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HomeMy WebLinkAboutAgenda Packet - Finance & Human Resources Committee - 12/02/2019F IN A N C E A N D HUMA N RES O URC ES C O MMIT T EE December 2, 2019 - 3:30 PM 31111 Greenspot Road, Highland C A 92346 AGE N D A C A LL TO O RD ER PLED G E O F A LLEG IA N C E PUBLIC C O MMEN T S N E W B U SI N E SS 1.Approve the Minutes for: October 3, 2018 October 31, 2018 December 3, 2018 2.Review the Discontinuation of Residential Water Service Policy, Resolution 2019.18, and Ordinance 397 3.Review Revised Water and Wastewater C apacity Fees, Certain Miscellaneous Fees, and Resolution 2019.19 4.Review Draft Popular Annual Financial Report for Year Ended J une 30, 2019 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. Page 1 of 2 Minutes 10/3/18 cmk Subject to Approval EAST VALLEY WATER DISTRICT October 3, 2018 FINANCE AND HUMAN RESOURCES COMMITTEE MEETING MINUTES Ms. Koide called the meeting to order at 3:30 p.m. and Director Coats led the flag salute. PRESENT: Directors: Coats, Morales ABSENT: None STAFF: Brian Tompkins, Chief Financial Officer; Kerrie Bryan, HR/Risk and Safety Manager; Justine Hendricksen, District Clerk; Nate Paredes, Business Services Manager; Rudy Guerrero, Accountant; Christi Koide, Senior Administrative Assistant GUEST(s): Members of the public PUBLIC COMMENTS The Senior Administrative Assistant declared the public participation section of the meeting open at 3:32 p.m. There being no written or verbal comments, the public participation section was closed. APPROVE THE JANUARY 23, 2018 FINANCE AND HUMAN RESOURCES COMMITTEE MEETING MINUTES M/S/C (Morales-Coats) to approve the January 23, 2018 Finance and Human Resources Committee meeting minutes as submitted. APPROVE THE FEBRUARY 27, 2018 FINANCE AND HUMAN RESOURCES COMMITTEE MEETING MINUTES M/S/C (Coats-Morales) to approve the February 27, 2018 Finance and Human Resources Committee meeting minutes as submitted. REVIEW AUDITOR’S COMMUNICATION LETTER WITH THOSE CHARGED WITH GOVERNANCE Auditors from CliftonLarsonAllen LLC gave a brief overview of the Auditor’s Communication Letter with those Charged with Governance; and identified sections of the Comprehensive Annual Financial Report that were audited. Page 2 of 2 Minutes 10/3/18 cmk The Auditors stated there were no findings and a Single Audit was not required for FY 2017-18. The Chief Financial Officer explained that the District must now include liabilities on the District’s Financial Statements for all post retirement contributions for medical- eligible retirees between ages 55-65. Information only. REVIEW POLICY AND PROGRAMS MANUAL AND BOARD OF DIRECTOR’S HANDBOOK The HR Manager/Risk & Safety Manager stated she attended the California Special Districts Association (CSDA) Annual Conference where the District received the Special District Leadership Foundation (SDLF) District Transparency Certificate. The HR Manager/Risk & Safety Manager gave a brief overview of the Administrative Policy and Programs Manual, of which, the following Policies were added: Volunteer Program, Password Policy, Operating and Capital Budget Policy, and the Public Records Request Policy. Information only. DISCUSS UPCOMING FINANCE AND HUMAN RESOURCES COMMITTEE MEETINGS The Committee agreed to reschedule the October 9, 2018 meeting to October 31, 2018. ADJOURN The meeting adjourned at 4:13 p.m. James Morales, Jr. Ronald L. Coats Governing Board Member Governing Board Member Page 1 of 2 Minutes 10/31/18 cmk Subject to Approval EAST VALLEY WATER DISTRICT October 31, 2018 FINANCE AND HUMAN RESOURCES COMMITTEE MEETING MINUTES Ms. Koide called the meeting to order at 3:33 p.m. and Director Morales led the flag salute. PRESENT: Directors: Coats, Morales ABSENT: None STAFF: Brian Tompkins, Chief Financial Officer; Kerrie Bryan, HR/Risk and Safety Manager; Christi Koide, Senior Administrative Assistant GUEST(s): None PUBLIC COMMENTS The Senior Administrative Assistant declared the public participation section of the meeting open at 3:35 p.m. There being no written or verbal comments, the public participation section was closed. APPROVE THE APRIL 9, 2018 FINANCE AND HUMAN RESOURCES COMMITTEE MEETING MINUTES M/S/C (Morales-Coats) to approve the April 9, 2018 Finance and Human Resources Committee meeting minutes as submitted. REVIEW TRANSFER OF UNCLAIMED FUNDS INTO DISTRICT GENERAL FUND The Chief Financial Officer stated that previously this item would go to the Committee/Board of Directors every three years ; however, during last year’s Committee meeting, Director Coats suggested that moving forward this item should be brought annually. The Chief Financial Officer gave a brief overview of the State’s requirements to transfer unclaimed funds into the District General Fund. Directors Coats and Morales commen ded District staff for going above and beyond to contact customers/vendors to reissue checks, they have not cashed. Information only. Page 2 of 2 Minutes 10/31/18 cmk DISCUSS UPCOMING FINANCE AND HUMAN RESOURCES COMMITTEE MEETINGS Due to time constraints of an agenda item that must be presented at the December 12, 2018 Board meeting, the Committee agreed to cancel the November 13, 2018 meeting and reschedule the December 11, 2018 meeting to December 3, 2018. ADJOURN The meeting adjourned at 3:46 p.m. James Morales, Jr. Ronald L. Coats Governing Board Member Governing Board Member Page 1 of 2 Minutes 12/3/18 cmk Subject to Approval EAST VALLEY WATER DISTRICT December 3, 2018 FINANCE AND HUMAN RESOURCES COMMITTEE MEETING MINUTES Ms. Koide called the meeting to order at 3:30 p.m. and Director Coats led the flag salute. PRESENT: Directors: Coats, Morales ABSENT: None STAFF: Brian Tompkins, Chief Financial Officer; Kerrie Bryan, HR/Risk and Safety Manager; Rudy Guerrero, Accountant; Christi Koide, Senior Administrative Assistant GUEST(s): Members of the public PUBLIC COMMENTS The Senior Administrative Assistant declared the public participation section of the meeting open at 3:32 p.m. There being no written or verbal comments, the public participation section was closed. REVIEW RESOLUTION 2018.16 TO ESTABLISH A LABOR COMPLIANCE PROGRAM FOR EAST VALLEY WATER DISTRICT CONSTRUCTION CONTRACTS The Chief Financial Officer stated that Golden State Labor Compliance was recently awarded the contract to develop a comprehensive Labor Compliance Program (LCP) Manual that will be submitted to the Department of Industrial Relations for approval. He also stated that the Labor Compliance Program is required by the State; and is in accordance with the state funding agreement for the Sterling Natural Resource Center. The Chief Financial Officer gave a brief overview of the following topics from the Labor Compliance Program: Public Works Subject to Prevailing Wage Laws; Competitive Bidding on District Public Works Contracts; Responsibility of Contractors; and Enforcement. Information only. Page 2 of 2 Minutes 12/3/18 cmk REVIEW DRAFT POPULAR ANNUAL FINANCIAL REPORT FOR YEAR ENDED JUNE 30, 2018 The Accountant stated that the Popular Annual Financial Report (PAFR) is a user- friendly version of the District’s Comprehensive Annual Financial Report (CAFR) that includes more graphics and is significantly shorter than the CAFR, since all technical note disclosures are omitted. He also stated that the District follows Government Finance Officers Association (GFOA) guidelines when creating the PAFR, in order to receive the Award for Outstanding Achievement in Popular Annual Financial Reporting. He also provided an overview of the following content that was added to the 2018 PAFR, from 2017: Table of Contents; and Highlights of the Sterling Natural Resource Center (SNRC). Director Morales suggested that the cost to build the SNRC of $150 million include the breakdown of funding by other sources, for example, state funding. Information only. ADJOURN The meeting adjourned at 3:50 p.m. James Morales, Jr. Ronald L. Coats Governing Board Member Governing Board Member S TAF F R E P ORT Agenda Item #2. Meeting Date: Dec ember 2, 2019 Disc ussion Item To: F I NANC E AND HUMAN R ES O UR C ES C O MMI T T EE F rom: C hief F inancial O ffic er Subject: R eview the Dis continuation of R esidential Water S ervice P olicy, R esolution 2019.18, and O rdinanc e 397 R E C OMME N D AT ION: S taff recommend s that the F inance and Human R esource C ommittee (C ommittee) review the req uirements of S enate Bill 998 (S B 998) and the c hanges to Dis tric t rules and regulations governing water s ervic e. B AC KG R OUN D / AN ALYS IS: S B 998 p ro vides rules and proc ed ures for urban and c o mmunity water s ys tems and urb an water s uppliers to follow before they shut o ff res id ential water service. R es id ential water service inc lud es service to a residential connec tion to a single-family ho me, multi-family ho mes , mo b ile ho mes includ ing tho s e in mobile home parks and farmworker housing (Health & S afety C ode, S ection 116902(c )). Eas t Valley Water Dis tric t (Dis tric t) is an urb an water s up p lier, per Water C ode s ectio n 10617, so it mus t comply with S B 998 by F eb ruary 1, 2020. ln light of S B 998, the Dis tric t will need to extend the number of days b efo re it s huts o ff service to 60 d ays and will als o need to make s ure its no tic e to c us to mers inc ludes information required by S B 998. Written notic es must be in English and the languages lis ted in C ivil C ode s ection 1632 (S panis h, C hines e, Tagalo g, Vietnames e, Korean, and any o ther language s p o ken b y at leas t 10 percent of the s ervic e area). In addition, the new regulation related to res idential water s ervic e limits the amount that can be charged to low inc ome c ustomers for reconnec tions after service has been dis continued for non-payment. T he District’s fees will als o be adjusted to c omply with S B 998 as follows : F inally, new disc los ure requirements include p o s ting the numb er of annual disc ontinuations o f residential s ervic e fo r failure to p ay on the Dis tric t web s ite and rep o rting the s ame info rmation to the C alifornia S tate Water R esources C ontrol Board. S taff recommends that the Board of Direc tors take the following actions: P as s R esolution 2019.18 adopting the attac hed P o licy on Dis continuation o f R esidential Water S ervic e, with an effective date of F ebruary 1, 2020. Adopt O rdinanc e 397 whic h reflects c hanges in acc ordanc e with the Dis tric t's P olicy for Dis continuation of R esidential Water S ervice. AG E N C Y G O ALS AN D O B J E C T IVE S : G oal and O bjectives I I - Maintain a C ommitment to S ustainability, Transparency, and Acc ountability a) P rac tic e Trans parent and Acc ountable F is cal Management R E VIE W B Y O T HE R S : T his agenda item has been reviewed b y the F inanc e and C us tomer S ervic e Departments , Executive Management, and Legal C ouns el. F IS C AL IMPAC T S taff estimates that the District will need to send out an additional 500 notic es per month at a c os t of approximately $1 per notic e for an annual added c os t of $6,000. ATTAC H M EN TS: Description Type Resolution 2019.18 Resolution Letter Exhibit A - P olicy Exhibit Ordinance 397 Ordinance East Valley Water District Resolution 2019.18 Page 1 of 2 RESOLUTION 2019.18 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ESTABLISHING A POLICY FOR THE DISCONTINUATION OF RESIDENTIAL WATER SERVICE WHEREAS, East Valley Water District (“District”) is a county water district organized and operating pursuant to California Water Code section 30000 et seq.; WHEREAS, on or about September 28, 2018 the governor of the state of California approved Senate Bill 998 (SB 998) adding chapter 6, commencing with section 116900 of the Health & Safety Code establishing rules governing the discontinuation of residential water service; and WHEREAS, SB 998 requires urban and community water systems such as the District to adopt a policy setting forth the rules governing the discontinuation of residential water service which policy is to be effective on and after February 1, 2020; and WHEREAS, District has created a policy which complies with SB 998, which is attached hereto as Exhibit “A”. NOW THEREFORE, BE IT RESOLVED by the Board of Directors of the East Valley Water District that the policy governing disconnection of residential water service attached to this Resolution as Exhibit “A” is hereby approved and shall become the official policy of the District. This Resolution shall take effect as of the 1st day of February 2020. ADOPTED this 11th day of December 2019. Ayes: Noes: Absent: Abstain: Chris Carrillo, Board President East Valley Water District Resolution 2019.18 Page 2 of 2 December 11, 2019 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2019.XX adopted by the Board of Directors of East Valley Water District at its Regular Meeting held December 11, 2019. ATTEST: _____________________________ John Mura Secretary, Board of Directors EXHIBIT A POLICY ON DISCONTINUATION OF RESIDENTIAL WATER SERVICE Adopted by the Board of Directors on December 11, 2019 Effective February 1, 2020 1 1. Application of Policy. This Policy on Discontinuation of Residential Water Service (this “Policy”) shall apply to all District accounts for residential water service, but shall not apply to any accounts for non-residential service. To the extent this Policy conflicts with any other rules, regulations, or policies of the District, this Policy shall control. 2. Contact Information. For questions or assistance regarding a water bill, the District’s Customer Service staff can be reached at (909) 889-9501. Customers may also visit the District’s Customer Service desk in person Monday through Thursday, from 8:00 a.m. to 5:00 p.m., and on Fridays from 7:30 a.m. to 4:30 p.m. The District is closed on holidays. 3. Billing Procedures. Water service charges are payable to the District once every month, or at such other frequency as determined by the Board of Directors from time to time. All bills for water service are due and payable twenty (20) days after mailing [or e-mailing] by the District. Any bills not paid within such period are considered delinquent. 4. Discontinuation of Water Service for Nonpayment. If a bill is delinquent for at least sixty (60) days, the District may discontinue water service to the service address. 4.1 Written Notice to Customer. The District will provide a mailed notice to the customer of record at least fifteen (15) days before discontinuation of water service. The notice will contain: (a) the name and address of the customer; (b) the amount of the delinquency; (c) the date by which payment or payment arrangements must be made to avoid discontinuation of service; (d) the procedure by which the customer may initiate a complaint or request an investigation or appeal concerning service or charges; (e) a description of the procedure by which the customer may request an alternative payment arrangement, which may include an extension, amortization, alternative payment schedule, or payment reduction; (f) the procedure for the customer to obtain information on financial assistance, if applicable; and (g) the telephone number where the customer may request a payment arrangement or receive additional information from the District. 4.2 Written Notice to Occupants or Tenants. (a) The District will also send a notice to the occupants living at the service address at least ten (10) days before discontinuation of water service under the following circumstances: (i) the District furnishes individually metered service to a single-family dwelling, multi-unit residential structure, or mobile home park, and the owner, manager, or operator is the customer of record; or 2 (ii) the customer of record’s mailing address is not the same as the service address. The notice will be addressed to “Occupant,” will contain the information required in Section 4.1 above, and will inform the residential occupants that they have the right to become customers of the District without being required to pay the amount due on the delinquent account. Terms and conditions for occupants to become customers of the District are provided in Section 8 below. (b) If the District furnishes water to residences through a master meter, the District will make a good faith effort, at least ten (10) days prior to termination, to notify the residential occupants that the account is in arrears and the service will be terminated on a date specified in the notice. The District will provide notice by either: (i) mailing the notice to each residential unit; (ii) posting the notice on the door of each residential unit, (iii) if providing notice to each unit is impracticable or infeasible, posting two (2) copies of the notice in each accessible common area and at each point of access to the structure or structures; or (iv) making some other good faith, reasonable effort to provide written notice to the occupants. The notice will be addressed to “Occupant,” will contain the information required in Section 4.1 above, and will inform the residential occupants that they have the right to become customers of the District without being required to pay the amount due on the delinquent account. Terms and conditions for occupants to become customers of the District are provided in Section 8 below. 4.3 In-Person or Telephonic Notice. The District will also make a reasonable, good faith effort to contact the customer of record or an adult person living at the premises of the customer in person or by telephone at least seven (7) days before discontinuation of service. The District will offer to provide in writing a copy of this Policy and to discuss options to avert discontinuation of water service for nonpayment, including the possibility of an extension or other payment arrangement. 4.4 Posting of Notice at Service Address. If the District is unable to make contact with the customer or an adult person living at the service address in person or by telephone, the District will make a good faith effort to leave a notice of imminent discontinuation of residential service and a copy of this Policy in a conspicuous place at the service address. The notice and copy of this Policy will be left at the residence at least forty-eight (48) hours before discontinuation of service. The notice shall include: (a) the name and address of the customer; (b) the amount of the delinquency; (c) the date by which payment or payment arrangements must be made to avoid discontinuation of service; 3 (d) the procedure for the customer to obtain information on financial assistance, if applicable; and (e) the telephone number where the customer may request a payment arrangement or receive additional information from the District. 4.5 Circumstances Under Which Service Will Not Be Discontinued. The District will not discontinue residential water service for nonpayment under the following circumstances: (a) During an investigation by the District of a customer dispute or complaint under Section 5.1 below; (b) During the pendency of an appeal to the Board of Directors under Section 5.3 below; or (c) During the period of time in which a customer’s payment is subject to a District-approved extension, amortization, alternative payment schedule, or reduction under Section 6 below, and the customer remains in compliance with the approved payment arrangement. 4.6 Special Medical and Financial Circumstances Under Which Services Will Not Be Discontinued. (a) The District will not discontinue water service if all of the following conditions are met: (i) The customer, or a tenant of the customer, submits to the District the certification of a licensed primary care provider that discontinuation of water service will be life threatening to, or pose a serious threat to the health and safety of, a resident of the premises where residential service is provided; (ii) The customer demonstrates that he or she is financially unable to pay for residential service within the District’s normal billing cycle. The customer is deemed financially unable to pay during the normal billing cycle if: (1) any member of the customer’s household is a current recipient of CalWORKs, CalFresh, general assistance, Medi-Cal, Supplemental Security Income/State Supplementary Payment Program, or California Special Supplemental Nutrition Program for Women, Infants, and Children, or (2) the customer declares under penalty of perjury that the household’s annual income is less than 200 percent of the federal poverty level; and (iii) The customer is willing to enter into an alternative payment arrangement, including an extension, amortization, alternative payment schedule, or payment reduction with respect to the delinquent charges. 4 (b) For any customers who meet all of the above conditions, the District shall offer the customer one of the following options, to be selected by the District in its discretion: (i) an extension of the payment period; (ii) amortization of the unpaid balance; (iii) an alternative payment schedule; or (iv) a reduced payment. The District’s General Manager will select the most appropriate payment arrangement, taking into consideration the information and documentation provided by the customer, as well as the District’s payment needs. (c) The customer is responsible for demonstrating that the conditions in subsection (a) have been met. Upon receipt of documentation from the customer, the District will review the documentation within seven (7) days and: (i) notify the customer of the alternative payment arrangement selected by the District and request the customer’s signed assent to participate in that alternative arrangement; (ii) request additional information from the customer; or (iii) notify the customer that he or she does not meet the conditions in subsection (a). (d) The District may discontinue water service if a customer who has been granted an alternative payment arrangement under this section fails to do any of the following for sixty (60) days or more: (i) to pay his or her unpaid charges by the extended payment date; (ii) to pay any amortized amount due under the amortization schedule; (iii) to pay any amount due under an alternative payment schedule; (iv) to pay the reduced payment amount by its due date; or (v) to pay his or her current charges for water service. The District will post a final notice of intent to disconnect service in a prominent and conspicuous location at the service address at least five (5) business days before discontinuation of service. The final notice will not entitle the customer to any investigation or review by the District. 4.7 Time of Discontinuation of Service. The District will not discontinue water service due to nonpayment on a Saturday, Sunday, legal holiday, or at any time during which the District’s office is not open to the public. 4.8 Restoration of Service. Customers whose water service has been discontinued may contact the District by telephone or in person regarding restoration of service. Restoration shall be subject to payment of: (a) any past-due amounts, including applicable interest or penalties; 5 (b) any reconnection fees, subject to the limitations in Section 7.1, if applicable; and (c) a security deposit, if required by the District. 5. Procedures to Contest or Appeal a Bill. 5.1 Time to Initiate Complaint or Request an Investigation. A customer may initiate a complaint or request an investigation regarding the amount of a bill within five (5) days of receiving a disputed bill. For purposes of this Section 5.1 only, a bill shall be deemed received by a customer five (5) days after mailing [and immediately upon emailing]. 5.2 Review by District. A timely complaint or request for investigation shall be reviewed by the Chief Financial Officer of the District, who shall provide a written determination to the customer. The review will include consideration of whether the customer may receive an extension, amortization, alternative payment schedule, or payment reduction under Section 6. The District may, in its discretion, review untimely complaints or requests for investigation; however, such complaints or requests are not subject to appeal. 5.3 Appeal to Board of Directors. Any customer whose timely complaint or request for an investigation pursuant to this Section 5 has resulted in an adverse determination by the District may appeal the determination to the Board of Directors by filing a written notice of appeal with the District Clerk within ten (10) business days of the District’s mailing of its determination. Upon receiving the notice of appeal, the District Clerk will set the matter to be heard at an upcoming Board meeting and mail the customer written notice of the time and place of the hearing at least ten (10) days before the meeting. The decision of the Board shall be final. 6. Extensions and Other Alternative Payment Arrangements. 6.1 Time to Request an Extension or Other Alternative Payment Arrangement. If a customer is unable to pay a bill during the normal payment period, the customer may request an extension or other alternative payment arrangement described in this Section 6. If a customer submits his or her request within thirteen (13) days after mailing of a written notice of discontinuation of service by the District, the request will be reviewed by a manager of the District. District decisions regarding extensions and other alternative payment arrangements are final and are not subject to appeal to the District’s Board of Directors. 6.2 Extension. If approved by the District, a customer’s payment of his or her unpaid balance may be temporarily extended for a period not to exceed six (6) months after the balance was originally due. The District’s Chief Financial Officer shall determine, in his or her discretion, how long an extension shall be provided to the customer. The customer shall pay the full unpaid balance by the date set by the District and must remain current on all water service charges accruing during any subsequent billing periods. The extended payment date will be set forth in writing and provided to the customer. 