facilities Maintenance and Human Resources. If a safety hazard
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Wellness Center Policy
Approval Date:
February 12, 2014
Policy No: 6.3 Page 3 of 4
is encountered, all others using the Center should be advised to suspend their
activities until such time the matter is resolved so that safe use can continue.
16. Suggestions on improvements to the operations of the Center are encouraged and
welcomed. Please contact Facilities Maintenance or Human Resources.
Dress Code
1. Proper exercise clothing must be worn at all times within the Center (i.e. workout
pants, shorts, t-shirts).
2. All exercise clothing must be of appropriate length, suitable and not revealing.
3. Appropriate closed toe shoes are to be worn at all times while exercising (i.e. running
or tennis shoes). Bare feet, flip flops, boots, and/or casual shoes are not permitted in
the Center.
Equipment Use
1. Each employee must bring a personal hand-towel and will be responsible for wiping
equipment down after each use. Disinfecting spray cleaner and/or disinfectant wipes
will be provided.
2. Use of machines are on a first come-first serve basis. Limit cardio machine (stationary
bikes, treadmills, elliptical) use to 20 minutes when others are waiting. If necessary,
a sign-in sheet will be available for equipment reservation.
3. Only equipment provided by the District may be used in the Center. All equipment is
to be used in a safe manner and only for the purposes for which it is designed.
4. Weight equipment should not be dropped, thrown or slammed. All free-weights must
be replaced on appropriate racks immediately following each use. Fixed weights are
not to be broken down and used as free weights. All collars, fitness balls, mats, and
accessory bars must be returned to the appropriate racks, station, and/or locations as
not to impede circulation throughout the Center. No equipment or weights are to be
removed from the Wellness Center for any reason.
5. Employees shall not move stationary equipment such as treadmill, elliptical, squat
rack, multi-station, etc. Employees may move other non-stationary benches but shall
return them to their original location after use.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Wellness Center Policy
Approval Date:
February 12, 2014
Policy No: 6.3 Page 4 of 4
6. Under no circumstances should free-weight plates be leaned against the perimeter
walls of the Center.
Safety and Security
1. Out-of-order signs will be available in a designated area; damaged or malfunctioning
equipment must be tagged immediately.
2. Damaged equipment or complaints about the facility should be reported immediately
to the Facilities Maintenance Department and Human Resources Department.
3. Employees are encouraged to bring a cell phone to the gym in case of an emergency.
The camera function on cell phones is prohibited.
4. Employees are encouraged not to work out alone after normal business hours.
5. Employees using heavy free-weights are encouraged to use a spotter and appropriate
safety gear, including lifting belts, etc.
6. Employees serving as “Spotters” assisting others lifting heavy weights should exercise
appropriate lifting techniques to avoid potential injury(ies).
7. Employees utilizing the Center are encouraged to be aware of their immediate
surroundings and realize that some bars, equipment, etc. may encroach into areas
used by others.
8. Failure to comply with any of the Center’s guidelines could result in revocation of
Center privileges and disciplinary action.
9. Prior to use of the Center and/or exercise equipment, the “Agreement and Release of
Liability” form must be carefully read, signed and returned to the Human Resources
Department.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Facility Use Policy
Original Approval Date:
May 28, 2014
Last Revised:
May 23, 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: May 23, 2018
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 23, 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 23, 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 23, 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 23 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 23, 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 23, 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†
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 23, 2018
(Includes Security Guard and
Bartender)RANGES FROM $75/HOUR TO $120/HOUR
BASED ON EVENT
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Recycling and Waste Reduction Policy
Approval Date:
February 12, 2014
Policy No: 6.5 Page 1 of 1
Purpose
East Valley Water District is committed to being environmental stewards by minimizing
waste entering landfills through the use of recycling measures equal to or above national,
state, and local laws.
Policy
In accordance with the Integrated Waste Management Act of 1989 (Assembly Bill 939), all
employees shall make every feasible effort to implement, comply, and actively participate in
East Valley Water District’s Recycling Program.
Procedure
Each employee is responsible for disposing of glass containers, aluminum cans, paper
materials, plastic containers, and electronic waste in a manner consistent with the
organizational goal of being environmental stewards whenever possible. The District shall
provide designated recycling containers paired with labeled trash receptacles at several
locations to encourage and facilitate on-site recycling.
Custodial staff should dispose of recycled items into the bin designated for appropriate
recycling disposal. All white papers and cardboard materials shall be placed into
designated bins for recycling by the refuse contractor.
Electronic waste disposal should be in compliance of the current statues and regulations.
The District will ensure that e-waste is not disposed of in the standard waste containers.
Employees should make reasonable attempts to properly recycle all scrap metal materials
including, but not limited to pipe materials, meter units, and fire hydrant components.
Staff should make reasonable attempts to incorporate the following conservation
measures:
• When possible, set your photocopiers and printers to print double-sided;
• Use electronic files where possible instead of paper files;
• Buy recycled items, when possible.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Social Media Policy
Approval Date:
February 11, 2015
Policy No: 6.6 Page 1 of 5
Purpose
East Valley Water District believes in the importance of enhancing communication
through the use of social media. Social media is an effective way to increase
communication, outreach, and collaboration to meet the Districts mission and goals. The
District recognizes the value of social media as a tool to stimulate public dialogue.
The purpose of this policy is to establish guidelines, standards and instructions for the
productive use of social media sites by the District. The District looks to engage the
community in open interactive communication while protecting the integrity of
information posted on social media platforms or websites that are attributed to the
District.
Definitions
The term “Social Media Sites” will be used in this policy as a broad term applied to
primarily websites designed for open dialogue through written communication. Examples
of social media include, but are not limited to, “Facebook” and “Twitter” as well as
multimedia websites primarily designed for the distribution of media content, such as
photo streams, podcast, visual worlds, or video sharing websites.
Applicability
This policy applies to all District Employees, Board Members, temporary and contract
personnel, consultants and others that gain access to or use District systems in any form
for any purpose.
This policy applies to all social media sites related to work, and to limited extent
personal systems used in the course of District business.
All materials, information, software installed and data created, transmitted, downloaded
or stored on the District’s systems are property of the District. Any personal use of the
District equipment must be minimal in nature and must not interfere or detract from the
functional responsibilities of an employee’s position, nor violate any policies or
procedures of the District.
Any material created by, loaded to or transmitted with District provided systems will not
have the expectation of privacy.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Social Media Policy
Approval Date:
February 11, 2015
Policy No: 6.6 Page 2 of 5
Policy
A. East Valley Water District official website will remain as the primary source of
internet communication. Social media will be used as an enhancement to the Districts
official website.
B. All District social media sites will display a link back to the Districts official website.
C. Districts social media sites shall be created with identifiable characteristics of an
official District site and will display a message stating that the page is maintained by
the District and it complies with the District Social Media Policy.
D. Content on the Districts social media will support the District’s mission and reflects its
key messages.
a.Content posted on social media sites will be at the discretion of the General
Manager/CEO and the Public Affairs Manager.
b.It is at the discretion of the General Manager/CEO and/or the Public Affairs
Manager to decline public or private affiliations, including employees,
volunteers, Board Members and members of the public. The District does
not have to provide an explanation or notification describing the reasons for
declining affiliation.
c.East Valley Water District sites shall be managed consistent with the Brown
Act. The Brown Act prohibits Members of a legislative body from publishing
postings, or using social media sites to blog, engage or take action on a
District related issue. To be in compliance with The Brown Act, Board
Members may not participate in any published postings or use the site or
any form of social media to respond to, blog or engage in serial meetings, or
otherwise discuss, deliberate, or express opinions on any issue within the
subject matter jurisdiction of the body.
d.Anything posted in the Districts social media page including comments and
deleted posts, may be subject to the California Public Records Act. This
includes private messages or chats sessions with Board Members and staff. It
may be made available to the public upon request.
e.The content placed on East Valleys Water District social media sites by the
Districts followers, advertisers, or vendors, does not represent the views,
policies, or positions of the District’s, its Board Members or management.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Social Media Policy
Approval Date:
February 11, 2015
Policy No: 6.6 Page 3 of 5
E. The District encourages two-way communication through its social media accounts
and may opt to respond to comments and postings at the discretion of staff. All
Districts social media communications shall seek to:
a.Be helpful and add value
b.Be transparent
Site Management
A. The District’s social media accounts will be managed by the Public Affairs Manager
and designated staff.
B. Only those authorized by the District’s General Manager/CEO can speak on behalf of
the District and share information regarding Districts programs, projects, and policies.
This includes initiating statements on, or responding to comments received from,
various social media outlets in any manner that members of the public might perceive
as a statement on behalf of the District.
C. East Valley Water District will update and monitor its social media accounts during
regular business hours. Some information may be monitored and updated during non-
regular business hours during emergencies or other special circumstances, at its
discretion.
D. Any social media site may be terminated at any time, without advance or other notice
at the discretion of the General Manager/CEO and/or the Public Affairs Manager.
Rules and Guidelines
A. All East Valley Water District employees are welcomed to participate in social media.
B. East Valley Water District shall have full permission or rights to any content posted by
the District, including photographs and videos.
C. Social media interaction deemed unacceptable may be deleted.
D. Commentary posted by any member of the public or by staff on the District’s social
media site is the opinion of the commentator and its publication does not imply
endorsement of, or agreement by East Valley Water District, and does not reflect the
opinions or policies of the District.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Social Media Policy
Approval Date:
February 11, 2015
Policy No: 6.6 Page 4 of 5
E. The Districts does not allow and may delete or block participants who do not comply
with the following inappropriate post including but not limited to the types of
postings regardless of format (text, video, images, links, documents, etc.):
a.Profane, obscene or pornographic language or content;
b.Conduct or encouragement of illegal activity;
c.Threats to any person or organization;
d.Comments not related to the particular item being commented upon;
e.Contents that promotes, fosters or perpetuates discrimination on the basis of
race, creed, color, age, religion, gender, marital status, physical or mental
disability, sexual orientation or national origin;
f.Solicitations of commerce;
g.Comments in support of, or opposition to, political campaigns, candidates or
ballot measures;
h.Content posted by District;
i.Information that may tend to compromise the safety or security of the public
or public system
F. East Valley Water District reserves the right to deny access to District social media
sites to any individual who violates the District’s Social Media Policy, at any time and
without prior notice.
G. The District will monitor their social media sites for comments requesting responses
from the District and for comments in violation of this policy.
H. Conversation in social media sites should be proper and polite.
I. Employees representing the District on social media sites must conduct themselves at
all times as a representative of the District and in accordance with all District
policies.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Social Media Policy
Approval Date:
February 11, 2015
Policy No: 6.6 Page 5 of 5
Official District Social Media Sites
A. The District social media sites shall be created and maintained in accordance with
the Social Media Policy and identifiable as an official District site.
B. District social media network accounts shall be created under an official District e-
mail account.
C. Social media sites shall contain visible elements that identify them as an official
District site.
D. District social media sites shall display or link to the District Social Media Policy.
Attachments
A. Code of Conduct
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Customer Service Department Standards Policy
Approval Date:
April 1, 2016
Policy No: 6.7 Page 1 of 2
Purpose
The purpose of this policy is to maintain an environment committed to elevated public
service through the implementation of world class public service standards and behaviors.
The mission of the Customer Service Department is to serve our community with dignity
and respect by providing prompt, courteous and world class customer relations.
Our Commitment
In fulfilling our mission, the Customer Service Department strives at all times to provide
accurate information to our customers. We are committed to assisting our customers with
the utmost professionalism.
Providing Service to our Customers
The Customer Service Department is committed to excellence in serving our customers and
community and will carry out our functions and responsibilities in the following areas:
1. Reliability – Always do exactly what we tell the customer, if not more.
2. Efficiency – We will greet customers as soon as possible and explain the current
situation and reason for a wait, if any, and share the attention equally.
3. Presentation – Good grooming and personal presentation are expected at all
times. Presentation should be neat and appropriate for the workplace. Voices
should be projected at a reasonable tone and should portray professionalism and
confidence.
4. Professionalism – Knowledge and accuracy, combined with a customer-focused
attitude, will ensure that professionalism is maintained while building customer
relations.
5. Courtesy and Tact – Always treat customers with respect and courtesy. Thank
them for their business and share our appreciation for them.
6. Flexibility – Maintain a “can-do” attitude. If the request is unusual, think outside
the box about how we can satisfy the customer’s needs or provide an alternative
option.
7. Communication – Keep customers well informed of adjustments that may impact
them. Let them know of delays and be apologetic if they are inconvenienced.
Make sure they know we are concerned about their experience. Build a rapport
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Customer Service Department Standards Policy
Approval Date:
April 1, 2016
Policy No: 6.7 Page 2 of 2
without intruding and communicate with other staff to ensure messages are
consistent. Ensure the appropriate mode of communication is tailored to each
individual customer (i.e. email or telephone).
Training for Customer Service Staff
Training will be provided to all Customer Service staff and will include the following:
The East Valley Water District vision, core values and customer service
standards.
Department policies, practices and procedures.
Ways to provide world class customer service.
Feedback Process
The ultimate goal is to exceed the customer’s expectations. Comments on our services
regarding how well those expectations are being met are welcomed and appreciated.
Feedback regarding the way the department provides service to the customers can be made
through surveys provided in the office or on the website. All feedback will be directed to
the Customer Service Supervisor.
Modifications to policies
We are committed to developing Customer Service policies that will help accommodate
our customer’s and our business needs. Therefore, no changes will be made to any policy
before considering the impact of our customers and our business.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Employee Safety and Security Committee Policy
Approval Date:
April 1, 2016
Policy No: 6.8 Page 1 of 2
Purpose
The purpose of the Safety and Security Committee (Committee) is to bring employees
together in a cooperative effort to promote safety and security in the workplace by helping
to reduce the risk of workplace injuries, illnesses, and threats against employees and
District assets. The Committee will also assist the District in ensuring compliance with
local, state and federal health and safety regulations.
Function:
The Committee will review accidents, incidents, injuries, threats, and potentially
dangerous situations (including near misses). After review, the Committee will discuss
findings and make recommendations to eliminate unsafe working conditions, employee
injuries, reduce vehicle accidents, prevent property damage, and safeguard the District
from threats.
General safety inspections will be made by two (2) Committee members on a semi-annual
basis or as needed. The results of this inspection will be reported to the Committee and
follow-up items will be corrected in a timely manner. The Committee will evaluate
employee safety suggestions, make recommendations and verify corrective action is taken
to remove/correct any unsafe condition. In addition, employees may at any time report
an unsafe condition or hazard to a Committee member, their department supervisor,
anonymously by depositing their comments in the Suggestion Box located in the employee
lounge, or directly to Human Resources.
Committee Make-up
The Committee is comprised of representation from a majority of the District’s
departments. Committee members must be devoted for a full-year period. The Safety
Committee Chairperson leads and maintains the order and course of the meetings and
prepares the agenda for the meetings.
Scheduled Meetings:
The Committee will meet on the third Wednesday of each quarter. If necessary, this date
may be adjusted to allow for the timely review of the occurrence of an unsafe work
condition, incident, accident, employee injury, or threat to the District.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Employee Safety and Security Committee Policy
Approval Date:
April 1, 2016
Policy No: 6.8 Page 2 of 2
Review Process:
Any incident or accident that is subject to review by the Committee will include an
evaluation of the occurrence, possible determination of causation and assessment of
needed policy or procedural changes. The Committee will also determine if other
corrective action, such as additional training or new equipment, should be implemented
to eliminate unsafe working conditions, employee injuries, reduce vehicle accidents,
prevent property damage, and safeguard the District from threats.
During the review process, the Committee will determine whether an accident or incident
could have been prevented and if it was a direct result of an employee's negligence,
carelessness, inattention to duties, or violation of safety rules or regulations. If it is
determined that the occurrence was a direct result of one of the items listed above, the
Safety Chairperson will notify the Human Resources/Risk and Safety Manager. The Human
Resources/Risk and Safety Manager, along with the department director, will determine
the appropriate course of corrective action for the employee.
During the review process involved employees’ names will be kept confidential. If the
Committee is to review an incident report or employee statement, the names will be
redacted to ensure employee privacy unless prior approval is given.
EAST VALLEY WATER DISTRICT
Employee Safety and Security Committee
Agenda
1. Call to order
2. Introduction of Visitors (if applicable)
3. Reporting of Critical Information
4. Old Business
5. New Business
6. Reports on Inspections
7. Assignments for next meeting
8. Adjournment
EAST VALLEY WATER DISTRICT
Employee Safety and Security Committee
Action Plan
Action Person Resources Needed Completion Date
EAST VALLEY WATER DISTRICT
Employee Safety and Security Committee
Action Plan
Hazard Recognition: Categories/Types of Hazards
Everyone may be exposed to a variety of hazards on and off the job. Hazards may be
categorized by four types: chemical, physical, biological and ergonomic. These categories,
and related kay points about each hazard type, are profiled in the chart below.
In addition to the information provided belpw, see the American National Standard for
Information Management for Occupational Safety – ANSO Z16.2 and the Occupational
Injury and Illness Classification Manual developed by the Bureau of Labor Statistics for
hazard categories and definitions.
Chemical Hazards Physical Hazards
Inhalation
Skin Contact
Absorption
Injection
Ingestion
Electrical
Fire/Explosion
Noise
Radiation
Thermal Stress
Caught in/on/between; pinch points
Slips/Falls
Striking Against
Struck by
Biological Hazards Ergonomic Hazards
Blood borne pathogens
Brucellosis
Building-Related Illness (BRI)
Legionnaires’ Disease
Mold
Plant and insect poisons
Tuberculosis (TB)
Water and Wastewater
Repetition
Forceful Exertions
Awkward Postures
Contact Stress
Vibration
Work Area Design
Tool or Equipment Design
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: 2016/17 Employee Appreciation, Team Building, and
Wellness Policy
Original Approval Date:
Last Revised:
Policy No: 6.9 Page
1 of 3
East Valley Water District’s “Make a Difference” Trophy
Purpose
The “Make A Difference” Trophy is designed to recognize and celebrate exceptional
performance or significant achievements and contributions that align with the District’s
vision, goals, and objectives.
Program
The Employee Recognition Committee (Committee) will select the first employee to
be recognized and awarded for outstanding performance, achievements, or
contributions.
The selected employee will be announced at a Breakfast with the Boss Meeting
where the Committee will share why the employee was recognized. The selected
employee will be awarded the “Make A Difference” trophy along with an opportunity
to spin the prize wheel. The awarded employee may keep the trophy until the
following Breakfast with the Boss Meeting.
At the following meeting, the awarded employee will have the opportunity to
recognize a fellow employee from outside their department.
Before handing off the trophy, every awarded employee must attach an item that
represents them or their work. This will help celebrate previous recipients of the
trophy.
The employee handing off the trophy will explain who they are awarding the trophy
to and why. The following can be used as criteria to recognize a fellow employee
(not limited to list below):
o Demonstrated high ethical standards in job performance
o Worked as an exemplary team member
o Initiated change that created more efficient business processes
o Provided excellent customer service
o Provided positive leadership
o Initiated change that resulted in cost savings for the District
o Made a difference in someone’s life (customer or coworker)
The newly selected employee will be awarded the “Make A Difference” trophy,
along with an opportunity to spin the prize wheel. The newly selected employee
may keep the trophy until the following Breakfast with the Boss Meeting and must
attach an item before handing it off to the next employee.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: 2016/17 Employee Appreciation, Team Building, and
Wellness Policy
Original Approval Date:
Last Revised:
Policy No: 6.9 Page
2 of 3
Thumbs Up Sticker
Purpose
The Thumbs Up Program is intended to recognize co-workers for making the District a great
place to work.
