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HomeMy WebLinkAboutAgenda Packet - Community Advisory Commission - 02/27/2024COMMUNITY ADVISORY COMMISSION FEBRUARY 27, 2024 East Valley Water District was formed in 1954 and provides water and wastewater services to 107,000 residents within the cities of San Bernardino and Highland, and portions of San Bernardino County. EVWD operates under the direction of a 5­member elected Board. COMMISSIONERS Dr. Alan Kay Commissioner Robert Nowosielski Commissioner Gail Shelton Commissioner Judy Walsh Commissioner Dwayne Anthony Commissioner Vincente Tenerelli Commissioner Mark Falcone Commissioner William Ringland Public Affairs/Conservation Manager Community Advisory Commission Meeting February 27, 2024 ­ 6:00 PM 31111 Greenspot Road, Highland, CA 92346 www.eastvalley.org PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection in the District’s office located at 31111 Greenspot Rd., Highland, during normal business hours. Also, such documents are available on the District’s website at eastvalley.org and are subject to staff’s ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability­related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above agendized public meeting should be directed to the District Clerk at (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. 1.November 28, 2023 Community Advisory Commission Meeting Minutes INFORMATIONAL ITEMS 2.Community Engagement Update 3.Water and Wastewater Rate Update DISCUSSION AND POSSIBLE ACTION ITEMS 4.Set the Day and Time to Hold Recurring Meetings REPORTS 5.Commissioners’ Comments 6.Staff’s Comments ADJOURN COMMUNITY ADVISORY COMMISSIONFEBRUARY 27, 2024East Valley Water District was formed in 1954 and provides water and wastewater services to107,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.COMMISSIONERSDr. Alan KayCommissioner Robert NowosielskiCommissionerGail SheltonCommissioner Judy WalshCommissionerDwayne AnthonyCommissioner Vincente TenerelliCommissioner Mark Falcone Commissioner William Ringland Public Affairs/Conservation Manager Community Advisory Commission Meeting February 27, 2024 ­ 6:00 PM 31111 Greenspot Road, Highland, CA 92346 www.eastvalley.org PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection in the District’s office located at 31111 Greenspot Rd., Highland, during normal business hours. Also, such documents are available on the District’s website at eastvalley.org and are subject to staff’s ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability­related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above agendized public meeting should be directed to the District Clerk at (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. 1.November 28, 2023 Community Advisory Commission Meeting Minutes INFORMATIONAL ITEMS 2.Community Engagement Update 3.Water and Wastewater Rate Update DISCUSSION AND POSSIBLE ACTION ITEMS 4.Set the Day and Time to Hold Recurring Meetings REPORTS 5.Commissioners’ Comments 6.Staff’s Comments ADJOURN COMMUNITY ADVISORY COMMISSIONFEBRUARY 27, 2024East Valley Water District was formed in 1954 and provides water and wastewater services to107,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.COMMISSIONERSDr. Alan KayCommissioner Robert NowosielskiCommissionerGail SheltonCommissioner Judy WalshCommissionerDwayne AnthonyCommissioner Vincente TenerelliCommissionerMark FalconeCommissioner William RinglandPublic Affairs/Conservation ManagerCommunity Advisory Commission MeetingFebruary 27, 2024 ­ 6:00 PM31111 Greenspot Road, Highland, CA 92346www.eastvalley.orgPLEASE NOTE:Materials related to an item on this agenda submitted to the Board after distribution of theagenda packet are available for public inspection in the District’s office located at 31111Greenspot Rd., Highland, during normal business hours. Also, such documents are availableon the District’s website at eastvalley.org and are subject to staff’s ability to post thedocuments before the meeting.Pursuant to Government Code Section 54954.2(a), any request for a disability­relatedmodification or accommodation, including auxiliary aids or services, that is sought in orderto participate in the above agendized public meeting should be directed to the District Clerkat (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. 