6 6.3 Amortization. If approved by the District, a customer’s payment of his or her unpaid balance may be amortized over a period not to exceed twelve (12) months, as determined by the District’s Chief Financial Officer in his or her discretion. If amortization is approved, the unpaid balance will be divided by the number of months in the amortization period, and that amount will be added to the customer’s monthly bills for water service until fully paid. During the amortization period, the customer must remain current on all water service charges accruing during any subsequent billing periods. The amortization schedule and amounts due will be set forth in writing and provided to the customer. 6.4 Alternative Payment Schedule. If approved by the District, a customer may pay his or her unpaid balance pursuant to an alternative payment schedule that will not exceed twelve (12) months, as determined by the District’s Chief Financial Officer in his or her discretion. If approved, the alternative payment schedule may allow periodic lump-sum payments that do not coincide with the District’s established payment date or may provide for payments made more or less frequently than the District’s regular payment date. During the period of the alternative payment schedule, the customer must remain current on all water service charges accruing during any subsequent billing periods. The alternative payment schedule and amounts due will be set forth in writing and provided to the customer. 6.5 Payment Reduction. If approved by the District, a customer may receive a reduction of the unpaid balance owed for an amount not to exceed the total of delinquent charges outstanding. The amount of any such reduction shall not be funded from charges or fees paid by other customers. The District’s Chief Financial Officer shall determine, in his or her discretion, whether to grant a reduced payment, and the amount of such reduction, based on: (a) the availability of District funds to fund the reduction at a given time; (b) the customer’s demonstrated financial need; and (c) the customer’s prior payment history or prior payment reductions. The amount of the reduced payment and the due date for the reduced payment will be set forth in writing and provided to the customer. 6.6 Failure To Comply. If a customer has been granted a payment arrangement under this Section 6 and fails to: (a) pay the unpaid charges by the extension date; (b) pay an amount due under an amortization schedule; (c) pay an amount due under an alternative payment schedule; or (d) pay a reduced payment amount by its due date, then the District may terminate water service. The District will post a final notice of intent to disconnect service in a prominent and conspicuous location at the service address at least five (5) business days before discontinuation of service. 7 The final notice will not entitle the customer to any investigation or review by the District. 7. Programs for the Benefit of Low-Income Customers. 7.1 Reconnection Fee Limits and Waiver of Interest. For residential customers who demonstrate to the District a household income below 200 percent of the federal poverty line, the District will: (a) Limit any reconnection fees during normal operating hours to fifty dollars ($50), and during non-operational hours to one hundred fifty dollars ($150). The limits will only apply if the District’s reconnection fees actually exceed these amounts. These limits are subject to an annual adjustment for changes in the Bureau of Labor Statistics’ Consumer Price Index for All Urban Consumers (CPI-U) beginning January 1, 2021. (b) Waive interest charges on delinquent bills once every 12 months. The District will apply the waiver to any interest charges that are unpaid at the time of the customer’s request. 7.2 Qualifications. The District will deem a residential customer to have a household income below 200 percent of the federal poverty line if: (a) any member of the household is a current recipient of CalWORKs, CalFresh, general assistance, Medi-Cal, Supplemental Security Income/State Supplementary Payment Program, or California Special Supplemental Nutrition Program for Women, Infants, and Children, or (b) the customer declares under penalty of perjury that the household’s annual income is less than 200 percent of the federal poverty level. 8. Procedures for Occupants or Tenants to Become Customers of Record on District Utility Accounts. 8.1 Applicability. This Section 8 shall apply only when the property owner, landlord, manager, or operator of a residential service address is listed as the customer of record and has been issued a notice of intent to discontinue water service due to nonpayment. 8.2 Agreement to District Terms and Conditions of Service. The District will make service available to the actual residential occupants if each occupant agrees to the terms and conditions of service and meets the requirements of the District’s rules and regulations. Notwithstanding, if one or more of the occupants are willing and able to assume responsibility for the subsequent charges to the account to the satisfaction of the District, or if there is a physical means, legally available to the District, of selectively discontinuing service to those occupants who have not met the requirements of the District’s rules and regulations, the District shall designate as additional customer of record, and make service available to, the occupants who have met those requirements. 8.3 Verification of Tenancy. To be eligible to become an additional customer of record, without paying the amount due on the delinquent account, the occupant shall verify that the delinquent account customer of record is or was the landlord, 8 manager, or agent of the dwelling. Verification may include, but is not limited to, a lease or rental agreement, rent receipts signed by the landlord, manager, or agent, a government document indicating that the occupant is renting the property, or information disclosed pursuant to Section 1962 of the Civil Code, at the discretion of the District. 8.4 Methods of Establishing Credit. If prior service for a period of time is a condition for establishing credit with the District, residence and proof of prompt payment of rent for that period of time is a satisfactory equivalent. 8.5 Deductions from Rental Payment. Pursuant to Government Code Section 60371(d), any occupant who becomes a customer of the District pursuant to this Section 8 and whose periodic payments, such as rental payments, include charges for residential water service, where those charges are not separately stated, may deduct from the periodic payment each payment period all reasonable charges paid to the District for those services during the preceding payment period. 9. Language for Certain Written Notices. All written notices under Section 4 and Section 6.6 of this Policy shall be provided in English, Spanish, Chinese, Tagalog, Vietnamese, Korean, and any other language spoken by ten percent (10%) or more people within the District’s service area. 10. Other Remedies. In addition to discontinuation of water service, the District may pursue any other remedies available in law or equity for nonpayment of water service charges, including, but not limited to: securing delinquent amounts by filing liens on real property, filing a claim or legal action, or referring the unpaid amount to collections. In the event a legal action is decided in favor of the District, the District shall be entitled to the payment of all costs and expenses, including attorneys’ fees and accumulated interest. 11. Discontinuation of Water Service for Other Customer Violations. The District reserves the right to discontinue water service for any violations of District ordinances, rules, or regulations other than nonpayment. 12. Fees and Charges Incurred. Except as otherwise expressly stated in this Policy, any fees and charges incurred by a customer under any other rules, regulations, or policies of the District, including, but not limited to, delinquent charges, shall be due and payable as set forth therein. 13. Decisions by District Staff. Any decision which may be taken by the District’s General Manager/CEO or Chief Financial Officer under this Policy may be taken by his or her designee. ORDINANCE NO. 396397 AN ORDINANCE OF THE EAST VALLEY WATER DISTRICT RESCINDING ORDINANCE NO. 395 396 ENTITLED "AN ORDINANCE ESTABLISHING RULES AND REGULATIONS FOR WATER SERVICE, ESTABLISHING A WATER DEPARTMENT, PROVIDING FOR INSTALLATION AND CONNECTION TO DISTRICT WATER MAINS, REGULATING CROSS CONNECTION CONTROL". SECTION 1. INDEX No. Section 1 Index 1 Section 2 General Provisions 2 Section 3 Definitions 4 Section 4 Water Department 8 Section 5 General Rules 9 Section 6 Application for Water Service 15 Section 7 Temporary Service 20 Section 8 Fire Protection 22 Section 9 Cross Connection Control 24 Section 10 Customer Billing Procedures 33 Section 11 Complaints and Disputed Bills 3940 Section 12 Disconnection for Nonpayment 4041 Section 13 Adding Delinquent Charges to Tax Roll 4243 Section 14 Charges and Deposits 4344 Section 15 Water Conservation 4748 Section 16 Effective Date 5557 2 SECTION 2. GENERAL PROVISIONS 2.01 Short Title - This Ordinance may be cited as the "East Valley Water District Water Regulations and Service Ordinance". 2.02 Purpose - This Ordinance is intended to provide rules and regulations applicable to the administration and operational activities of the District. This Ordinance may be amended from time to time by action of the Board of Directors of the East Valley Water District. 2.03 Enabling Statutes - This Ordinance is adopted pursuant to the applicable provisions of Division 12 of the Water Code and Division 5, Chapter 7, Title 5, Division 2 of the Government Code, and further pursuant to the Constitution of the State of California. The District is further authorized by Water Code Section 31027 to prescribe and define by Ordinance those restrictions, prohibitions and exclusions it may determine to be necessary pursuant to the California Constitution Article X, Section 2 and Water Code Sections 31026 and 350 et seq. to restrict the use of District water during threatened or existing water shortages. It is therefore the intent of the Board of Directors to establish by this Ordinance those procedures and policies necessary to the orderly administration of a water conservation program to prohibit waste and to restrict the use of water during a water shortage or emergency. 2.04 Application - This Ordinance shall apply to all water facilities constructed, maintained, and operated by the District. 2.05 Enterprise - The District will furnish and/or make available, a system, plant, works, and undertaking used for and useful in, the delivery of water for the District's service area, including all annexations thereto, lands, easements, rights in land, contract rights and franchises. 2.06 Separability - If any section, subsection, sentence, clause, phrase, or portion of this Ordinance or the application thereof to any person or circumstances are for any reason held to be unconstitutional or invalid by any court of competent 3 jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance or the application of such provision to other persons or circumstances. The governing body hereby declares that it would have passed this Ordinance or any section, sub-section, sentence, clause or phrase hereof irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases be declared to be unconstitutional. 2.07 Words and Phrases - For the purpose of this Ordinance all words used herein in the present tense shall include the future; all words in the plural number shall include the singular number; and all words in the singular number shall include the plural number. 2.08 Posting - Upon adoption, this Ordinance shall be entered in the minutes of the governing body and certified copies hereof shall be posted in three (3) public places and/or published in a newspaper of general circulation in the District service area within ten (10) days following its passage. 2.09 Means of Enforcement - The District hereby declares that the procedures contained herein are established as a means of enforcement of the terms and conditions of its ordinances, rules and regulations and not as a penalty. 2.10 Notices - Whenever a notice is required to be given under this Ordinance, unless different provisions are specifically made herein, such notice may be made either by personal delivery thereof to the person to be notified or by deposit in the U.S. mail in a sealed envelope, postage prepaid, addressed to such person at his last known business or residence address as the name appears in public records or other records pertaining to the matter to which the notice is directed. Service by mail shall be deemed to have been completed at the time of deposit in the post office. Proof of giving any notice may be made by the certificate of any officer or employee of the District or by affidavit of any person over the age of eighteen years, which shows service in conformity with the Ordinance or other provisions of law applicable to the subject matter concerned. 4 2.11 Effect of Heading - The title, division or section headings contained in this Ordinance shall not be deemed to govern, limit or modify in any manner the scope, meaning or intent of any section or subsection of this Ordinance. SECTION 3. DEFINITIONS 3.01 Applicant - The person making application hereunder who must be either (a) the owner of the subject premises, (b) the agent or customer authorized in writing to make application hereunder on behalf of the owner of the subject premises or, (c) a licensed plumber or contractor authorized in writing to make application hereunder for the subject premises. 3.02 Approved Backflow Prevention Assembly – A device deterring the reversal of flow of water or mixtures of water and other liquids, gasses, and/or other substances into the distribution pipes of the District’s potable supply of water through any Cross-Connection. Said device must have been investigated and approved for use as either an Air-gap separation, Double Check Valve Assembly, or Reduced Pressure Principle Backflow Prevention Device by the Foundation for Cross-Connection Control and Hydraulic Research of the University of Southern California, or by any other laboratory having equivalent capabilities for both the laboratory evaluation and field evaluation thereof. 3.03 Board - The Board of Directors of the East Valley Water District. 3.04 Commercial – Any service not covered by the residential description. This shall include, but not be limited to, apartments, trailer parks, schools, dry cleaners, laundries and businesses 3.05 Connection - The pipeline and appurtenant facilities such as the curb stop, meter and meter box, all used to extend water service from the main to the premises, the laying thereof and the tapping of the main. Where services are divided at the curb or property line to serve several customers, each such branch service shall be deemed a separate service. 5 3.06 Cost - The cost of labor, materials, transportation, supervision, engineering, and all other necessary overhead expenses. 3.07 County - The County of San Bernardino, California. 3.08 Cross Connection - An unprotected actual or potential connection between a potable water system used to supply water for drinking purposes and any source or system containing unapproved water or a substance that is not or cannot be approved a safe, wholesome and potable. By-pass arrangements, jumper connections, removable sections, swivel or changeover devices, or other devices through which backflow could occur, shall be considered to be cross-connections. 3.09 Customer - Any person (as defined) supplied or entitled to be supplied with water service by the District. 3.10 Customer's Service Valve - A valve independent of the District's facilities located in the customer's piping as close to the meter as practicable, the operation of which will control the entire water supply from the meter. 3.11 District - The East Valley Water District, San Bernardino County, California. 3.12 District Engineer - A Registered Civil Engineer of the State of California. 3.13 Engineering Services - The engineering services provided by the District to include technical and procedural guidance, professional consultant services, project coordination and plan checking. 3.14 Financial Officer - The Treasurer appointed by the Board of Directors. 3.15 Fire Hydrant - Short Side: The case where the water main and the hydrant are on the same side of the street's centerline. Long Side: The case where the water main and the hydrant are on the opposite sides of the street's centerline. 3.16 General Manager - The General Manager of the District. 3.17 Governing Body - The Board of Directors of the East Valley Water District. 6 3.18 Inspector - The person who shall perform the work of inspecting water facilities under the jurisdiction or control of the District. 3.19 Main - A water line in a street, highway, alley or easement used for public and private fire protection and for the general distribution of water. 3.20 Owner - The person owning in fee title, or in whose name the legal title to the property appears, by deed duly recorded in the County Recorder's office, or the person in possession of the property or buildings under claim of, or exercising acts of ownership over same for himself or, as executor, administrator, guardian or trustee of the owner. 3.21 Permit - Any written authorization required pursuant to this or any other regulation of the District. 3.22 Person - Any human being, individual, firm, company, partnership, association and private, public or municipal corporation, the United States of America, the State of California, a district and any political subdivision, or governmental agency. 3.23 Premises - A lot or parcel of real property under one ownership, except where there are well defined boundaries or partitions such as fences, hedges or other restrictions preventing the common use of the property by several tenants, in which case each portion shall be deemed separate premises. Apartment houses and office buildings may be classified as single premises. 3.24 Private Fire Protection Service - Water service and facilities for building sprinkler systems, hydrants, hose reels and other facilities installed on private property for fire protection and the water available therefor. 3.25 Public Fire Protection Service - The service and facilities of the entire water supply, storage and distribution system of the District, including the fire hydrants affixed thereto, and the water available for fire protection, excepting house service connections and appurtenances thereto. 7 3.26 Regular Water Service - Water service and facilities rendered for normal domestic, commercial and industrial purposes on a permanent basis, and the water available therefor. 3.27 Residential - Any single, duplex or triplex family unit not requiring licensing for occupancy and operation. 3.28 Secretary - The Secretary to the Governing Body. 3.29 Temporary Water Service - Water service and facilities rendered for construction work and other uses of limited duration, and the water available therefor. 3.30 Waste - Any unreasonable method or non-beneficial use of water, including, but not limited to, the specific uses prohibited and restricted by this Ordinance as hereinafter set forth. 3.31 Water Department - The Board of Directors of the District performing functions related to the District's water service, together with the General Manager, the District Engineer, the Financial Officer and any other duly authorized representative. 3.32 Water Supply Shortage - Any water shortage caused by drought or any other threatened or existing water shortage, disaster or facility failure, earthquake, loss of electrical power, pipeline breakage, or other condition which results in or threatens to result in the District's inability to meet the water demands of its customers. 3.33 Water User - Any person, firm, partnership, association, corporation or political entity using water obtained from the water system of the District. 3.34 Water - That water supplied by the East Valley Water District. 8 SECTION 4. WATER DEPARTMENT 4.01 Creation - A Water Department is hereby created comprised of the Directors, the General Manager, the Financial Officer and District Engineer and such other employees and assistants as may be hired therefor. 4.02 General Manager - The General Manager, as provided for in the Water Code Section 30580, shall have full charge and control of the maintenance, operation and construction of the water works and water distribution system of the District. 4.03 District Engineer - The position of District Engineer is hereby created. The District Engineer shall regularly inspect all physical facilities related to the District water system, to see that they are in good repair and proper working order, and to note and report violations of any ordinances or water regulations. 4.04 Violation, Repairs - The District Engineer shall promptly report any violation or disrepair to the General Manager. If the work required is in the nature of an emergency, he/she shall take whatever steps necessary to maintain service to the consumers pending action by the General Manager. 4.05 Supervision - The District Engineer shall supervise all repair or construction work authorized by the Board or General Manager and perform any other duties prescribed by the Board or General Manager. 4.06 Performance of Duties - The foregoing duties of the District Engineer may be performed by the General Manager or by an additional employee or employees as designated by the District Engineer and/or General Manager. 4.07 The Financial Officer - The Financial Officer shall install and maintain a system of auditing and accounting that shall completely and at all times show the financial condition of the District. Furthermore the Financial Officer shall compute, prepare and mail bills as hereinafter prescribed, make and deposit collections, maintain proper books of account, collect, account for, refund deposits, and do whatever else is necessary or directed by the General Manager to set up and maintain an efficient and 9 economical accounting system and perform any other duties now and hereafter prescribed by the Board of Directors. SECTION 5. GENERAL RULES 5.01 Standards - The Governing Body may, from time to time, adopt standard requirements for the design, construction, repair and maintenance, or connection to the District's water system. 5.02 Violation Unlawful - Following the effective date of this Ordinance, it shall be unlawful for any person to connect to, construct, install, provide, maintain or use any other means of water facilities from any building in the area serviced with water by said District except by connection to water facilities in the manner as provided for in this Ordinance. Any violation of this Ordinance will be subject to the provisions of this Section at the discretion of the General Manager, Financial Officer, or District Engineer. 5.03 Notice - Wherever, and whenever, practicable under the particular circumstances of the situation, and pursuant to the discretion of the General Manager, Financial Officer, or District Engineer, any person found to be violating any provisions of this or any other ordinance, resolution, rule or regulation of the District shall be served by the Inspector or other authorized person with written notice stating the nature of the violation and providing a reasonable time limit for the satisfactory correction thereof. Said time limit shall be not less than two, nor more than seven working days. The offender shall, within the period of time stated in such notice, permanently cease all violations. All persons shall be held strictly responsible for any and all acts of agents or employees done under the provisions of this Ordinance or any other rule or regulation of the District. 5.04 Protection from Damage - No person shall maliciously, willfully, or negligently break, damage, destroy, uncover, deface or tamper with any structure, 10 appurtenances or equipment which is a part of the District's water works. Any person violating this provision shall be subject to the penalties provided by law. 5.05 Investigation Powers - The officers, inspectors, managers, and any duly authorized employees or agents of the District shall carry evidence establishing their position as an authorized representative of the District and, upon exhibiting the proper credentials and identification, shall be permitted to enter in and upon any and all buildings, industrial facilities and properties to which the District is furnishing water, or has been requested to furnish water for the purpose of inspection, re-inspection, observation, measurement, sampling, testing or otherwise performing such duties as may be necessary in the enforcement of the provisions of the ordinances, resolutions, rules and regulations of the District pursuant to the authorization contained in the required application for water service. 5.06 Noncompliance with Regulations - As an alternative method of enforcing the provisions of this or any ordinance, resolution, rule or regulation of the District, the District shall have the power to disconnect the user or subdivision water service from the water mains of the District. 5.07 Liability for Violation - Any person violating any of the provisions of the ordinances, rules or regulations of the District shall become liable to the District for any expense, loss or damage, occasioned by the District by reason of such violation. 5.08 Relief on Application - When any person, by reason of special circumstances, is of the opinion that any provision of the ordinances, rules or regulations of the District is unjust or inequitable as applied to his/her premises, that person may make written application to the Governing Body stating the special circumstances, citing the provision complained of and requesting suspension or modification of that provision as applied to his/her premises. If such application is approved, the Governing Body may, by resolution, suspend or modify the provision 11 complained of, as applied to such person or premises, to be effective as of the date of the application and continuing during the period of the special circumstances. 