Program
Employees will have access to Thumbs Up stickers and can give them out regularly.
Recipients of Thumbs Up stickers are encouraged to wear their sticker(s) throughout
the day to be recognized for making EVWD a great place to work.
Each employee will be given one gold Thumbs Up sticker monthly to hand out. This
gold sticker is to recognize a fellow employee who made a significant impact.
Employees who give gold Thumbs Up will notify HR in order to have the recipient
added to the recognition list. HR will maintain a monthly list of issued gold Thumbs
Up stickers to be added to the spinning raffle drum at the Breakfast with the Boss
Meeting.
One name will be selected and the person who awarded the gold Thumbs Up will say
why they selected that employee.
The recipient of the selected sticker will be awarded an opportunity to spin the
prize wheel.
Innovative Recognition Program
Purpose
The Innovative Recognition Program is designed to encourage employees to submit
innovative ideas for enhancing customer service, minimizing District expenses, or
improving the work efficiency of the District.
Program
Each member of the Senior Management Team will give a monthly contribution of
$10 to be used for awarding cash prizes to recognized innovators.
Supervisors will submit the name of the innovator and their idea to the Senior
Management Team when an innovative idea arises. Employees may give
recommendations to a supervisor for submittal.
The Senior Management Team will review the submittal and if approved, will
determine the cash prize to be awarded. Cash prizes range from $50 to $500.
o Cash prizes resulting from an idea created by more than one innovator will
be split amongst the innovators.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: 2016/17 Employee Appreciation, Team Building, and
Wellness Policy
Original Approval Date:
Last Revised:
Policy No: 6.9 Page
3 of 3
Innovators will be recognized and receive their cash prize at a Breakfast with the
Boss Meeting.
Move into the Groove Pre-Shift Stretching Program
Purpose
The Move into the Groove Pre-Shift Stretching Program is intended to encourage staff to
stretch and warm up before beginning their workday through exercises to decrease the
risk of musculoskeletal disorders.
Program
Benefits of pre-shift warm ups include the following:
Reduces the amount of sprains, strains and work related injuries
Decreases the amount of wear and tear of joints
Enhances productivity by reducing work related injuries
Improves employee morale
Promotes a positive work environment
Schedule
Weekly warm up stretching routines will be e-mailed to all staff.
Routines will be customized for field and office staff to follow.
Pre-stretching should be done Monday, Tuesday, Wednesday from 7:40-7:50 for
a minimum of 3-5 minutes.
A group leader will lead their individual department to Move into the Groove.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Password Policy
Original Approval Date:
August 14, 2018
Last Revised:
Policy No: 6.12 Page
1 of 2
Purpose
Passwords are the primary form of user authentication used to grant access to District
information systems. To ensure that passwords provide as much security as possible, they
must be carefully created and used. This policy offers guidelines for creating strong
passwords that help minimize the possibility of access to the District’s information systems.
It is the intent of the District to protect all its network resources including computer
hardware, software, and data. This document will set forth the poli cy of maintaining
logical security, protecting the software and utilization of systems by persons with
legitimate access rights.
Scope
The Password Policy applies to all information systems, information components, and to
all user account holders, District employees, and those granted temporary access while
working on behalf of the District.
Policy
A. Passwords should be constructed according to set length and complexity
requirements. As such, passwords must be at least 7 characters in length and must
include an upper and lower-case letter, number, and special character.
B. Passwords will have a maximum lifespan determined by the Information Technology
Manager.
C. Passwords should not be reused. Reuse includes the use of the exact same password
or the use of the same root password with appended or pre-pended sequential
characters.
D. Passwords are to be used and stored in a secure manner. As such, passwords should
not be written down or stored electronically in plain -text. Passwords are to be
obscured during entry into information system login screens and are to be
transmitted in an encrypted format.
E. Passwords are to be individually owned and kept confidential and are not to be
shared under any circumstances.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Password Policy
Original Approval Date:
August 14, 2018
Last Revised:
Policy No: 6.12 Page
2 of 2
F. Vendor supplied default passwords must be changed prior to ins talling a system on
the network.
G. Information Technology professionals or system account c redentials for non-console
administrative access must be encrypted using technologies such as SSH, VPN, or
SSL/TLS. Encryption technologies must include the following:
1. Must use strong cryptography, and the encryption method must be invoked
before the administrator’s password is requested.
2. System services and parameter files must be configured to prevent the use of
telnet and other insecure remote login commands.
3. Must include administrator access to web-based management interfaces.
4. Use vendor documentation and knowledge of personnel to verify that strong
cryptography is in use for all non -console access and that for the technology in
use it is implemented according to industry best practices and vendor
recommendations.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Purchasing / Procurement Policy
Original Approval Date:
August 9, 2011
Last Revised:
October 11, 2017
Policy No:
7.1
Page
1 of 16
Purpose
The purpose of this policy is to establish procedures for the acquisition of supplies,
materials, equipment and services, including construction and capital improvements, for
East Valley Water District (the District) pursuant to California Government Code (CGC)
Section 54201 et seq.
CGC Section 54202 requires every local agency to adopt policies and procedures,
including bidding regulations, governing purchases of supplies, mat erials, and
equipment and that said purchases shall be in accordance with duly adopted
policies.
CGC Section 54204 requires that if a local agency is other than a city or county,
policies provided for in Section 54202 shall be adopted by means of a written
rule or regulation, copies of which shall be available for public distribution.
Authorization and Delegation
By adoption of this policy, the Board of Directors (Board) is authorizing the General
Manager/Chief Executive Officer (GM/CEO), or his/her authori zed representative to
exercise certain duties and responsibilities that are essential for the day -to-day operation
of the District.
The GM/CEO may delegate the procurement of services and materials, and the provision
of public works contracts to those staf f members given specific authority within this policy.
The GM/CEO delegates the authority to act as the District’s Purchasing Agent to the Chief
Financial Officer (CFO), or their designee.
The GM/CEO delegates the authority to procure engineering, consulti ng and design, and
construction services for Public Works Projects to the Director of Engineering and
Operations (DEO), or their designee.
The GM/CEO delegates to Program Managers and Supervisors the authority to determine
specifications of goods or services needed, to solicit proper bids, and to obtain proper
approvals according to the Authorization Table .
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Purchasing / Procurement Policy
Original Approval Date:
August 9, 2011
Last Revised:
October 11, 2017
Policy No:
7.1
Page
2 of 16
Responsibilities
A. Purchasing Agent – the Purchasing Agent’s responsibilities include:
1. Administration of the Purchasing Policy;
2. Update settings / approval paths in the District’s financial software;
3. Creation of Purchase Orders (PO);
4. Review bid documents and bidding procedures;
5. Review all contracts (except Public Works);
6. Recommend revisions to purchasing procedures when necessary and keep
informed of current developments in the field of public purchasing;
7. Conduct internal audits; and
8. Provide training for District staff on this policy.
B. DEO – The Director of Engineering and Operations responsibilities include:
1. Recommend revisions to purchasing procedures with respect to public
contracting; and
2. Review all public works contracts.
C. Program Managers & Supervisors – the responsibilities of managers and supervisors
shall include:
1. Enter into contractual obligations on behalf of the District;
2. Obtain full and open competition in accordance with prescribed policies and
procedures in a manner that presents the best overall value to the District;
3. To anticipate requirements sufficiently in advance to allow adequate time to
obtain goods in accordance with the best purchasing practices;
4. Identify, evaluate, and utilize purchasing methods which best meet the needs of
the District (e.g. cooperative purchases, blanket purchase orders, contractual
agreements, purchasing cards, etc.);
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Purchasing / Procurement Policy
Original Approval Date:
August 9, 2011
Last Revised:
October 11, 2017
Policy No:
7.1
Page
3 of 16
5. Provide for the fair and equitable treatment of vendors, suppliers, and
contractors;
6. Supervise the receipt and inspection of all materials, supplies, equipment , and
services purchased to ensure conformance with specifications;
7. To notify vendors of purchase award when authorized by Purchasing Agent; and
8. Obtain approvals according to the Authorization Table below.
D. Authorization Table
Amount Up to Approval Level
$ 5,000 Department Supervisors
$ 10,000 Department Managers
$ 25,000 Department Heads (Executive Staff)
$ 150,000 General Manager / CEO
(CFO or DEO if CEO is absent)
> $ 150,000 Board of Directors
The above authorization levels apply to the procurement of materials and services
that are included in the current year adopted budget.
Procurement Methods
A. Requisition/Purchase Order - Requisitions provide a mechanism for obtaining the
approvals necessary for issuance of a PO. With few exceptions, a PO must be issued
prior to ordering goods or signing contracts for construction or services.
1. In general, POs will be closed at the end of each fiscal year. Purchases are
expensed from the fiscal year budget in which goods are received, not the fiscal
year in which POs are issued.
2. Purchase orders representing multiple year contracts will remain open until
projects are completed and Finance is notified to close the Purchase Order.
3. Procurements that require approval by the Board do not require electronic
requisitions. The Purchasing Agent will create the Purchase Order after the Board
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Purchasing / Procurement Policy
Original Approval Date:
August 9, 2011
Last Revised:
October 11, 2017
Policy No:
7.1
Page
4 of 16
of Directors has approved and signed the contract. The Purchase Order will then
be delivered to the related Department.
4. In no case shall a contract be signed and Purchase Order issued unless sufficient
funds have been budgeted and appropriated, or identified in the Capital
Improvement Program reviewed with the Board during the annual budget
process.
B. Check Request - A check request can be used to initiate payment for purchases not
requiring a PO, such as for purchases of less than $5,000, and non -discretionary
purchases/payments.
C. Purchasing Card - Designated full-time employees may be assigned a Cal Card for
miscellaneous purchases. The objective of the Cal Card Program is to reduce
processing costs associated with low dollar expenditures. Services are not to be
acquired on Cal Cards due to lack of insurance and indemnification language
associated with these purchases.
1. Each cardholder has pre-defined spending limits which may be increased
temporarily or permanently with approval by an authorized manager subject to
the Authorization Limits. Purchases using the Cal Card are subject to the terms
and conditions of the District Cardholder Agreement.
Competitive Selection Process
A. General - All procurements for materials, supplies, equipment, services, and
construction shall employ a competitive selection process whenever practicable. All
procurements of $75,000 and over will require sealed bidding.
1. Bids shall be awarded to the “responsive” and “responsible” bidder who submits
the lowest bid that is most advantageous to the District.
• Responsive shall mean a bidder whose bid is in conformance with the
requirements of the bid solicitation, including specifications and the
District’s terms and conditions. Bidders who substitute terms and conditions
or who qualify their bids in such a manner as to limit their liability may be
considered non-responsive.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Purchasing / Procurement Policy
Original Approval Date:
August 9, 2011
Last Revised:
October 11, 2017
Policy No:
7.1
Page
5 of 16
• Responsible refers to the ability of the bidder to successfully fulfill a
contract. Prospective bidders may be request ed to furnish proof of financial
resources, a list of current of previous customers, and other pertinent data.
Such action may be taken after receipt of bids.
2. In determining the lowest “responsible” bidder, the following elements shall be
considered in addition to price:
a. That the products offered provide the quality, fitness, and capacity for the
required usage;
b. That the bidder has the ability, capacity and skill to perf orm the contract
satisfactorily and within the time required; and
c. That the bidder’s experience(s) regarding past purchases by the District or
other public agencies demonstrates the reliability of the bidder to perform
the contract.
3. When a bid is recommended to be awarded to other than the low bidder, written
justification is required. The written statement, signed by the appropriate
supervisor or manager, or the GM/CEO shall be attached to the purchase
requisition or Board report.
B. Bid Requirements Table
Purchase Amount Requirements PO Required
$ 0 - $5,000 Informal Quotes NO
$ 5,001 - $75,000 Informal Bids YES
$ 75,001 and over RFP/Sealed Bids YES
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Purchasing / Procurement Policy
Original Approval Date:
August 9, 2011
Last Revised:
October 11, 2017
Policy No:
7.1
Page
6 of 16
C. Informal Quotes
1. For purchases less than $5,000, quotes may be obtained through an informal
process (e.g. web browsing or phone calls) and documentation of the bids is
recommended but not required. Although bid documents are not required, a
requisition and purchase order may be issued to document the purchase if the
staff member making the purchase wishes to do so.
2. Since the purchase may be initiated without a Purchase Order, the accounts
payable process will require that the invoice be signed by an authorized signor
before payment is released.
D. Informal Bids
1. For all procurement of materials, supplies, equipment , services, and
construction in excess of $5,000 but less than $75,000, at least three vendors
must be contacted for bids/price quotations and the purchase awarded to the
lowest, most responsive bidder.
2. Bids may be solicited from prospective bidders by written request, telephone,
legal advertising or public notice (including District website). Regardless of
solicitation method, all vendors must receive the same information about
specifications and requirements of the product or service, and all bids submitted
must be kept in confidence until the bid is awarded. Bidders may be advised that
they will be notified only if they submitted the successful bid.
3. All bids received must be documented and retained by the requesting
department or scanned into Tyler Content Manager.
E. Formal Bids
1. For all procurement of materials, supplies, equipment, services, and
construction in excess of $75,000, bids or proposals shall be solicited from a
minimum of three vendors. A written Notice Inviting Bids (NIB) or Request for
Proposals (RFP) must be used to document the specification and requirement of
the product or service.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Purchasing / Procurement Policy
Original Approval Date:
August 9, 2011
Last Revised:
October 11, 2017
Policy No:
7.1
Page
7 of 16
2. The NIB or RFP must be made publicly available on the District’s website and, if
practicable, in a newspaper of general circulation. If the NIB/RFP is also sent
directly to prospective vendors, at least three vendors shall receive the notice.
3. Vendor responses (proposals/bids) must be submitted in written form and
retained on file by the manager of the initiating de partment. Contracts shall be
awarded in a manner most beneficial to the District as further explained in the
following sections.
Supplies, Equipment, and Non-Professional Services
The following procedures are applicable to the acquisition of commodities and non-
professional services, and shall be used in conjunction with the Competitive Selection
Processes described above. Non-Professional Services do not require professional
certifications. Examples include: landscape maintenance, janitorial, and unifor m cleaning.
A. Notice Inviting Bids - The initiating department shall prepare the Notice Inviting Bids
(NIB). The notice shall be published once, in a newspaper of general circulation
within the District, at least fourteen calendar days before the date of bid opening.
B. Formal Notice Inviting Bids - The Notice shall contain:
1. A general description of the goods, services, or equipment to be purchased;
2. A statement about where bid plans and specifications may be secured ;
a. For tangible goods and equipment, brand standardization is allowable if
deemed in the best interest of the District;
3. Bonding requirements, if applicable; and
4. A statement of the time and place for opening the bids.
C. Bid Opening – Sealed bids shall be submitted to the Department requesting the bids.
A written record and tabulation shall be made at the time all bids are received. Bids
shall be opened by the department head in public at the date, time, and place
stated in the NIB.
D. Evaluation – A representative of the requesting department shall review all bids
received for compliance with specifications. A ny deviation from the specifications
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Purchasing / Procurement Policy
Original Approval Date:
August 9, 2011
Last Revised:
October 11, 2017
Policy No:
7.1
Page
8 of 16
shall be fully documented, and the impact of the deviation on the performance of
the bid item evaluated. The requesting department shall review its finding with the
Purchasing agent.
E. Bid Award – Contracts will be awarded to the lowest responsive and responsible
bidder. Approval of any bid will be in accordance with the Authorization Table. If
the bid is accepted, the Bidder shall execute the contract within the time provided
in the contract documents and shall furnish the necessary certificates of insurance
and bonds required by the contract documents.
1. Project-specific contracts for maintenance and service agreements shall be
issued to expire upon completion of the work unless otherwise specified in the
written agreement. Contracts shall be issued for an initial term of no more than
36 months. The GM/CEO may authorize a maximum of one extension of 24
months for maintenance and service agreements.
2. If an extension to a contract or maintenance agreement causes the total cost for
all years to exceed $150,000 (even though the original total cost of the
agreement was less than $150,000), the extension shall be approved by the
Board.
Professional Services
Professional service providers are those persons or firms specially trained to provide
services in connection with financial, economic, accounting, engineering, administrative,
or other matters involving specialized expertise or unique skills.
When selecting a vendor for professional services, c ost will not be the prominent criterion
in evaluating proposals. Proposals for these services will be evaluated based on a
combination of factors that result in the best overall value to the District.
A. Request for Proposal (RFP) – The department responsible for monitoring the project
shall prepare the RFP. The RFP should contain significant detail about the project
including:
1. A precise description of the objective;
2. The services to be performed;
3. The anticipated project timeline, including:
a. The deadline for submittal of proposals;
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Purchasing / Procurement Policy
Original Approval Date:
August 9, 2011
Last Revised:
October 11, 2017
Policy No:
7.1
Page
9 of 16
b. Date of proposal conference, if any;
c. Proposal evaluation;
d. Award of contract; and
e. Projected start and completion dates.
4. Evaluation criteria;
5. Expected content of proposals; and
6. Contractual requirement, including:
a. Prohibition against assignment;
b. Insurance requirements;
c. Compliance with federal, state and local laws, and grant related
requirement, if applicable; and
d. Sample of District contract / agreement.
B. Issuance of RFPs – To allow for sufficient competition, the project manager shall:
1. Post the RFP on the District website, and distribute the RFP to at lea st three
firms engaged in performing the work requested. If deemed appropriate, the RFP
may also be published in a newspaper of general circulation at least 14 days prior
to the designated closing.
2. Allow a reasonable length of time between solicitation and closing dates so
potential respondents have sufficient time to prepare proposals.
3. Post on the District website, any RFP amendments, and responses to any inquiries
from potential respondents to ensure all interested firms have the same
information.
C. Proposal Receipt and Opening – Sealed proposals shall be received by the originating
department, time stamped, and recorded on a list of proposals received. Proposals
shall be opened in the presence of the Department Head from the initiating
department. Proposals received after the time specified shall be returned to the
submitter unopened.
D. Evaluation of Proposals – The project manager shall establish a selection committee
of at least three members, and establish selection criteria and a ranking system.
The selection criteria should include:
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Purchasing / Procurement Policy
Original Approval Date:
August 9, 2011
Last Revised:
October 11, 2017
Policy No:
7.1
Page
10 of 16
1. Completeness of the proposal;
2. Demonstrated understanding of the work to be performed;
3. Experience of the firm and its personnel relative to the required services;
4. Qualifications of the personnel to be assigned;
5. References who can be contacted to verify past performance; and
6. If appropriate, pricing for the project .
The selection committee may choose to interview all or some of the respo ndents
to assist in coming to a consensus on the top firm.
E. The initiating department shall recommend the top firm for award of a contract,
which shall be approved in accordance with the Authorization Table .
Public Works Projects
Public Works Projects, hereafter referred to as Capital Improvement Projects (CIP) include
the construction, reconstruction, erection, alteration, renovation, improvement,
demolition, painting or repair of any publicly owned, leased or operated facility.
As required by law, registration with the Department of Industrial Relations for prevailing
wage regulations is required for all CIP bidders. When the CIP is funded through a Federal
Grant, the District must follow Federal procurement standards listed in the Code of Federal
Regulations Sections 200.317 through 200.326 or as required by the grant document.
A. Notice Inviting Bids
1. The initiating department shall prepare the Notice Inviting Bids. The notice shall
be published once, in a newspaper of general circulation within the Di strict, at
least fourteen calendar days before the date of bid opening. The IFB shall also
be mailed to construction trade journals at least 30 days prior to bid opening.