1.November 28, 2023 Community Advisory Commission Meeting Minutes INFORMATIONAL ITEMS 2.Community Engagement Update 3.Water and Wastewater Rate Update DISCUSSION AND POSSIBLE ACTION ITEMS 4.Set the Day and Time to Hold Recurring Meetings REPORTS 5.Commissioners’ Comments 6.Staff’s Comments ADJOURN Agenda Item #2 February 27, 20241 Meeting Date: February 27, 2024 Agenda Item #2 Consent Item Regular Meeting TO: Commission Members FROM: William Ringland, Public Affairs/Conservation Manager SUBJECT: November 28, 2023 Community Advisory Commission Meeting Minutes RECOMMENDATION That the Community Advisory Commission approve the November 28, 2023 Commission meeting minutes. AGENCY GOALS AND OBJECTIVES III - Deliver Public Service With Purpose While Embracing Continuous Growth B. Strive to Provide World Class Customer Relations FISCAL IMPACT There is no fiscal impact associated with this agenda item. Respectfully submitted: ________________ William Ringland Public Affairs/Conservation Manager ATTACHMENTS November 28, 2023 Commission Meeting Minutes 1 Minutes 11-28-23 cmc 1 4 3 7 Draft prnding approval EAST VALLEY WATER DISTRICT November 28, 2023 COMMUNITY ADVISORY COMMISSION MINUTES Cecilia Contreras, Public Affairs Coordinator, called the special meeting to order at 6:01 p.m. and led the flag salute. PRESENT: Commissioners: Anthony, Falcone, Nowosielski, Shelton, Walsh ABSENT: Commissioners: Kay, Tenerelli STAFF: William Ringland, Public Affairs/Conservation Manager; Cecilia Contreras, Public Affairs Coordinator; Roxana Morales, Public Affairs Specialist GUEST(s): Amy Stevens, WSC; members of the public PUBLIC COMMENTS The Public Affairs Coordinator declared the public participation section of the meeting open at 6:01 p.m. There being no written or verbal comments, the public participation section was closed. APPROVE THE AUGUST 23, 2023 COMMISSION MEETING MINUTES M/S/C (Falcone-Nowosielski) that the August 23, 2023 Commission meeting minutes be approved as submitted. CONSERVATION UPDATE – MAKING CONSERVATION A WAY OF LIFE The Conservation Coordinator provided an update on two bills that were signed by the Governor to enhance conservation. She stated that they are AB 1668 and SB 606 which establish the framework of Making Conservation a California Way of Life. These bills create the framework for unique goals for urban water retailers including efficiency standards for different types of water uses, unique water targets, and include bonus incentives. The regulations to fit within the framework of the stated bills are to be considered for adoption in 2023-24. Information only. Vincente Tenerelli arrived at 6:10 p.m. Alan Kay arrived at 6:22 p.m. 2 Minutes 11-28-23 cmc 1 4 3 7 LEAK REPAIR PILOT PROGRAM The Conservation Coordinator informed the Commissioners of a new pilot program, which is an expansion of the current Leak Adjustment Request, to incentivize customers to promptly take care of leak repairs. This program will be launched during Fix-a-Leak week in March 2024, and customers who qualify can apply for up to $275 for reimbursement for repairs made to leaks on their property. She stated that funds are limited and that this program will be promoted through social media, websites, bill inserts, and community events. Information only. STRATEGIC PLAN OVERVIEW The Public Affairs/Conservation Manager provided an update on the process of the strategic plan and introduced the consultant. Amy Stevens, Water Systems Consulting (WSC), updated the Commission on the progress of the Strategic Plan Update including but not limited to updating components of the District’s mission, vision, core values, and goals; evaluating the framework and setting an actionable and measurable plan; incorporating the comments received from the Commissioners at the previous meeting; and work completed to date. She stated that the next steps include a workshop with the District’s management team and Board and bringing a finalized plan to the Board of Directors for approval in early 2024. Information only. UPDATE ON DISTRICT PERFORMANCE MEASUREMENTS The Public Affairs/Conservation Manager provided an update on where the District is performing compared to others in the industry. This information will change from being shared with