5.09 Relief on Own Motion - The Governing Body may, on its own motion, find that by reason of special circumstances, any provisions of its ordinances, rules or regulations should be suspended or modified as applied to a particular person or premises and may, by resolution, order such suspension or modification for such premise or person during the period of such special circumstances or any part thereof. 5.10 Maintenance of Water Pressure and Pressure Conditions - The Board shall not accept any responsibility for the maintenance of pressure and it reserves the right to discontinue service while making emergency repairs, or other work required on the water system as determined by the General Manager and/or the District Engineer. Consumers dependent upon a continuous supply of water should provide emergency storage. All applicants for service connections or water service shall be required to accept such conditions of pressure and service as are provided by the distribution system at the location of the proposed service connection, and to hold the District harmless for any damages arising out of low pressure or high pressure conditions or interruptions of service. 5.11 Tampering with District Property - Except as otherwise specifically authorized by the General Manager, no one, except an employee or representative of the District shall at any time, in any manner, operate the curb cocks or valves, main cocks, gates or valves of the District's system or interfere with meters or their connections, street mains or other parts of the water system. 5.12 Remedies for Violation - Failure of a customer to comply with any part of this Ordinance, or any other ordinance, resolution, rule, or regulation of the District, shall result in the District’s discontinuance and/or refusal to provide water service to said customer’s premises and in the exercise by the District in its lawful discretion of any and all other rights and remedies that are available to the District under the law. 12 5.13 Water System - The District will furnish a system, plant, works and undertakings used for and useful in obtaining, conserving and disposing of water for public and private uses, including all parts of the Enterprise, all appurtenances to it, lands, easements, rights in land, water rights, contract rights, franchises, and other water supply, storage and distribution facilities and equipment. 5.14 Number of Services per Premises - The applicant may apply for as many services as may be reasonably required for their premises provided that the pipeline system for each service be independent of the others and that they not be interconnected. 5.15 Water Waste - No customer shall knowingly permit leaks or waste of water. Where water is wastefully or negligently used on a customer's premises, seriously affecting the general service, the District may discontinue the service if such conditions are not corrected after giving notice of violation as provided in Section 5.03 herein. 5.16 Responsibility for Equipment on Customer Premises - All facilities installed by the District on private property for the purpose of rendering water service shall remain the property of the District and may be maintained, repaired or replaced by the Water Department without consent or interference of the owner or occupant of the property. The property owner shall use reasonable care in the protection of the facilities. 5.17 Damage to Water Facilities - The customer shall be liable for any damage to the service facilities when such damage is from causes originating on the premises by an act of the customer or his tenants, agents, employees, contractors, licensees or permittees, including the breaking or destruction of locks by the customer or others on, or near, a meter, and any damage to a meter that may result from hot water or steam from a boiler, or heater, on the customer's premises. The District shall be promptly reimbursed for any such damage upon presentation of a bill to the customer. 13 5.18 Ground Wire Attachments - All individuals or business organizations are forbidden to attach any ground wire, or wires, to any plumbing which is, or may be, connected to a service connection or main belonging to the District. The District will hold the customer liable for any damage to its property occasioned by such ground wire attachments. 5.19 Control Valve on Customer Property - The customer shall provide a valve on his/her side of the service installation as close to the meter location as practicable to control the flow of water to the piping on his/her premises. The customer shall not use the service curb stop to turn water on and off for his/her convenience. 5.20 Unsafe Apparatus - Water service may be refused or discontinued to any premises where apparatus or appliances are in use which might endanger or disturb the service to other customers. 5.21 Cross Connections - Water service may be refused or discontinued to any premises where there exists a cross connection as defined in Section 9 of this Ordinance. 5.22 Fraud or Abuse - Service may be discontinued, if necessary, to protect the District against fraud or abuse. 5.23 Interruption in Service - The District shall not be liable for damage which may result from an interruption in service from a cause beyond the control of the Water Department. 5.24 Ingress and Egress - All duly authorized employees, agents, and representatives of the District shall have the right of ingress and egress to the customer's premises at reasonable hours for any purpose reasonably connected with the furnishing of water service. 5.25 Installation of Services - Only duly authorized employees, agents, and representatives of the District shall install service connections to the District’s water system. All service connections shall comply with the specifications of the District. Meters will be installed in the public right of way, or within an acceptable easement, 14 and shall be owned by the District. No rent or other charge will be paid by the District for a meter or other facilities, including connections. All meters will be sealed by the District at the time of installation and no seal shall be altered or broken except by one of the District's authorized employees or agents. 5.26 Change in Location of Meters - Meters moved for the convenience of the customer will be relocated at the customer's expense. Meters moved to protect the District's property will be moved at District expense. 5.27 Size and Location - The District reserves the right to determine the size of service connections and their location with respect to the boundaries of the premises to be served. Service installations will be made only to property abutting on distribution mains as have been constructed in public streets, alleys or easements or to extensions thereof as herein provided. Services installed in new subdivisions prior to the construction of streets, in advance of street improvements, must be accepted by the applicant in the installed location. 5.28 Curb Cock - Each service connection installed by the District shall be equipped with a curb cock, or wheel valve, on the inlet side of the meter. Such valve, or curb cock, is intended for the exclusive use of the District in controlling the water supply through the service connection pipe. If the curb cock, or wheel valve, is damaged by the customer's use to an extent requiring replacement, such replacement shall be at the customer's expense. 5.29 Access to Meters - The District reserves the right to enter upon the applicant's premises for the purpose of reading, repairing or replacing the water service meter. The applicant shall be solely responsible for the control of all animals which may pose a potential threat to District employees and shall be liable for any injury to District employees resulting from unrestrained animals. Should an applicant for new service fail to properly restrain animals present on his property, the District may, upon written notice, refuse to install or turn on service until such time as the District 15 determines that a threat to its employees no longer exists. When there is an ostensive risk to employees at an established service due to the presence of unrestrained animal(s) or other hazard(s), the employee will not be required to read the meter, etc. The customer will be notified of the situation and the bill will be estimated based upon an average of the most recently recorded six (6) month’s consumption until a personal risk by the District’s employee is no longer an issue. Upon verification that the premises no longer appears to be a threat to the safety of the employee, the meter will be read in the presence of the customer, or someone of his/her choosing, and the billing will be adjusted accordingly. SECTION 6. APPLICATION FOR WATER SERVICE 6.01 Application for Water Service - The property owner or his/her agent designated in writing shall make application for regular water service by personally signing an Application for Water Service form provided by the District and pay the necessary fee for connection to the District's facilities as prescribed in the latest Resolution and Schedule of Rates and Charges adopted by the Board of Directors. 6.02 Water Service to Customers other than Property Owners - Water Service to other than property owners shall be made as follows: 6.02.01 Property Owner's Signature - If the Property owner rents the premises to a tenant, the tenant may have water service and other services instituted in the tenant's name, provided that reasonable efforts are made to secure the property owner's signature on the application for service and the tenant provides the District with a copy of the rental agreement. In any event, the tenant must provide the District with the property owner’s name, mailing address and telephone number. 6.02.02 Owner Responsibility - Whether or not a property owner signs the District's application for water service form, the property owner is not relieved of his or her responsibility for unpaid water charges for the subject property as provided in this ordinance and pursuant to California Water Code Section 31701.5, et..seq. 16 6.03 Payment of Delinquent Charges - As a precondition to receiving water service from the District, the applicant for service shall pay any and all unpaid charges that have accrued on any closed accounts previously held by the applicant with the District as well as pay any and all delinquent charges that have accrued on any open accounts currently held by the applicant with the District. 6.04 Security Deposit - A security deposit for each single family residential unit, commercial or retail unit, or multi-unit complex shall be deposited at the time application for water service is made. The District may, at its sole election, include the required security deposit on the customer’s first billing invoice. 6.04.01 Single Family Residential - A security deposit for a single family residential unit may not be required if the person requesting service is a new residential applicant who is determined by the District to be creditworthy. The determination of an applicant’s creditworthiness shall be based solely upon criteria developed by the District and may be appealed in the manner set forth in Section 11 herein. However, during the life of the account, the District may, in its sole discretion, require any customer, regardless of whether he or she was previously found to be creditworthy, to post a full security deposit with the District any time there are three (3) delinquencies within any consecutive six (6) month period, or as a precondition to reinstatement of service anytime after being disconnected for nonpayment. 6.04.02 Security Deposit Refund - Refunds of security deposits will be performed in the manner set forth below. Such refunds will be credited to any account held by the customer with the District in lieu of a refund check. Interest on the security deposits shall remain the sole property of the District and will not be included in any refund. 6.04.02.01 Single Family Residential - The District shall refund each security deposit to a residential customer as follows: 17 a. Where funds have been on deposit for one year in a customer’s account and there have been no delinquency payments on any of the customer’s accounts with the District during that year. However, the District may, at its sole option, require any customer to post a full security deposit with the District any time there are three (3) delinquencies within any consecutive six (6) month period, or as a precondition to reinstatement of service anytime after being locked off for nonpayment. b. Within thirty (30) days after the applicant provides written notice to terminate water services, or when a new property owner tenders a full deposit for the same property, in which case the refunded deposit shall first be applied toward the unpaid balances in any account held by the customer with the District before the remaining sum, if any, is refunded to the customer. 6.04.02.02 Commercial, Retail or Industrial - The District shall refund the security deposit for commercial, retail or industrial connections as follows: a. Where funds have been on deposit for one year in a customer’s account and there has been no delinquency payment on any of the customer’s accounts with the District during that year and upon the customer’s request, one-half of the deposit will be refunded to the customer by means of a credit on the account. However, if the customer is delinquent on any payment thereafter, the District may, at its sole option, charge back the credited amount. b. Within thirty (30) days after the applicant provides written notice to terminate water services, or when a new property owner tenders a full deposit for the same property, in which case the refunded deposit shall first be applied toward the unpaid balances in any account held by the customer with the District before the remaining sum is refunded to the customer. 6.05 Change in Customer's Equipment - Customers who make any material change in the size, character of, extent of the equipment or operations utilizing water service, or whose change in operations results in a significant increase in the use of 18 water shall immediately give the District written notice of the nature of the change and, if necessary, amend their application. 6.06 Domestic, Commercial and Industrial Service Connections - It shall be unlawful to maintain a connection excepting in conformity with the following: 6.06.01 Multiple Building - Multiple houses or buildings under one ownership and on the same lot or parcel of land may be supplied through the same service connection, provided that the service connection shall be of such size to adequately serve said houses or buildings. 6.06.02 Single Service Connection - Not more than one service connection for domestic or commercial supply shall be installed for one building, except when authorized by the District. 6.06.03 Separate Service Connection - A service connection shall not be used to supply any adjoining property, or property across a street, alley or easement. Each service connection shall serve only one property or individual parcel. 6.06.04 Divided Property - When property provided with a service connection is divided, the service connection shall be considered as belonging to the lot or parcel of land which it directly enters. 6.07 Service Connection Maintenance - The service connection extending from the water main to the meter, meter box and curb cock or wheel valve, shall be maintained by the District. All pipes and fixtures extending or lying beyond the meter box shall be installed and maintained by the owner of the property. 6.08 Damage through Leaking Pipes and Fixtures - When requested to turn on the water supply to a house or property, the District will make a reasonable attempt to ascertain if water is running on the inside of the building. If such is found to be the case, the water will be left shut off at the curb cock or the private shutoff. The District's jurisdiction and responsibility ends at the customer's side of the meter 19 box and the Board will in no case be liable for damages occasioned by water running from open or faulty fixtures, or from broken or damaged pipes beyond the meter box. 6.09 Damage to Meters - The District reserves the right to set and maintain a meter on any service connection. The water customer shall be held liable for any damage to the meter due to customer’s negligence or carelessness. 6.10 Main Extension Required - The District may provide for all main extensions upon application for service and payment of required charges. Customer may elect to extend mains according to agreements between the customer and the District providing the work meets District standards. 6.10.01 Application - Any owner of one or more lots, parcels, or a sub- divider of a tract of land desiring the extension of one or more water mains to serve such property, shall make written application therefor to the District. Said application shall contain the legal description of the property to be served, tract number, and any additional information which may be required by the District, and shall be accompanied by a map showing the location of the proposed connections. 6.10.02 Investigation - Upon receipt of the application requesting the District to install facilities, the District shall make an investigation and survey of the proposed extension and estimate the cost thereof. 6.10.03 Dead-end Lines - No dead-end lines shall be permitted, except at the discretion of the General Manager, and in cases where circulation lines are necessary they shall be designed and installed by the District as part of the main extension. 6.10.04 Specifications and Construction - The size, type and quality of materials and location of the lines shall be specified and approved by the District. 6.10.05 Property of District - Upon completion of such installation as approved by the District, the facilities shall be dedicated to and become property of the District. 20 6.10.06 Connections - The applicant shall, at his cost, provide all connections to buildings and private water systems, as herein provided. SECTION 7. TEMPORARY SERVICE 7.01 Duration of Service - Temporary service connections shall be disconnected and terminated within six months after installation unless an extension of time is granted in writing by the General Manager, Financial Officer, or District Engineer. 7.02 Security Deposit - The applicant shall deposit, in advance, the estimated cost of the temporary service. Upon discontinuance of service, the actual cost shall be determined and an adjustment made as an additional charge, refund or credit. 7.03 Installation and Operation - All facilities for the temporary service to the customer shall be made and operated in accordance with District instructions. The District may, at its discretion, restrict or terminate the service at any time. 7.04 Responsibility for Meters and Installations - The customer shall use all possible care to prevent damage to the meter, or to any other loaned facilities of the District, which are involved in furnishing the temporary service from the time they are installed until they are removed. If the meter or other facilities are damaged, the cost of making repairs shall be paid by the customer. The customer shall give notice to the District in writing at least forty eight (48) hours prior to the time the customer or other person is through with the meter, or meters, and the installation. 7.05 Supply from Fire Hydrant - An applicant for temporary use of water from a fire hydrant must apply for a temporary water service and pay a hydrant meter deposit. The applicant shall also pay for water used in accordance with the meter readings, at the rates prescribed by the Board. 7.06 Unauthorized Use of Hydrants - Tampering with any fire hydrant for the unauthorized use of water therefrom or for any other purpose is subject to a fine, per occurrence, as may be set by the Board. 21 7.07 Meter Availability - As prescribed by the District, the applicant shall make the hydrant meter available for reading on a monthly basis for actual water usage. If the hydrant meter is not available for the monthly reading as prescribed by the District, a supplementary fee of $100 will be charged for each month the meter is not read to cover the expense required for corrections to billing records. 7.08 Pools and Tanks - When an abnormally large quantity of water is desired for filling a swimming pool or for other purposes, arrangements must be made with the District prior to taking such water. Permission to take water in unusual quantities will be given only if it can be safely delivered through the District's facilities and if other consumers are not inconvenienced thereby. 7.09 Responsibility for Equipment - The customer shall, at his own risk and expense, furnish, install and keep in good and safe condition all equipment that may be required for receiving, controlling, applying and utilizing water, and the District shall not be responsible for any loss or damage caused by the improper installation of such equipment, or the negligence or wrongful act of the customer or any of his tenants, agents, employees, contractors, licensees or permitees in installing, maintaining, operating or interfering with such equipment. The District shall not be responsible for damage to property caused by faucets, valves and other equipment which are open when water is turned on at the meter, either originally or after a temporary shutdown. SECTION 8. FIRE PROTECTION 8.01 Public Fire Protection - The following pertains to the use of District facilities for public fire protection: 8.01.01 Use of Fire Hydrants - Fire Hydrants are for use by the District or by organized fire protection agencies pursuant to contract with the District. Other parties desiring to use fire hydrants for any purpose must obtain prior written permission from the Water Department and shall operate the hydrant in accordance 22 with instructions issued by the Water Department. Unauthorized use of hydrants will be prosecuted according to law. 8.01.02 Moving of Fire Hydrants - When a fire hydrant has been installed in the location specified by the proper authority, the District has fulfilled its obligation. If a property owner or other party desires a change in the size, type or location of the hydrant, they shall bear all costs of such changes without refund. Any change in the location of a fire hydrant must be approved by the proper authority. 8.02 Private Fire Protection Service - The following pertains to the use of District facilities for private fire protection systems: 8.02.01 Payment of Cost - The applicant for private fire protection service shall pay the total actual cost of installation of the service from the distribution main to the service location including the cost of a detector check meter or other suitable and equivalent device, valve and meter box, said installation will become the property of the District. 8.02.02 No Connection to Other Systems - Unless authorized and under special circumstances, there shall be no connection between the fire protection system and any other water distribution system on the premises. 8.02.03 Use - There shall be no water used through the fire protection service except to extinguish fires and for testing the fire fighting equipment. 8.02.04 Charges for Water Used - Any consumption recorded on the meter will be charged as provided in District Resolutions, except that no charge will be made for water used to extinguish fires reported to the fire department. 8.02.05 Monthly Rates - The monthly rates for private fire protection shall be established by Resolution of the Board of Directors. 8.02.06 Water for Fire Storage Tanks - Occasionally water may be obtained from a private fire service for filling a tank connected with the fire service, 23 but only if written permission is secured in advance from the District and an approved means of measurement is available. 8.02.07 Violation of Agreement - If water is used from a private fire service in violation of the agreement or this Ordinance, the District may, at its option, discontinue and remove the service. 8.02.08 Valve - When a fire service connection is installed, the valve governing same will be closed and sealed and remain so until a written order is received from the owner of the premises to have the water turned on. 8.02.09 Meter - If the District does not require a meter, and if water is used through a fire service connection for any other purpose than extinguishing fires, the District shall have the right to place a meter on the fire service connection at the owners expense and assess the appropriate capacity fees, or shut off the entire water supply from such premises. 8.02.10 Additional Service - The District shall have the right to take a domestic, commercial or industrial service connection from the fire service connection at the curb to supply the same premises as those to which the fire service connection belongs. The Board shall also have the right to determine the proportion of the installation costs properly chargeable to each service connection, if such segregation of costs shall become necessary. 8.02.11 Check Valve - The Board reserves the right to install on all fire service connections a check valve of a type approved by the National Board of Fire Underwriters and to equip the same with a by-pass meter at the expense of the owner of the property. SECTION 9. CROSS CONNECTION CONTROL 9.01 Purpose - The purpose and intent of this Section: 24 a. To comply with the requirements imposed upon the District pursuant to Sections 7583-7605 of the California Code of Regulations ("Title 17") and all other applicable regulations regarding Cross-Connection Control. b. To protect the public potable water supply of this District from the possibility of contamination or pollution by isolating within the customer’s internal distribution system(s), or the customer’s private water system(s), such contaminants or pollutants which could backflow into the District’s public water system(s); and c. To promote the elimination or control of existing cross-connections, actual or potential, between the customer’s potable water system(s) and non-potable water system(s), plumbing fixtures and industrial systems; and d. To provide for the maintenance of a continuing Cross-Connection Control Program which will systematically and effectively minimize the potential for contamination or pollution of the potable water system. 