2. Alternately, the GM/CEO, or his/her designee, is authorized to create a
prequalified bidders list. The bidders may be prequalified on an annual basis or
on a project specific basis. Notice inviting sealed bids shall be distributed to
prequalified bidders or other interested parties as may be deemed beneficial by
the GM/CEO, or his/her designee.
B. Form of Notice Inviting Bids: The Notice shall contain:
1. A general description of the Project;
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Purchasing / Procurement Policy
Original Approval Date:
August 9, 2011
Last Revised:
October 11, 2017
Policy No:
7.1
Page
11 of 16
2. A statement indicating where plans and specification, and bonding requirement
can be obtained;
3. A statement that the District will receive sealed bids;
4. A statement that the contract or contracts for the CIP will be awarded to the
lowest responsive, responsible bidder or bidders, but that any or all bids may be
rejected;
5. A statement of the time and place for opening the bids; and
6. Such other information as may be required by the District or by law.
C. Submission of Bids
1. Bids shall be submitted on forms supplied by the District and under sealed cover.
Each bid shall be accompanied by cash, a certified or cashier’s check, or bond
secured from a surety company satisfactory to the District in the amount
indicated within the bid documents, made payable to East Valley Water District,
as bid security.
2. If the bid is accepted, the Bidder shall execute the contract within the time
provided in the contract documents and sha ll furnish the necessary certificates
of insurance and bonds required by the contract documents.
D. Opening of Bids – Bids shall be publicly opened at the time and place specified in
the invitation for bids. A minimum of two members of District staff must be present
at all sealed bid openings.
E. Bid Evaluation and Acceptance – Acceptance of any bid shall be by action of the
Board. The Board reserves the right to waive any irregularity, to reject any or all
bids, to re-advertise, or to proceed with the CIP or any part of it using District staff.
F. Bid Award - Contracts shall be awarded to the lowest responsive and responsible
bidder which will be deemed the best value to the District.
G. Relief of Bidders – Bids shall not be relieved of its bid unless by consent of the
District upon a showing by the bidder to the satisfaction of the District that:
• A mistake was made;
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Purchasing / Procurement Policy
Original Approval Date:
August 9, 2011
Last Revised:
October 11, 2017
Policy No:
7.1
Page
12 of 16
• The bidder gave the District written notice within five business days after the
opening of bids of the mistake, specifying in the notice in detail how the mistake
occurred;
• The mistake made the bid materially different than the bidder intended it to be;
• The mistake was made in filling out the bid and not due to error in judgment or
carelessness in inspecting the site of the work or in reading the plans or
specifications; or
• A bidder who claims a mistake or forfeits its bid security shall be prohibited from
participating in further bidding on the same project.
H. Performance and Payment Bonds - Any bidder to whom a contract for CIP is awarded
under the District’s formal competitive bidding procedures shall supply on forms
satisfactory to the District, a Faithful Performance Bond in an amount equal to the
total contract price.
1. For any CIP contract in excess of $25,000, the bidder must also supply a Labor
and Material Payment Bond in an amount equal to the total contract price.
2. Each bond shall be secured from a California admitted surety company that
meets all State of California bonding requirements, as defined in California Code
of Civil Procedure Section 995.120, and is authorized by the State of California.
Each bond shall be accompanied, upon request of the District, with all documents
required by California Code of Civil Procedure Section 995.660, to the extent
required by law.
I. Insurance - Before work commences, evidence of insurance as required by the
contract for CIP must be obtained, reviewed, and accepted by the DEO or their
designee. A copy of the certificate of insurance will be provided to the District
HR/Risk Management Department.
Exemptions from Competitive Solicitation
The competitive solicitation / bid process will not be required for the acquisition of
goods and services under the following circumstances:
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Purchasing / Procurement Policy
Original Approval Date:
August 9, 2011
Last Revised:
October 11, 2017
Policy No:
7.1
Page
13 of 16
A. Non-Discretionary Purchases - These purchases/payments are not readily adaptable
to the open market and competitive selection process. Non-discretionary purchases
do not require the issuance of a purchase order, and payments in excess of the
GM/CEO authorization limit do not require Board approval. Examples o f non-
discretionary purchases include, but are not limited to:
1. Bank charges and fees;
2. Debt Service payments;
3. Insurance premiums;
4. Memberships, dues, and subscriptions;
5. Pension and OPEB payments;
6. Utilities; and
7. Water purchases.
B. Cooperative Procurement - The District may participate in purchases and contracts
established by other political jurisdictions, provided the cooperative agreement is
established following a competitive bid process. The cooperative purchase may be
authorized according to the authorization table.
C. Inventory Replenishment - Purchases to replenish the District’s warehouse inventory
within established inventory re-order levels require no prior authorization provided
that the vendor being utilized has been selected within the last twelve month s as
the designated vendor for the items, or class of items, to be purchased .
D. Sole Source - Commodities, services, and equipment which can be obtained from
only one vendor are exempt from competitive bidding. Sole source purchases may
include proprietary items sold directly from the manufacturer, equipment which has
been standardized by the District, items that have only one distributor authorized
to sell in this area, agreements for maintenance of computer software the District
owns or a certain product that has been proven to be the only product acceptable.
E. Emergency Purchases - Emergency purchases may be made without competitive
bidding when unforeseen circumstances present an immediate risk of:
1. harm or hazard to the public health, safety, and welfare;
2. damage to District property; or
3. serious interruption of District essential services.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Purchasing / Procurement Policy
Original Approval Date:
August 9, 2011
Last Revised:
October 11, 2017
Policy No:
7.1
Page
14 of 16
Since emergency purchases do not normally provide the District an opportunity to
obtain competitive quotes, sound judgment shall be used in keeping such orders to
an absolute minimum. In addition, the following requirements shall apply:
1. The Finance department shall be contacted as soon as possible to obtain a
purchase order number;
2. A completed, properly approved purchase requisition shall be submitted within
two working days, or as soon as the information is available;
3. Documentation explaining the circumstances and nature of the purcha se shall be
maintained by the Supervisor or Manager; and
4. If the emergency purchase causes any budget line item to exceed the approved
budget, it shall be the responsibility of the department requesting the purchase
to obtain subsequent Board of Directors approval for reserve funding or to make
a budget transfer to cover the purchase. Approvals for a budget transfer must be
given by the appropriate Supervisor or Manager as determined by the
authorization table.
Change Orders
Any substantial change to a purch ase order or contract shall be documented as a change
order.
A. The GM/CEO may approve change orders to contracts for the procurement of
supplies, equipment, contracts for professional services, and other goods and
services provided:
1. The change order is within the scope of the approved contract and the cost of
the changed work does not exceed the adopted budget;
2. The cumulative total of all change orders is within 10% of the original contract
amount; and
3. Taxes, shipping, and handling may cause the purchase order to exceed the
authorized amount. These items do not require a change order, even if they
exceed 10% of the original purchase order amount.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Purchasing / Procurement Policy
Original Approval Date:
August 9, 2011
Last Revised:
October 11, 2017
Policy No:
7.1
Page
15 of 16
B. The GM/CEO or the DEO may approve change orders for Capital Improvement
Projects provided that the changed work is within the scope of the project approved
by the Board and the cost of the changed work does not exceed the budget for the
project approved by the Board and:
1. The cumulative total for all change orders do not exceed 10% of the original
contract amount; and
2. Change orders for CIP in excess of these amounts and change orders for CIP
reflecting a change in the scope of the nature of the project shall be submitted
to the Board for approval.
Conflict of Interest
No member, officer, or employee of the District, or their designees or agents, and no public
official who exercises authority over or responsibility with respect to purchasing during his
or her tenure, or for one year thereafter, shall have any interest, d irect or indirect, in any
purchase, agreement or sub agreement, or the proceeds thereof, for any purchase or
purchase agreement. The full Conflict of Interest Code of the East Valley Water District is
incorporated herein by reference.
Unauthorized Purchases
Purchase orders shall be issued prior to ordering supplies, equipment , and services and not
“after the fact” for work already done or materials already ordered.
Except for emergencies, departmental purchases, or other authorized exemptions stated
in these guidelines, no purchase of supplies, services, or equipment shall be made without
an authorized purchase order. Otherwise:
A. Such purchases are void and not considered an obligation of the District;
B. Invoices without an authorized purchase order may b e returned to the vendor
unpaid; and
C. The person ordering the unauthorized purchase may be held personally liable for
the costs of the purchase or contract and may be subject to disciplinary actions.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Purchasing / Procurement Policy
Original Approval Date:
August 9, 2011
Last Revised:
October 11, 2017
Policy No:
7.1
Page
16 of 16
Review Audits
Compliance with this policy is subject to review at any time, including by external auditors.
It is the responsibility of the District st aff member initiating the purchase to maintain
records of bids, bid procedures followed, contracts, sole source forms, change orders, and
authorization signatures.
Revised: October 11, 2017
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Surplus Property Policy
Original Approval Date:
June 14, 2017
Last Revised:
Policy No:
7.1.1
Page
1 of 5
Purpose
The purpose of this policy is to establish uniform procedures for disposing of property that
has been declared surplus by the District. Generally, property is declared surplus if it is no
longer needed by the using department because of decreased use, poor condition, damage
not worth the cost of repairing, and/or obsolescence.
Scope
For the purposes of this policy, surplus property may include supplies, equipment, and
components of plant facilities. Examples include, but are not limited, office equipment,
furniture and fixtures, pool vehicles and other fleet equipment, pumps, valves, and other
facility components. This policy does not pertain to real property, disposal of which is
subject to additional legal requirements.
Responsibility and Authorization
A Department Head will determine if supplies, a piece of equipment or a capital asset has
become surplus based on the description above. If so, the Department Head, or a designee
will determine the value of the surplus item, either from an existing source document or
a reasonable estimate of replacement value if a source document is unavailable in the
District’s document management system.
Before an asset is sold or otherwise disposed of, it must first be determined if the asset
had originally been purchased with grant monies. If this is the case, the District must refer
to the grant agreement and follow prescribed procedures for disposition.
• If the current value of the surplus property is determined to be less than $1,000,
the Department Head should notify the Finance Department, determine the
appropriate method of disposition, and coordinate its disposal. The General
Manager/CEO’s approval is required for items valued between $1,000 - $3,000.
• If the property item deemed surplus has an estimated current value of over $3,000,
then the Department Head must complete a Surplus Property / Capital Asset
Disposition form. One copy of the form should be completed and circulated for
signatures. After signatures are obtained, the property must be declared surplus by
the Board of Directors.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Surplus Property Policy
Original Approval Date:
June 14, 2017
Last Revised:
Policy No:
7.1.1
Page
2 of 5
Methods of Disposal
There are four approved methods for disposal of surplus property including:
• Trade in for credit on new material or equipment
• Public Sale
• Public Donation
• Scrap
1. Trade In - Surplus property can be offered as trade-in for new equipment or material
or for credit towards the acquisition of new property. If the current value of a
surplus property item slated for trade-in is $1,000 or over, then a Surplus
Property/Capital Asset Disposition form should be completed. The estimated trade
in value of the surplus property or capital asset should be noted on the Surplus
Property/Capital Asset Disposition form and on the purchase order issued for any
new property resulting from the trade in.
2. Public Sale - Surplus property may be offered for sale. All surplus property is for
sale “as is” and “where is,” with no warranty, guarantee, or representation of any
kind, expressed or implied, as to the condition, utility or usability of the property
offered for sale. For any sale of surplus property with a current value of $1,000 or
above, the Department Head should indicate on the Surplus Property / Capital Asset
Disposition form the recommended selling method and any other notations in the
Department Head approval. Appropriate methods of sale are as follows:
A. Public Auction – District staff may conduct public auctions or the District may
contract with a professional auctioneer and/or an Internet auctioneer for this
service.
B. Sealed Bids – Sealed bids may be solicited for the sale of surplus property.
Surplus property disposed of in this manner shall be sold to the highest
responsible bidder.
C. Negotiated Sale – Surplus property may be sold outright if the Department
Head, with concurrence of the General Manager/CEO, determines that only
one known buyer is available or interested in acquiring the property.
D. Selling as Salvage – Equipment, materials, supplies, fixtures, or facility
components that are no longer capable of performing their intended function
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Surplus Property Policy
Original Approval Date:
June 14, 2017
Last Revised:
Policy No:
7.1.1
Page
3 of 5
without extensive repair, or that are of no value except for reclamation
purposes, may be considered salvage. Surplus property may be sold as salvage
if the Department Head deems that the value of the raw material exceeds
the value of the property.
3. Donation - The Department Head may recommend and the General Manager/CEO
may authorize, the donation of surplus property to a 501(c)(3) nonprofit
organization or school district located or operating within the District’s service area
or, secondarily, to any other non-profit organization or private organization that
aids nonprofit organizations.
A. Noticing - If surplus property has been approved for donation, the
Department Head will notice the availability of such property for donation,
indicating the quantity, description, and location of the surplus property, by
advertisement in a local newspaper and on the District’s web site. This notice
will also indicate a closing date for the receipt of all requests for donation
and indicate the way in which interested parties can receive additional
information.
B. Terms & Conditions - Requests for donation will be accepted if received
within the specified time period. Requests will then be scored by staff on a
number of criteria designed to identify the organizations with the greatest
charitable impact on residents within the District’s service area, taking into
account previous property received from the District, if any. The Department
Head will send a letter to the non-profit organization(s) or school district(s)
that respond to the notice to advise them of the District’s terms and
conditions of the donation. Generally, the terms and conditions are:
• Accepting the property “as is,” with no implied warranties;
• Exhibit an immediate need for the property;
• Agreeing that the property will never be sold or transferred for
profit; and
• Assume all costs and liability associated with the removal and
transportation of the surplus property from the District.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Surplus Property Policy
Original Approval Date:
June 14, 2017
Last Revised:
Policy No:
7.1.1
Page
4 of 5
• A return letter, signed by an authorized agent from the non-profit
organization or school district, accepting the District’s terms and
conditions is required before the surplus property can be released.
C. Release - If, in the opinion of the Department Head, the donated property
has a current value of less than $3,000, then the General Manager/CEO can
approve the release of the property to the recipient(s) that meet the above
criteria and agree to the District’s terms and conditions. If, in the opinion of
the Department Head, the donated property has a current value of $3,000 or
more, the initiating Department Head will prepare a report to identify the
specific property to be donated, the estimated current value of the property,
and the proposed recipient(s) of the property for approval by the Board of
Directors. After Board approval, the surplus property may then be released.
• The department from which the donated property is being taken
should remove any District tags or emblems before the property is
officially transferred to the recipient organization(s).
4. Scrap – This method of disposal is recommended only after determining that none
of the other methods – trade-in, sale (including salvage), or donation - is feasible.
It applies when surplus property has no value and there is no expectation of proceeds
from the disposal.
• Inoperable or irreparable property with an original cost of $1,000 or less may
be scrapped at the discretion of the Department Head.
• Inoperable or irreparable property with an original cost between $1,000 and
$3,000s may be scrapped with the approval of the General Manager/CEO.
• Inoperable or irreparable property with an original cost of more than $3,000
requires the completion of a Surplus Property / Capital Asset Disposition Form
and approval of the District Board.
Proceeds
1. Any proceeds received from the trade-in or sale of surplus property will be credited
to the appropriate equipment replacement fund.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Surplus Property Policy
Original Approval Date:
June 14, 2017
Last Revised:
Policy No:
7.1.1
Page
5 of 5
2. Proceeds from salvage or scrap will be donated to the EVWD Employee Events
Association in support of its efforts to provide school supplies and necessities to
disadvantaged students at schools within the District’s service area.
Prohibited Disposition
1. District surplus property may not be sold or given to a District employee except
through public auction or solicitation of sealed bids open to the public.
2. District employees shall not be permitted to bid on, or knowingly come into
ownership of, any surplus property if the employee participated in any way in the
disposal process.
Revised: June 14, 2017
FINANCE DEPARTMENT
SURPLUS PROPERTY / CAPITAL ASSET DISPOSITION FORM
Date of Action:
Reason for Disposal / Move Action (Choose one of the following):
Damaged Beyond Repair
Obsolete
Destroyed
Donated to: ____________________________________________ **Attach Documentation
Lost/Stolen
Sold, Sale Price $________________________________________ **Attach Sales Paperwork
Transfer
Traded in
Explanation:
Property Detail
Asset Tag # Serial #/VIN Description
Physical Location
Before Action Date
New Physical
Location
(Attach additional pages if necessary)
Person Completing this form Date
Transfer Details (if transferring)
From Department: To Department:
Approvals
Signature of Department Head Releasing the Fixed Asset Date
Signature of Department Head Receiving the Fixed Asset Date
(if transferring)
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Reserve Funds Policy
Approval Date:
August 10, 2010
Policy No: 7.2 Page 1 of 7
Purpose
It is the purpose of East Valley Water District Reserve Policy to ensure that sufficient
funding is available for current operating, capital, and debt service needs. Additionally,
fiscal responsibility requires anticipating the likelihood of, and preparing for, unforeseen
events. East Valley Water District (District) will at all times strive to have sufficient
funding available to meet its operating, capital, and debt service obligations. Reserve
Funds (Funds) will be accumulated and maintained to allow the District to fund
expenditures in a manner consistent with the District's Capital Improvement Plan, and
avoid significant rate fluctuations due to changes in cash flow requirements.
The Board of Directors (Board) may designate specific fund accounts and maintain
minimum fund balances consistent with statutory obligations that it has determined to be
in the best interest of the District. The Policy directives outlined in this document are
intended to ensure the District has sufficient funds to meet current and future needs.
The Board will annually review the level of Funds.
General Provisions
The District has established and will maintain the following primary funds and their
respective sub-accounts:
Restricted Funds - comprised of Debt Proceeds and Customer and Developer
Deposits.
Capital Funds – includes the Capital Replacement Fund and Emergency Fund.
Liquidity Funds – includes the Rate Stabilization Fund and Operating Fund.
The District will maintain its liquidity and capital funds in designated sub-accounts in a
manner that ensures their financial soundness and provides transparency to its
ratepayers. The Fund balances are considered the minimum necessary to maintain the
District's credit worthiness and adequately provide for:
Compliance with applicable statutory requirements.
Financing of future capital facilities and repair and replacement of existing assets.
Cash flow requirements.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Reserve Funds Policy
Approval Date:
August 10, 2010
Policy No: 7.2 Page 2 of 7
Economic uncertainties, local disasters, and other financial hardships or downturns
in the local or national economy.
Contingencies or unforeseen operating or capital needs.
In the context of funding future capital facilities and maintaining and replacing existing
assets, in each instance, the District will analyze the benefits and tradeoffs of utilizing
pay-as you-go and/or debt financing and determine the optimal funding strategy or
combination of funding strategies. The analysis should consider the District's current and
projected liquidity and capital positions, as well as the impact of inflation and other
factors on the operations of the District and its capital improvement program.
Through a variety of policy documents and plans, including East Valley's Capital
Improvement Plan, Water and Sewer System Master Plans, and Strategic Plan (pending),
the Board has set forth a number of long-term goals for the District. A fundamental
purpose of these documents is to link what must be accomplished with the necessary
resources to successfully do so. Among the resources which may be considered are the
District’s Funds.
A principal tenet of the District's Reserve Funds Policy shall be the crediting of interest
income to specific reserve funds until the respective reserve fund's maximum is achieved.
Once the maximum balance is reached within a specific Fund, the surplus interest
earnings will be reallocated to other Funds whose funding level is below the minimum or
maximum requirement recommended by this policy.
Fund balances will be reviewed on an annual basis at, or near, the end of the fiscal year
to ensure compliance with this Policy. In the event the Liquidity Fund balance exceeds
the established maximum, excess monies will be transferred annually into the Capital
Fund. On an as-needed basis, monies from the Capital Fund can be moved to pay for
operating emergencies to supplement the Liquidity Fund. In addition, in the event that
the Capital Fund balance exceeds the established maximum, the Board will make a
determination regarding the reallocation of excess monies.