the Commission twice a year to once a year. He stated that Industry Benchmarks have been developed to assess various District functions including Finance, Operations, Administration, and Customer Engagement. He added that these performance measures can assist the District with enhancing operations, foster trust with the community, and continuing to invest in building a safe and reliable public utility. Information only. COMMISSIONER COMMENTS Dwayne Anthony stated that he agrees with being proactive about keeping track of the current infrastructure. Mark Falcone commented on the construction of the SNRC pipeline on Greenspot Road and how community members are starting to lose patience; he hopes the road will be repaved from curb to curb when the project is completed. 3 Minutes 11-28-23 cmc 1 4 3 7 Dr. Alan Kay apologized for being late and stated that he appreciates the outreach sent out by the District, which is always done effectively, and is excited about the strategic plan update. Robert Nowosielski stated that being proactive will allow good to follow and he gave staff kudos for the information shared at this meeting. Gail Shelton stated that as commissioner, her role is to help the community understand what is going on with water; she is privileged to be part of this group and is happy that the District is looking at projects comprehensively rather than just single projects. Vincent Tenerelli apologized for being late and stated that he was not on the Commission during the discussions of the construction of a wastewater recycling facility and feels that one is not needed; that it uses too many resources and the money connected to it is quite high and hopes that this project is worth it when it comes to the cost to the ratepayers. Judy Walsh shared that this is the first water district that she has ever paid attention to and that areas surrounding us have nothing compared to the level of service provided by EVWD; that she is proud of the SNRC project and, in time, it will pay for itself. She stated that she appreciates the shift from SNRC to infrastructure focus and how the District is always represented greatly by the employees she sees out in public. Information only. STAFF COMMENTS The Public Affairs/Conservation Manager updated the Commissioners on Public Affairs and Conservation activities. He provided an update that included but was not limited to the Greenspot Road construction to Weaver Basin; the District is hosting a Bottled Water Label Art Contest for grades first through sixth, encouraging illustrations of being a Guardian of Our Water; the continuation with the website redesign; and that the results from the Community Survey that was completed and will be presented at the January 10, 2024, Board meeting. Mr. Ringland thanked the Commissioners for their time to be here and will see them at the next scheduled meeting on February 27, 2024. Information only. ADJOURN The meeting adjourned at 7:54 p.m. ________________________ William Ringland Public Affairs/Conservation Manager Agenda Item #3 February 27, 20241 Meeting Date: February 27, 2024 Agenda Item #3 Informational Item Regular Meeting TO: Commission Members FROM: Public Affairs/Conservation Manager SUBJECT: Community Engagement Update RECOMMENDATION This agenda item is for informational purposes only, no action is required. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment to Sustainability, Transparency, and Accountability B. Utilize Effective Communication Methods D. Provide Quality Information to Encourage Community Engagement FISCAL IMPACT There is no fiscal impact associated with this agenda item. Respectfully submitted: ________________ William Ringland Public Affairs/Conservation Manager ATTACHMENTS Presentation Community Advisory Commission COMMUNITY ENGAGEMENT February 27, 2024 2 STERLING NATURAL RESOURCE CENTER (SNRC) - STARTUP •Outreach tactics •Social media and LinkedIn •Press release •Coalition notification •Presentations and awards submissions 3 •Completion anticipated in early February •Removal of street construction signs •“Thank you for your patience” postcard to be mailed to nearby residents GREENSPOT ROAD CONSTRUCTION Draft postcard 4 SNRC RIBBON CUTTING EVENT •Scheduled for Friday, May 3, 2024 from 10:00am to 1:00pm •Treatment