9.02 Application - The provisions of Title 17 and all other regulations regarding Cross-Connections that are adopted by the State of California Department of Health Services pursuant to California Water Code Sections 100205, 100275, and 116375(c), all as the same may be amended from time to time, are hereby adopted by the District, incorporated herein by this reference, and made a part hereof as though set forth in full. 9.03 Definitions - In addition to the definitions in Title 17, the following terms are defined for the purpose of this chapter: 9.03.01 Approved Water Supply - The term “Approved Water Supply” shall mean a water supply whose potability is regulated by the Department of Health Services. 9.03.02 Auxiliary Water Supply - Any water supply, other than the District's, which is either on or available to the property will be considered as an auxiliary water supply. These auxiliary waters may include water from another public 25 potable water supply or from any natural source(s) such as a well, river, stream or used water. These waters may be contaminated, polluted or constitute an unacceptable water source over which the District does not have sanitary control. 9.03.03 Backflow - The term “backflow” shall mean the undesirable reversal of flow of water or mixtures of water and other liquids, gasses or substances into the distribution pipes of the District’s potable supply of water from any source or sources. 9.03.04 Backpressure - The term “backpressure” shall mean any elevation of pressure in the downstream piping system above the supply pressure at the point of consideration which would cause, or tend to cause, a reversal of the normal direction of flow. 9.03.05 Backsiphonage - The term “backsiphonage” shall mean a form of backflow due to a reduction in syst em pressure which causes a sub-atmospheric pressure to exist at a point in the water system. 9.03.06 Backflow Preventer - An assembly or means designed to prevent a reverse flow condition created by a difference in water pressures. 9.03.07 Backflow Prevention Devices – The actual types of devices that may be required and are acceptable for use in the District are as follows: a. Air Gap - The term “Air Gap” shall mean a physical separation. between the free flowing discharge end of a potable water supply pipeline and an open or non-pressure receiving vessel. b. Reduced Pressure Principle Backflow Prevention (RPP) Assembly - The term “RPP Assembly” shall mean an assembly containing two independently acting approved check valves together with a hydraulically operating, mechanically independent, pressure differential relief valve located between the check valves. The unit shall include properly located resilient seated test cocks and tightly closing resilient seated shutoff valves at each end of the assembly. 26 c. Double Check Valve Backflow Prevention (DC) Assembly – The term “DC Assembly” shall mean an assembly composed of two independently acting approved check valves including tightly closing resilient seated shutoff valves attached at each end of the assembly and fitted with properly located resilient seated test cocks. 9.03.08 Contamination - The term “contamination” shall mean an Impairment of the quality of the water which creates an actual hazard to the public health through poisoning or through the spread of disease by bacteria, virus, sewage, industrial fluids, or other toxic substances. 9.03.09 Cross-Connections, Controlled - A connection between a potable and non-potable water system with an approved backflow prevention assembly properly installed and maintained so that it will continuously afford the proper protection. 9.03.10 Cross-Connection Control by Containment - The term “cross-connection control by containment (service protection)” shall mean the appropriate type or method of backflow protection at the service connection. 9.03.11 Degree of Hazard - The term “degree of hazard” shall mean either a contamination (health), plumbing, pollutional (non-health) or system hazard. Listed in order of severity, each is defined as follows: a. Health Hazard - The term “health hazard” shall mean an actual or potential threat of contamination of a physical or toxic nature to the District’s water system or the consumer’s potable water system that would be a danger to health. b. Plumbing Hazard - The term “plumbing hazard” shall mean an internal or plumbing type cross-connection in a consumer’s potable water system that may be either a pollutional or contamination type hazard. This includes, but is not limited to, cross-connections to toilets, sinks, lavatories, wash basins, swimming pool plumbing systems, and lawn sprinkler systems. If permitted to exist, “plumbing hazard” must be properly protected by an appropriate type of backflow prevention assembly. 27 c. Pollutional Hazard - The term “pollutional hazard” shall mean the actual, or potential, threat to the physical properties of the water system or the potability of the system but which would not constitute a health or system hazard, as defined. The potable water system would be degraded, depending on the degree or intensity of pollution, to the point where it becomes a nuisance, aesthetically objectionable, or cause minor damage to the system or its appurtenances. d. System Hazard - The term “system hazard” shall mean an actual, or potential, threat of severe danger to the physical properties of the District’s or consumer’s potable water system which could have a delayed effect on the quality of the potable water in the system. 9.03.12 Industrial Fluids - The term “industrial fluids” shall mean any fluid or solution which may be chemically, biologically, or otherwise contaminated or polluted in a form or concentration which would constitute a health, system, pollutional, or plumbing hazard if introduced into an approved water supply system 9.03.13 Pollution - The term “pollution” shall mean an impairment of the quality of the water to a degree which does not create a hazard to the public’s health, but which does adversely affect the aesthetic qualities of such waters for domestic work. 9.03.14 Potential – The term “potential” shall mean something perceived that can develop into or become actual. 9.03.15 Service Connection - The term “service connection” shall mean the downstream end of the water meter. This is the point of delivery to the customer’s water system where the District loses jurisdiction and sanitary control of the water. 9.03.16 Water, Potable - The term “potable water” shall mean any public/private water supply that has been investigated and approved for human consumption. 28 9.03.17 Water, Non-Potable - The term “non potable water” shall mean a water supply that has not been approved for human consumption. 9.03.18 Water, Used - The term “used water” shall mean any water supplied by the District from a public potable water system to a customer’s water system after it has passed through the service connection and is no longer under the control of the District. 9.04 Determination - The District shall conduct surveys to identify Water User Premises where Cross-Connections are likely to occur and evaluate the degree to potential health hazard to the Water which may be created as a result of conditions existing on a Water User's Premises. At a minimum, the evaluation shall consider the factors identified in Section 7585 of the California Code of Regulations. However, notwithstanding anything herein to the contrary, the District shall not be legally responsible for the abatement of any Cross-Connection which may be found to exist within a Water User's Premises. 9.05 Notice - Upon determination by the District that a Cross-Connection exists within the scope of this Section, the District shall give written notice to the affected Customer to install an Approved Backflow Prevention Assembly of a type and quality, and at a specific location, deemed appropriate by the District. The Customer shall immediately cause such device to be installed at his or her expense, and in the manner prescribed by the District, which thirty (30) days of the issuance of said notice. 9.06 Installation - The location of any Approved Backflow Prevention Assembly installed pursuant to this Section shall be at the Customer's point of connection to the district's Water, or within the Customer's Premises, or both, as determined by the District in the exercise of its discretion. If an approved Backflow Prevention Assembly is required on the Customer's connection to the District's Water, it shall be located at or near the property line of the Premises or immediately outside the building being 29 served, but, in all cases, at a place deemed acceptable to the District that is before the first branch line leading off the service line. 9.06.01 Typical Installations - Conditions where an approved backflow prevention assembly is required on each service connection shall include, but not be limited to, the following: a. In the case of any property having an auxiliary water supply, or one that is being fed by another outside water source, the public water system shall be protected against backflow from the premises by installing an approved Air Gap or RPP device. b. In the case of any property on which toxic chemicals, pollutants, industrial fluids, or any other objectionable substances are handled, or stored, in such a fashion as to create an actual or potential hazard to the District’s system, the public water system shall be protected against backflow from the premises by installing an approved Air Gap or RPP device. c. In the case of any property having internal cross-connections that cannot be permanently corrected or protected against, or intricate plumbing and piping arrangements or where entry to all portions of the premises is not readily accessible for inspection purposes, making it impracticable or impossible to ascertain whether or not dangerous cross-connections exist. The public water system shall be protected against backflow from the property by installing an approved RPP device. d. In the case of any property being served by two or more water services, water and fire services, water and irrigation services, or any combination thereof, the public water system shall be protected against backflow from the premises by installing an approved RPP device on each service connection. e. In the case of any property having solar heating systems of a heat ex- 30 changer type that utilize a recirculating pump, air conditioning units with chemical injection pots, or coolers with recirculating pumps, the public water system shall be protected against backflow from the premises by installing an approved RPP device. f. In the case of any agricultural property, dairy, poultry farm, or any other farm, or hobby type operation, where fecal bacteria has the potential to contaminate the water supply, or operations injecting chemicals into the on-site water lines, the public water system shall be protected against backflow from the property by installing, at a minimum, an approved RPP device. g. In the case of any property on which there is water or a substance that would be objectionable but not hazardous to health if introduced into the public water system, the public water system shall be protected against backflow from the premises by installing an approved double check valve. h. In the case of any single family or multi-family residential property where known health hazards exist, the public water system shall be protected against backflow from the premises by installing an approved RPP device. 9.06.02 Typical Facilities - Typical facilities where the District requires the installation of approved backflow prevention assemblies: Apartments - 8 or more units - RPP Bottling plants - RPP Buildings- Commercial, Industrial - RPP Buildings- Hotels, Motels - RPP Buildings, multi-storied (three or more floor levels) - RPP Car wash facilities - RPP Cleaners - RPP Commercial buildings - RPP Cooling towers - RPP Fire systems (not interconnected, interconnected) - RPP, DC 31 Hospitals- Medical buildings, Mortuaries, Autopsy Facilities, Nursing and Convalescent Homes, and Clinics - RPP Irrigation systems- Premises having separate systems: Parks, Playgrounds, Cemeteries, Golf Courses, Schools, Estates, and Ranches - RPP Laundries and Dye works - RPP Mobile home parks - RPP Multiple rental buildings - that are master metered - RPP Plating plants - RPP Sand and Gravel Plants - RPP Schools - RPP Sewage lift stations - RPP Sewage treatment plants - AG, RPP Sprinkling systems (chemically entrained) - RPP 32 Steam facilities - RPP Public Swimming Pools, and Pools at Apartments, Condominiums, Home OwnerAssociations, City Parks, Trailer Parks, and Mobile Home Parks - RPP 9.07 Inspection, Testing and Maintenance - The Customer shall cause a field test to be performed by a licensed plumbing contractor certified to test and repair Approved Backflow Prevention Assemblies at the time of installation and at least once per year thereafter. In those instances deemed necessary by the District, testing of Approved Backflow Prevention Assemblies may be required at more frequent intervals, In the event that an Approved Backflow Prevention Assembly is found to be defective, the Customer shall cause the necessary repairs and/or replacement thereof to be made. The Customer shall have an acceptance test performed after such repair and/or replacement to ensure proper operation of the Approved Backflow Prevention Assembly. All costs associated with the inspection, testing, repair, and maintenance of Approved Backflow Prevention Assemblies shall be borne by the Customer. The results of each test and records of all inspection, replacement, and repairs performed on an Approved Backflow Prevention Assembly by the Customer shall be maintained by the Customer and reported to the District in a manner deemed acceptable to the District. 9.08 Enforcement - The District may discontinue or refuse to supply water and/ or sewer service to any Premises that is not in strict compliance with the terms of this Section, or if it is found that an Approved Backflow Prevention Device has been removed or bypassed, or if unprotected Cross-Connections otherwise exist on the Premises. The District may also disconnect water and/or sewer service to any Premises if the health and safety of any Person is immediately threatened by a Cross- Connection. The District may refuse to restore such service to the Premises until the Cross-Connection is 33 remedied and an Approved Backflow Prevention Device is installed and operated in accordance with the Section. 9.09 Administration - The District shall appoint at least one (1) person trained in Cross-connection control to administer the provisions of this section. SECTION 10. CUSTOMER BILLING PROCEDURES 10.01 Charges - Water charges shall commence when a water service connection is installed and the meter is set. The customer requesting service and whose name is on the water service account will be responsible for all water charges incurred by such service. The District may transfer to the account, any delinquent and/or unpaid charges from other closed or open accounts which are held by the customer and/or property owner within the District. 10.02 Tiered Water Use - The District charges for potable water use in three separate pricing tiers. Tier 1 is an estimate of indoor water use. Tier 2 is an estimate of efficient outdoor use. Tier 1 and 2 are considered a customer’s water budget. Tier 3 represents water use greater than 100% of the customer’s individualized water budget. 10.03 Water Budgets - A water budget is defined as the quantity of water required for an efficient level of water use by an individual customer site. The District’s water budget calculation accounts for indoor, outdoor, and business process needs where applicable. Water budgets are determined by the individual needs of the customer using site-specific factors including, but not limited to, persons per household, irrigated area, weather (expressed as Evapotranspiration rate), plant factor, and days of service. Water budgets are calculated differently for residential, dedicated irrigation (landscape), and commercial mixed-use (indoor and outdoor) water service accounts. Water budgets are considered the combination of Tier 1 and/or Tier 2 water use in all customer classes subject to water budget rates. Customer classes are: Residential, Multi-Family, Irrigation, and Non-Residential. 34 10.04 Evapotranspiration (ET) Rate - Evapotranspiration is a measure of water transpired through plant tissue and evaporated from the soil in the planted area over a period of time. The unit of measure is expressed in inches of ET. ET measurements are obtained from weather station(s) situated in the District’s service area; each station provides the data to be applied for specific zones within the District. The weather stations are calibrated on a monthly basis by a certified CIMIS (California Irrigation Management Information System) professional. Weather data is gathered on a daily basis and accumulated for each billing period. 10.05 Monthly Plant Factor - The monthly plant factor is used to more clearly define the needs of plant material. The District’s monthly plant factor comes from the University of California – Riverside’s research on the water needs of cool-season turf grass. The plant factors (shown in Row A of the table below), when averaged over the entire calendar year, match the annual ET Adjustment factors listed in the State of California Model Water Efficient Landscape Ordinance (AB 1881). Monthly Plant factors for special landscapes are shown in Row B of the table. Special landscapes are served by a dedicated irrigation meter and include: registered historical sites, cemeteries, parks, golf courses, sport complexes/ball fields, and school yards. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual Average A. 0.61 0.64 0.75 1.04 0.95 0.88 0.94 0.86 0.74 0.75 0.69 0.60 0.8 B. 0.76 0.80 0.93 1.30 1.20 1.10 1.20 1.10 0.92 0.93 0.86 0.75 1 10.06 Residential Indoor Water Budget - A residential indoor water budget is calculated by multiplying the number of persons per household by 60 gallons for every day by the number of dwelling units by the drought factor in a billing period. For example, if there are 4 persons in a single-unit residence, the daily water budget would be 240 gallons (4 persons x 1 unit x 1 drought factor x 60 gallons). If there are 28 days 35 in a billing period the total indoor water budget would be 6,720 gallons (240 gallon/day x 28 days = 6,720 gallons) or 8.98 billing units (6,720 gallons ÷ 748 gallons per billing unit). 10.07 Residential Outdoor Water Budget - A residential daily outdoor water budget is calculated by multiplying the irrigated square footage associated with the water service account by the monthly Evapotranspiration rate adjusted by the monthly plant factor by the drought factor, multiplying by the conversion factor of 0.62 (square feet to gallons), and then dividing by 748 to arrive at the daily water budget in billing units. (Irrigable Square Footage x Monthly Evapotranspiration Rate x Monthly Plant Factor x drought factor x 0.62 ÷ 748 = Monthly Outdoor Budget in billing units. 10.08 Dedicated Landscape (Irrigation) Water Budget - Water budgets for dedicated irrigation accounts are calculated using the same methodology that is used for Residential Outdoor Water Budgets (described above). Dedicated Landscape accounts receive no Tier 1 allocation. 10.09 Non-Residential Mixed Use Water Budgets – Non-Residential mixed-use water budgets are based on historic use. The District calculates an average water demand for each billing period based on the water demand for the same billing periods of the prior two years. The commercial water budget may be adjusted, at the District’s discretion, to accommodate changes in business processes or to allow for business growth. 10.10 Water Budget Drought Factor - Water budgets can be adjusted in times of threatened water supply availability in order to reduce water allocations for customers through the use of the drought factor. When drought factors are implemented, indoor and/or outdoor water budgets can be reduced by a designated percentage, causing Tier 1 and/or Tier 2 allocations to be reduced, and Tier 3 ‘Inefficient Usage’ charges to become effective at lower consumption levels. 36 Drought factors can also be adjusted upward to reflect improved water supplies but not above 100%. Changes in drought factors will be established by Resolution of the District Board of Directors. 10.11 Water Budget Adjustments - Water budgets can also be adjusted to reflect a significant change in a customer’s unique efficient water needs. Adjustment forms are available for customers on the District’s website or at the District Headquarters. Rules pertaining to applicable water budget adjustments are outlined on the water budget adjustment form. 10.12 Leak Credit - In cases where a pipe break or sprinkler malfunction leads to water use in excess of an individual water budget during one or more billing periods, the District will remove the inefficient use rate increment (difference between Tier 3 and Tier 2 rates) for up to a maximum of two concurrent billing periods ending in the billing period in which a verified repair or corrective measure was conducted. In addition, all of the following conditions must be satisfied for a Leak Credit to be issued:  The customers water use was in excess of their water budget at the time of the repair;  The customer has completed a leak credit form with the required documentation showing a repair was performed;  The customer has returned to in-budget water use in the billing period immediately following the billing period during which the repair was completed;  The customer has not applied for a leak credit within the last 12 consecutive billing periods. The District will remove the tier 3 incremental charge by recalculating the impacted water bill(s) for all of the customer’s water use, including water use as a result of the 37 leak or malfunction, at the applicable Tier 2 pricing. A leak credit form may be obtained on the District website, or by visiting the District Administrative Offices. 10.13 Liens for Unpaid Bills - All unpaid bills will be made a lien against the property pursuant to these rules, regulations and California Water Code Section 31701.5 et.seq. Interest at the legal rate may accrue and be applied on all delinquent bills. The property owner remains responsible for all charges owed to the District whether or not the property owner actually lives on the premises or signs the application for water service. 10.14 Owner Liability - The property owner remains responsible for all charges owed to the District whether or not the property owner actually lives on the premises or signs the application for water service. 10.15 Meter Reading, Billing Period, and Due Date - The billing will be based on the periodic meter readings which will normally range between 26 and 32 35 days. If a meter fails to register during any period, or is known to register inaccurately, the customer shall be charged based on estimated usage. The billings for water service are mailed approximately, five days after the meter readings. Current charges are due when mailed and become past due if not paid on or before the due date. The due date shall be 20 days after the billing date. All billings are considered delivered upon mailing and the District is not responsible for non-receipt or non-delivery once mailed. Any payment envelope received by the District without a payment enclosed, or with an unsigned check, shall be considered non-payment. Checks received on payment of account and later returned by the bank unpaid shall also be considered as non-payment, and a returned check charge will be assessed. Accents with one or more returned checks may be required to make future paym ents by cash, money order, or charge card only. 10.16 Reactivation - If payment is not made, as stipulated above, and charges remain unpaid on the shut-off date stated on the delinquent billing notice, water 38 service shall be discontinued, a disconnection charge assessed, and a deposit required. If an account has been disconnected for non-payment, the original bill, delinquent and disconnection charges, and a deposit must be paid before service will be reestablished. Payment for charges on an account that has been disconnected must be made in cash, money order, or charge card. 10.17 Past Due Accounts - Rates and charges which are not paid on or before the due dates shall be subject to interest charges. Interest will be calculated at a rate of one and one-half percent (1 1/2 %) on all amounts that remain unpaid at the end of each billing cycle. The District may secure unpaid charges by filing liens on real property, as provided by law or by any other method available to the District. In the event that legal action is brought to collect unpaid charges, the District shall be entitled to the payment of all costs, including attorney’s fees. Defendant shall pay all costs associated with litigation rendered in favor of the District. 10.18 Billing of Separate Meters not Combined - Separate bills will be rendered for each meter installation. The District may, for its own convenience, consider each register of compound meters as a separate service and bill each as provided for herein. For its own convenience, the District may combine multiple services on one bill. 10.19 Opening and Closing Bills - Opening and closing bills for less than the normal billing period shall consist of charges for actual water consumption and a proration of the availability charge. 