The minimum established for each Fund represents the baseline financial condition that
is acceptable to the District from risk and long-range financial planning perspectives.
Maintaining Funds at appropriate levels is a prudent, ongoing business process that
consists of an assessment and application of various revenue generating alternatives.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Reserve Funds Policy
Approval Date:
August 10, 2010
Policy No: 7.2 Page 3 of 7
These alternatives (either alone or in combination with each other) include, but are not
limited to: fees and charges, water usage, capital financing, investment of funds, and
levels of capital expenditures.
To achieve and maintain a strong credit rating, in every fiscal year the District will strive
to maintain unrestricted cash and designated fund balances totaling a minimum of 180
days of budgeted operating expenses. Should the District determine to target a higher
credit rating level, this minimum will be adjusted accordingly. However, should Mesa
decide to pursue a credit rating upgrade, it will need to analyze carefully under what
circumstances and in what timeframes it will be optimal to achieve this goal.
The Board shall approve any reallocation of funds or any transfers among Funds.
RESTRICTED FUNDS
A. Bond Proceeds - Bond proceeds funds are monies derived from the proceeds of a
bond issue. Typically they consist of construction fund monies, and a debt service
reserve fund (DSRF). The use of these proceeds is restricted by conditions set
forth in the respective legal bond documents. These funds are usually held by the
Trustee in favor of the bond holders.
1. Target Level - The debt service reserve requirement is established at the time
of the bond issue. This amount may be recalculated as the bonds are paid
down. Any excess principal and/or interest earnings can be used to pay debt
service on the bonds.
2. Events or Conditions Prompting the Use of the Fund(s) - As stipulated in the
respective bond documents. Construction fund monies are expected to be
spent on applicable projects, while DSRF can only be used in the event of a
shortfall in revenues to pay debt service or to pay down principal at maturity.
3. Periodic Review Dates for Balances - Reviewed by the Trustee on a semi-annual
basis (i.e., every interest and/or principal payment date).
B. Customer and Development Deposits - Monies held on behalf of District customers
as required for their utility account or as cash bonds for development projects.
1. Target Level - Customer deposits, and deposit requirements for development
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Reserve Funds Policy
Approval Date:
August 10, 2010
Policy No: 7.2 Page 4 of 7
projects, are outlined in the District Ordinance establishing rules and
regulations for water service. The balance in this account will fluctuate
depending on the number of utility customer deposits required and the number
of development projects in process. Therefore, no minimum or maximum levels
will be established.
2. Events or Conditions Prompting the Use of the Fund(s) - As deposits on utility
accounts are released, they will be refunded to the customer. When
development projects are complete, the projects will be closed and a final
accounting will be completed. Excess deposit monies will be returned to the
development customer.
3. Periodic Review Dates for Balances - Reviewed by staff on a regular basis as
part of the monthly closing process.
CAPITAL REPLACEMENT FUNDS
The District will strive to maintain a minimum balance of $10.0 million in the Capital
Funds. The Capital Funds will consist of the following sub-accounts:
A. Capital Replacement Fund - Both the water and sewer divisions will maintain a
replacement fund for the replacement of capitalized assets when they reach the
end of their useful lives. The source of replacement funds will be user fee revenue
from the respective enterprises.
1. Target Level – The District may set aside replacement funds on a project-by-
project basis. The minimum target level should be equal to the $10.0 million
required for the Capital Funds less the minimum levels established for the
Emergency Fund. The maximum balance in Capital Replacement Funds shall not
exceed the projected needs for seven years according to the District’s Capital
Improvement Plan.
2. Events or Conditions Prompting the Use of the Fund - Staff will recommend
assets to be replaced during the Capital Improvement Plan / Capital Budget
presentation. As projects are approved, funds will be appropriated from
undesignated funds or available revenues.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Reserve Funds Policy
Approval Date:
August 10, 2010
Policy No: 7.2 Page 5 of 7
3. Periodic Review Dates for Balances - Fund balances and projected improvement
projects will be reviewed by staff and the Board during the preparation and
approval of the annual budget.
B. Emergency Fund - The Emergency Fund is used to begin repair of the water and
sewer systems after a catastrophic event, such as a severe earthquake or fire,
while long-term financing is being arranged or insurance claims are being
processed.
1. Target Level- The target for this fund is two (2%) percent of the total value of
plant and equipment.
2. Events or Conditions Prompting the Use of the Fund - The Board may designate
use of this fund after establishing that conditions exist as called out in the
definition and purpose of the fund.
3. Periodic Review Dates for Balances - Fund balances and target level will be
reviewed by staff and the Board during the preparation and approval of the
annual budget.
LIQUIDITY FUNDS
Liquidity Funds will be comprised of the following sub-accounts: the Rate Stabilization
Fund and the Operating Fund. The balance in the Liquidity Funds will fluctuate
depending on the annual operating expenses. The maximum balance in the Liquidity
Funds will be equal to 180 days of the annual budgeted operating expenses.
A. Rate Stabilization Fund -This fund is established to provide flexibility to the Board
when setting rates to allow for absorbing temporary rate fluctuations or for one-
time expenditures.
1. Target Level - This fund shall be maintained at a minimum level of 45 days of
the annual budgeted operating expenses. The maximum level of this fund shall
not exceed 60 days of the annual budgeted operating expenses.
2. Events or Conditions Prompting the Use of the Fund - This fund is intended to
be used to defray any temporary unforeseen and extraordinary increases in the
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Reserve Funds Policy
Approval Date:
August 10, 2010
Policy No: 7.2 Page 6 of 7
cost of water supply. The Board, on a case by case basis, will determine the
amount and timing for any use of the fund.
3. Periodic Review Dates for Balances - Fund balances will be reviewed by staff
and the Board during the preparation and approval of the annual budget.
B. Operating Fund - The Operating Fund is used for unanticipated operating
expenses. This fund is designated by the Board to maintain working capital for
current operations and to meet routine cash flow needs.
1. Target Level - Funding shall be targeted at a minimum amount equal to 90 days
of the District's budgeted total operating expenses, and the maximum amount
shall not exceed 120 days of the budgeted total operating expenses.
2. Events or Conditions Prompting the Use of the Fund - Upon Board authorization,
this fund may be routinely utilized by staff to cover temporary cash flow
deficiencies caused by timing differences between revenue and expenses and
extraordinary decreases in revenues and unexpected increases in expenses.
3. Periodic Review Dates for Balances - Fund balances and target level will be
reviewed by staff and the Board during the preparation and approval of the
annual budget.
Investment Guidelines
It has been the District’s practice to rely primarily on a pay-as-you-go (pay-go) strategy
to fund capital improvements and replacement of existing assets. However, maintaining a
balance between debt and pay-go sources may provide an added benefit to the District in
terms of allowing for a more optimal investment strategy. In the context of these policies
and in circumstances where such balance is present, the investment portfolio can be
separated into short and long portfolios to maximize investment returns. The balance in
the Liquidity Funds should be kept in short-term investments. Monies in the Capital
Funds, however, may be invested for a longer horizon as the funds are needed in the
later years.
Delegation of Authority
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Reserve Funds Policy
Approval Date:
August 10, 2010
Policy No: 7.2 Page 7 of 7
The Board has sole authority to amend or revise the Reserve Funds Policy. Through
approval of this Policy, the Board has established written procedures for staff to follow in
the management of East Valley Water District’s Funds.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Debt Management Policy
Original Approval Date:
August 10, 2010
Last Revised:
March 8, 2017
Policy No: 7.3 Page
1 of 10
Purpose
The purpose of this Debt Management Policy is to establish guidelines for the issuance and
management of District debt, and to provide guidance for decision makers with respect to
options available for financing infrastructure, and other capital projects, so that the most
prudent, equitable, and cost effective financing can be chosen.
This policy documents the objectives to be achieved by staff both prior to, and subsequent
to, issuance of debt, and is designed to promote objectivity in the decision making process,
and to facilitate the financing process by establishing important policy decisions in
advance.
Goals
It is a goal of the District to provide for the infrastructure and capital project needs of its
ratepayers, financing those capital project needs from a combination of current revenues,
available reserves, and prudently issued debt.
Debt is an equitable means of financing projects and represents an important means of
providing for the infrastructure and project needs of the District's customers. Debt will be
used to finance projects if:
• Debt is issued and managed prudently;
• Debt enables the District to maintains a sound fiscal position;
• Issuing the debt will not negatively impact the District’s credit rating;
• The District's goal of equitable treatment of all customers, both current and future,
would be met;
• It is the most cost-effective means available to the District; and
• It is fiscally responsible under the prevailing economic conditions.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Debt Management Policy
Original Approval Date:
August 10, 2010
Last Revised:
March 8, 2017
Policy No: 7.3 Page
2 of 10
Budget Integration
Issuance of debt may only be utilized to finance a capital project(s). Debt proceeds are
not to be used to fund operating expenses. The decision to incur new indebtedness should
be integrated with the Board-adopted annual Operating Budget and Capital Improvement
Program (CIP) Budget. Issuance of debt for a capital project will not be considered unless
such project has been incorporated into the District’s CIP, or is otherwise approved by the
Board.
Annual debt service payments shall be included in the Operating Budget.
Standards for Use of Debt Financing
When appropriate, the District will use long-term debt financing to:
• Achieve an equitable allocation of capital costs / charges between current and
future system users
• Provide more manageable rates in the near and medium term
• Minimize rate volatility
For growth-related projects, debt financing will be utilized, as needed, to better match
the cost of anticipated facility needs with timing of expected new connections to the
system and spread the costs evenly over time. Capacity / Connection Fees will be
maintained at a level sufficient to finance a portion of growth-related capital costs and
cover related annual debt service requirements.
The District shall not construct or acquire a facility if it is unable to adequately provide
for the subsequent annual operation and maintenance costs of the facility throughout its
expected life.
Capital projects financed through debt issuance will not be financed for a term longer than
the expected useful life of the project.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Debt Management Policy
Original Approval Date:
August 10, 2010
Last Revised:
March 8, 2017
Policy No: 7.3 Page
3 of 10
Methods of Financing
The Finance Department will investigate all possible project financing alternatives
including, but not limited to, annual operating revenue, reserves, bonds, loans, and grants.
When applicable, capacity fees collected from developers will be used to pay for increased
capital costs resulting from new development.
The District may legally issue both short term and long term financing using the debt
instruments described below.
1. Cash Funding – The District funds a significant portion of capital improvements on
a pay-as-you-go basis. Sources for pay-as-you-go may include appropriations from
annual operating revenue, reserves, and grants.
2. Inter-fund Borrowing - The District may borrow internally from other funds with
temporarily surplus cash to meet short term needs in lieu of issuing debt. Purposes
for such could include short term cash flow imbalances due to grant terms (i.e., the
need to incur costs prior to reimbursement) and interim financing pending the
issuance of long term debt. The District funds from which the money is borrowed
shall be repaid with interest, accruing quarterly based upon the apportionment rate
set by the State of California Local Agency Investment Fund (LAIF). To the extent
any inter-fund borrowing is undertaken in anticipation of long-term financing, the
District shall adopt a Resolution of its intention to repay such funds out of tax-
exempt debt proceeds so as to meet the requirement of federal tax law for such
borrowing.
3. Line of Credit – The District may consider a line of credit as a short-term borrowing
option. The Chief Financial Officer (CFO) shall determine when it is prudent to
recommend that the District enter into an agreement with a commercial bank or
other financial institution, for the purpose of acquiring a line of letter of credit.
4. Capital Lease Debt – A lease purchase obligation placed with a lender without the
issuance of securities may be used to finance certain equipment purchases if the
aggregate cost of the equipment exceeds $50,000 and the terms of financing are
cost-effective. The term of a capital lease must be at least five years, and shall not
exceed the useful life of the equipment or ten years, whichever is shorter.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Debt Management Policy
Original Approval Date:
August 10, 2010
Last Revised:
March 8, 2017
Policy No: 7.3 Page
4 of 10
5. State Revolving Fund Loans - The State Revolving Fund (SRF) is a low or zero
interest loan program generally for the construction of water and wastewater
infrastructure projects. The SRF loan interest rate is typically calculated by taking
half of the True Interest Cost (TIC) of the most recent State of California General
Obligation Bonds sale. The repayment term of the loans ranges from 20 to 30 years.
6. Certificates of Participation – The District may issue Certificates of Participation
(COP) which provide financing through a lease, installment sale agreement, or
contract of indebtedness and typically do not require voter approval. Board action
is legally sufficient to authorize a COP issue, and District revenues are pledged for
repayment of COPs under terms specified in the indenture.
7. JPA Revenue Bonds – The District may obtain financing through the issuance of debt
under a joint exercise of powers agreement (East Valley Water District Financing
Authority) with such debt payable from amounts paid by the District under a lease,
installment sale agreement, or contract of indebtedness.
8. Refunding Revenue Bonds – The District may issue refunding revenue bonds to
refund District indebtedness pursuant to the State of California local agency
refunding revenue bond law (Title 5 of the California Government Code)
Financing Team – Roles and Responsibilities
The primary responsibility for developing debt financing recommendations rests with the
CFO. In developing such recommendations, the CFO shall consider the need for debt
financing and assess progress on the current capital improvement program (CIP). The CFO
will present all proposed debt financings to the Board, which has sole authority to approve
the issuance of debt.
1. Bond Counsel - The District will retain external bond counsel for all debt issues.
Bond counsel will prepare the necessary authorizing resolutions, agreements and
other documents necessary to execute the financing. All debt issued by the District
will include a written opinion by bond counsel affirming that the District is
authorized to issue the debt, stating that the District has met all state constitutional
and statutory requirements necessary for issuance, and determining the debt's
federal income tax status.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Debt Management Policy
Original Approval Date:
August 10, 2010
Last Revised:
March 8, 2017
Policy No: 7.3 Page
5 of 10
2. Financial Advisors - The District will utilize the services of independent financial
advisors when deemed prudent by the CFO. Services and compensation caps shall
be defined by contract. The primary responsibilities of the financial advisor are to
advise and assist on bond document negotiations, transaction structuring including
advising on call provision options and timing of issuance, running debt service cash
flow analysis’, assistance in obtaining ratings on the proposed issuance, and
generally acting as an independent financial consultant and economic market
expert.
3. Underwriters - For negotiated sales, the District will generally select or pre-qualify
underwriters through a competitive process. This process may include a request for
proposal or qualifications to firms considered appropriate for the underwriting of a
particular issue or type of bonds. The Chief Financial Officer, with the concurrence
of the General Manager/CEO, will determine the appropriate method to evaluate
the underwriter submittals and then select or qualify firms on that basis. The District
will not be bound by the terms and conditions of any underwriting agreements; oral
or written, to which it was not a party.
Structure and Term
1. Term of Debt – Debt will be structured for the shortest period possible, consistent
with a fair allocation of costs to current and future users. The standard term of long-
term debt borrowing is 10 to 30 years. Consistent with its philosophy of keeping
capital facilities and infrastructure systems in good condition and maximizing a
capital assets useful life, the District will budget to set aside operating revenue to
finance ongoing maintenance and to provide reserves for rehabilitation and
replacement. No debt will be issued for periods exceeding the useful life of projects
to be financed.
2. Debt Repayment – In structuring a bond issue, the District will manage the
amortization of the debt and, to the extent possible, match its cash flow to the
anticipated debt service payments. In addition, the District will seek to structure
debt with aggregate level debt service payment over the life of the debt.
A non-level debt service structure will be considered if it is beneficial to the
District’s overall debt payment schedule, or if such structuring will allow debt
service to more closely match project revenues during the early years of a project’s
operation.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Debt Management Policy
Original Approval Date:
August 10, 2010
Last Revised:
March 8, 2017
Policy No: 7.3 Page
6 of 10
3. Interest Rate Structure – The District currently issues long-term debt on a fixed
interest rate basis only. Fixed rate securities ensure budget certainty through the
life of the issue and avoid the volatility of variable rates.
4. Credit Enhancement - The District will consider the use of credit enhancement on
a case-by-case basis. Types of credit enhancement include letters of credit, bond
insurance, and surety policies. Only when clearly demonstrable savings can be
realized shall credit enhancement be utilized.
5. Debt Service Reserve Funds – Debt service reserve funds are held by the Trustee
to make principal and interest payments to bondholders in the event that pledged
revenues are insufficient to do so. The District will fund debt service reserve funds
when it is in the District’s overall best financial interest.
In lieu of holding a cash funded reserve, the District may substitute a surety bond
or other credit instrument in its place. Additionally, the District may decide not to
utilize a reserve fund if the District’s financing team determines there would be no
adverse impact to the District credit rating or interest rates.
6. Call Provisions - In general, the District's securities should include optional call
provisions. The District will avoid the sale of non-callable, long-term fixed rate
bonds, absent careful evaluation of the value of the call option.
7. Debt Limits - There is no specific provision within the California Government Code
that limits the amount of debt that may be issued by the District. The District’s
borrowing capability is limited by the additional bonds test and debt coverage ratio
required by the existing bond covenants. The District will be mindful of its overall
debt burden in the context of its revenues, expenses, reserves, and overall financial
health.
8. Refunding - Current and advance refunding are important debt management tools
for the District. They are commonly used to achieve debt service (interest cost)
savings, remove or change bond covenants, or restructure debt service obligations.
Since the Federal Tax law allows only one advance refunding after the initial
issuance, careful planning and timing must be used.
To the extent that debt having fixed interest rates originally structured with a long-
term amortization structure (ten years or greater) is refunded with fixed rate debt,
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Debt Management Policy
Original Approval Date:
August 10, 2010
Last Revised:
March 8, 2017
Policy No: 7.3 Page
7 of 10
the District will not generally issue refunding debt which extends beyond the final
maturity of the refinanced debt. Extending the final maturity may occur when
warranted, such as restructuring of debt to match debt amortization with the useful
life of the financed assets.
Method of Issuance and Sale
The District will select the method of sale, which best fits the type of bonds being sold,
market conditions, and the desire to structure bond maturities to enhance the overall
performance of the entire debt portfolio. Three general methods exist for the sale of
municipal bonds:
1. Competitive Sale - Bonds will be marketed to a wide audience of investment
banking (underwriting) firms. The underwriter is selected based on its best bid for
its securities. The District will award the sale of the competitively sold bonds on a
true interest cost (TIC) basis. Pursuant to this policy, the General Manager/CEO, is
hereby authorized to sign the bid form on behalf of the District, fixing the interest
rates on bonds sold on a competitive basis.
2. Negotiated Sale – In a negotiated sale, the underwriter or underwriting syndicate is
selected through a Request for Proposal (RFP) process. The interest rate and the
underwriter’s fee are negotiated prior to the sale, based on market conditions. The
underwriter will actively assist the District in structuring the financing and
marketing of bonds including providing assistance in preparing the bond offering
circular.
3. Private Placement - The District may elect to issue debt on a private placement
basis. Such method may be considered if it is demonstrated to result in cost savings
or provide other advantages relative to other methods of debt issuance, or if it is
determined that access to the public market is unavailable and timing
considerations require that financing be completed.
Creditworthiness Objectives
Ratings are a reflection of the fiscal soundness of the District and the capabilities of its
management. Typically, the higher the credit ratings are, the lower the interest cost on
the District’s debt issues. To enhance creditworthiness, the District is committed to
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Debt Management Policy
Original Approval Date:
August 10, 2010
Last Revised:
March 8, 2017
Policy No: 7.3 Page
8 of 10
prudent financial management, systematic capital planning, and long-term financial
planning. The District recognizes that external economic, natural, and other events may
affect the creditworthiness of its debt.