facility tours •Indian Springs High School partnership for student artwork wall •Event details webpage at eastvalley.org/valveturn 5 •District helped keep participants hydrated •Held booth at the end of the run and engaged with community members •Passed out District information and promoted the upcoming conservation workshop HIGHLAND Y RUN 6 COMMUNITY ENGAGEMENT •February bill insert •Published February 1 •English and Spanish •Water educational piece to showcase the three sources of District water •Messaging will be incorporated as key message on social media throughout distribution 7 DIGITAL ENGAGEMENT •Facebook page reach increased by 27% since November 2023 •33,453 page views •Instagram likes increased 24% in 2023 from 2022 •2023 average email open rate was 46%, compared to the industry average of 43% 8 BOTTLED WATER LABEL ART CONTEST •Contest packet distribution •Distributed to schools, grades 1st-6th, in the service area •Available for pick up at District offices •Bottled Water Label Art Contest •Submission closed on January 31 •Submissions will be reviewed with three winners selected 9 WEBSITE REDESIGN PROGRESS Issue/ Award Redesign RFP Assess Content Management System Collect Feedback Develop Digital Infrastructure Design Website Wireframes Alpha and Beta Testing Launch Website We are in this step 10 FATS, OILS, AND GREASE (FOG) PROGRAM •Program transitioning from the City of San Bernardino to the District •Informational material •Introductory letter •Packet folder with magnet •Informational posters in English and Spanish •Additional materials •Website page with portal link •Violation letters FOG Informational Packet 11 FATS, OILS, AND GREASE (FOG) PROGRAM FOG Informational Posters (English and Spanish) Interceptor Worksheet Packet Magnet Contractor Business Cards •School Career Days •Fix a Leak Week •March 18-24, 2024 •Citrus Harvest Festival •March 30, 2024 from 10:00am – 3:00pm 12 UPCOMING COMMUNTY EVENTS DISCUSSION Agenda Item #4 February 27, 20241 Meeting Date: February 27, 2024 Agenda Item #4 Informational Item 1 0 4 5 Regular Meeting TO: Commission Members FROM: Chief Financial Officer SUBJECT: Water and Wastewater Rate Update RECOMMENDATION This agenda item is for informational purposes only, no action is required. BACKGROUND / ANALYSIS East Valley Water District (District), like other rate setting public agencies in the State of California, must regularly conduct a Cost-of-Service Analysis (COSA) to evaluate whether rates are sufficient to maintain public services. The results of this study then produce recommendations for consideration as to the necessary rates to meet operational needs with rates adopted for no more than a five-year period, at which point the organization must refresh the COSA. As a not-for-profit utility, the District can only collect the actual cost of services and the COSA is an important study to ensure financial stability. The District’s last COSA was completed in February 2021, with rates presented to, and adopted by the Board on May 12, 2021. The District contracted IB Consulting (IBC) to start the process of updating their Cost of Service Analysis’ completed in 2021, to determine revenue requirements and possible rate adjustments to the District’s water and wastewater utility rates. IBC has progressed with the development of their models and financial plans for the District’s three enterprises (Water, Wastewater Collection, and Reclamation). Changes in revenues and expenses over the past three years have caused the District to reduce capital spending and utilize reserve funds. The COSA allows the District to reset revenue and expense assumptions for the next five years. The District’s Five-Year Plan identifies goals and objectives that are included in the financial plan. Staff have worked closely with IBC to account for strategic initiatives and changing operational needs. The five key drivers of the financial plan are described below: •Water Sales / Consumption - The District has experienced a 12% drop in water demand in the last two years. Sales in 2022-23 were just 15,340 acre feet, the lowest level since 2015-16, the middle of a severe drought, and right after the District adopted budget based rates. Prior to that drought, customer demand Agenda Item #4 February 27, 20242 