10.20 Delinquency Notice and Disconnection for Non-Payment - A delinquency notice shall be mailed to customers whose accounts are delinquent, warning that service is subject to disconnection. unless payment is received within fifteen (15) calendar days from the date of mailing of the delinquent notice. Residential accounts will have sixty (60) calendar days from the date of the mailing of the notice before the account will be disconnected for non-payment in accordance with the District’s Policy for Discontinuation of Residential Water Service. Non-residential accounts 39 (commercial, irrigation) will have fifteen (15) calendar days from the date of the mailing of the notice before the account will be disconnected. The delinquency notice shall will contain all the following: indicate the amount due, including delinquent charges, and the total amount which must be paid.  the name and address of the customer;  the amount of the delinquency;  the date by which payment arrangements must be made in order to avoid discontinuation of service;  the procedure by which the customer may initiate a complaint or request an investigation or appeal concerning service or charges;  a description of the procedure by which the customer may request an alternative payment arrangement, including an extension, amortization, alternative payment schedule, or payment reduction;  the procedure for the customer to obtain information on financial assistance, if applicable; and  the telephone number where the customer may request a payment arrangement or receive additional information from the District. Notice of any delinquency in a tenant's account shall also be sent to the owner of the property. 10.21 Removal of Delinquency - At the end of each calendar year, the District shall remove one delinquency from the record of each account that has one or more delinquencies. 10.22 Suit - All unpaid rates, charges and penalties herein provided may be collected by suit. 10.23 Costs - Defendant shall pay all costs of suit in any judgment rendered in favor of the District, including reasonable attorney's fees. 40 10.24 Discontinuing Service - Customers desiring to discontinue service should so notify the District in writing three (3) business days prior to vacating the premises. Tenants shall be liable for on-going charges whether or not any water is used, up to the time of requested discontinuance of service. Owners shall be liable for on-going charges between tenancy, and in the event of sale, up to the date title to the property is transferred to a new owner. Owners shall also be responsible for charges incurred by a tenant, but that remain unpaid after the tenant has vacated the property. Upon notice, the District will seal off the meter and take a closing reading. SECTION 11. COMPLAINTS AND DISPUTED BILLS 11.01 Right to Meet - The customer has the right to meet with the Financial Officer or General Manager to present any evidence supporting a complaint with regard to water service, District rules, regulations, resolutions or ordinances, or to dispute the accuracy of a bill for service or other charges. 11.02 Arrangement of Meeting - To arrange such a meeting, the customer shall contact the District office, either in writing or by telephone during normal business hours. 11.03 Presentation of Evidence - The customer may be accompanied by a friend, attorney, or other representative to meet with the Financial Officer or General Manager and may present any evidence they may have to support their position. 11.04 Unresolved Disputes - If the customer is unable to resolve his dispute with the Financial Officer or General Manager, he/she may submit the complaint in writing along with a full and detailed explanation to the Board of Directors for resolution. 11.05 Appearances Before the Board of Directors - The customer may appear before the Board of Directors at the next regularly scheduled Board meeting by notifying the District SecretaryClerk, in writing, prior to the Board meeting of the date he/she wishes to attend and what the dispute regards. The customer may then present 41 the complaint and any evidence in support of his/her position and ask for a decision by the Board. 11.06 Delays on Action - The Board shall act promptly to resolve the dispute, but may delay a resolution of the dispute to the time of its next regular meeting in order to investigate the dispute or receive special reports related to the dispute. 11.07 Further Delays - Any further delays must be freely and willingly agreed to by the customer. 11.08 Decision of the Board - The decision of the Board of Directors shall be final. Should the Board not render a decision within sixty (60) days of application to the Board, this failure to act shall be deemed a denial of the requested action, unless both parties have agreed to extend the resolution period. 11.09 Discontinuance of Service - No water or other service shall be discontinued pending the final resolution of a dispute. 11.10 Adjustment for Fast Meter Errors - If a meter tested at the request of a customer is found to be more than five percent (5%) fast, the excess charges for the time service was rendered the customer, or excess charges for a period of six months, whichever shall be the lesser, shall be refunded to the customer. 11.11 Adjustment for Slow Meter Errors - If a meter tested at the request of a customer is found to be more than ten percent (10%) slow and shows evidence of tampering, the District may bill the customer for the amount of the undercharge based upon corrected meter readings for the period, not exceeding six months, that the meter was in use. 11.12 Non-Registering Meters - If a meter is found to be not registering, the charges for service shall be based on the estimated consumption. Such estimates shall be made from previous consumption for a comparable period, or by such other method as is determined by the District, and its decision shall be final. SECTION 12. DISCONNECTION FOR NONPAYMENT 42 12.01 Disconnection for Non-Payment - Water Residential water service shall be discontinued if payment for water service is not made within fifteen (15)sixty (60) calendar days of the date of mailing the delinquent notice. At least forty-eight (48) hours prior to termination, the District will make a reasonable attempt to notify the resident of the affected property by delivering, or causing to be delivered, a final disconnect notice to the property. At no time shall the District discontinue water service at a time when the District offices are closed. All other notifications and communication required in the District’s Policy on Discontinuation of Residential Water Service shall be delivered prior to disconnection. Non-residential water service shall be discontinued if payment for service is not made within fifteen (15) calendar days. 12.01.01 Tenant Accounts – If water and other services to an account, held in awhere the tenant’s name are discontinued for non-payment, the account can be transferred, at the discretion of the District, to the owner’s name prior to reconnection of service. The account will remain in the owner’s name as long as the tenant occupies the premises. is shown as the Customer of Record, are discontinued for non-payment, the account can be revised, at the discretion of the District, to show the owner as primary Customer of Record. The owner will continue to be shown as primary Customer of Record for as long as they own the property. Tenants may be shown as an additional Customer of Record with the cons ent of the property owner, or in the event that an account in the property owners name is subject to disconnection. 12.02 Complaint Procedures for Disconnection - Service disconnection for non- payment of bills or for violation of any of the District's rules, regulations, ordinances or resolutions is subject to the complaint procedures specified in Section 11 herein. 12.03 Refusal or Neglect to Pay Debt - Any amount due is a debt to the District and any person, firm or corporation failing, neglecting, or refusing to pay this debt may be subject to a civil action for the amount due in a court of competent jurisdiction. 43 12.04 Lien Against Property for Non-Payment - Any unpaid debt will be deemed a lien against the real property to which service is rendered as specified herein and California Water Code Section 31701.5 et.seq. 12.05 Service Charges for Violations - If water service is discontinued for violation of any of the District's rules, regulations, resolutions or ordinances, service shall not be re-instituted until the violations have been corrected and all applicable service charges and fees as provided for herein are paid in full by cash , money order, or cashier’s check. 12.06 Partial Payments - A partial payment of a delinquent account may be accepted and credited to a customer's account, but such partial payment shall not be cause for removing the account from a delinquent status and shall not preclude the meter from being turned off for delinquency. 12.07 Authorization for Continuance of Service for Delinquent Accounts - The General Manager or his designee may authorize continuation of service to a delinquent account if financial arrangements satisfactory to the District have been established. SECTION 13. ADDING DELINQUENT CHARGE TO TAX ROLL 13.01 Report of Delinquent and Unpaid Charges - A report of delinquent and unpaid charges for water and other services which remain unpaid and delinquent for sixty (60) days or more on July 1st of each year shall be prepared and submitted to the Board for consideration as tax liens. The unpaid delinquent charges listed in said report for each parcel of property shall be fixed at the amount listed in said report. 13.02 Adoption and Filing of Report - The Secretary shall file with the County Assessor of the County of San Bernardino and the Board of Supervisors of the County of San Bernardino, in the time and manner specified by the County Assessors and Board of Supervisors, a copy of such written report with a statement endorsed thereon over the signature of the Secretary, that such a report has been adopted and approved by the Board of Directors and that the County Assessor shall enter the amount of such charges 44 against the respective lots or parcels of land as they appear on the current assessment roll. 13.03 Collection of Delinquent and Unpaid Charges - The amount of any charges for water and/or other services included in the report prepared and submitted pursuant to Sections 13.01 and 13.02 above shall be added to and become a part of the annual taxes next levied upon the property upon which the water for which the charges are unpaid was used, and upon the property subject to the charges for any other District services, and shall constitute a lien on that property as of the same time and in the same manner as does the tax lien securing such annual taxes as provided in Section 12.04 above. SECTION 14. CHARGES AND DEPOSITS 14.01 Adoption - The amount of all charges and deposits described herein shall be adopted by Board resolution. 14.02 Consumption Charge - The consumption charge is the charge per hundred cubic feet for all water registered by the water service meter. 14.03 Delinquency Charges - A delinquent charge shall be added to each delinquent account at the time any amount becomes delinquent, provided that no delinquent charge shall be made on any account which at the time has no delinquencies of record. When a delinquent charge is made, such charge shall be added to the delinquent account as of the date the account becomes delinquent and the charge shall become an inseparable part of the amount due as of that time. 14.04 Disconnect Notice Charge - The disconnect notice charge is the charge which covers reasonable District costs to notify customers that their water service is subject to impending termination. 14.05 Disconnect/Reconnect Charge - The disconnect/reconnect charge is the charge which covers the reasonable District costs for disconnection and reconnection of service connections which are in violation of the provisions contained herein. 45 14.06 Fire Hydrant Installation Charge - The charge for installation of fire hydrants as may be required. 14.07 Fire Service Connection Charge - The charge for installation of fire services as may be required. 14.08 Fire Service Standby Charge - The fire service standby charge is the monthly standby charge per inch diameter of the District fire service meter. Water use through this service is limited to emergency fire requirements only. 14.09 Inspection Charge - Where a customer service connection or facility requires inspection by District personnel, the customer shall be charged for such inspection. 14.10 Meter Test Charge - The meter test charge is the charge which covers the District costs for removing, bench testing, and reinstalling the water meter to be tested. 14.11 Security Deposit - The Security deposit insures payment of minimum District charges. Upon discontinuance of service the security deposit shall be applied to reduce any outstanding charges on any accounts held by the customer with the District. The amount of deposit shall be established by the Board of Directors in the resolution on fees. The security deposit shall be refunded to the customer as provided in Section 6.04.02 herein. 14.12 Special Facility Charge - A special facility charge shall be for the development of a limited service area whenever special facilities including, but not limited to, booster stations, hydropneumatic stations and pressure regulators are required. The charge to be made to a developer or owner of land that is considered by the District to be within a limited service area shall be based upon the developer's or landowner's proportionate share of the cost of the installation of such special facility. Such proportionate share to be borne by the developer or landowner shall be based on the percentage of such development to the entire limited service area to be served by 46 the special facilities and the difference between the cost of facilities to serve the same number of acres or area under normal conditions and the cost of facilities to serve the acreage or area under special conditions at a higher cost. 14.13 Water System Charge - The system charge is the monthly availability charge applicable to all metered services, and shall apply whether or not premises served by the meter are occupied. 14.14 Unauthorized Use of Water Charge - The unauthorized use of water charge shall be charged to any person, organization or agency for each unauthorized use of District water, or for tampering in any manner with any meter belonging to the District, in which tampering shall affect the accuracy of such meter. Where the unauthorized use of water or tampering results in the District’s action to remove the meter, there shall be a charge for the removal and re-installation. 14.15 Front Footage Charge - The front footage charge is a one-time reimbursement to the District for previously constructed water mains adjacent to all sides of an unimproved property to be served. 14.16 Water Main Extension Charge - The water main extension charge is for the construction of a water main extending to the far side of the property to be served. This charge shall be based on the prevailing rates of time and material per District approved plans. The customer shall be responsible to provide the plans and for all applicable Engineering Services charges described in Section 14.18. 14.17 Water Service Connection Charge - The water service connection charge is the charge for the type and size of water service connection desired. Such regular charge shall be paid in advance by the applicant. The water service connection charge shall consist of an installation charge and a capacity charge. Where there is no regular charge, the District reserves the right to require the applicant to deposit an amount equal to the estimated cost of such service connection. 47 14.17.01 Installation Charge - The installation charge shall represent the District’s cost to furnish and install the specified service. 14.17.02 Capacity Charge - The capacity charge is a fee for that incremental portion of the entire water system and District facilities that will be used by a new service. 14.18 Water System Design Charge - A non-refundable water system design charge shall be required for all main extensions, service connection and/or special facilities requiring the preparation of engineering plans and drawings. 14.19 Engineering Services Charge - The Engineering Services charge is a fee for the District's time and effort spent on assisting customers who have a requirement to construct water main extensions, or other water facilities, that must meet District needs and conform to District standards. This fee includes time and effort the District spends on plan checking, plan and easement development, and all other related work. Prior to submission of any documents requiring work by the District, a non-refundable minimum charge in the amount of 7.5% of the engineer's estimated cost for the project shall be submitted to the District. The work will be accomplished on a time and effort basis. Should the District use more funds than the original charge, the additional billed costs must be paid prior to allowing water service to the project. 14.20 Construction Water Charge - The construction water charge is a temporary flat rate water charge. It is only available during the construction phase of a new building for services 1" in diameter or less. It is available for a period not exceeding six months. 14.21 Fire Flow Test Charge - The fire flow test charge is a flat rate to cover the District's time and effort for testing parts of the water system to obtain fire flow test data and calculate results as requested. 14.22 Valve Deposit - The valve deposit is a refundable charge that is used to insure all valve cans and caps are constructed to final grade before a water system 48 construction project is complete. The District will accept a guarantee bond in lieu of a cash deposit. The fee will be returned or the bond released when valve cans and caps are constructed to final grade by the developer's contractor and verified by the District. 14.23 Service Initiation Charge - The service initiation charge is a non refundable charge which covers the reasonable District costs for initiating water service. 14.24 Returned Check Charge - A returned check charge is a charge which covers the reasonable administrative cost and banking charges for processing a returned check. 14.25 Temporary Service Charge - A temporary service is available through the use of a fire hydrant. A customer deposit for the temporary service will be required. All other applicable service charges shall apply. 14.26 Charges and Deposits - All rates, charges, fees, penalties, fines, deposits, and other methods of assessment are set by the District’s Board of Directors. The current rates and charges are set forth in Exhibit A to this current rate resolution and may be revised from time to time pursuant to the District’s procedures and applicable law. The General Manager/CEO, or appointed designee, may approve adjustment to any charges, late penalties, past due account fees or service deposits pursuant to the District’s procedures and applicable law. SECTION 15. WATER CONSERVATION 15.01 Waste or Nuisance Water and Other Substances - It is unlawful for any person, firm or corporation to deposit, drain, wash, or allow to run or divert water, mud or sand into, or upon, any public road, highway, street, alley, drainage ditch, storm drain, flood control channel owned or controlled by any public agency within the District. When a written application is filed with the District, and approved by the General Manager, a permit may be granted with terms and conditions and applicable fees as it may deem appropriate to impose to such person. For purposes of enforcement 49 of this section, the owner of the meter, or property, which is the source of the “waste or nuisance water and other substances” as defined herein will be considered the responsible party. Any violations cited hereunder, and defined as being detrimental to public health, safety or welfare, will be borne by the responsible party. 15.02 Conservation Measures - Stage No.1 Normal Conditions: Permanent Conservation Measures – Stage No. 1 Normal conditions shall be in effect when the District is able to meet all the water demands of its customers in the immediate future. During these normal conditions all water users should continue to use water wisely, to prevent the waste or unreasonable use of water, and to reduce water consumption to that necessary for ordinary domestic and commercial purposes. 15.02.01 Excessive Irrigation and Related Waste - No property within the East Valley Water District service area shall cause or permit the use of water for irrigation of landscaping or other outdoor vegetation, to exceed the amount required to provide reasonable irrigation, and shall not cause or permit any unreasonable or excessive waste of water from said irrigation activities or from watering devices or systems. 15.02.02 Run-off- The free flow of water away from a meter service area shall be presumptively considered excessive irrigation and waste as defined in Section 3 herein. 15.02.03 Wash-down- No water provided by the District shall be used for the purposes of wash-down of impervious areas, without specific written authorization of the General Manager. 15.02.04 Vehicle Washing - The washing of cars, trucks or other vehicles is not permitted, except with a hose equipped with an automatic shut-off device, or a commercial facility. 15.02.05 Decorative Features –Water fountains or other decorative water features must re-circulate water. 50 15.02.06 Irrigation After Measurable Rainfall – The application of potable water to outdoor landscape for irrigation purposes during or after 48 hours of measurable rainfall is prohibited. 15.02.07 Drinking Water Provided by Restaurants - Restaurants are requested not to provide drinking water to patrons except by request. 15.02.08 Hotel and Motel – Hotels and motels must offer their guests the option to not have their linens and towels laundered daily, and must prominently display this option in each room. 15.02.09 Domestic Irrigation -The District may determine that the irrigation of exterior vegetation shall be conducted only during specified hours and/or days, and may impose other restrictions on the use of water for such irrigation. Irrigation done with a weather based irrigation controller is exempt from specified irrigation day. 15.02.10 Irrigation of Medians– Medians located within the right-of-way are prohibited from using potable water to irrigate turf or other high water use plant material as identified by the Water Use Classifications of Landscaping Species (WUCOLS) Guide. The continued irrigation and preservation of trees is encouraged. 15.02.11 Bordering Parkways –Bordering parkways located within the right-of-way are prohibited from using potable water to irrigate turf or other high water use plant material as identified by the Water Use Classifications of Landscaping Species (WUCOLS) Guide. Bordering parkways are considered the strips of non-functional ornamental turf adjacent to the street. The continued irrigation and preservation of trees is encouraged. 15.03 Stage No. 2 - Threatened Water Supply Shortage - In the event of a threatened water supply shortage which could affect the District's ability to provide water for ordinary domestic and commercial uses, the Board of Directors shall hold a public hearing at which consumers of the water supply shall have the opportunity to 51 protest and to present their respective needs to the District. The Board may then, by resolution, declare a water shortage condition to prevail, and the following conservation measures shall be in effect in addition to the permanent conservation measures in Stage No. 1: 15.03.01 Exterior Landscape Plans - Exterior landscape plans for all new development shall be in compliance with the State Model Water Efficient Landscape Ordinance. Such plans shall be presented to and approved by the District prior to issuance of a water service letter. 15.03.02 Leaks or Breaks, Excessive loss or water use through breaks or leaks from either indoor or outdoor plumbing fixtures must be repaired within seven (7) days after discovery. 15.03.03 Agricultural Irrigation - Persons receiving water from the District who are engaged in commercial agricultural practices, whether for the purpose of crop production or growing of ornamental plants shall provide, maintain and use irrigation equipment and practices which are the most efficient possible. Upon the request of the General Manager, these persons may be required to prepare a plan describing their irrigation practices and equipment, including but not limited to, an estimate of the efficiency of the use of water on their properties. 15.03.04 Commercial Facilities - Commercial and industrial facilities shall, upon request of the General Manager, provide the District with a plan to conserve water at their facilities. The District will provide these facilities with information regarding the average monthly water use by the facility for the last two year period, or the State of California approved conservation base year. The facility will be expected to provide the District with a plan to conserve or reduce the amount of water used by that percentage deemed by the Board of Directors to be necessary under the circumstances. After review and approval by the General Manager, the water 52 conservation plan shall be considered subject to inspection and enforcement by the District. 15.03.05 Parks, Golf Courses and School Grounds - Public and private parks, golf courses, and school grounds which use water provided by the District shall use water for irrigation within a designated watering schedule, which may include specifiec hours and/or day(s). . 