The District’s most recent bond issues have been assessed by the nationally recognized
rating agencies Standard and Poor’s, and Fitch Ratings. When issuing a credit rating, rating
agencies consider various factors including but not limited to:
• District’s fiscal status
• District management capabilities
• Economic conditions that may impact the stability and reliability of debt repayment
sources
• District reserve levels
• District debt history and current debt structure
• Projects being financed
Post Issuance Administration / Internal Control
1. Investment of Proceeds - The proceeds of bond sales will be invested until used for
the intended project(s) in order to maximize utilization of the public funds. The
investments will be made to obtain the highest level of 1) safety, 2) liquidity, and
3) yield, and may be held as cash. The District’s investment guidelines and bond
indentures will govern objectives and criteria for investment of bond proceeds. The
Finance Department will oversee the investment of bond proceeds in a manner to
avoid, if possible, and minimize any potential negative arbitrage over the life of the
bond issuance, while complying with arbitrage and tax provisions.
2. Use of Proceeds - Bond proceeds will be deposited and recorded in separate
accounts to ensure funds are not comingled with other District funds. The District’s
Trustee will administer the disbursement of bond proceeds pursuant to each certain
Indenture of Trust or Fiscal Agent Agreement, respectively. To ensure proceeds from
bond sales are used in accordance with legal and tax requirements, invoices are
submitted by the Engineering Department and approved by the Finance Department
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Debt Management Policy
Original Approval Date:
August 10, 2010
Last Revised:
March 8, 2017
Policy No: 7.3 Page
9 of 10
and General Manager/CEO for payment. Requisition for the disbursement of bond
funds will be approved by the District’s CFO.
The Finance Department will be tasked with monitoring the expenditure of bond
proceeds to ensure they are used only for the purpose and authority for which the
bonds were issued and exercising best efforts to spend bond proceeds in such a
manner that the District will meet one of the spend-down exemptions from arbitrage
rebate. Tax-exempt bonds will not be issued unless it can be demonstrated that 85%
of the proceeds can reasonably be expected to be expended within the three-year
temporary period.
3. Arbitrage Compliance - The use of bond proceeds and their investments must be
monitored to ensure compliance with all Internal Revenue Code Arbitrage Rebate
Requirements. The CFO shall ensure that all bond proceeds and investments are
tracked in a manner which facilitates accurate calculation; and, if a rebate payment
is due, such payment is made in a timely manner.
4. Compliance with Bond Covenants – The District is responsible for verifying
compliance with all undertakings, covenants, and agreements of each debt issue on
an ongoing basis. This typically includes ensuring:
• Annual appropriations of revenues to meet debt service payments
• Timely transfer of debt service payments to the Trustee
• Compliance with insurance requirements
• Compliance with rate covenants
The District shall comply with all covenants and conditions contained in the
governing law and any legal documents entered into at the time of the bond offering
or signing of agreements. The CFO or designee will coordinate verification and
monitoring of covenant compliance.
5. Rating Agency Communication - The CFO shall be responsible for maintaining the
District's relationships with Standard & Poor's Ratings Services, Fitch Ratings and/or
Moody's Investment Service. In addition to general communication, the CFO shall
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Debt Management Policy
Original Approval Date:
August 10, 2010
Last Revised:
March 8, 2017
Policy No: 7.3 Page
10 of 10
meet with credit analysts prior to each competitive sale and offer conference calls
with the District financing team in connection with the planned sale.
6. Board Communication - The CFO will report to the Board of Directors any feedback
from rating agencies and/or investors regarding the District's financial strengths and
weaknesses and recommendations for addressing any weaknesses.
7. Continuing Disclosure - The District shall remain in compliance with Rule 15c2-12
by filing its annual financial statements and other financial and operating data for
the benefit of its bondholders by December 31st of each year. The CFO will ensure
the District's timely filing with each Nationally Recognized Municipal Securities
Information Repository.
8. Record Retention - A copy of all debt-related records shall be retained at the
District's offices. At minimum, these records shall include all official statements,
bid documents, bond documents / transcripts, resolutions, trustee statements,
leases, and title reports for each District financing (to the extent available).
Electronic copies - preferably in pdf or CD-ROM format – shall also be retained.
Board Discretion
This policy was drafted with the intent of providing East Valley Water District’s Board-
approved guidelines to management and staff for decisions and recommendations
related to capital financing by the District, and to support the District’s debt obligations
to present and future generations of ratepayers.
This policy is ultimately intended to serve as a guide and it in no way restricts the
ability of the East Valley Water District Board to review proposed rate actions, debt
issuances, or other actions of substance to the District. The Board maintains
authorization to waive elements of the policy in connection with individual financings
at its discretion.
Revised: March 8, 2017
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Capital Assets Policy
Original Approval Date:
September 25, 2013
Last Revised:
January 24, 2018
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 estimated 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:
January 24, 2018
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 assets 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:
January 24, 2018
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:
January 24, 2018
Policy No:
7.4
Page
4 of 4
At the end of each fiscal year, the responsible individuals will submit 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: January 24, 2018
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Fraud Prevention and Detection Policy
Approval Date:
September 25, 2013
Policy No: 7.5 Page 1 of 6
East Valley Water District (District) is committed to protecting its revenue, property,
information, and other assets from any attempt, either by members of the public,
contractors, vendors, agents, or its own employees, to gain by fraudulent conduct,
financial or other benefits at the expense of District customers.
District officials and employees must, at all time, comply with all applicable laws and
regulations. The District shall not condone the activities of officials or employees who
achieve results through the violation of the law or unethical business dealings. The
District does not permit an activity that fails to stand the closest possible public scrutiny.
Purpose
The purpose of this policy is to communicate the District’s intent to deter and investigate
all suspected fraudulent conduct and dishonesty by employees and others. This policy
sets out specific guidelines and responsibilities regarding appropriate actions that must
be followed for the investigation of fraudulent conduct and other similar irregularities.
Definitions
A. Fraud – The intentional false representation or concealment of material fact for
the purpose of personal gain for oneself or others; or inducing another to act
similarly. Fraud and other similar irregularities include, but are not limited to:
1. Claim for reimbursement of expenses that are not job-related or authorized by
current Policy.
2. Forgery or unauthorized alteration of documents (checks, promissory notes,
time sheets, independent contractor agreements, purchase orders, etc.).
3. The taking or other forms of misappropriation, of District assets (cash, checks,
securities, supplies, furniture, equipment, etc.) to include the temporary
removal or “borrowing” of District assets.
4. Improprieties in handling or reporting of money transactions.
5. Authorizing or receiving payment for goods not received or services not
performed.
6. Computer-related activity involving unauthorized alteration, destruction,
forgery, or manipulation of data.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Fraud Prevention and Detection Policy
Approval Date:
September 25, 2013
Policy No: 7.5 Page 2 of 6
7. Misrepresentation of information on documents.
8. Any apparent violation of Federal, State, or Local laws related to dishonest
activities or fraud.
9. Seeking or accepting anything of material value from those doing business with
the district including vendors, consultants, contractors, lessees, and/or
applicants.
B. Employee – In this context, employee refers to any individual or group of
individuals who receive compensation, either full or part-time, from the District.
The term also includes any volunteer who provides services to the District through
an official arrangement with the District.
C. Management – In this context, management refers to any administrator, manager,
director, supervisor, or other individual who manages or supervises employees or
volunteers of the District.
D. Investigator – The District’s General Manager or his designee shall be the
investigator for all allegations of Fraud or other wrongdoing unless the General
Manager is the subject of the investigation. In that case, the President of the
Board of Directors shall assign an alternative investigator.
E. External Auditor – In this context, external auditor refers to independent audit
professionals who perform annual audits of the District’s financial statements.
Policy
All elected officials, appointed committee/board members and employees of the District,
as well as any individual or entity doing business with the District are prohibited from
engaging in fraudulent conduct in the course of their employment, duties, or business
relations with the District.
It is the Policy of the District to identify and promptly investigate any possibility of
fraudulent or related dishonest activities against the District and, when appropriate, to
pursue legal remedies available under the law. This Policy applies to any irregularity or
suspected irregularity, involving employees, consultants, vendors, contractors, outside
agencies, and/or any other parties with a business relationship with the District. Any
investigative activity required will be conducted in an objective and impartial manner
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Fraud Prevention and Detection Policy
Approval Date:
September 25, 2013
Policy No: 7.5 Page 3 of 6
without regard to the suspected wrongdoer’s length of service, position, title, or
relationship to the District. All employees are responsible for the reporting and
prevention of fraud, misappropriations, and other irregularities.
Management is responsible for instituting and maintaining a system of internal control to
provide reasonable assurance for the prevention and detection of fraud,
misappropriations, and other irregularities. Management should be familiar with the
types of improprieties that might occur within their area of responsibility and be alert for
any indications of such conduct.
Employees will be granted whistle-blower protection when acting in accordance with the
reporting provisions of this Policy. When informed of a suspected impropriety, neither
the District nor any person acting on behalf of the District shall for retaliatory reasons do
any of the following:
Dismiss or threaten to dismiss the reporting employee.
Discipline, suspend, or threaten to discipline or suspend the reporting employee.
Impose any penalty upon the reporting employee.
Intimidate or coerce the reporting employee.
Violations of the whistle-blower protection will result in discipline up to and including
dismissal. Nothing herein shall prevent the District from otherwise taking non-retaliatory
disciplinary action under the Personnel Policies or an applicable Memorandum of
Understanding.
The General Manager, following his or her review of the investigation results, will take
appropriate action regarding employee misconduct. Disciplinary action shall be imposed
in accordance with the District’s Personnel Manual and/or Memorandums of
Understanding and can include disciplinary action as severe as termination. Further, the
case may be referred to an appropriate Law Enforcement Agency for possible arrest and
prosecution.
Procedures
A. Management and Non-Management Responsibilities
1. Management is responsible for being alert to, and reporting fraudulent or
related dishonest activities.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Fraud Prevention and Detection Policy
Approval Date:
September 25, 2013
Policy No: 7.5 Page 4 of 6
2. Non-management employees are responsible to report fraudulent or related
dishonest activities.
3. When an improper activity is detected or suspected, management should
determine whether an error or mistake has occurred or if there may be
dishonest or fraudulent activity.
4. If any employee of the District is, or becomes, aware of any activity that may
involve fraud or other dishonest activities, they are to contact the General
Manager immediately unless the General Manager is alleged to have
involvement in the alleged misconduct. If the alleged misconduct is said to
involve the General Manager, the Employee is to immediately notify the
President of the Board of Directors.
5. Management should not attempt to conduct individual investigations,
interviews, or interrogations. However, management is responsible for taking
appropriate corrective actions to ensure adequate controls exist to prevent
reoccurrence of improper actions.
6. All employees shall cooperate fully with the investigator, other involved
departments, and law enforcement agencies in the detection, reporting, and
investigation of criminal acts, including the prosecution of offenders.
7. In dealing with suspected dishonest or fraudulent activities, great care must be
taken. Therefore all employees should avoid the following:
a. Incorrect accusations.
b. Alerting suspected individuals that an investigation is underway.
c. Treating employees unfairly.
d. Making statements that could lead to claims of false accusations or other
offenses.
8. In handling dishonest or fraudulent activities, all employees have the
responsibility to:
a. Make no contact (unless requested) with the suspected individual to
determine facts or demand restitution. Under no circumstances should
there be a reference to “what you did”, “the crime”, “the fraud”, “the
misappropriation” etc.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Fraud Prevention and Detection Policy
Approval Date:
September 25, 2013
Policy No: 7.5 Page 5 of 6
b. Avoid discussing the case, facts, suspicions, or allegations with anyone
outside the District, unless specifically directed to do so by the General
Manager or District’s Legal Counsel. (Employees do have the right to consult
with an attorney and/or their union representative).
c. Avoid discussing the case, facts, suspicions, or allegations with anyone other
than employees who have a need to know.
d. Direct all inquiries from the suspected individual, or his or her
representative, to the Investigator. All inquiries from the media should also
be directed to the Investigator.
B. Investigator Responsibilities
1. The Investigator has the primary responsibility for the investigation of all
activity as defined in this Policy.
2. Upon receiving an allegation of Fraud or other irregularities, the Investigator
will promptly conduct a thorough investigation.
3. Employees must cooperate with the Investigator. Refusal, or the conveyance of
inaccuracies, may subject an employee to disciplinary action up to and
including dismissal.
4. The Investigator shall be available and receptive to receiving relevant,
confidential information to the extent allowed by law.
5. If evidence is uncovered showing possible dishonest or fraudulent activities, the
General Manager will proceed as follows.
a. Take immediate action, in consultation with the District’s Legal Counsel, to
prevent the theft, alteration, or destruction of evidentiary records. Such
action may include, but is not limited to:
Removing the records and placing them in a secure location, or
limiting access to the records.
Preventing the individual suspected of committing the fraud from
having access to the records.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Fraud Prevention and Detection Policy
Approval Date:
September 25, 2013
Policy No: 7.5 Page 6 of 6
b.Take immediate action to improve internal control. Such action shall result
in the General Manager having reasonable comfort that the changes in
procedures will prevent similar future occurrences.
c.Take immediate action, in consultation with the District’s Legal Counsel to
notify the appropriate Law Enforcement Agency (if appropriate) and to take
further steps to recover any financial loss incurred by the District.
6.Unless exceptional circumstances exist, a person under investigation for fraud
is to be given notice in writing of the essential particulars of the allegations
following the conclusions of the investigation. Where notice is given, the
person against whom allegations are being made may submit a written
explanation to the Investigator no later than seven calendar days after notice is
received.
7.Upon conclusion of the investigation, the results will be reported to the
President of the Board of Directors.
Reviewed May 16, 2018
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.
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
Authorized Broker-Dealers
The CFO/Treasurer will maintain a list of approved financial institutions authorized to
provide investment services to the public agency in the State of California. These may
include primary dealers authorized to buy and sell government securities in direct dealings
with the Federal Reserve Bank of New York, or regional dealers that qualify 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
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
guaranteed as to principal and interest by Fed eral agencies or United States
government sponsored enterprises (CGC §53601(f)). Maximum maturity is limited to
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% 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%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 a 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 NRSRO and must be issued
only by general corporations that are organized and operating within the United
States and have total assets in excess of $500 million. The general corporation must
have an ‘A’ rating or better on debt other than commercial paper, if any, assigned
by an NRSRO (CGC §53601(h)).
Purchases shall not exceed 5% of the outstanding paper of the issuing corporation,
and maximum maturity is restricted to 270 days. This type of investment shall not
exceed 15% of the District’s investment portfolio.
G. Placement Service Deposits. The District may invest in Certificates of Deposit
placed with a private sector entity that assists in the placement of deposits with
eligible financial institutions located in the United States (CGC §53601.8). The full
amount of the principal and the interest that may be accrued during the maximum
term of each deposit shall at all times be insured by federal deposit insurance.
Placement Service Deposits, in combination with bank certificates of deposit shall
not exceed 25% of the value of the District’s investments at any time. The maximum
investment maturity will be restricted to three years.
H. Medium Term Notes. The District may invest in corporate and depository institution
debt securities issued by corporations organized and operating within the United
States, or by depository institutions licensed by the United States or an y state and
operating within the United States (CGC §53601(k)).
Securities eligible for investment under this section shall be rate d ‘AA’ or better 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
7 of 15
an NRSRO. The maximum maturity is restricted to five years, and investment in this
category of security shall not exceed 30% of the District’s investible funds, and not
more than 5% 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 a 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.
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
Diversification and Maximum Maturities
The District will diversify its investment by security type and institution. With the
exception of the US Government, its agencies and instrumentalities, and the Local Agency
Investment Fund, no more than 5% of the District’s total investment portfolio will be
invested in a single security type 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 repor t 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 combined statements for each individual fund and
account group prepared in conformity with Generally Accepted Accounting Principles
(GAAP). It also includes supporting schedu les 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 compani es. 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 gua rantees 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 regional banks,
and about 5,700 commercial banks that are members of the system.
Government National Mortgage Association (GNMA or Ginnie Mae): Securities influencing
the volume of bank credit guaranteed by GNMA and issued by mortgage bankers,
commercial banks, savings and loan associations, and other institutions. Security holder is
protected by full faith and credit of the U.S. Government. Ginn ie Mae securities are backed
by the FHA, VA, or FHA mortgages. The term “pass-throughs” is often used to describe
Ginnie Maes.
Liquidity: A liquidity asset is one that can be converted easily and rapidly into cash without
a substantial loss of value. In the money market, a security is said to be liquid if the spread
between bid and asked prices is narrow and reasonable size can be done at those quotes.
Local Government Investment Pool (LGIP): The aggregate of all funds from political
subdivisions that are placed in the custody of the State Treasurer for investment and
reinvestment.
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 transactions. A master agreement will often specify, among other
things, the right of the buyer-lender to liquidate the underlying securities in the event of
default by the seller borrower.
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 securiti es 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 t o 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 t he adjustment
spread over the period from the date of purchase to the date of maturity of the bond.
Revised: April 25, 2018
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Operating and Capital Budget Policy
Original Approval Date:
August 22, 2018
Last Revised:
Policy No: 7.7 Page
1 of 5
Purpose
The Operating and Capital Budgets are developed on an annual basis through the
establishment of District-wide goals, a Capital Improvement Program (CIP),
program/departmental goals and objectives, and performance measures/key performance
indicators. Together, these goals and activities provide a comprehensive plan to deliver
efficient services to ratepayers and stakeholders of the East Valley Water District (District)
in a manner that aligns resources with the policies, Strategic Plan, and Vision of the
District.
The formulation of the Operating and Capital Budgets, including the publication of a
comprehensive budget document, is one the most important financial activities that the
District undertakes each year. This budget policy is intended to provide guidelines to assist
in the formulation and consideration of broader implications of financial discussions and
decisions, which ultimately assist in completing financial planning cycles that deliver
efficient and effective public service.
Authority
The Board of Directors are responsible for policy formulation, and overall direction setting
of the District. This includes the approval of financial policies which establish and direct
the operations of the District. The General Manager/CEO is responsible for carrying out the
policy directives of the Board of Directors and managing the day-to-day operations of the
District. This policy shall be administered on behalf of the District by the General
Manager/CEO and Chief Financial Officer.
Scope
This policy shall apply to all Funds under the budgetary and fiscal control of the Board of
Directors.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Operating and Capital Budget Policy
Original Approval Date:
August 22, 2018
Last Revised:
Policy No: 7.7 Page
2 of 5
Policy
A. Basis of Budgeting
1. The District’s Proprietary Funds are budgeted on the Full Accrual Basis of
Accounting with the following exceptions:
a. Changes in the fair value of investments are not treated as adjustments to
revenue in the annual operating budget;
b. Compensated absence liabilities are expensed when paid;
c. Pension expense is budgeted based on employer contribution rates;
d. Principal payments on long-term debt are treated as expenses in the annual
operating budget;
e. Depreciation expense is not recognized in the annual operating budget; and
f. Capital purchases are recognized as an expense in the annual operating
budget.
B. Budgetary Control
1. The District shall adopt an annual balanced budget on or before June 30 of each
year, in accordance with all state and county laws.
2. Program management is responsible for administering their respective Programs
within the financial constraints described by the adopted budget.
3. The Chief Financial Officer will provide updates on the District's financial position
by regularly reporting to the Board of Directors the status of actual expenditures,
expenses, and revenues compared to the adopted budget. Further, the Chief
Financial Officer will ensure that program management has access to timely and
accurate financial data.