Meeting Date: February 27, 2024 Agenda Item #4 Informational Item 1 0 4 5 ranged between 18,000 and 21,000 annually. This unusual decrease in water sales reduced revenue for both the Water and Wastewater Funds. Water sales over the next five years are assumed to slightly increase with relatively modest development. •Inflation - Consumer Price Index (CPI) for San Bernardino ranged from 5%-10% over the past three years. Price increases have affected the costs of materials, services, labor, and construction costs. General inflation is assumed to be between 3% and 5% over the next five years. However, labor and construction costs are assumed to be higher due to inflation. •Staffing levels - The District has added eight staff to operate the new SNRC. Staffing levels remain low relative to the industry benchmark of similar agencies. Three new staff positions are anticipated over the next five years to meet operational and regulatory needs. •Power costs - Power costs have increased more than general inflation. Power costs are assumed to continue to rise 7% annually over the next five years. Additionally, the SNRC power cost will be partially offset by on-site generation. SNRC power costs will be higher than originally anticipated due to larger electric loading of equipment and less on-site generation than previously assumed over the next five years. •Capital Improvement Program - The District has primarily invested in the SNRC over the past eight years. Capital Improvements in storage, groundwater wells and pipeline will require increased funding levels of $5 to $7 million annually. Special projects above this level will be added where grants become available. IB Consulting has now completed the Cost of Service Analysis’ for all three enterprises. They have presented their work at two committee meetings. The first included presenting the financial plans for all three enterprises, and then at the second meeting IBC presented the Cost of Service and Rate Design for all three enterprises. These meetings will be followed by an abbreviated presentation to the full Board on March 13th, a Prop 218 public hearing on May 15, 2024. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management B. Utilize Effective Communication Methods C. Pursue Alternative Funding Sources Agenda Item #4 February 27, 20243 Meeting Date: February 27, 2024 Agenda Item #4 Informational Item 1 0 4 5 FISCAL IMPACT There is no fiscal impact associated with this agenda item. Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS Presentation Community Advisory Commission WATER & WASTEWATER RATE UPDATE February 27, 2024 2 FINANCIAL STRATEGIES Customer Focused Rates System Reliability Cost Recovery Long Term Flexibility 3 CUSTOMER FOCUSED RATES •Budget-based rates •Customer efficiency lowers bills •Conservation Rebates 4 •Proactive maintenance •Asset Management Program •Increase infrastructure replacement and rehabilitation SYSTEM RELIABILITY 5 •Strive for rate stability (avoid spikes) •Following Water and Wastewater Master Plans •Prop 218 COST RECOVERY 6 LONG-TERM FLEXIBILITY •Pay-go and debt for capital improvements •Reset reserve policies •Pay-off debt where beneficial •Have funds available to receive grants 7 RATE DRIVERS Rate StudyWater Sales Inflation Staffing Level Power Costs Capital Improvement Projects WATER DEMAND •Historical and Projected Sales A c r e F e e t 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 20 2 0 20 2 1 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 14,500 15,500 16,500 17,500 18,500 19,500 20,500 21,500 22,500 Water Sales (AF) Water Master Plan Projections 5% 11% 8 FINANCIAL ASSUMPTIONS Expense Escalations •Capital Construction reflects the 5-Year Average – Engineer’s News Record Construction Cost Index •General Costs reflect the 5-Year Average – Consumer Price Index (LA) 9 WATER – CAPITAL IMPROVEMENT PLAN (CIP) •Grant Funding - $19.5M for seismic upgrades •New well = $4M will be funded by Capacity Fees 10 WW COLLECTION – CAPITAL IMPROVEMENT PLAN (CIP) 11 RECLAMATION – CAPITAL IMPROVEMENT PLAN (CIP) • SRF Funded = $4M remaining draw 12 13 218 RATE UPDATE PROCESS Public Hearing May 15, 2024 218 Notice mailed to all ratepayers March 14, 2024 Vote by Board of Directors calling for Public Hearing March 13, 2024 DISCUSSION