15.03.06 Swimming Pools - All residential, public and recreational swimming pools, of all size, shall use evaporation resistant covers and shall re-circulate water. 15.03.07 General Manager Emergency Authority – The Board of Directors appoints the General Manager/CEO the authority, to implement and enforce measures necessary to remain in compliance with emergency statewide mandatory conservation measures. Actions taken by the General Manager/CEO in accordance with State regulations outside of those listed in this Ordinance must be reported to the Board at the next regularly scheduled meeting. 15.04 Stage No.3 - Water Shortage Emergency: Mandatory Conservation Measures - In the event of a water shortage emergency in which the District may be prevented from meeting the water demands of its customers, the Board of Directors shall, if possible, given the time and circumstances, immediately hold a public hearing at which customers of the District shall have the opportunity to protest and to present their respective needs to the Board. No public hearing shall be required in the event of a breakage or failure of a pump, pipeline, or conduit causing an immediate emergency. The General Manager is empowered to declare a water shortage emergency, subject to the ratification of the Board of Directors within 72 hours of such declaration, and the following rules and regulations shall be in effect immediately following such declarations: 53 15.04.01 Prohibition - Watering of parks, school grounds, golf courses, lawn water, landscape irrigation, washing down of driveways, parking lots or other impervious surfaces, washing of vehicles, except when done by commercial car wash establishments using only recycled or reclaimed water, filling or adding water to swimming pools, wading pools, spas, ornamental ponds, fountains and artificial lakes are prohibited. 15.04.02 Construction Meters - No new construction meter permits shall be issued by the District. All existing construction meters shall be removed and/or locked. 15.04.03 Commercial Nurseries and Livestock – Commercial nurseries shall discontinue all watering and irrigation. Watering of livestock is permitted as necessary. 15.05 Implementation and Termination of Mandatory Compliance Stages - The General Manager of the District shall monitor the supply and demand for water on a daily basis to determine the level of conservation required by the implementation or termination of the Water Conservation Plan Stages and shall notify the Board of Directors of the necessity for the implementation, or termination, of each stage. Each declaration of the Board of Directors implementing, or terminating, a water conservation stage shall be published at least once in a newspaper of general circulation, and shall be posted at the District offices. Each declaration shall remain in effect until the Board of Directors otherwise declares, as provided herein. 15.06 Exceptions - Application for Exception Permits - The General Manager may grant permits for uses of water otherwise prohibited under the provisions of this Ordinance if he finds and determines that restrictions herein would either: 15.06.01 Hardship - Cause an unnecessary and undue hardship to the water user or the public; or 54 15.06.02 Emergency - Cause an emergency condition affecting the health, sanitation, fire protection or safety of the water use or of the public. 15.06.03 Exemptions Granted - Such exceptions may be granted only upon written application therefor. Upon granting such exception permit, the General Manager may impose any conditions he determines to be just and proper. 15.07 Enforcement, Inspection - Authorized employees of the District, after proper identification may, during reasonable hours, inspect any facility having a water conservation plan, and may enter onto private property for the purpose of observing the operation of any water conservation device, irrigation equipment or water facility. Employees of the District may also observe the use of water or irrigation equipment within the District from public rights-of-way. 15.08 Criminal Penalties for Violation - Water Code Section 31029 makes any violation of this Ordinance a misdemeanor and upon conviction thereof, the violator shall be punished by imprisonment, fine or by both fine and imprisonment as may be allowed by law. 15.09 Civil Penalties for Violation - In addition to criminal penalties, violators of the mandatory provisions of this Ordinance shall be subject to civil action initiated by the District as follows: 15.09.01 First Violation: For a first violation, the District shall issue a written notice of violation to the water user violating the provisions of this Ordinance. The notice shall be given pursuant to the requirements of Section 15.10 below. 15.09.02 Second Violation: $100.00 Surcharge - For a second violation of this Ordinance within a 12 month period, or failure to comply with the notice of violation within 30 days after notice of imposition, a surcharge of $100.00 is hereby imposed for the meter through which the wasted water was supplied. 15.09.03 Third Violation: $300.00 Surcharge - For a third violation of this ordinance within a 12 month period, or for continued failure to comply within 30 55 days after notice of an imposition of second violation sanctions, a one month penalty surcharge in the amount of $300.00 is hereby imposed for the meter through which the wasted water was supplied. 15.09.04 Fourth Violation: $500.00 Surcharge - For a fourth violation of this ordinance within a 12 month period, or for continued failure to comply within 30 days after notice of an imposition of third violation sanctions, a one month penalty surcharge in the amount of $500.00 is hereby imposed for the meter through which the wasted water was supplied. 15.09.05 Fifth Violation: $500.00 Surcharge and/or Installation of a Flow Restrictor - For a fifth violation of this ordinance within a 12 month period, or for continued failure to comply within 30 days after notice of an imposition of fourth violation sanctions, a one month penalty surcharge in the amount of $300.00 is hereby imposed for the meter through which the wasted water was supplied. In addition to the surcharge, the District may, at its discretion, install a flow-restricting device at such meter with a one-eighth inch (1/8") orifice for services up to one and one half (1-1/2") inch size, and comparatively sized restrictors for larger services, on the service of the customer at the premises at which the violation occurred for a period of not less than forty-eight (48) hours. The charge to the customer for installing a flow-restricting device shall be based upon the size of the meter and the actual cost of installation but shall not be less than that provided in the District's Rules and Regulations. The charge for removal of the flow-restricting device and restoration of normal service shall be as provided in the District's Rules and Regulations. 15.09.06 Subsequent Violations: Discontinuance of Service – For any subsequent violation of this Ordinance, while in Stage No. 3, within the twenty-four (24) calendar months after a first violation as provided in Section 15.09.01 hereof, the penalty surcharge provided in Section 15.09.05 hereof shall be imposed and the District may discontinue water service to that customer at the premises or to the meter where 56 the violation occurred. The charge for reconnection and restoration of normal service shall be as provided in the Rules and Regulations of the District. Such restoration of service shall not be made until the General Manager of the District as determined that the water user has provided reasonable assurances that future violations of this Ordinance by such user will not occur. 15.10 Notice - First Violation - For a first violation, written notice shall be given to the customer and/or property owner personally or by regular mail. 15.10.01 Subsequent Violations - If the penalty assessed is a surcharge for a second, third, fourth, fifth, or subsequent violation, notice may be given by regular mail. 15.10.02 Violations Involving Installation of Flow-Restrictors or Discontinuance of Water Service - If the penalty assessed is, or includes, the installation of a flow restrictor or the discontinuance of water service to the customer for any period of time, notice of the violation shall be given in the following manner: a. Personal Service - By giving written notice thereof to the occupant and/or property owner personally; or if the occupant and/or property owner is absent from his/her place of residence and from his/her assumed place of business, by leaving a copy with some person of suitable age and discretion at either place, and sending a copy through the United States mail addressed to the occupant and/or owner at his/her place of business or residence; or b. Posting - If such place of residence and business cannot be ascertained, or a person of suitable age or discretion cannot be located, then by affixing a copy in a conspicuous place on the property where the failure to comply is occurring and also by delivering a copy to a person there residing, if such person can be found, and also sending a copy through the United States mail addressed to the occupant at the place where the property is situated and the owner if different. 57 15.10.03 Form of Notice - All notices provided for in this Section shall contain, in addition to the facts of the violation, a statement of the possible penalties for each violation and a statement informing the occupant/owner of his/her right to hearing on the violation. 15.11 Community Advisory Commission - The District may establish a Community Advisory Commission (Commission) consisting of 5 District customers appointed by the Board of Directors to serve in the capacity as herein described. The Commission is authorized to hear appeals from enforcement decisions made by the General Manager for violations of the water conservation measures provided in Section 15 of this ordinance. The Commission shall serve as an advisory body to the Board of Directors. The Board of Directors shall consider the recommendations of the Commission but will not be bound thereby. 15.11.01 Hearings - Any customer or property owner against whom a penalty is levied pursuant to this ordinance (Appellant) shall have a right to a hearing, in the first instance by the General Manager, with the right to appeal to the Commission. Within 15 days of the date of the alleged violation, the Appellant shall submit a written request for a hearing to the District Clerk. The hearing shall be conducted by the General Manager within 30 days from the date of the written request submitted to the District Clerk. The General Manager shall issue his ruling in writing. The Appellant may appeal the ruling of the General Manager within 10 days thereof by filing written notice of appeal with the District Clerk. At the next regularly scheduled Commission meeting, the Appellant may appear and present evidence in support of his appeal. The Commission will issue a written recommendation to the Board of Directors who will issue a final determination of the appeal. The Board of Directors may issue its final determination based upon the recommendation of the Commission, or may call for an additional hearing. The ruling of the Board of Directors shall be final and binding upon the Appellant and the District. 58 SECTION 16. EFFECTIVE DATE This Ordinance shall take effect and replace Ordinance 395 396 as of the 29th 1st day of September 2016January 2020. Adopted this 28th 11th day of September 2016December 2019 ROLL CALL: Ayes: Noes: Absent: Abstain: Ronald CoatsChris Carrillo, Board President ATTEST: _______________________ John Mura, Secretary S TAF F R E P ORT Agenda Item #3. Meeting Date: Dec ember 2, 2019 P ublic Hearing To: F I NANC E AND HUMAN R ES O UR C ES C O MMI T T EE F rom: C hief F inancial O ffic er Subject: R eview R evis ed Water and Wastewater C apac ity F ees, C ertain Misc ellaneous F ees, and R es olution 2019.19 R E C OMME N D AT ION: R eview R es olution 2019.19 updating the Dis tric t’s S chedule of Water and Wastewater R ates and C harges. B AC KG R OUN D / AN ALYS IS: At the No vember 13, 2019 Board Meeting, Hab ib Is aac from I B C ons ulting p res ented the res ult o f his wo rk to update Water and Wastewater C ap acity F ees to be charged to new develo p ment p lanning to connec t to the Dis tric t’s water and was tewater infrastruc ture. Mr. Is aac used a hybrid of b o th widely used methodologies fo r develo p ing C ap acity F ees whic h are the Incremental / Marginal C o s t and the Buy-In methods. T he Buy-In metho d rec o gnizes that the Dis tric t has already mad e inves tments in infrastruc ture that have the c apac ity to facilitate growth and as ks new development to rep ay the Dis tric t for those inves tments . T he Incremental C o s t method as ks new develo p ment to p ay for certain capac ity projec ts inc luded in Master P lans and the Dis tric t’s C apital Improvement P rogram. T he report will pres ent the ap p licatio n o f the methodologies des c rib ed ab o ve, and will s how the meter data, fixed as s et data extrac ted from Dis tric t records, and future p ro jects taken fro m the rec ently completed Mas ter P lan updates whic h new development will be as ked to contribute to. In additio n to up d ating capac ity fees , s taff is als o proposing two mis c ellaneous fees adjus tments to the S chedule of R ates , F ees and C harges regarding the following: AMI O pt-O ut - the Dis tric t has received s everal req uests from c us to mers that their s ervice not be equipped with an AMI meter, c iting vario us c onc erns . W hile the Dis tric t mus t remain s ens itive to those concerns , it is also inc umbent on the Dis tric t to ens ure that rates /fees c o ver reas o nable c o s ts assoc iated with p ro viding a s ervic e. Ac c ordingly, c us tomers reques ting that their meter be read manually s hould pay for the cost o f s ending a meter reader to their address every month. A calc ulatio n of the c o s t of that effort is attac hed. Dis connec t F ee – the new regulatio ns related to Dis c o nnectio n of R es idential Water S ervic e limits the amount that c an b e c harged to lo w-income cus tomers for reconnec tion, after s ervice has been dis continued for no n-payment, to $50, or $150 if the reques t fo r rec o nnectio n is after no rmal bus iness hours . P ublic notices about this evenings hearing have b een p o s ted in a lo cally circ ulated news p ap er b o th 14 d ays and 7 days in ad vance o f the hearing. In ad d ition, the rep o rt prepared b y I B C o nsulting s up p o rting the proposed changes to c ap acity fees , and calc ulations and legislatio n sup p o rting the rec o mmended mis c ellaneous fee adjustments , have been made available for public inspec tion 10 days prior to the hearing. S taff rec o mmends that the Bo ard o f Directo rs pass R esolution 2019.19 up d ating the Dis tric t’s S c hedule of Water and Wastewater R ates and C harges for changes in the C apac ity F ees , Dis connec t/R econnec t fees , and the AMI O pt-O ut fee. AG E N C Y G O ALS AN D O B J E C T IVE S : G oal and O bjectives I V - P romote P lanning, Maintenance and P res ervation of District R esources b) Enhance P lanning Efforts that R espond to F uture Demands R E VIE W B Y O T HE R S : T his agenda item has been reviewed by the F inanc e and Engineering Departments and Legal C ounsel. F IS C AL IMPAC T T here is no fisc al impac t as s ociated with this agenda item. ATTAC H M EN TS: Description Type Resolution 2019.19 Resolution Letter Exhibit A - E VW D Schedule of Water and Wastewater Rates and Charges Exhibit Exhibit B - AM I Opt-Out Calculation Exhibit P ublic Notice Backup Material East Valley Water District Resolution 2019.19 Page 1 of 3 RESOLUTION 2016.052019.19 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ESTABLISHING A SCHEDULE OF FEES AND CHARGES RELATED TO THE PROVISION OF WATER AND WASTEWATER SERVICE AND RESCINDING SUPERCEDING RESOLUTION 2015.042019.06 WHEREAS, East Valley Water District (“District”) is a county water district organized and operating pursuant to California Water Code Section 30000 et seq.; and WHEREAS, pursuant to applicable law, including but not limited to Water Code Sections 31007 and 31025, the District’s Board of Directors is authorized to adopt by resolution such rates and charges for incidental services related to the provision of water service and wastewater service by the District to implement the rules and regulations set forth in District Ordinance No. 395 397 and 389, and to yield an amount sufficient to pay for the services provided to District ratepayers and the regulatory costs incurred by the District in providing those services; and WHEREAS, Ordinance 395 397 and 389 provides that Rates and Charges, may be changed from time to time or new rates and charges may be established by resolution of the Board of Directors; and WHEREAS, Section 21080(b) (8) of the Public Resources Code provides that the establishment, modification, structuring, restructuring or approval of rates, tolls, fares, or other charges by public agencies are exempt from the requirements of the California Environmental Quality Act (CEQA) provided that certain findings are made specifying the basis for the claim of exemption; and WHEREAS, the District, in accordance with the requirements of Article XIIID of the Constitution of the State of California, has established rates and fees for property related services including water and wastewater treatment; and WHEREAS, the Board of Directors of the District deems it advisable and finds that it would be in the best interest of the District to amend or establish certain fees and charges, consistent with applicable constitutional and statutory requirements; and WHEREAS, Article XIIIC Section 1 of the Constitution of the State of California, excepts certain levies, fees and charges from the definition of “tax” thereby exempting such levies, fees and charges from the procedural requirements established by Article XIIID of the California Constitution; and WHEREAS, the District now wishes to establish fees and charges incidental and related to the provision of services for water and wastewater treatment, but which fees and charges are not for property related services as defined by Article XIIID of the Constitution of the State of California and which fees and charges may be established by resolution of the Board of Directors of the District; East Valley Water District Resolution 2019.19 Page 2 of 3 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the District as follows: Section 1. It is hereby found and determined that the proposed changes to the Schedule of Rates and Charges and Miscellaneous Fee Calculations are within the purposes set forth in Section 21080(b) of the Public Resources Code, and therefore, that such changes are exempt from CEQA. Section 2. It is hereby found and determined that the miscellaneous fees and charges established or increased/decreased hereby do not exceed the estimated reasonable cost of providing the service for which they are imposed and that said fees and charges do not constitute a tax pursuant to Article XIIIC Section 1(e) of the California Constitution. Section 3. The new fees and charges are set forth in the revised Schedule of Rates and Charges for Water and Wastewater as set forth in Exhibit “A” and the Miscellaneous Fee Calculation list as set forth in Exhibit “B” to this resolution. Section 4. That the provisions of this Resolution shall be effective April January 1, 20162020. Section 5. That the Secretary is hereby ordered and directed to post a certified copy of this Resolution in a public place within the District. This Resolution shall take effect as of the 1st day of April 2016January 2020. ADOPTED this 24th 11th day of February December 20162019. ROLL CALL: Ayes: Noes: Absent: Abstain: Ronald L. CoatsChris Carrillo, Board President East Valley Water District Resolution 2019.19 Page 3 of 3 February 24, 2016December 11, 2019 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2016.012019.19 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held February 24, 2016December 11, 2019. ATTEST: _____________________________ John J. Mura, Board Secretary EXHIBIT “A ” EAST VALLEY WATER DISTRICT SCHEDULE O F WATER AND WASTEWATER RATES AND CHARGES UPDATED DECEMBER 11, 2019 i Table of Contents Section 1: Water Service Charges............................................................ 2 Monthly Water System Charge ............................................................. 2 Commodity Charges: Potable Water ...................................................... 2 MWD Surcharge ................................................................................ 3 Private Fire Protection Service ............................................................ 4 1. Commercial Standby Charge ........................................................... 4 2. Fire Flow Testing ........................................................................ 4 Temporary Water Service Connection .................................................... 5 Monthly Service Charge ..................................................................... 5 1. Commodity Charge ...................................................................... 5 2. Meter Deposit ............................................................................ 5 3. Unauthorized Use of Water Charge ................................................... 5 New Account Fees for Water Services .................................................... 6 1. Service Initiation Charge ............................................................... 6 2. Security Deposit.......................................................................... 6 Miscellaneous Water Service Charges and Fees ......................................... 6 1. Delinquency Charge ..................................................................... 6 2. Returned Payment Charge.............................................................. 6 3. Disconnection Notice Charge .......................................................... 6 4. Service Reconnect Charge (Business Hours) ......................................... 6 5. Service Reconnect Charge (After Hours) ............................................. 6 6. Meter Test Charge ....................................................................... 7 7. Annual Backflow Compliance Test (per device) ..................................... 7 8. Backflow Device Installation Fee ...................................................... 7 9. Backflow Device Annual Administration Fee (per device) ......................... 7 Section 2: Wastewater Service Charges .................................................... 8 Monthly Wastewater System Charge ...................................................... 8 Collection Charges ........................................................................... 8 ii Treatment Charges .......................................................................... 9 Section 3: Developer Services ............................................................... 12 Water Connection Fees ..................................................................... 12 Wastewater Connection Fees.............................................................. 13 Fire Service Connection Charges ......................................................... 13 Developer Services’ Charges and Fees .................................................. 14 1. Front Footage Charge ................................................................. 14 2. Water Main Extension Charge ........................................................ 14 3. Fire Hydrant Installation Charge .................................................... 14 4. Special Facility Charge ................................................................ 14 5. Construction Inspection Charge ..................................................... 14 6. Water System Design Charge ......................................................... 14 7. Engineering Service Charges ......................................................... 15 8. Sewer Manhole and Valve Can Deposit ............................................. 15 9. Research Fee (flat rate, 4 hour minimum) ......................................... 15 10. Development Meeting Fee (after first meeting) .................................. 15 11. Annual Backflow Compliance Test (per device) ................................... 16 12. Backflow Inspection Fee (per inspection) .......................................... 16 13. Water Quality Sampling Fee (per sample) ......................................... 16 14. New Construction Chlorination and Flushing Fee ($225 minimum to actual cost) .......................................................................................... 16 History of Revisions ............................................................................ 18 1 [THIS PAGE IS INTENTIONALLY BLANK] 2 Section 1: Water Service Charges Monthly Water System Charge The water system charge is the monthly availability charge applicable to all metered water services, and shall apply whether or not premises served by the meter are occupied. The charges, which vary by meter size, are established at the amounts listed in the table below. Rates Effective on: 7/1/2016 5/8"23.06$ 3/4"29.27$ 1"41.71$ 1 1/2"72.81$ 2"110.13$ 3"228.30$ 4"402.44$ 6"819.14$ 8"1,503.28$ Meter Size Commodity Charges: Potable Water Commodity Charges are billed on a per unit basis for water consumption registered by the water service meter. One unit is 100 cubic feet (HCF) of water, which is equal to 748 gallons. Rates Effective on:Rates Effective on: 7/1/2017 1/1/2020 Tier 1 - Indoor Use 1.73$ 1.83 Tier 2 - Outdoor Use 2.46$ 2.61 Tier 3 - Inefficient Use 3.44$ 3.64 Tiers 3 MWD Surcharge The MWD surcharge rate (per hundred cubic feet) for all customer types is as follows Effective 6/1/2015 Rate per HCF $0.00 The MWD Surcharge Rate represents increased costs associated with water imported from the State Water Project. The charge to the District for State Water Project imported water is established by the San Bernardino Valley Municipal Water District. Since the District has no control over the adoption or imposition of MWD water charges, imposed through San Bernardino Valley Municipal Water District for the delivery of imported water to the District, EVWD may pass-through, for a five year period beginning June 1, 2015 any increases in the cost of MWD imported water imposed by the San Bernardino Valley Municipal Water District. 