C. Balanced Budget
1. The District shall adopt a balanced budget for each Fund which this policy covers.
A budget is balanced when the sum of estimated revenues and appropriated Net
Position are equal to expenditures.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Operating and Capital Budget Policy
Original Approval Date:
August 22, 2018
Last Revised:
Policy No: 7.7 Page
3 of 5
2. Operating Revenues and Other Financing Sources must fully cover Operating
Expenditures/Expenses, including Debt Service, and Other Financing Uses.
Operating Expenditures/Expenses for the purposes of balancing the annual
budget shall include that year's contribution to the CIP.
3. One-time revenue sources and development fees must not be used to fund
operational costs.
4. Minimum Reserve policy levels must be maintained unless reserves are being used
in accordance with the purposes permitted by the District's policy (see District
Reserve Policy for further guidance).
5. The balancing of Operating Revenues with Operating Expenditures (as defined
above) is a goal that should be applied over a period of time which extends
beyond current appropriations. Temporary shortages or operating deficits, can
and do occur, but they will not be permitted as extended trends.
D. Formation of the Budget
1. District Vision - The budget shall be constructed around the Board of Directors’
vision for the long-term direction of District services and the associated desired
culture and environment. When appropriate, a needs assessment of stakeholders'
priorities, challenges, and opportunities shall be integrated into the visioning
process to assist with the establishment of both short-term and long-term goals.
2. Programmatic Budgeting - The budget shall be based on Programs in order to
provide insight into the costs of service that the District provides. Deliverables
and specific actions shall be detailed at the Programmatic level, which support
the goals and objectives outlined within the Strategic Plan and District Vision.
3. Financial Information - The budget shall display estimated beginning Net
Position, estimated revenue and receipts, appropriations, and the estimated
year-end Net Position.
E. Estimates of Revenue, Expenditures, and Expenses
1. Objective Estimates - The District shall take an objective and analytical approach
to forecasting revenues, expenditures, and expenses as accurately as possible.
Though the District will use the best information available to estimate revenues,
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Operating and Capital Budget Policy
Original Approval Date:
August 22, 2018
Last Revised:
Policy No: 7.7 Page
4 of 5
absolute certainty is impossible. Should revenues be overestimated, the spending
plans and priorities established during the budget process shall be used to
propose appropriations and spending as required to bring the budget into
balance.
2. Regular Monitoring of Projections - The Finance department shall monitor
revenue incomes and expenditure/expense outflows to assess the implications
of the annual budget in order to provide timely updates on actual financial
performance.
3. Long-Term Forecasts - The Finance department shall develop and maintain long-
term financial forecasts, at least five years into the future, in order to help the
District assess its long-term financial sustainability.
F. Stakeholder Participation - The District shall provide meaningful opportunities for
the stakeholders to provide input into the financial planning and budget process,
before a budget is adopted.
G. Create Value for the Stakeholders - The District seeks to maximize the value each
stakeholder receives through its spending. Accordingly, staff should develop budget
tools and methods to measure and maximize value, particularly by critically
examining existing spending patterns.
H. Address Long-Term Liabilities - The District shall fully fund current portions of long-
term liabilities in order to maintain the trust of creditors and avoid accumulating
excessive long-term liabilities.
I. Responsibilities and Calendar - The District's fiscal year runs from July 1 through
June 30. The Chief Financial Officer shall submit or cause to be submitted annually
to the Board of Directors no later than June during a Public Board Meeting, a
proposed budget governing expenditures/expenses of all District Funds, including
Capital Outlay and CIP, for the following fiscal year. The budget, after being
reviewed and adopted, shall constitute the Board of Directors' appropriation of all
Funds for such fiscal year.
J. Budget Amendments - Amendments shall be considered and adopted by the Board
of Directors during a Public Board meeting except for specific adjustments when
limited authority is delegated to the General Manager/CEO.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Operating and Capital Budget Policy
Original Approval Date:
August 22, 2018
Last Revised:
Policy No: 7.7 Page
5 of 5
Quality Control and Quality Assurance
It is the responsibility of the Chief Financial Officer to ensure the presence of procedures
that provide sufficient guidance to affected District personnel to fulfill the intent of this
policy.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Community Advisory Commission Policy
Original Approval Date:
March 9, 2018
Policy No: 8.1 Page 1 of 3
Purpose
The purpose of this policy is to establish guidelines and instructions for establishing a
Community Advisory Commission authorized to hear appeal requests for water supply
shortage violations and make recommendations on their enforcement to the Board of
Directors
Definitions
A.For the purpose of this policy, the following definitions shall apply:
1.District: East Valley Water District
2.Board: A member of the East Valley Water District Board of Directors
3.Commission: The Community Advisory Commission
4.Applicant: Customer or property owner appealing a penalty levied pursuant to
the Water Supply Contingency Plan
Policy
A.The Commission may be presented with District projects and programs as a means of
community engagement to garner feedback at various stages of implementation.
a.The Commission does not have the authority to implement or cancel District
projects or programs.
B.Applicants shall have a right to a hearing, in the first instance by the General
Manager, with the right of appeal to the Commission, and ultimately to the Board,
pursuant to the procedures hereinafter set forth in Ordinance 396
C.A majority of the Commission members shall constitute a quorum. A quorum shall be
present for the Commission to take any official action.
D.Commission members shall serve on a voluntary basis, with no compensation, stipend,
or benefits.
E.Commission membership shall require the following:
Last Revised:
September 28, 2016
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
a.A Commission Chair shall be appointed by the Board for a one (1) year term
of office to preside over all Commission meetings and shall be eligible to
vote on any matter before the Commission;
b.A member of the Commission moving outside the District shall constitute a
resignation from the Commission effective upon the date the member fails
to meet appointment criteria;
c.Commission members must inform the designated staff member of any
anticipated absence and notification shall be made immediately after
receipt of the agenda. Absences due to sickness, death, or other
emergencies of a like nature shall be regarded as approved absences and
shall not affect the member’s status on the Commission; except that in the
event of a long illness or other such case for prolonged absence the member
may be replaced;
d.A District staff member shall serve as liaison to the Committee, attend all
meetings of the Commission, and participate in any discussions, but shall
not have the right to vote on any matter before the Commission; and
Commission Appointment Criteria
The Commission shall consist of up to five (5) District customers recommended by the
General Manager/CEO, appointed by the consensus of the Board, meeting the following
appointment criteria:
A.Customer of the District and reside within the District boundary;
B.Non-governing Board Member of employee of the District;
C.Able to serve a two-year term, with no term limits at the pleasure of the Board;
D.Able to participate in monthly meetings, as needed;
E.Meet the selection process criteria as established by the General Manager/CEO; and
F.Appointment may be revoked by the Board of Directors at any time.
Policy Title: Community Advisory Commission Policy
Original Approval Date:
March 9, 2018
Policy No: 8.1 Page 2 of 3 Last Revised:
September 28, 2016
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Meeting Schedule
The Commission shall establish a recurring meeting date and time to hear authorized
appeal requests for water supply shortage violations. Meetings may be cancelled in the
absence of appeal requests.
Meeting Procedures
Meetings shall be conducted in a manner that is consistent with state and local laws.
Attachments
A.Water Supply Contingency Plan (Ordinance 396)
Original: August 26, 2015 - Conservation Advisory Commission
Revised: March 9, 2016 - Changed to Community Advisory Commission
September 28, 2016
Policy Title: Community Advisory Commission Policy
Original Approval Date:
March 9, 2018
Policy No: 8.1 Page 3 of 3 Last Revised:
September 28, 2016
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Public Records Request Policy
Original Approval Date:
March 14, 2018
Last Revised: Policy No: 8.2 Page
1 of 3
Purpose
To establish District policy and guidelines concerning accessibility of District records.
Background
In enacting the California Public Records Act, the State Legislature declared that access to
information concerning the conduct of the people’s business is a fundamental and necessary right
of every person in this state.
A.The term “District” shall mean East Valley Water District.
B.The term “public records” includes any writing containing information relating to the conduct
of the public’s business prepared, owned, used, or retained by the District regardless of physical
form or characteristics.
C.The term “writing” means handwriting, typewriting, printing, photo-stating, photographing,
photocopying, electronic mail, facsimile, and every other means of recording upon any form of
communication or representation, including letters, words, pictures, sounds, symbols, or
combination thereof and all papers, maps magnetic or paper tapes, photographic films and
prints, magnetic or punch cards, discs, drums and other documents regardless of the manner
in which the record has been stored.
D.The term “person” includes any natural person, corporation, partnership, limited liability
company, firm or association.
E.The term “requester” shall mean a person, or representative of a person, who has submitted a
request for records to the District by mail, fax, e-mail, telephone or in person.
Policy
Public records of the East Valley Water District (“District”) shall be open to inspection during
normal office hours at the District’s headquarters located at 31111 Greenspot Road, Highland,
California. “Public Records” are all records of the District retained in the ordinary course of District
business except those specifically exempted by law.
Procedure
A.Any person requesting to inspect any public record shall identify the specific records to be
inspected. The District shall, in accordance with Government Code Section 6253.1, assist the
member of the public in making a focused and effective request that describes an identifiable
record or records to the extent reasonable.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Public Records Request Policy
Original Approval Date:
March 14, 2018
Last Revised: Policy No: Page
2 of 3
B. Any person may obtain a copy of any identifiable public record unless exempt from public
disclosure. The District encourages members of the public to submit all records requests in
writing to the District’s office, preferably using the Public Record Request attached as Exhibit
“A” to this policy. Written requests reduce any misunderstandings between the requester and
the District’s staff, which allows District’s staff to respond to records requests in a timely
manner and with greater efficiency. However, the District will not deny a request for records
solely because it is not submitted in writing.
C. The requester should specify the records to be inspected/copied with sufficient detail to enable
the District to identify the particular records. If the request seems ambiguous or unfocused,
District staff will make a reasonable effort to obtain additional clarifying information from the
requester that will help identify the record or records. Upon request, an exact copy shall be
provided unless impracticable to do so.
D. Within ten (10) calendar days from receipt of such request, the District Clerk or designee shall
determine whether the request, in whole or in part, seeks copies of disclosable public records
in the possession of the agency and shall promptly notify the person making the request of the
determination and the reasons thereof. If the District Clerk is uncertain whether the record is
exempt from disclosure under the California Public Records Act or whether, given the facts of
the particular case, the public interest served by not making the record public clearly outweighs
the public interest served by disclosure of the record, the District Clerk shall consult with legal
counsel for the District during this initial 10-day period. In unusual circumstances, the time
limit for providing the determination on a records request may be extended by written notice
to the person making the request, setting forth the reasons for the extension and the date on
which a determination is expected to be provided. Any extension of time will not last more
than fourteen (14) calendar days. A response to a written request for inspection or copies of
public records that includes a determination that the request is denied, in whole or in part,
shall be in writing.
E. Unusual circumstances means the following, but only to the extent reasonably necessary to the
proper processing of the particular request:
1. The need to search for and collect the requested records from field facilities or other
establishments that are separate from the office processing the request.
2. The need to search for, collect, and appropriately examine a voluminous amount of
separate and distinct records that are demanded in a single request.
3. The need for consultation, which shall be conducted with all practicable speed, with
another agency having substantial interest in the determination of the request or among
two or more components of the agency having substantial subject matter interest
therein.
4. The need to compile data, to write programming language or a computer program, or
to construct a computer report to extract data.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Public Records Request Policy
Original Approval Date:
March 14, 2018
Last Revised: Policy No: Page
3 of 3
F. Should any request for public records contain exempt information including, but not limited to
that listed under Government Code sections 6253.5 and 6254, any portion that can reasonably
be segregated of such record shall be provided to any person requesting such record after
deletion of the portions which are exempt from disclosure by law.
G. Inspections of public records shall be made only at the District office, and no document shall
be removed from the District’s premises. A representative of the District will be present during
the inspection of any records.
H. The public records policy of the District shall at all times be subject to the California Public
Records Act (“Act”) as it may be amended from time to time, and if there is any conflict
between the Act and this policy, the Act shall prevail.
I. In addition to maintaining public records for public inspection during office hours, the District
may comply with a request by posting any public record on its Internet Website and direct a
member of the public to the location on the Internet Website where the public record is posted.
However, if the member of the public requests a copy of the public record due to an inability
to access or reproduce the public record from the Internet Website, the District shall promptly
provide a copy of the public record.
Fees
Upon any request for a copy of public records which reasonably describes an identifiable record
or information produced therefrom and which is not otherwise exempt from disclosure, the
District shall make the records promptly available to any person upon payment of fees covering
the direct cost of duplication (see District Copy Cost Schedule). Upon request, an exact copy
shall be provided unless impracticable to do so.
District Copy Cost Schedule
A. A request for a copy of an identifiable written public record or information produced
therefrom, or a certified copy of such record, shall be accompanied by payment of a fee in
the amount of twenty-five cents ($0.25) per page for standard single-sided copies; fifty
cents ($0.50) for standard double-sided; forty cents ($0.40) for 11x17 sheets.
B. Reproduction of blueprints, maps and similar documents will be provided by the District as
follows: Fees for blueprints, maps, etc. must be paid equal to the fee billed to the District
for the service provided by an outside service provider upon receipt of the reproductions
by the person requesting the copies. Fees for maps, oversized (2x3) documents and similar
products that the District can reproduce will be charged three dollars and fifty cents ($3.50)
per page. A deposit may be required for copying a large volume of material.
C. Requests for digital records and data can usually be met without charge.
Board of Director’s Handbook
EAST VALLEY WATER DISTRICT
31111 Greenspot Road Highland, CA 92346
Adopted October 8, 2014
East Valley Water District Board of Director’s Handbook
Table of Contents
Preamble ...................................................................................................................... 1
Chapter 1 – Role and Authority .................................................................................... 2
Chapter 2 – Board Values and Principles ..................................................................... 4
Chapter 3 – Board Member Interaction ........................................................................ 6
Chapter 4 – Staff Interaction ........................................................................................ 7
Chapter 5 - Governance ............................................................................................... 10
Chapter 6 – Public Interaction ...................................................................................... 13
Chapter 7 – Director’s Code of Conduct ....................................................................... 15
Appendix 1 – Board Member Acknowledgement
1
Adopted October 8, 2014
East Valley Water District Board of Director’s Handbook
In support of East Valley Water District’s mission, the Governing Board will develop, adopt, and maintain
a Board of Director’s Handbook. The intent is to educate and continually guide the Board to a high level
of strategic success and achievement in accord with best practices. Contained in the Handbook shall be
pertinent District information, controlling legislation, rules and regulations having authority, as well as
local policies enacted by the Board. The Handbook will serve as a resource for directors, staff and
members of the public in determining the manner in which matters of District business are to be
conducted.
Preamble
The customers served by the East Valley Water District are entitled to elected Board members who are
fair, ethical, and accountable. Such Board members constantly seek to reflect the following qualities:
• They comply with both the letter and the spirit of the laws and policies affecting operations of
the District;
• They are independent, impartial, and fair in their judgment and actions;
• They use their public office for the public good, not for personal gain; and
• They conduct public deliberations and processes openly, unless legally confidential, in an
atmosphere of respect, civility and transparency.
To this end, the East Valley Water District Board of Directors has adopted this Director’s Handbook,
along with its Code of Conduct, to encourage public confidence in the integrity of the District and its fair
and effective operation. The Board’s commitment to these principles is captured in the following Core
Values:
1. Leadership in regional government, in the water industry, and in the local community.
2. Partnership with other agencies, stakeholders, and customers to enhance service.
3. Stewardship of ratepayer dollars and the region’s precious water resources.
2
Adopted October 8, 2014
4. East Valley Water District
5. Board of Director’s Handbook
6.
Chapter 1 – Role and Authority
Role of the Board
The primary role of the Board is to establish policies that guide the District to meet its mission. The
policy decisions and actions of the Board constitute the "action" of the Board of Directors.
The Board has three (3) major responsibilities:
1. Promote the best interests of the District's customers by establishing policies that support the
vision and mission of the District and by ensuring the implementation of those policies. Policies
include the governing principles, plans, and course of action for the organization. Policy-making
is the process of visionary planning and should reflect the broadest possible principles and
provide parameters within which staff can operate. Policy-making sets the overall direction for
the District.
2. The Board shall establish policies that ensure fiscal stability and the effective use of funds. In
order to achieve this, each fiscal year the Board adopts a budget covering the anticipated
revenues and expenditures of the District and reviews monthly and quarterly budget reports
throughout the year. Additionally, from time to time, the Board reviews and/or adopts
amendments to the District's cash reserve, investment, and other policies as necessary.
3. Hire a General Manager and CEO to manage the day-to-day operations of the District. The Board
holds the General Manager/CEO accountable for the effective operational management of the
District. An additional responsibility of the Board is to properly evaluate the General
Manager/CEO on an annual basis.
In order to fulfill these responsibilities, the Board shall adhere to the following basic policy guidelines:
1. That the Board of Directors provides policy direction and leadership for the District.
2. That Board members recognize and respect the distinction between the policy setting role and
the day-to-day implementation of policy by staff.
3. That it is the responsibility of the Board (from a policy perspective) to ensure that the District is
a progressive, innovative, and well-managed agency.
4. That the Board exercises authority only collectively as a Board, and individual Board members
shall not act on their own volition.
5. That the Board understands and provides leadership in regional, state, and national issues
affecting the operations of the District.
3
Adopted October 8, 2014
6. That the Board respects the role of constituents in the governance of the District, and
encourages their participation.
7. That key stakeholders should be consulted when and where appropriate.
8. That Board members represent the District in business related matters at meetings and events
other than regular meetings of the Board.
9. That the Board maintains a high level of communication with the General Manager/CEO. When
a Board member is going to be out of town or unavailable, the General Manager/CEO or his
executive assistant is notified in a timely manner.
10. That Board members are provided the same information, where practical, including staff
reports, committee agendas, customer inquiries, background information, etc.
11. That the Board is responsible for informing the General Manager/CEO of any specific
information they want to receive from outside agencies or organizations. Staff is responsible for
providing same in a timely manner.
12. That the Board is aware that all written and electronic documentation and communication is
legally considered in the public domain. This excludes information protected by attorney-client
privilege.
Authority
The East Valley Water District is a California Special District, an independent government agency which
provides water delivery service to the customers within its boundaries. The District operates under
authority of Division 12 of the California Water Code for County Water District. The District is governed
by an elected Board of Directors who has authority to manage and conduct the business and affairs of
the District, including the authority to fix terms and conditions of employment (including compensation)
of District employees. The Board is authorized to delegate those powers. The Board has retained
authority to employ and set terms and conditions for employment of the General Manager and CEO of
the District, but the General Manager/CEO has management authority over subordinate employees.
In order for a Board of Directors to function in an effective manner, it is important that each member
understand his/her respective role and the relationship they have to other members of the Board and to
the General Manager/CEO. This also requires an understanding of the level of performance required to
carry out the duties of a Board Member. The officers of the Board of Directors include the Chairman and
Vice-Chairman. The Secretary to the Board of Directors is defined within the State Water Code as the
General Manager/CEO of the District. Officers of the District are selected every two years corresponding
with the general election for the Board or as otherwise determined by the Board of Directors.
4
Adopted October 8, 2014
7. East Valley Water District
8. Board of Director’s Handbook
9.
Chapter 2 – Board Values and Principles
Adherence to established organizational values and principles can help to promote a collaborative work
environment that encourages sharing, creativity, openness to new ideas, and an emphasis on customer
satisfaction.
Putting Board Values into Play
Service Delivery
• Strive to exceed customers’ expectations and proactively explore opportunities to provide
better service
• Emphasize thoroughness and completeness
• Treat every person with kindness and humility
• Be courteous, responsive and professional
• Actively listen to understand others
Leadership
• Take ownership of, and responsibility for, actions, risks, and results
• Use outcomes, whether positive or negative, as learning opportunities
• Make sound decisions from experience, good judgment and collaboration
• Give and seek clear expectations
• Look for solutions that contribute to desired results
• Act in all endeavors with an ethical, honest and professional manner
• Honor commitments in order to build trust
• Be truthful in word and deed
Openness
• Approach every situation with good intentions
• Encourage new and diverse ideas
• Listen, cooperate, and share across the organization
• Value and recognize individual contributions
5
Adopted October 8, 2014
Balance
• Recognize the need for personal and professional balance
• Do not forsake long-term goals in order to satisfy short-term needs
• Support an environment that is optimistic and enjoyable in which relationships can prosper
across the organization
Guiding Principles
1. Insuring a safe and efficient water delivery system.
2. Designing and administering the highest quality, secure and innovative programs.
3. Delivering services in an equal, accurate, courteous, professional and prompt manner.
4. Providing meaningful information and education to all customers in a timely manner.
5. Attracting, developing, and retaining a competent, creative and highly motivated workforce.
6. Maintaining public trust by being an ethical, sensitive, effective and cost efficient organization in
service to customers and employees alike.
7. Sustaining our role as leaders in the community.
6
Adopted October 8, 2014
8. East Valley Water District 9. Board of Director’s Handbook
10.
Chapter 3 – Board Member Interaction
When the members of the East Valley Water District Board are elected to office, there is an expectation
that they will bring a body of personal experience, knowledge and judgment to the development of
good public policies. However, there is also an expectation that each individual will strive to work with
fellow Board members and District staff as part of a team to address the various challenges and
opportunities that are presented to them. The following represents Board member “best practices” for
interacting with each other.
1. Board members are representatives of the District's culture and values its customers at all times.
2. Business attire at Board meetings, and when representing the District at public events, is
appropriate.
3. Relationships between Board members are informal and always professional.
4. Board members are aware of the rules governing communication among fellow Board members
in compliance with mandated open meeting (Brown Act) law requirements. This includes
communications by electronic, written and verbal methods.
5. Board members lead by example in their interaction and communication style and practice.
6. Board members function as a team and are not exclusive in their communication and
interaction.
7. To the extent possible, Board members will be cooperative in supporting each other.
8. Personal attacks against fellow Board members or staff are not representative of a constructive
culture.
7
Adopted October 8, 2014
East Valley Water District Board of Director’s Handbook
Chapter 4 – Staff Interaction
The efficient and effective delivery of services to the customers of the East Valley Water District is a
collaborative effort between the elected members of the Board of Directors and those individuals
employed to execute the District’s day-to-day operations. The Board’s relationship and interaction with
its professional staff must be carefully cultivated and nurtured at all times.
The Board’s Relationship with the General Manager/CEO
One of the most vital relationships the District Board has is between itself and its General Manager/CEO.
The General Manager/CEO is the primary agent of the Board and is the one to whom the Board
delegates its authority to manage and administer the District's daily operations in accordance with
approved policies. This position is important because to be successful, the District requires leadership
and vision from its General Manager/CEO. In this capacity, the General Manager/CEO has two roles:
Chief Executive Officer and top advisor to the Board. As the most visible employee, the General
Manager/CEO truly represents the District to its many constituencies.
Much of the District’s success will be dependent upon a positive relationship between the Board and its
General Manager/CEO. Paradoxically, the leadership nature of both parties means that this relationship
will likely create some inherent tensions; a strong Board and a strong General Manager/CEO will not
always agree on every issue. However, both must consciously focus on maintaining a shared sense of
purpose, open communication, honesty, trust and mutual support. While the General Manager/CEO is
hired to carry out Board policy directives, the Board also looks to him/her for guidance and leadership.
One of the most important decisions a Board will make is the selection of a General Manager/CEO in
whom they have confidence. The Board must be able to support the decisions of the General
Manager/CEO and grant him/her the authority to manage and lead the District. This is critical for
building the General Manager/CEO’s credibility with the staff and the community. Both parties should
always publicly support each other.
It is the General Manager/CEO’s responsibility to ensure that the Board members have all the
information they need to make Board-level decisions and that all Board members are provided the same
information. Board members expect the General Manager/CEO to make a recommendation on every
issue before the Board, except those that are strictly reserved to the Board.
The following are guidelines are intended to help define the relationship between the Board and the
General Manager/CEO:
8
Adopted October 8, 2014
1. The General Manager/CEO prepares annual goals which are approved by the Board of Directors
as a part of a formal performance review process.
2. The Board of Directors will provide the General Manager/CEO with a written evaluation
annually.
3. Board members are encouraged to contact the General Manger/CEO about any subject related
to the operations of the District. Similarly, the General Manger/CEO may discuss any District
related issue with any member of the Board of Directors.
4. Concerns regarding overall District operations or specific department issues or department
heads are addressed with the General Manager/CEO.
5. Critical information will be provided to all members of the Board by the General Manager/CEO,
which feedback may be verbal, written, or electronic in nature.
6. The General Manager/CEO handles interdepartmental issues .
7. The General Manager/CEO shall advise the Board of Directors when he/she is out of the office
for an extended period of time and shall designate the individual who shall be acting General
Manager/CEO during that time.
Request for Staff Resources
Individual Board member requests for research or other staff work must be directed to the General
Manager/CEO, or the District’s legal counsel regarding legal matters. If, in the judgment of the General
Manager/CEO, more than one hour of staff time will be required to complete the requested
task/project, the item may be agendized to solicit Board authorization to expend the additional time
necessary on the proposed item. Staff responses to Board member requests shall be distributed to all
Board members.
Interactions with Staff
District staff serves the entire Board of Directors as a whole. Consequently, the Board should adhere to
the following guidelines in its interaction with the staff:
1. A Board member shall not direct staff to initiate any action, change a course of action, or
prepare any report without the approval of the General Manager/CEO and, if necessary, a
majority of the Board.
2. Board members shall not attempt to pressure or influence discussions, recommendations,
workloads, schedules, or priorities.
3. When preparing for Board meetings, Board members should direct questions ahead of time
to the General Manager/CEO so that staff can provide the desired information at the Board
meeting.
4. Any concerns by a member of the Board regarding the behavior or work of a District
employee should be directed to the General Manager/CEO privately to ensure that the
concern is addressed. Board members shall not reprimand employees directly nor should
they communicate their concerns to anyone other than the General Manager/CEO.
9
Adopted October 8, 2014
5. Soliciting political support from staff (e.g., financial contributions, display of posters or lawn
signs, name on support list, etc.) is prohibited. District staff may, as private citizens with
constitutional rights, support political candidates, but all such activities must be done away
from the workplace and may not be conducted while on the job.
10
Adopted October 8, 2014
10. East Valley Water District
11. Board of Director’s Handbook
12.
Chapter 5 – Governance
The orderly conduct of District business is guided by certain rules, regulations and procedures that are
intended to afford equal opportunity for input on policy-making decisions to both Board members and
the public. While many governance guidelines are embodied in State law, others are subject to Board
discretion.
Election of Officers
The Chair and Vice Chair of the Board will be elected by the members of the Board. The election will be
held at the first regular meeting in December of every other year.
The Board shall also designate the General Manager/CEO. Board Secretary and Chief Financial Officer.
Roles of the Chair and Vice Chair of the Board of Directors
1. The Chair of the Board of Directors is selected following the normal board election cycle for
a 2-year term, unless otherwise modified by the Board.
2. The Chair of the Board is selected by the Board of Directors. In addition to the duties of the
Chair described below, the Chair presides at all Board of Directors meetings, makes rulings
on procedural points of order, and should keep meetings on track and productive. The Chair
should encourage open discussion and allow all members the opportunity to express their
views. The Chair should lead and guide the Board of Directors and provide a stabilizing
influence and bring out the best in all members. The Chair appoints all committees, standing
and Ad Hoc; coordinates the efforts of committees; integrates committee work with that of
the Board of Directors, and defines committee relationships the General Manager/CEO. The
Chair makes declarations, extends official recognition of groups or events, and regularly
communicates with the General Manager/CEO. The Chair can request an item to be placed
on the Board agenda.
3. The Vice-Chair remains as one member of the Board and has no rights or authority different
from any other member of the Board. However, in the event of a temporary absence of the
Chair, or an early vacancy in the position of Board Chair, the Vice-Chair shall become the
Board Chair and shall continue as such until the Board Chair’s temporary absence is
complete or for the remaining portion of the outgoing Board Chair’s term as Board Chair.
4. The Board shall govern the succession of the Chair and Vice-Chair.
5. In the event of an early vacancy in the position of Vice-Chair, the Board shall determine, by
vote, a replacement to fulfill the remaining portion of the outgoing Vice-Chair's term.
11
Adopted October 8, 2014
6. The Chair acts as the ceremonial head or representative of the District at various civic
functions, and in his/her absence, the Vice-Chair serves in this capacity.
7. The Chair is the designated spokesperson for the Board of Directors when requests are
made from external sources. The Chair may elect to appoint one of the other Board
members to serve in this capacity.
8. The Chair acts as the signatory on all documents requiring the Board's execution. The Vice-
Chair may do so in the Chair's absence.
9. The Chair makes appointments to the Representative Assignments annually.
Time and Place for Regular Meetings
The regular monthly meeting of the Board of Directors will be held on the second and fourth
Wednesday of each month commencing at 5:30 pm at a site determined by the Board.
Quorum Requirements
Three members of the Board will constitute a quorum for the transaction of business.
Board Meeting Protocol
1. All noticed meetings of the Board of Directors shall be conducted using Roberts Rules of
Order. Robert's Rules provide for constructive and democratic meetings and are intended to
help, not hinder, the business of the Board. Under no circumstances should "undue
strictness" be allowed to intimidate or limit full participation.
2. The General Manager/CEO is responsible for setting the agenda for the meetings of the
Board. Any member of the Board may request that an item be placed on the agenda
through notification to the General Manager/CEO and Chair.
3. Public comment shall be received pursuant to the Ralph M. Brown Act.
4. The Board shall treat members of the public with courtesy and respect.
5. Corrections to official minutes of the Board of Directors public meetings are passed on to
the General Manager/CEO as soon as reasonably possible and shall be approved at the next
regular Board meeting.
6. The General Manager/CEO shall inform the Board of items of significance that will be placed
on future agendas.
7. The General Manager/CEO meets with the Board Chair prior to the Board meetings to
review and prepare for the upcoming meeting.
8. At the direction of the General Manager/CEO, department heads or appropriate
departmental managers will be present at every meeting if they have an item on the
agenda.
12
Adopted October 8, 2014
9. The time during the Board Announcements portion of the Agenda shall be utilized for public
education purposes regarding District programs and services. It is not intended to allow
Board members to ask staff for studies and reports or to express complaints. Such input
should be conveyed to the General Manager/CEO outside of the Board meeting.
Consent Calendar
1. The District utilizes a Consent Calendar to approve routine business matters, such as
minutes, production reports, cash reports, some resolutions, and previously approved
budgetary items.
2. If a Board member has a question on a Consent Calendar item, they are encouraged to
contact the General Manager/CEO for clarification prior to the official meeting, rather than
having it pulled for separate discussion during the meeting.
Voting
A majority of all members of the Board present at a meeting will be required to approve any ordinance,
resolution or motion, unless a different voting requirement to approve a particular action is specified
under State law.
1. Each member may speak on an item prior to the making of a motion.
2. Roll call votes are required on all ordinances considered by the Board. On other items, a roll
call vote may be requested by any member of the Board, but is at the discretion of the
Chair.
3. Once an agenda item has been voted on, the disposition is considered as the "action" of the
Board of Directors and subsequently supported by the individual members of the Board.
Closed Session
1. All closed session discussions and materials are considered legal and confidential
information, and as such, are not shared outside the closed Session Conference unless
specific action is taken, and then must be reported out of Closed Session.
2. Closed session staff reports are to be returned to the General Manager/CEO and/or District
counsel immediately following the meeting. Electronic copies of the reports will not be
provided to the Board.
3. Closed Session meetings may be held at times other than the regular meetings of the Board
of Directors so long as the meeting is posted pursuant to the prevailing open meeting or
Brown Act rules.
4. A Board Member should refer a request for information regarding a closed session item to
the General Manager/CEO who in concert with the District's legal counsel, will prepare an
appropriate response.
13
Adopted October 8, 2014
11. East Valley Water District 12. Board of Director’s Handbook
13.
Chapter 6 – Public Interaction
As a public body, it is important for the East Valley Water District Board of Directors to establish a
working environment that encourages public participation and trust. During their time as elected
officials, Board members will have a wide range of interactions with the public including written
communication (i.e., letters, email, etc.), social media, phone calls, face-to-face, social functions, regular
and special Board meetings, etc. The following guidelines represent Board member “best practices” for
interacting with the public.
Customer Concerns and Complaints
1. All customer concerns and inquiries shall be referred to the General Manager/CEO.
2. Staff will provide the Board with a written or verbal report of customer concern or inquiry
that cannot be handled as a routine manner. Staff will also provide the Board with a
response to the concern or inquiry.
3. The Board will be informed of significant, politically sensitive, urgent and/ or repetitive
telephone or electronic communication inquiries. Staff will research the request as soon as
possible, and provide the General Manager/CEO with the appropriate follow-up and
response. The General Manager/CEO will review the communication prior to dissemination
to the Board.
4. Copies of any written or electronic responses to customer concerns provided by a member
of the Board shall be provided to the other members of the Board of Directors as well.
5. Information that may expose the District to liability will be shared with the Board at a
noticed, closed session meeting of the Board of Directors.
Public Input on the Agenda
1. Prior to public input on an agenda item, the Board will consider reports, questions from the
Board, and a response.
2. Agenda items noticed on the agenda for public hearing will follow procedures as outlined by
the District's legal counsel.
3. The Chair of the Board may elect to defer action on an item brought forward by the public
until such time as staff can prepare an appropriate response.
14
Adopted October 8, 2014
4. The Chair is responsible for maintaining an orderly progression of the business before the
Board, and to the extent possible regulates the amount and type of input from the public
and from members of the Board and staff.
5. Generally, Board members will not respond to public comments except for the Chair
referring matters to the General Manager/CEO for follow-up. Board members may, through
the Chair, ask clarifying questions to ensure that staff provides an appropriate response.
Occasionally, a prompt response may be offered by the Chair or the General Manager/CEO
when an obvious answer or resolution is available. The Board will not enter into a debate or
make decisions in response to public comments that are not on the agenda for
consideration.
6. Questions by a Board member to staff or consultants making presentations shall be directed
to the Chair who will refer it to the General Manager/CEO for a response.
Representing an Official District Position
In order to ensure that they are properly representing their positions as elected officials of the East
Valley Water District, Board members should adhere to the following guidelines:
1. Board members may use their title only when conducting official District business, for
information purposes, or as an indication of background and expertise.
2. Once the Board of Directors has taken a position on an issue, all official District
correspondence regarding that issue will reflect the Board's adopted position.
3. In most instances, the Board will authorize the Chair of the Board to send letters stating the
District's official position to appropriate legislators.
4. No Board member is permitted to attend a meeting of any outside agency or organization
(including Representative Assignments) as an official representative of the District without
prior Board authorization. Meetings of outside agencies and organizations that are included
on the District’s list of Representative Assignments are to be attended by the designated
Board member and/or alternate.
5. If a member of the Board appears before the meeting of another governmental agency
organization to give a statement on an issue affecting the District (including Representative
Assignments), the Board member shall indicate the majority position and opinion of the
Board. (NOTE: Board members shall report on any actions taken at the next Board meeting).
6. Personal opinions and comments that may be contrary to adopted policy may be expressed
only if the Board member clarifies that these statements do not reflect the official position
of the Board or the District.
7. Board members should exercise caution when utilizing the news media, social media or
other forms of communications to specifically express views which are in opposition to
adopted Board policy.
When two Board members are authorized/assigned by the Board to attend a meeting as the
District’s official representative, other Board members may not participate at the meeting in order
to avoid violations of the Ralph M. Brown Act.
Adopted October 8, 2014
East Valley Water District Board of Director’s Handbook
Chapter 7 – Director’s Code of Conduct
In order to promote the public’s trust in Board policies and to ensure the most effective and efficient
delivery of District services, members of the Board shall abide by the following Director’s Code of
Conduct:
1. Board members shall refrain from abusive conduct, personal charges, or verbal attacks upon the
character or motives of other members of the Board, committees, staff, or the public.
2. Board members duties shall be performed in accordance with the processes and rules of order
established by the Board.
3. Communication between Board members, including electronic, verbal and written, shall comply
with all State-mandated open meeting law requirements (Brown Act).
4. Board members shall inform themselves on public issues, listen attentively to public discussions
before the body, and focus on the business at hand.
5. Board decisions shall be based upon the merits and substance of the matter at hand.
6. Board members shall represent the official policies and positions of the Board. When presenting
their personal opinions or positions publicly, members shall explicitly state they do not
represent the Board or the District.
7. Board members shall respect and preserve the confidentiality of information provided to them
concerning the confidential matters of the District. They must neither disclose confidential
information without proper legal authorization nor use such information to advance or
adversely affect the personal, financial, or private interests of themselves or others.
8. It is the responsibility of Board members to publicly share substantive information that is
relevant to a matter under consideration that they have received from sources outside of the
public decision-making process with all other Board members and the public prior to taking
action on the matter.
9. Appropriate District staff should be involved when Board members meet with officials from
other agencies and jurisdictions to ensure proper staff support as needed and to keep the
General Manager/CEO informed.
10. Board members shall not attend internal staff meetings or meetings between District staff and
third parties unless invited by the General Manager/CEO or directed by the Board to do so.
11. Board members shall disclose to the appropriate authorities and/or to the Board any behavior
or activity that may qualify as corruption, abuse, fraud, bribery or other violation of the law.
16
Adopted October 8, 2014
12. Board members, by virtue of their public office, shall not take advantage of services or
opportunities for personal gain that are not available to the public in general. They shall not
accept gifts, favors or promises of future benefits that might compromise their independence of
judgment or action or give the appearance of being compromised. Likewise, Board members
shall not appear on behalf of, or advocate for, the private interests of a third-party before the
Board.
Conflict of Interest
In order to assure their independence and impartiality on behalf of the public good, state law prohibits
Board members from using their official positions to influence government decisions in which they have
a financial interest or where they have an organizational responsibility or a personal relationship that
would present a conflict of interest under applicable State law. In accordance with applicable State laws,
the following provisions shall apply to all Board member actions:
1. A Board member will not have a financial interest in a contract with the District, or be a
purchaser at a sale by the District or a vendor at a purchase made by the District, unless the
Board member’s participation was authorized under Government Code sections 1091 or 1091.5,
or other provisions of law.
2. A Board member will not participate in the discussion, deliberation or vote on a matter before
the Board of Directors, or in any way attempt to use his or her official position to influence a
decision of the Board, if he or she has a prohibited interest with respect to the matter, as
defined in the Political Reform Act, Government Code sections 81000, and following, relating to
conflicts of interest. Generally, a Board member has a financial interest in a matter if it is
reasonably foreseeable that the Board decision would have a material financial effect (as
defined by the Fair Political Practices Commission’s (“FPPC”) regulations) that is distinguishable
from the effect on the public generally on:
a. A business entity in which the Board member has a direct or indirect investment in the
amount specified in the then-effective FPPC regulations;
b. Real property in which the Board member has a direct or indirect investment interest,
with a worth in the amount specified in the then-effective FPPC regulations;
c. A source of income of the Board member in the amount specified in the then-effective
FPPC regulations, within twelve months before the Board decision;
d. A source of gifts to the Board member in an amount specified in the then-effective FPPC
regulations within twelve months before the Board decision;
e. A business entity in which the Board member holds a position as a director, trustee,
officer, partner, manager or employee;
f. The Board member’s personal expense, income, assets or liabilities, and those of his or
her immediate family, are likely to go up or down in a 12-month period as a result if the
decision by the amount specified in the then-effective FPPC regulations.