4 Private Fire Protection Service 1. Commercial Standby Charge The fire service standby charge is the monthly charge assessed per inch diameter of the District fire service meter. Water use through this service is limited to emergency fire requirements only. Rates Effective on: 7/1/2016 1"8.78$ 1 1/2"13.18$ 2"17.57$ 3"26.35$ 4"35.14$ 6"52.70$ 8"70.27$ 10"87.84$ Meter Size 2. Fire Flow Testing The fire flow test charge is a flat rate established to cover the District’s time and effort for testing parts of the water system to obtain fire flow test data and calculate results as requested. The District will charge a one-time fee of $100.00 to administer fire flow tests. 5 Temporary Water Service Connection A temporary service is available through the use of a fire hydrant. A customer deposit for the temporary service will be required, and all other applicable service charges shall apply. Monthly Service Charge Refer to the schedule of Monthly Water System Charges for three inch (3”) meters. 1. Commodity Charge Commodity charges for temporary services shall be billed at the Tier 3 rates based on the Potable Water Commodity Rates. When available, and feasible, recycled water shall be used for temporary construction uses. The Commodity Charge shall be as follows: Area Rate/100 Cubic Feet Potable Tier 3 Rate Recycled TBD 2. Meter Deposit A deposit equal to the replacement cost of the construction meter shall be collected at the time of service application. Currently, the replacement cost is estimated to be $1,800.00. The deposit will be applied to the closing bill and any remaining amount refunded to the customer. Lost meters will result in forfeiture of the deposit. 3. Unauthorized Use of Water Charge The unauthorized use of water charge shall be charged to any person, organization or agency for each unauthorized use of District water or for tampering in any manner with any meter belonging to the District where this tampering shall affect the accuracy of such meter. The unauthorized use of water charge is hereby established at the rate of $500.00 for a first occurrence and $1,000.00 for each subsequent occurrence. 6 New Account Fees for Water Services The following fees are applicable to all requests for new service, or transfer of an existing account to a new location: 1. Service Initiation Charge The service initiation charge is a non-refundable charge of $30.00 per account, which covers the reasonable District costs for initiating water service. 2. Security Deposit A deposit of $150.00 will be required until a one year payment history, with fewer than two delinquencies, has been established. The deposit insures payment of minimum District charges. Miscellaneous Water Service Charges and Fees 1. Delinquency Charge Rates and charges which are not paid on or before the due dates shall be subject to interest charges. Interest will be calculated at a rate of one and one-half percent (1 ½%) on all amounts that remain unpaid at the end of each billing cycle. 2. Returned Payment Charge A returned check charge is a charge which covers the reasonable administrative cost and banking charges for processing a returned check. 3. Disconnection Notice Charge The disconnect notice charge is the charge which covers reasonable District costs to notify customers that their water service is subject to impending termination. 4. Service Reconnect Charge (Business Hours) The service reconnect charge is the charge which covers the reasonable District costs for disconnection and reconnection during regular business hours, of service connections which are in violation of the provisions contained herein. 5. Service Reconnect Charge (After Hours) The service reconnect charge is the charge which covers the reasonable District costs for disconnection and reconnection during non-business hours, of service connections which are in violation of the provisions contained herein. 7 6. Meter Test Charge The meter test charge is the charge which covers the District costs for removing, bench testing, and reinstalling the water meter to be tested. 7. AMI Opt-Out Fee This fee will be charged when a customer requests that the District not install an Automated Metering Infrastructure (AMI) meter to serve their property. In addition, this fee cover covers the cost to manually read the meter. 8. Annual Backflow Compliance Test (per device) A fee of $5.00 per month will be charged to the customer when the annual backflow compliance test is performed by District staff. The customer will only be billed as a lump sum when District standards regarding the inspection, testing, and maintenance of customer-owned backflow assemblies are not followed. 9. Backflow Device Installation Fee Installation of new backflow prevention assemblies completed by the District will be done at actual cost. 10. Backflow Device Annual Administration Fee (per device) The District shall appoint at least one person trained in cross-connection control to administer and ensure all District standards are met. This backflow device annual administration fee will be assessed annually. Summary of charges/fees for Miscellaneous Water Service: Charge or Fee Name Charge/Fee Delinquency Charge 1.5% Returned Payment Charge $20.00 Disconnect Notice Charge $23.00 Service Reconnect Charge (Business Hours)$70.00 $50.00 Service Reconnect Charge (After Hours)$150.00 Meter Test Charge $75.00 AMI Opt-Out Fee $47.00 (per month) Annual Backflow Compliance Test $60.00 ($5.00 per month) Backflow Device Installations Actual Cost Backflow Annual Administration Fee $20.00 (per device) 8 Section 2: Wastewater Service Charges Monthly Wastewater System Charge Collection Charges Collection charges were established to maintain the District's wastewater collection lines. A. Residential Customers (1 – 3 units) The collection charge for residential customers is a monthly fixed charge. Customer Class Monthly Charge Residential 15.36$ B. Commercial Customers The collection charges for commercial customers include a small fixed charge plus a volumetric charge (water usage). Customer Class Monthly Fixed Charge Commercial / Multi-Family 3.90$ Volumetric Charge per hundred cubic feet (HCF) of water used: Commercial Customer Type Charge Per HCF Multi-Family (4 or more units, Mobile Home Park)0.55$ Commercial/Retail (Non-Office, Bakery, Market)0.55$ Restaurant/Lounge 0.55$ Laundromat 0.55$ Dry Cleaner 0.55$ School/Church (Daycare, Nursery School)0.55$ Office Building/Motel (without a restroom, Municipality) 0.55$ Convalescent Home 0.55$ 9 Treatment Charges The District pays treatment charges established by the City of San Bernardino for the operation and maintenance of their wastewater treatment facilities. Any future increases made by the City over the next five years following the previous public hearing, held on January 25, 2017, may be automatically passed through and incorporated herein by this reference, by action of the District’s Board of Directors to the extent authorized by Government Code Section 53756 and any other applicable provision of law. A. Residential Customers Treatment charges for residential customers are a monthly fixed charge. Rates Effective on: 7/1/2017 Residential 21.55$ Multi-Family (2 Units)43.10$ Multi-Family (3 Units)64.64$ Customer Class 10 B. Commercial Customers Treatment charges for commercial customers include a small fixed plus a volumetric charge (water usage) which varies depending on the nature of the commercial entity. Fixed Charges: 7/1/2017 Multi-Family (4+ Units), Mobile Home Parks 1.97$ Non-Residential Customer Classes 3.52$ Customer Class Rates Effective on: Volumetric Charges (per HCF): 7/1/2017 Multi-Family (4+ Units), Mobile Home Parks 1.53$ Commercial / Retail 2.55$ Restaurants / Lounges 3.28$ Laundromats 1.83$ Dry Cleaners 2.55$ Schools / Churches 1.33$ Governments / Municipal 1.83$ Convalescent Homes 1.63$ Hotels (with Restaurants)3.28$ Offices Buildings / Motels 1.83$ Auto Repair / Service Station 1.58$ Car Wash 1.58$ Rates Effective on: Customer Class 11 • Users other than Residential: Rates for users other than “residential” shall be computed on the basis of actual consumption as reflected by water meter readings for the billing period. Such water consumption may be reduced for the purpose of establishing sewer service charges subject to “seasonal” or “consumptive” use as recognized and approved by the Board of Directors. • Unmetered Commercial Dischargers: Unmetered commercial dischargers shall be billed as follows: Residential units in apartments, condominiums, and mobile home parks shall be billed for each dwelling unit at the rate established for single-family dwelling units. Other commercial dischargers shall be billed at a rate determined by the General Manager, based on experience from similar metered dischargers. 12 Section 3: Developer Services Water Connection Fees The water service connection charge is the charge for the type and size of water service connection desired. Such regular charge shall be paid in advance by the applicant. Where there is no regular charge, the District reserves the right to require the applicant to deposit an amount equal to the estimated cost of such service connection. Harmony Non-Harmony Proposed 5/8"N/A N/A 4,819.00$ 3/4"5,200.00$ 4,607.00$ 7,228.00$ 1"8,684.00$ 7,694.00$ 12,047.00$ 1 1/2"17,316.00$ 15,343.00$ 24,094.00$ 2"27,714.00$ 24,556.00$ 38,550.00$ 3"51,997.00$ 46,072.00$ 77,100.00$ 4"86,741.00$ 76,858.00$ 120,469.00$ 6"173,165.00$ 153,434.00$ 240,939.00$ 8"311,983.00$ 276,434.00$ 674,629.00$ 10"519,971.00$ 460,723.00$ N/A Meter Size Capacity Charge Installation charges will be estimated by the District based on availability of District staff to complete the work and site specific construction conditions and requirements. If the applicant elects not to have District staff complete the installation then an administrative fee of 5% of the estimate will be charged. On July 1 of each year Water Capacity Charges will automatically increase in proportion to the published 12-month increase measured in September each year in the Construction Cost Index, unless the EVWD Board of Directors determines that such an increase shall not be effective for the next succeeding fiscal year, or if the index does not increase or change. 13 Wastewater Connection Fees The sewer service connection charge is the charge for the type and size of service connection desired. Such regular charge shall be paid in advance by the applicant. Where there is no such regular charge, the District reserves the right to require the applicant to deposit an amount equal to the estimated cost of such service connection. The following charges are hereby established and shall be collected at the time of application for sewer connection: Charge or Fee Name Permit Charge $25.00 per connection Inspection Charge $100.00 per connection Conveyance Capacity Charge $3,099.00 $7,560.00 per EDU or portion thereof * Treatment Capacity Charge $2,806.00 per EDU or portion thereof * Charge/Fee *Adopted December 2019 On July 1 of each year Wastewater Capacity Charges will automatically increase in proportion to the published 12-month increase measured in September each year in the Construction Cost Index, unless the EVWD Board of Directors determines that such an increase shall not be effective for the next succeeding fiscal year, or if the index does not increase or change. Fire Service Connection Charges The fire service charge is the charge for the type and size of fire service connection desired. Such regular charge shall be paid in advance by the applicant. Where there is no regular charge, the District reserves the right to require the applicant to deposit an amount equal to the estimated cost of such service connection. Installation charges will be estimated by the District based on availability of District staff to complete the work and site specific construction conditions and requirements. If the applicant elects not to have District staff complete the installation then an administrative fee of 5% of the estimate will be charged. 14 Developer Services’ Charges and Fees 1. Front Footage Charge The front footage charge is a one-time reimbursement to the District for previously constructed water mains adjacent to all sides of an unimproved property to be serviced. This charge is hereby established at a rate of $30.00 per lineal foot. 2. Water Main Extension Charge The water main extension charge is for the construction of a water main extending to the far side of the property to be served. This charge shall be based on the prevailing rates of time and material per District approved plans. The customer shall be responsible to provide the plans and for all applicable Engineering Services charges described below. 3. Fire Hydrant Installation Charge Installation charges will be estimated by the District based on availability of District staff to complete the work and site specific construction conditions and requirements. If the applicant elects not to have District staff complete the installation then an administrative fee of 5% of the estimate will be charged. 4. Special Facility Charge A special facility charge shall be required for development of limited service whenever special facilities, including pressure regulators are required. The charge to be made to a developer or owner of land that is considered by the District to be within a limited service area shall be based upon the developer’s or landowner’s proportionate share of the cost for the installation of such Special Facility. Such proportionate share to be borne by the developer or landowner shall be based on the percentage of such development to the entire limited service area to be served by the Special Facilities; and the same number of acres or area under normal conditions and the cost of facilities to serve the acreage of area under special conditions at a higher cost. 5. Construction Inspection Charge Where a customer service connection or facility requires inspection by District personnel, the customer shall be charged for such inspection at the rate of $900.00 per day. When District personnel are not available, inspection will be performed by third party inspectors retained by the District. The hourly rate for third party inspectors will be established at the beginning of each third party inspection assignment. 6. Water System Design Charge A water system design charge shall be required for all main extensions, service connections and/or special facilities requiring the preparation of engineering plans and drawings. The water system design charge is hereby established as that fee charged by 15 an engineering firm of the District’s choosing, plus an additional 10% thereof for the District’s administrative costs. In the event the costs exceed the fees charged, the additional cost will be billed to the customer. 7. Engineering Service Charges The Engineering Services charge is a fee for the District’s time and effort spent on assisting customers who have a requirement to construct water or sewer main extensions, or other water and/or sewer facilities, which must meet District needs and conform to District standards. This fee includes time and effort the District spends on plan checking, plan and easement development, and all other related work. Prior to submission of any documents requiring work by the District, a non-refundable minimum charge in the amount of 10% of the engineer’s estimated cost for the project shall be submitted to the District. The work will be accomplished on a time and effort basis. Should the District require more funds than the original charge, the additional costs will be billed and must be paid prior to allowing water and/or sewer service to the project. 8. Sewer Manhole and Valve Can Deposit A refundable deposit of $1,500.00 per manhole will be charged for each sewer manhole structure shown on the sewer construction plans. A refundable deposit of $500 per valve can will be charged for each valve can as shown on the water construction plans. These deposits will be returned when all manholes and valve cans are constructed to final grade by the developer’s contractor and verified by the District. As an alternative to the manhole and valve can deposit, a guarantee bond may be provided in the same amount as the deposit. The guarantee bond shall contain covenants that are satisfactory to the District. Such bond shall remain in force until all manholes and valve cans are constructed to final grade by the developer’s contractor and verified by the District. 9. Research Fee (flat rate, 4 hour minimum) This $200.00 fee will provide funding for engineering staff to conduct research and provide copies of materials to developer engineers such as plans, easements, and other development related materials. This would only apply to obtaining information for developers that is unique to their development area and not general information such as fee schedules or District design standards. 10. Development Meeting Fee (after first meeting) This $250.00 per hour fee will provide funding for engineering staff to prepare for and attend, meetings with developers regarding their projects beyond the initial project 16 consultation meeting and set-up. This fee will impact primarily larger more complex developments which may require multiple coordination meetings with staff. 11. Annual Backflow Compliance Test (per device) A fee of $60.00 will be charged to the developer after newly installed and inspected devices (performed by District staff) are complete. 12. Backflow Inspection Fee (per inspection) A fee of $80.00 will be charged for each backflow inspection of newly installed backflow prevention devices, in accordance with District standards. 13. Water Quality Sampling Fee (per sample) A fee of $110.00 will be charged for each water quality sample taken for new construction. 14. New Construction Chlorination and Flushing Fee ($225 minimum to actual cost) A minimum fee of $225.00 will be charged for new construction disinfection plan review, inspection, and flushing prior to sampling. 17 Summary of charges/fees for Developer Services: Charge or Fee Name Charge/Fee Front Footage Charge $30.00 (per lineal foot) Water Main Extension Charge Fire Hydrant Installation Charge Actual cost or 5% of estimate Special Facility Charge Construction Inspection Charge $900.00 (per day) or actual cost Water System Design Charge Actual cost + 10% Engineering Service Charges 10% (of Engineer's estimated project cost) Sewer Manhole and Valve Can Deposit $1,500.00 (per manhole); $500.00 (per valve can) Research Fee $200.00 (flat rate, 4 hour minimum) Development Meeting Fee $250.00 (per hour, after first meeting) Annual Backflow Compliance Test $60.00 (per device) Backflow Inspection Fee $80.00 (per inspection) Water Quality Sampling Fee $110.00 (per sample) New Construction Chlorination and Flushing Fee $225.00 (minimum to actual cost) 18 History of Revisions DATE ADOPTED RESOLUTION UPDATED OR RESCINDED REVISION DATE EFFECTIVE 12/11/19 2019.19 2019.06 Update Miscellaneous and Capacity Fees 01/01/20 05/22/19 2019.06 2017.07 Update Water Fees 01/01/20 07/11/18 2018.12 2017.01 Update Wastewater Fees 08/12/18 05/24/17 2017.07 2017.01 Update Water Fees 07/01/17 01/25/17 2017.01 2016.05 Update Wastewater Treatment Fees and Renew 5- Year Pass Through Provision 07/01/17 02/24/16 2016.05 2015.04 Update Wastewater and Miscellaneous Fees 04/01/16 03/25/15 2015.04 2014.32 Implement Water Budget Based Rates 06/01/15 03/25/15 2015.04 Ord 391 Update Wastewater Fees 06/01/15 Exhibit "B" East Valley Water District AMI Opt-Out Fee Calculation Mileage Rate:$0.58 Based on the Internal Revenue Service standard mileage rates for 2019 Average Service Distance:15 miles This should account for the average travel distance within the service area and back to the office (roundtrip ) Non-Business Hour Adjustment:1.5 x Used to adjust the FBHR for employees working outside of standard business hours Description: Charged for on-going monthly meter reading Labor Costs Travel Costs AMI - Opt Out Calculation Position Hours of Labor FBHR ($/hr) Labor Costs Vehicles Distance Traveled (mi) Mileage Rate ($/mi) Travel Costs Total Cost Cost-Based (A) (B) (C)=(A x B) (A) (B) (C)=(A x B) Meter Reader II 0.5 $65.98 $32.99 1st Vehicle 12 miles $0.58 $6.96 Labor Costs $39.62 Accounting Technician 0.1 $66.29 $6.63 None Travel Costs $6.96 Expenses $0.00 Total Labor Costs $39.62 Total Travel Costs $6.96 AMI - Opt Out $46.58 EAST VALLEY WATER DISTRICT Chris Carrillo President LEADERSI-IIP • PARTNERSI-IIP . STEWARDSI-IIP David E. Smith Vice President BOARD 01= DIR~CTORS Ronald L. Coats Director Phillip R. Goodrich Director John Mura, General Manager/CEO James Morales, Jr. Director EAST VALLEY WATER DISTRICT NOTICE OF PUBLIC HEARING IS HEREBY GIVEN that the East Valley Water District will hold a Public Hearing on Wednesday, December 11, 2019 at 5:30 p.m., at 31111 Greenspot Road, Highland, California. The purpose of this hearing will be to consider and adopt changes to the District's Capacity fees, adopt an opt-out fee for the District's Automated Metering program (AMI), and to adjust fees charged to reconnect service that was discontinued for non-payment in accordance with recent legislation. All interested persons are invited to attend the above meeting and submit oral and/or written comments to the East Valley Water District Board of Directors at the time of the hearing. All persons are further invited to review the proposed changes and justifications therefor, copies of which will be available for public inspection during regular business hours at the headquarters of the East Valley Water District located at 31111 Greenspot Road, Highland California, ten (10) days prior to the above meeting. For more information, you may contact the East Valley Water District at the above address or by telephone at (909) 885-4900 during regular business hours. Attest: Justine Hendricksen/District Clerk. 31111 GREENSPOT ROAD, HIGHLAND, CA 92346 I PH: (909) 889-9501 I WWW.EASTVALLEV.ORG S TAF F R E P ORT Agenda Item #4. Meeting Date: Dec ember 2, 2019 Disc ussion Item To: F I NANC E AND HUMAN R ES O UR C ES C O MMI T T EE F rom: C hief F inancial O ffic er Subject: R eview Draft P opular Annual F inancial R eport for Year Ended June 30, 2019 R E C OMME N D AT ION: S taff rec ommend s that the F inance & Human R esource C ommittee (C o mmittee) review the attac hed F Y 2018-19 P opular Annual F inanc ial R eport (PAF R ). B AC KG R OUN D / AN ALYS IS: Attached is the East Valley Water Dis tric t PAF R for the fisc al year ended June 30, 2019. T he PAF R is designed to b e a summarized , us er friend ly vers io n of the Dis tric t’s C omprehens ive Annual F inancial R eport (C AF R ), which was audited and finalized in O c tober. Most financial informatio n in the PAF R is pres ented in graphic form, and technic al note dis closures are omitted. In ad d ition, as with the Bud get and C AF R , the G overnment F inance O fficers Assoc iation (G F O A) produces guidelines fo r p ro d uc ing an effec tive PAF R , and if an agenc y’s PAF R s ubstantially meets or exceeds those guidelines, the G F O A p res ents the agency with an Award fo r O uts tand ing Ac hievement in P o p ular Annual F inancial R eporting. T he Dis tric t received the award for its June 2018 PAF R , and that award appears o n page 2 in the c urrent year report. T he Dis tric t will s ubmit the current year PAF R for award c onsideration. S taff recommend s that the Board review the June 30, 2019 PAF R d o c ument, and approve it fo r d is tribution to Dis tric t ratepayers . AG E N C Y G O ALS AN D O B J E C T IVE S : G oal and O bjectives I I - Maintain a C ommitment to S ustainability, Transparency, and Acc ountability a) P rac tic e Trans parent and Acc ountable F is cal Management R E VIE W B Y O T HE R S : T his agenda item has been reviewed by the F inanc e and P ublic Affairs Departments. F IS C AL IMPAC T T here is no fisc al impac t as s ociated with this agenda item. ATTAC H M EN TS: Description Type FY 2018-19 Draft PAF R Backup Material FINANCE EDITION Popular Annual HIGHLAND, CALIFORNIA FINANCIAL REPORT DRAFT FISCAL YEAR ENDED JUNE 30, 2019 2 ABOUT THE DISTRICT ..........................................3 Organizational Structure ........................................................3 Transmittal Letter .....................................................................4 Core Values ...............................................................................4 District Vision.............................................................................5 District at a Glance ..................................................................5 District Wide Goals ..................................................................6 Capital Improvement Projects ..............................................7 Sterling Natural Resource Center .......................................8 FINANCIAL PERFORMANCE ...............................9 Revenue and Expenses ..........................................................9 Revenue by Sources .............................................................10 Breakdown of Expenses ........................................................11 Outstanding Long-Term Debt .............................................12 Comparative Net Position .....................................................13 GOVERNING BOARD OF DIRECTORS Chairman of the Board CHRIS CARRILLO Vice Chairman DAVID E. SMITH Governing Board Member RONALD L. COATS Governing Board Member JAMES MORALES, JR. Governing Board Member PHILLIP R. GOODRICH DISTRICT MANAGEMENT Chief Financial Officer BRIAN TOMPKINS General Manager/CEO JOHN MURA District Clerk JUSTINE HENDRICKSEN Director of Engineering & Operations JEFF NOELTE Operations Manager PATRICK MILROY Director of Strategic Services KELLY MALLOY Human Resources & Risk Safety Manager KERRIE BRYAN POPULAR ANNUAL FINANCIAL REPORT2 POPULAR ANNUAL FINANCIAL REPORTING AWARD The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to East Valley Water District, California for its Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2018. In order to receive this award, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability, and reader appeal. We believe our current PAFR continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another Award. We also welcome and encourage feedback from District ratepayers to help make this publication more useful and/or informative. Contents 3EAST VALLEY WATER DISTRICT P L U N G E C R E E K Cook Cre ek Oak Creek SAND CREEK COOK C R E E K P L U N GECREEK SAND CREEK S A N T A A N A R I V E R WARM CREEK T WIN CREEK ELDERCREEK B L E DSOECREEK MILL CREEK C I T Y C R E E K CITY C R E E K SANTAANA RIVER S A N T A ANA RIVER TWIN CREEK 210 210 210 About the District Organizational Structure East Valley Water District (EVWD) provides water and wastewater services to residents throughout a 30.1 square mile area to over 102,000 people within the cities of Highland and San Bernardino, portions of unincorporated County of San Bernardino, the San Manuel Band of Mission Indians, and Patton State Hospital. DISTRICT SERVICE AREA HIGHLAND SAN BERNARDINO SEVENOAKS DAM Presented to the right is an overview of the District’s organizational structure. The District employs 67 full-time positions. Ratepayers Governing Board Engineering General Manager/ CEO Chief Financial Officer Information Technology Customer ServiceOperations Water Maintenance Meter Services Wastewater Maintenance Water Production Facilities Maintenance Water Treatment Fleet Maintenance Water Quality Director of Engineering & Operations General Administration Human Resources Public Affairs Legal Counsel Finance Conservation PERSON/POSITION PROGRAM FTE: 3 FTE: 1 FTE: 4 FTE: 5 EO: 5 FTE: 5 FTE: 2 FTE: 7 FTE: 2 FTE: 2 FTE: 15 FTE: 6 FTE: 4 FTE: 2 FTE: 2 FTE: 2 FTE: 1 FTE: FULL TIME EMPLOYEES EO: ELECTED OFFICIALS Director of Strategic Services POPULAR ANNUAL FINANCIAL REPORT4 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. core values As we commemorate 65 years of service to the community, we are pleased to present East Valley Water District’s (EVWD or District) Popular Annual Financial Report (PAFR) for the fiscal year ending June 30, 2019. This report summarizes financial information appearing in the 2019 Comprehensive Annual Financial Report (CAFR) and was created to provide valuable information related to District finances and the Capital Improvement Projects that support the expansion and improvement of our community’s distribution system. The PAFR is unaudited; however, the financial data presented in the PAFR is derived from the audited CAFR which is consistent with Generally Accepted Accounting Principles also known as GAAP. This document can also be reviewed on the District’s website at www.eastvalley.org/CAFR2019. For more detailed information, the District’s Comprehensive Annual Financial Report is available for interested users at the District Headquarters, 31111 Greenspot Road, Highland, CA 92346. It can also be viewed on the District’s website at www.eastvalley.org/CAFR. Questions comments and feedback regarding this report are encouraged, so please do not hesitate to contact Brian Tompkins, Chief Financial Officer, at finance@eastvalley.org or (909) 381-6463. On behalf of the District, thank you for the opportunity to serve you. Respectfully submitted, John Mura General Manager/CEO TRANSMITTAL LETTER 5EAST VALLEY WATER DISTRICT &Enhance Preserve THE QUALITY OF LIFE FOR OUR Community THROUGH INNOVATIVE LEADERSHIP &World Class PUBLIC SERVICE The District serves a population of 102,000 214 Miles of Sewer Main 300 Miles of Water Main 268 Leaks Repaired 450 Fire Hydrants Flushed Annually 3,300 Water Samples Collected Annually 15,000,000 average Gallons of Water Produced Daily28,977,000 Gallons of Potable Water Stored 6,000,000 Gallons of Sewage Conveyed Daily 700 Valves Exercised 16 Active Ground Water Wells Established Square MileService Area 195430.1 15,700 Manual &7,300 AMI Automatic Meters Read Monthly District Vision District at a Glance Respectfully submitted, John Mura General Manager/CEO POPULAR ANNUAL FINANCIAL REPORT6 As part of the annual budget process, District-wide goals are established by the Governing Board in order to identify priority programs and projects. More specific program goals were established for each program consistent with District-wide goals. The District achieved a number of different accomplishments during Fiscal Year (FY) 2018-19. As a results-oriented organization, each program has clearly defined goals and objectives. During this period, there were four priority projects that contributed to achieving not only the District-wide goals, but also the District-Wide Vision: • Advanced Metering Infrastructure Installation • Plant 134 Surface Water Treatment Plant Membrane Replacement • Wastewater Collection Main Replacement on Modesto Drive and 35th Street • Warm Creek Facilities’ Relocation These projects are included in the Five-Year Capital Improvement Program. CAPITAL IMPROVEMENT PROJECTS 1 4 5 2 3 6 Assess the District’s ability to increase development activity and implement action items as identified Address challenges and opportunities related to North Fork Water Company Develop a 5-year work program for Board consideration Create a financial plan to reduce long-term pension liabilities Research the requirements and procedures of creating a non-profit foundation for the community Complete the necessary steps to continue advancement of the SNRC district wide goals 7EAST VALLEY WATER DISTRICT Each year as part of the budget process, the District’s Program Managers and Supervisors compile and submit a list of capital outlay requests for consideration. Staff reviews and prioritizes the list of equipment based on a needs assessment and the amount of funding available. Proposed Capital Improvement Projects for the budgeted fiscal year were submitted by the Engineering, Operations and Maintenance Programs in accordance with the anticipated needs of the District as outlined in the 2013 Wastewater Master Plan and 2014 Water Master Plan. PLANT 134 SURFACE WATER TREATMENT MEMBRANE REPLACEMENT PHASE II & III OF ADVANCED METER INFRASTRUCTURE (AMI) INSTALLATIONS WASTEWATER COLLECTION MAIN REPLACEMENT MODESTO & 35TH STREET WARM CREEK FACILITIES RELOCATION $293,992$1,499,556 $453,728 $289,725 JANUARY 2019 JUNE 2019 JUNE 2019 MAY 2019 PROJECT BENEFITS PROJECT BENEFITS PROJECT BENEFITS PROJECT BENEFITS PROJECT COMPLETED PROJECT COMPLETED PROJECT COMPLETED PROJECT COMPLETED TOTAL PROJECT COST TOTAL PROJECT COST TOTAL PROJECT COST TOTAL PROJECT COST - Energy conservation - Reduced production costs - Intelligent use of resources - Reduced carbon footprint - Provides customers with near real-time consumption information - Faster identification of leaks - Modernized sewer main lines - Reduced blockage risk - Improved service to customers - Prevented channel contamination - Partnerships with local agencies The Surface Water Treatment Plant, also known as Plant 134, has five treatment trains that consist of 180 membrane filters per train. The manufacturer of the filters recommends replacing the filter every 5 to 7 years. In Fiscal Year 2018-19 staff replaced one full train. The District continues to replace its aged meters with new meters equipped with Advanced Metering Infrastructure (AMI) technology. The AMI technology allows the District to send and receive water consumption data in near ‘real-time’. The completion of Phase II and III resulted in 4,276 meters replaced. This project involved replacing two sections of undersized sewer main lines in the City of San Bernardino. On Modesto Drive, between 35th and 36th Streets, the project replaced 760 linear feet of 6-inch diameter main with 8-inch diameter main. The second portion of the project replaced 525 linear feet of 6-inch diameter main with 8-inch diameter main on 35th Street, between Garden Drive and Conejo Drive. The relocation of Warm Creek facilities’ became necessary when the County of San Bernardino Flood Control District needed to make improvements to the Warm Creek flood channel. The project replaced 150 linear feet of 10-inch clay pipeline which crossed the flood channel. Replacement material included a 10-inch high-density polyethylene (HDPE) pipeline reinforced by encasing it with a 20-inch steel pipeline. POPULAR ANNUAL FINANCIAL REPORT8POPULAR ANNUAL FINANCIAL REPORT8 OPENING 2021 Currently under construction, the Sterling Natural Resource Center will treat 8 million gallons of wastewater a day initially, with the ability to expand to 10 million gallons a day, and recharge it into the local Bunker Hill Groundwater Basin where it will be stored for use in future drought years. The facility vision is to construct a location that can produce recycled water, while creating a community center that will benefit the local residents. The $182.6 million project is being funded by a variety of sources such as: $6.7 million in State grants, $1.49 million in grant funds from the California Natural Resources Agency, $175 million in low-interest loans from the California Clean Water State Revolving Fund, future development fees, and Wastewater service charges. What is the SNRC? Funding* Community Benefits Funded in part by: sterling natural resource center COMMUNITY SPACE EDUCATION & TRAINING DROUGHTPROOF WATER SUPPLY NEIGHBORHOOD IMPROVEMENTS The SNRC’s will provide a picnic area, demo garden, walking paths, workshop space, and a special events area. Water treated at the SNRC will help recharge the local Bunker Hill Groundwater Basin, where it will be stored for use in future drought years. Hands-on training and career pathway experiences in wastewater treatment will be available to students and residents. Improvements to the surrounding area will include street paving, water lines, sidewalks, gutters, and more. Start Local Unwanted Food Waste Material Remaining After Wastewater Treatment Co-Digestion of Waste MaterialRenewable Electricity 3 Megawatts of Renewable Electricity SNRC GOVERNOR GAVIN NEWSOM Cap and TradeDollars at Work 9EAST VALLEY WATER DISTRICT *Funding for this Sterling Natural Resource Center project has been provided in full or in part by the Proposition 1 - the Water Quality, Supply, and Infrastructure Improvement Act of 2014 and the Clean Water State Revolving Fund through an agreement with the State Water Resources Control Board. California’s Clean Water State Revolving Fund is capitalized through a variety of funding sources, including grants from the United States Environmental Protection Agency and state bond proceeds. The Urban Greening Program is part of California Climate Investments, a statewide program that puts billions of cap-and-trade dollars to work reducing greenhouse gas emissions, strengthening the economy and improving public health and the environment—particularly in disadvantaged communities. The cap-and-trade program also creates a financial incentive for industries to invest in clean technologies and develop innovative ways to reduce pollution. California Climate Investment projects include affordable housing, renewable energy, public transportation, zero-emission vehicles, environmental restoration, more sustainable agriculture, recycling and much more. At least 35 percent of these investments are made in disadvantaged and low-income communities. For more information, visit www.caclimateinvestments.ca.gov. Co-Digestion Technology How Co-Digest i o n Works eastvalley.org/snrc |@eastvalleywaterdistrict |@eastvalleywaterdistrict@eastvalleywater | 9EAST VALLEY WATER DISTRICT Making every source a resource, the SNRC will use state-of-the-art co-digester technology, to give local unwanted food waste a new purpose. Digesters will combine high-grade food waste with the material left behind during the treatment of wastewater to produce 3 megawatts of electricity. This enhancement represents a significant improvement to the project by allowing the SNRC to produce enough renewable electricity to meet the facility’s energy needs, with additional electricity transferred onto the energy grid. adding a new Resource COMMUNITY SPACE EDUCATION & TRAINING DROUGHTPROOF WATER SUPPLY NEIGHBORHOOD IMPROVEMENTS The SNRC’s will provide a picnic area, demo garden, walking paths, workshop space, and a special events area. Water treated at the SNRC will help recharge the local Bunker Hill Groundwater Basin, where it will be stored for use in future drought years. Hands-on training and career pathway experiences in wastewater treatment will be available to students and residents. Improvements to the surrounding area will include street paving, water lines, sidewalks, gutters, and more. Start Local Unwanted Food Waste Material Remaining After Wastewater Treatment Co-Digestion of Waste MaterialRenewable Electricity 3 Megawatts of Renewable Electricity SNRC This is the equivalent amount of electricity needed to power about 1,950 homes. POPULAR ANNUAL FINANCIAL REPORT10 Since its establishment in 1954, East Valley Water District has embraced the responsibility to serve the public by going beyond the duty of providing a reliable water service. To truly make an impact on the lives of customers, the District incorporated local partnerships, active involvement, and special services to its community outreach efforts. Through these ongoing efforts, the District is able to make a positive impact and enhance the quality of life of residents of all ages. community involvement WORKING TOGETHER FOR CONSERVATION Striving to be a community partner and assist residents with their conservation efforts, East Valley Water District hosted two free high-efficiency toilet distribution events where a combined total of 486 toilets were distributed. By helping the community replace their inefficient or leaky toilets, residents are able to reduce their consumption and possibly lower their monthly water bill. ADOPTING FAMILIES FOR THE HOLIDAYS Hoping to bring holiday cheer to local families in need, the East Valley Water District Employee Events Assosication identified four families that could use some assistance during the holidays. Working together, staff collected grocery store gift cards, clothing, blankets, and toys for the little ones. Adding an extra holiday touch, staff wrapped the items so that the families would have a special gift to unwrap. SUPPORTING LOCAL NON-PROFITS WITH THEIR MISSION East Valley Water District is proud to support local non-profits with fulfilling their mission through its Surplus Vehicle Donation Program. Through the program, the District donates fully functional vehicles to organizations that provide valuable services to the community. Most recently, the District donated a vehicle to the Highlanders Boxing Club and New Life Foursquare Church to assist them with transporting seniors and youth to and from their recreational programs. 11EAST VALLEY WATER DISTRICT Revenue and Expenses Providing safe drinking water to over 102,000 customers every day is the District’s top priority and also one of its most significant expenses. The graphs below represent the District’s combined revenue and expenses for FY 2018-19. For comparison purposes, FY 2016-17 and FY 2017-18 revenue and expenses have also been included. Please refer to the District’s CAFR for a comprehensive breakdown of expenses which includes the availability of additional details. HOW IS REVENUE MANAGED? The District utilizes revenue to fund daily operations, repay loans, bonds, and interest. Remaining revenue is invested back into capital improvement projects to help maintain and improve the District’s system health so that EVWD may continue taking steps to support the Vision Statement of providing world class public service. Revenue also provides funding for conservation and rebate programs, which empowers customers to be efficient water users and encourages water savings indoors and out. Excess net revenue after covering expenses and payments is placed in Replacement Reserves, the District’s account set aside to meet unforseen costs. FINANCIAL PERFORMANCE FY 2018-19 FY 2016-17FY 2017-18FY 2018-19 FY 2016-17FY 2017-18 REVENUE EXPENSES $41.50 MILLION $41.29 MILLION 40.37 MILLION $37.58 MILLION $37.92 MILLION $35.69 MILLION operating operating non-operating non-operating contributions special items POPULAR ANNUAL FINANCIAL REPORT12 REVENUE BY SOURCES Revenue is used to fund day-to-day operation of the District. East Valley Water District receives 97 percent of its revenue from user rates and fees; the District receives no increment from property or sales taxes. Rates and fees are reviewed on 3 to 5 year cycles and are adjusted as necessary to cover the costs of providing services to ratepayers. Note: The District’s water sales and meter charge revenue is expected to decrease through FY 2019-20. Due to rate increases, residents tend to reduce their water usage. Additional information regarding the approved rates can be found at eastvalley.org/rates. REVENUE HISTORY & FORECAST (IN MILLIONS) Water sales are based on the volume of water used by a customer during the monthly billing period. Meter charges are fixed monthly charges assessed to customers based on the size of the service connection to their property. Wastewater collection charges are 1) fixed monthly charges for single family residences, and 2) a combination of fixed and volumetric charges for commercial and multi-family customers. Wastewater treatment rates are established by, and revenue remitted to, the City of San Bernardino Municipal Water Department, which is currently contracted to treat all wastewater generated by District customers. Other charges are assessed according to an adopted fee schedule, but are only charged to users who request, or require, use of District resources beyond the scope of delivering normal water and wastewater services. 40% WATER SALES 23% METER CHARGES 12% WASTEWATER COLLECTION 22% WASTEWATER TREATMENT 3% OTHER CHARGES FISCAL YEAR 2018-19 RATE REVENUE 24.9 5.0 10.0 15.0 20.0 25.0 30.0 FY 2015-16 ACTUAL FY 2016-17 ACTUAL FY 2017-18 ACTUAL FY 2018-19 ACTUAL FY 2019-20 PROJECTED FY 2020-21 PROJECTED Water Revenue Wastewater Revenue 12.8 13.4 13.4 25.5 24.5 26.9 26.9 13.3 13.8 25.4 13.6 13EAST VALLEY WATER DISTRICT BREAKDOWN OF EXPENSES Expenses are based on the cost to provide water to meet customer demand and to collect and treat wastewater from customer residences or places of business. The District strives to provide safe and reliable water delivery services. Despite the severity of the recent drought, the District has put forth significant effort to overcome the challenges of maintaining a fiscally sustainable and operationally dependable organization. EXPLANATION OF EXPENSES Source of Supply - Expenses related to the extraction of groundwater, and for procuring water from the Santa Ana River or State Water Project when supply is available. Pumping - Expenses related to moving water throughout the District’s water distribution system. Water Treatment - Expenses related to the treatment of water. Transmission and Distribution - Expenses for transmitting water to treatment plants and storage reservoirs for distribution to commercial and residential customers. Customer Accounts - Expenses related to customer relationships. These include postage, telephone, printing and publishing, and billing services. Wastewater Treatment - Expenses related to the contracted service currently provided by the City of San Bernardino Municipal Water Department. Wastewater Collection - Expenses for the operation and maintenance of the District’s system of wastewater collection pipelines. Administrative and General - Expenses related to the administration of District operations. For example, employee compensation, benefits, conservation rebates, office supplies, banking services, materials and supplies, utilities, fuel, permits, insurance claims, legal services, and printing and publishing. Depreciation - Expenses related to the use of capital assets over time. Other Expense - Expenses not related to the District’s current cost of utility service delivery. Special Items - The write-off for feasibility studies and other preliminary costs related to projects that were not approved for construction. Operating expenses are identified and accounted for at the department level. 24.95.010.015.020.025.030.0 FY 2015-16ACTUAL FY 2016-17ACTUAL FY 2017-18ACTUAL FY 2018-19ACTUAL FY 2019-20PROJECTED FY 2020-21PROJECTEDWater RevenueWastewater Revenue12.8 13.4 13.4 25.524.5 26.9 26.9 13.313.8 25.413.6 8¢ 2¢ 2¢ 7¢ 5¢ 23¢ 2¢ 29¢ 18¢ 4¢ The graph on the left identifies how every dollar spent is allocated to cover expenses (in cents). Source of Supply Pumping Water Treatment Transmission & Distribution Customer Accounts WastewaterTreatment Water Collection Adminstrative & General Depreciation Other Expenses EXPENSES POPULAR ANNUAL FINANCIAL REPORT14 OUTSTANDING LONG-TERM DEBT Much like how a mortgage is financed to spread costs over 30 years, East Valley Water District has incurred debt to fund large capital projects. The District has adopted a Debt Management Policy to clearly state that long-term borrowing can only be used for Capital Improvement Projects that cannot be funded from current revenues. Similar to an individual’s credit score, public agencies have a bond rating used by investors to determine risk. The District has a bond rating of AA- by both the Fitch and the Standard and Poor’s rating services. This is considered a high quality investment grade. EXPLANATION OF DEBT (IN MILLIONS) East Valley Water District’s long-term debt consists of bonds, loans and installment purchases. State Department of Water Resources Loans - Funded the improvement and expansion of the District’s surface water treatment plant. 2013 Bonds - Financed the construction of the District’s new administration and operations headquarters designed to serve as a resource for the community. SBVMWD Loan - Agreement with the San Bernardino Valley Municipal Water District for the construction, financing, and maintenance of a City Creek Turnout and Plant 134 Hydroelectric Station. The station provides the District with direct access to State Project Water, to be used for the surface water treatment plant. 2010 Bonds - Issued to refinance all previous outstanding long-term debt and to provide $16 million for water quality improvement projects. Sterling Natural Resource Center Loan - Funded the design and construction of the District’s water recycling facility that will capture and treat District wastewater flows. Recycled water will be recharged to the Bunker Hill Groundwater basin. US Bank Loan - Issued for the purchase and installation of energy conservation equipment at several of the District’s water production facilities. $23.2 $12.1$6.5 $25.5 $2.1 $3.0 15EAST VALLEY WATER DISTRICT 2 YEAR COMPARATIVE NET POSITION (IN MILLIONS) As an infrastructure based organization, the District is heavily invested in capital investments to maintain and improve its water and wastewater system. Comparative net position offers perspective of the District’s assets, liabilities, and equity. The information presented below applies to fiscal years ended June 30, 2019 and 2018. EXPLANATION OF ASSETS EXPLANATION OF LIABILITIES Current Assets - Cash and cash equivalents, customer utility receivables, inventory, prepaid expenses, and other liquid assets that can be readily converted to cash. Restricted Assets - Cash equivalents, grants and bonds restricted for a specific purpose and therefore not readily available to use. Other Assets - Special Assessments receivable from certain property owners for system improvements that benefit only their properties. Capital Assets - Any land, building, equipment, vehicles, inventory, treatment plants, pipeline, and water distribution systems owned by the District. Deferred Outflow of Resources - Use of net assets attributed to future reporting periods, such as prepaid items and deferred charges. Current Liabilities - Present financial obligations including, payments to vendors, payroll, and employee benefits. Non-Current Liabilities - Long-term financial obligations including payments for loans, bonds, and employee retirement benefits. Deferred Inflow of Resources - Receipt of net assets attributed to future reporting periods, such as deferred revenue and advance collections. Equity (Net Position) - Represents the District’s fiscal position after assets, liabilities, deferred outflow, and deferred inflow have been balanced. $3.6 $4.5 $38.6 $24 $8.2 $6.8 $0.3 $0.4 $169.7 $155.1 $119.4 $123.2 $63.4 $.70 $7.4 $85 $0.6 $11.5 total assets total assets $220.4 million $190.8 million $220.4 million $190.8 million liabilities & equity liabilities & equity Current Assets Restricted Assets Other Assets Capital Assets Deferred Outflow of Resources Current Liabilities Non-Current Liabilities Net Position Deffered Inflow of Resources ASSETS LIABILITIES NET POSITION 2019 NET POSITION 2018 DISTRICT HEADQUARTERS 31111 Greenspot Road, Highland, CA 92346 (909) 889-9501 www.eastvalley.org DISTRICT BOARD MEETINGS Second and fourth Wednesday of each month District Headquarters Board Room, 5:30pm SAFE RELIABLE WATER & WASTEWATER SERVICE PROVIDER East Valley Water District was formed in 1954 and provides water and wastewater services to over 102,000 residents within the cities of Highland and San Bernardino, and portions of San Bernardino County. EVWD operates under the direction of a 5-member elected Board. OFFICE HOURS Monday – Thursday 8:00am – 5:00pm 2nd and 4th Tuesday 9:00am – 5:00pm Friday 7:30am – 4:30pm CUSTOMER SERVICE & AFTER-HOURS EMERGENCY SERVICE (909) 889-9501