3. If a Board member believes that he or she may be disqualified from participation in the
discussion, deliberations or vote on a particular matter due to a conflict of interest, the
following procedure will be followed:
17
Adopted October 8, 2014
a. If the Board member becomes aware of the potential conflict of interest before the
Board meeting at which the matter will be discussed or acted on, the Board member will
notify the District’s General Manager/CEO and the District’s legal counsel of the
potential conflict of interest, so that a determination can be made whether it is a
disqualifying conflict of interest;
b. If it is not possible for the Board member to discuss the potential conflict with the
General Manager/CEO and the District’s legal counsel before the meeting, or if the
Board member does not become aware of the potential conflict until during the
meeting, the Board member will immediately disclose the potential conflict during the
Board meeting, so that there can be a determination whether it is a disqualifying conflict
of interest;
c. Upon a determination that there is a disqualifying conflict of interest, the Board
member: (1) will not participate in the discussion, deliberation or vote on the matter for
which a conflict of interest exists, which will be so noted in the Board minutes; and (2)
leave the room until after the discussion, vote and any other disposition of the matter is
concluded, unless the matter has been placed on the portion of the agenda reserved for
uncontested matters (i.e., the consent calendar), in which case the Board member will
identify the nature of the conflict and not vote on the specified item on the consent
calendar. If the item is agendized for discussion and possible action, the Board member
may speak on his or her personal interests in the matter during the time that the
general public speaks on the issue but must leave the room during Board discussion and
action on that item.
4. A Board member will not recommend the employment of a relative by the District. A Board
member will not recommend the employment of a relative to any person known by the Board
member to be bidding for or negotiating a contract with the District.
Handling of Legal Matters
The Board appoints the District’s legal counsel to provide a wide range of professional legal services,
assistance, and legal advice to the Board of Directors, General Manager/CEO and all District
departments and offices.
1. The following guidelines shall be employed by Board members when dealing with legal and/or
other confidential matters:
a. All written materials and verbal information provided to Board members on matters
that are confidential and/or privileged under State law shall be kept in complete
confidence to ensure that the District's position is not compromised. No disclosure or
mention of any information in these materials may be made to anyone other than Board
members, the General Manager/CEO or the District’s legal counsel.
b. Confidential materials provided in preparation for and during Closed Sessions shall not
be retained and electronic copies must be deleted or documents returned to staff at the
conclusion of the Closed Session.
c. Confidential materials provided to Board members outside of Closed Sessions must be
destroyed, deleted, or returned to staff within thirty (30) days of their receipt.
18
Adopted October 8, 2014
d. Board members may not request confidential written information from staff that has
not been provided to all Board members.
2. All Board members who are desirous of contact with the District’s legal counsel, his or her staff,
and/or attorney(s) contracted to work on behalf of the District shall obtain prior approval from
the General Manager/CEO. Board members cannot enjoy or establish an attorney-client
relationship with said attorney(s) by consulting with or speaking to same. Any attorney-client
relationship established belongs to the District, acting through the Board of Directors, and as
may be allowed in State law for purposes of defending the District and/or the Board in the
course of litigation and/or administrative procedures, etc.
Ethics Training
AB 1234 requires elected or appointed officials who are compensated for their service or reimbursed for
their expenses to take two hours of training in ethics principles and laws every two years. Those who
enter office after January 1, 2006 must receive the training within a year of starting their service. They
must then receive the training every two years after that.
The training must cover general ethics principles relating to public service and ethic laws including:
1. Laws relating to personal financial gain by public officials (including bribery and conflict of
interest laws);
2. Laws relating to office-holder perks, including gifts and travel restrictions, personal and political
use of public resources, and prohibitions against gifts of public funds;
3. Governmental transparency laws, including financial disclosure requirements and open
government laws (the Brown Act and Public Records Act);
4. Laws relating to fair processes, including fair contracting requirements, common law bias
requirements, and due process.
Enforcement
Any actual or perceived violation of District policies, including the Code of Conduct, by a Board member
should be referred to the Chair of the Board or the full Board of Directors for investigation, and
consideration of any appropriate action warranted. A violation of this policy may be addressed by the
use of such remedies as are available by law to the District, including but not limited to:
1. Adoption of a resolution expressing disapproval of the conduct of the Board member who has
violated this policy (i.e., censure);
2. Injunctive relief;
3. Referral of the violation to the District Attorney.
Adopted October 8, 2014
13. East Valley Water District
14. Board of Director’s Handbook
15.
Appendix 1 – Board Member Acknowledgement
This Board of Directors Handbook, which includes the Director’s Code of Conduct, shall be considered to
be the definitive document relating to ethical conduct by the East Valley Water District Board of
Directors.
I affirm that I have received a copy of the East Valley Water District Board of Directors Handbook and
that I have read and understand its provisions.
________________________________
Board Member Signature
____________________
Date
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Brown Act Compliance – Open Meeting Requirements
Original Approval Date:
March 14, 2018
Last Revised: Policy No: Page
1 of 2
Purpose
This policy provides guidelines to ensure that all meetings and committees of the Board of
Directors shall be conducted in compliance with all applicable requirements of the Brown Act.
Background
The Legislature adopted the Brown Act (“Act”), generally referred to as California’s “Open
Meetings Laws” in 1964. Except for closed sessions, the Act requires all aspects of the
decision-making process by a legislative body be conducted in public.
Policy
The orderly conduct of District business is guided by certain rules, regulations and procedures
that are intended to afford equal opportunity for input on policy-making decisions to both
Board members and the public. While many governance guidelines are embodied in State law,
others are subject to Board discretion.
Procedure
A.Regular Meeting - Regular meetings of the District Board of Directors will be held on the
second and fourth Wednesday of each month at 5:30 pm at the District office, located at
31111 Greenspot Road, Highland, CA., 92346. The Board will conduct closed session at
4:30 pm and commence the regular board meeting at 5:30 pm. Should the closed session
items require more than the allotted time, the Board will adjourn to open session at 5:30
pm, conduct District business, and then adjourn back into closed session. After closed
session, the Board will reconvene into open session and announce any action taken in the
closed session prior to adjournment of the meeting.
B.Special Meeting – Special meetings of the Board of Directors may be called by the
Chairman of the Board or by a majority of the Board. All Directors and members of the
public who have requested a notice of special meeting shall be notified of the special
meeting at least 24 hours prior to the meeting. The Board shall not add any non-
agendized item to the agenda of a special meeting. Further, no agenda for a special
meeting shall provide an opportunity for the Board to consider the possible addition on
any non-agendized item to the agenda.
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Brown Act Compliance – Open Meeting Requirements
Original Approval Date:
March 14, 2018
Last Revised:
Policy No: Page
2 of 2
C. Emergency Meetings – In the event of an emergency in which an emergency situation
involving matters upon which prompt action is necessary due to the disruption or
threatened disruption of public facilities, the Board of Directors may hold an emergency
special meeting without complying with the 24-hour notice. An emergency situation
means a crippling disaster which severely impairs public health, safety, or both, as
determined by a majority of the Board. Newspapers of general circulation in the District,
radio and television stations which have requested notice of Special meetings shall be
notified by at least one hour prior to the emergency meeting. In the event that telephone
services are not functioning, the notice requirement of one hour is waived, but the Board,
or its designee, shall notify such newspapers, radio stations, or television stations of the
fact of the holding of the Emergency Special meeting, and of any action taken by the
Board, as soon after the meeting as possible.
Closed session may be held during an Emergency meeting by a unanimous vote of the
members present, and all other rules governing Special meetings shall be observed with
the exception of the 24-hour notice. The minutes of the Emergency meeting, a list of
persons the Board or designee notified or attempted to notify, a copy of the roll call
vote(s), and any actions taken at such meeting shall be posted for a minimum of ten days
in the District office as soon after the meeting as possible.
D. Adjourned Meetings – A majority vote by the Board of Directors may terminate any Board
meeting at any place in the agenda to any time and place specified in the order of
adjournment, except that if no Directors are present at any Regular or Adjourned Regular
meeting, the General Manager/CEO may declare the meeting adjourned to a stated time
and place, and he/she shall cause a written notice of adjournment to be given.
E. Standing Committee Meetings – The meetings of a standing Committees are subject to the
notice an open meeting provisions of the Brown Act.
F. Agendas – The agendas of all Board meetings and all committee meetings that are open to
the public shall be posted in the following locations: (1) the board-room window located
at the District headquarters which is accessible twenty-four (24) hours a day; (2) on-line
at the District’s website known as “eastvalley.org”; and (3) the window of the customer
service department and lobby of the District headquarters.
G. The District Clerk shall ensure that all required and appropriate information is available
for the audience at said meetings, posted on the District’s website, and that the physical
facilities for meetings are functional and appropriate for all persons.
BOARD OF DIRECTORS HANDBOOK
Policies & Programs of the Board of Directors
Policy Title: Board of Director’s Expense Reimbursement Policy
Approval Date:
April 8, 2015
Policy No: Page 1 of 3
1.00 PURPOSE
The purpose of this policy is to comply with the provisions of Government Code
Sections 53232, 53232.1, 53232.2 and 53232.3, as may be amended from time to
time. This policy shall be applied in the implementation of Ordinance No. 388 of the
East Valley Water District, as may be amended from time to time.
2.00 PROCEDURE
A. Enacted Assembly Bill 1234 provides amendments to the California
Government Code, Section 53232, et seq., which requires the enactment of
policies by public agencies relative to director’s compensation, and
reimbursement of expenses incurred by public officials in performing
official duties.
B. District Ordinance 388 establishes Director’s compensation.
C. Penalties for violations of the law are set forth in Government Code Section
53232.4.
2.01 DEFINITIONS
A. For purposes of this policy, the following definitions shall apply:
1. District: Shall mean the East Valley Water District.
2. Director: Shall mean an elected or appointed member of the Board of
Directors of the District or outside Committee Members.
3. Board: Shall mean the Board of Directors of the District.
4. Ordinance 388: Shall mean Ordinance 388 of the District, as may be
amended from time to time.
2.02 COMPENSATION
The compensation of the Directors shall be as set forth in Ordinance 388.
BOARD OF DIRECTORS HANDBOOK
Policies & Programs of the Board of Directors
Policy Title: Board of Director’s Expense Reimbursement Policy
Approval Date:
April 8, 2015
Policy No: Page 2 of 3
2.03 REIMBURSEMENT FOR EXPENSES INCURRED IN PERFORMING OFFICIAL DUTIES
A. Reimbursement to Directors for actual and necessary expenses incurred in the
performance of authorized duties shall be as set forth in Ordinance 388,
Section 1.
1. Registration fees for conferences, seminars, training sessions including
training required under Government Code Section 53234 et seq, shall be
paid by the District in advance, All such registrations shall be made through
the District Clerk. To the extent possible, personal credit cards shall not be
used to pay for registration fees.
2. Cost of Accommodations - Reimbursement for the cost of overnight
accommodations for a conference, seminar, or meeting shall be limited to
the actual and reasonable cost of adequate accommodations. To the extent
possible, lodging should be secured, in advance, through the District Clerk.
3. Transportation – To secure the most economical mode of transportation in
keeping with availability, convenience, and propriety of the District. If
possible, all travel arrangements shall be made through the District Clerk.
When air travel is the most appropriate method of transportation, coach
class shall be utilized. A private automobile may be used when necessary,
but only when it is the least expensive alternative for travel. Mileage shall
not be reimbursed to the extent that the mileage cost exceeds the cost of
an available lower cost alternative form of transportation. A rental car may
be used when appropriate public transportation is unavailable or more
expensive and the cost thereof shall be reimbursed to the Director. Shuttle
and metro services should be used when most appropriate in lieu of a taxi
or car rental and the actual cost shall be reimbursed to the Director.
4. Expenses – A $200 per diem rate guideline is established for the Directors.
The per diem is to be used for meals and other miscellaneous expenses such
as parking fees, not including major transportation or registration fees. If
the indicated guidelines are exceeded, written justification must be
attached to the travel expense report to be approved by the Board of
Directors or approval must be obtained in advance from the Board of
Directors for locations where these amounts may not be practical. If a
director exceeds the established per diem rate, the matter will be
automatically referred to the Board of Directors for consideration.
5. In compliance with Ordinance 388, Section 7, after incurring an authorized
expense, the Director shall submit to the District Clerk an Expense Report in
the form as attached hereto collectively as Exhibit “A”. Receipts for
claimed expenses shall be submitted as part of the Expense Report. All
BOARD OF DIRECTORS HANDBOOK
Policies & Programs of the Board of Directors
Policy Title: Board of Director’s Expense Reimbursement Policy
Approval Date:
April 8, 2015
Policy No: Page 3 of 3
documents related to reimbursable expenditures, including expense reports
and receipts are public records subject to disclosure under the California
Public Records Act. Personal information including credit card numbers
may be redacted from any documents.
6. The following expenses are not reimbursable: alcoholic beverages, parking
or traffic violation fines, entertainment, personal phone calls, auto repairs,
personal auto insurance, the personal portion of any trip, including
expenses for a spouse or family member, and personal losses incurred while
performing District business.
2.04 REPORTING
A. Directors shall provide a brief report either written or oral, on meetings
attended at the expense of the District.
2.05 POLICY VIOLATIONS
A. Violations of the policy shall be as provided in Government Code Section
53232.4.
6.0 EXHIBITS
1. Ordinance No. 388
2. Expense Report
APPROVED:
____________________________________
John Mura
Chief Executive Officer/General Manager
BOARD OF DIRECTORS HANDBOOK
Policies and Programs of the Board of Directors
Policy Title: Board of Directors Evaluation Policy
Original Approval Date:
December 14, 2016
Last Revised:
January 23, 2018
Policy No:
Board of
Directors
Handbook
Page
1 of 2
Purpose
This policy is designed to provide professional development opportunities to the Board of
Directors which will enhance Board contributions and assist in the achievement of the
District’s strategic objectives.
Policy
It is the policy of East Valley Water District to regularly evaluate the Directors related to
their contributions to the Board. The feedback received will provide an invaluable
measurement by which the Board can prioritize its goals for the future while promoting
the highest standards of Board governance.
A 360-degree (multi-rater) evaluation process will be conducted to create a channel of
open communication through verbal feedback from raters. Raters will include self (self-
rater), fellow Directors, and the Senior Management Team.
The evaluation process will be facilitated by an independent third-party consultant
(Consultant) selected by the full Board of Directors and will consist of verbal interviews
and discussions between the Consultant and each rater.
Schedule for Evaluation
A. The Board of Directors evaluation process will be conducted every two years in
even numbered years. This will allow for all Directors to have served a minimum
of one full year on the Board prior to being evaluated.
B. The evaluation process will be initiated by January 15th and conclude by the end
of February, during even numbered years, to coincide with the General
Manager’s evaluation process. Final reports will be prepared and presented in
March of each year.
Performance Evaluation Procedure
1. Consultant will contact all Directors and raters at the start of the evaluation
process and give them the evaluation timeline.
BOARD OF DIRECTORS HANDBOOK
Policies and Programs of the Board of Directors
Policy Title: Board of Directors Evaluation Policy
Original Approval Date:
December 14, 2016
Last Revised:
January 23, 2018
Policy No:
Board of
Directors
Handbook
Page
2 of 2
2. Consultant will conduct individual interviews with each Director to obtain their
verbal feedback (self-rater) based on a set of questions and/or competencies
determined by the Board prior to the start of the evaluation process. During this
same interview, after the completion of the self-rating, Consultant will interview
the Directors regarding their fellow Directors.
3. Upon completion of Director interviews, Consultant will meet with the Senior
Management Team to obtain verbal feedback on all Directors.
4. After interviews have been conducted, Consultant and the General Manager/CEO
will meet with each individual Director to provide verbal feedback and discuss
how the information received can help enhance Director contributions to carry
out the vision and strategic direction of the District.
Confidentiality Disclosure
As the purpose of this evaluation process is to provide individual professional development
for each Director, the Consultant and General Manager/CEO will not share feedback
obtained with fellow Directors or staff members. The feedback and comments received
during the interview process will remain anonymous.
BOARD OF DIRECTORS HANDBOOK
Policies and Programs of the Board of Directors
Policy Title: General Manager/CEO Evaluation Policy
Original Approval Date:
December 14, 2016
Last Revised:
January 24, 2018
Policy No:
Board of
Directors
Handbook
Page
1 of 2
Purpose
This policy is designed to ensure that the Board of Directors and the General Manager/CEO
are in sync on carrying out the vision and strategic direction of the District. Evaluation of
the General Manager/CEO can help improve confidence, support professional
development, and enhance productive interactions between the Board, General
Manager/CEO, and District staff.
Policy
It is the policy of East Valley Water District to regularly evaluate the General Manager/CEO
related to performance standards and completion of specified goals and objectives
determined prior to the start of the evaluation process.
The evaluation process may include self-evaluations, evaluations by the Board of Directors,
and 360-degree (multi-rater) evaluations to create a channel of open communication
through feedback from raters. 360-degree raters may include, in addition to Director and
self-evaluations, senior management and subordinate staff.
The evaluation process will be facilitated by an independent third-party consultant
(Consultant) selected by the full Board of Directors and will consist of interviews and
discussions between the Consultant and each rater. The Consultant will provide all
necessary forms and will compile final reports at the end of the evaluation process.
Schedule for Evaluation
A. The District will initiate the evaluation process by January 15th of each year and
conclude by the end of February in order to have final reports prepared and
presented to the General Manager/CEO and Board of Directors in March of each year.
B. The evaluation process will be at the discretion of the Chair and Vice Chair and the
rating process will include an annual self-evaluation and Board of Director’s
evaluation of the General Manager/CEO.
If the Board wishes to amend or extend the General Manager/CEO’s contract prior
to an annual evaluation, the rating process will include a 360-degree evaluation
which includes rating by senior management, and may include rating by subordinate
staff, in addition to the self-evaluation and Board of Director’s evaluation.
BOARD OF DIRECTORS HANDBOOK
Policies and Programs of the Board of Directors
Policy Title: General Manager/CEO Evaluation Policy
Original Approval Date:
December 14, 2016
Last Revised:
January 24, 2018
Policy No:
Board of
Directors
Handbook
Page
2 of 2
Performance Evaluation Procedure
1. Consultant will contact all parties involved in the General Manager/CEO’s
evaluation process, including raters, and explain their role in the process along
with directions on completing evaluation forms. An evaluation timeline will be
given.
2. The General Manager/CEO will complete his/her self-evaluation. Once the self-
evaluation is complete, Consultant will conduct an individual interview with the
General Manager/CEO to discuss the self-evaluation.
3. Raters will complete evaluation forms, then Consultant will conduct interviews
for their feedback and comments.
4. After all interviews have been conducted, Consultant will prepare the final
evaluation reports.
5. Final evaluation reports will be presented to the Board of Directors and General
Manager/CEO.
6. Consultant will conduct a one-on-one meeting with the General Manager/CEO to
summarize the evaluation reports and provide coaching on identified areas of
improvement, if necessary, to enhance the General Manager/CEO’s abilities to
carry out the vision and strategic direction of the District.
7. Completed evaluation reports will be maintained in the General Manager/CEO’s
Personnel File in the Human Resources office.
Confidentiality Disclosure
The feedback and comments received during the interview process will remain
anonymous and Consultant will only share feedback obtained with the General
Manager/CEO and the Board of Directors.
Revised: January 24, 2018