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HomeMy WebLinkAboutAgenda Packet - Finance & Human Resources Committee - 07/11/2023FINANCE & HUMAN RESOURCES COMMITTEE JULY 11, 2023 East Valley Water District was formed in 1954 and provides water and wastewater services to 103,000 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. COMMITTEE MEMBERS David E. Smith Governing Board Member Ronald L. Coats Governing Board Member Finance & Human Resources Committee Meeting July 11, 2023 ­ 1:30 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. INFORMATIONAL ITEMS 1.Review Letter Regarding Auditor Responsibilities and Planning Document from Rogers, Anderson, Malody & Scott, LLP for Preparation of the District's FY 2022­23 Audit DISCUSSION ITEMS 2.Reclassification of Water Quality Coordinator to Water and Wastewater Compliance Supervisor REPORTS 3.Finance Activities 4.Human Resource Activities ADJOURN FINANCE & HUMAN RESOURCES COMMITTEEJULY 11, 2023East Valley Water District was formed in 1954 and provides water and wastewater services to103,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.COMMITTEE MEMBERS David E. Smith Governing Board Member Ronald L. Coats Governing Board Member Finance & Human Resources Committee Meeting July 11, 2023 ­ 1:30 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. INFORMATIONAL ITEMS 1.Review Letter Regarding Auditor Responsibilities and Planning Document from Rogers, Anderson, Malody & Scott, LLP for Preparation of the District's FY 2022­23 Audit DISCUSSION ITEMS 2.Reclassification of Water Quality Coordinator to Water and Wastewater Compliance Supervisor REPORTS 3.Finance Activities 4.Human Resource Activities ADJOURN FINANCE & HUMAN RESOURCES COMMITTEEJULY 11, 2023East Valley Water District was formed in 1954 and provides water and wastewater services to103,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.COMMITTEE MEMBERSDavid E. SmithGoverning Board Member Ronald L. CoatsGoverning Board MemberFinance & Human Resources Committee MeetingJuly 11, 2023 ­ 1:30 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. INFORMATIONAL ITEMS 1.Review Letter Regarding Auditor Responsibilities and Planning Document from Rogers, Anderson, Malody & Scott, LLP for Preparation of the District's FY 2022­23 Audit DISCUSSION ITEMS 2.Reclassification of Water Quality Coordinator to Water and Wastewater Compliance Supervisor REPORTS 3.Finance Activities 4.Human Resource Activities ADJOURN Agenda Item #1 July 11, 20231 Meeting Date: July 11, 2023 Agenda Item #1 Informational Item 1 1 2 8 Regular Meeting TO: Committee Members FROM: Chief Financial Officer SUBJECT: Review Letter Regarding Auditor Responsibilities and Planning Document from Rogers, Anderson, Malody & Scott, LLP for Preparation of the District's FY 2022-23 Audit RECOMMENDATION This agenda item is for informational purposes only, no action is required. BACKGROUND / ANALYSIS Each year the East Valley Water District (District) contracts an independent financial auditor to review the prior year’s financial statements. The audit is both an industry best practice and a requirement of the State Controller Minimum Audit Requirements for California Special Districts. The independent Auditor selected for Fiscal Year 2022-23 review is Rogers, Anderson, Malody & Scott, LLP (RAMS). After completion of their audit, a report will be provided directly to the Board of Directors. As auditing is a review of managements’ activities, this introduction is essential for establishing a line of communication between the auditors and Board without facilitation from staff. RAMS has provided a Communication Letter to the Board regarding auditor responsibilities to help ensure there is no expectation gap regarding the audit services for the fiscal year ended June 30, 2023. Also attached is a schedule / timeline for the work to be performed over the next four months. RAMS will also provide a presentation on their upcoming audit process and will be present to answer any questions. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management FISCAL IMPACT There is no fiscal impact associated with this agenda item. Agenda Item #1 July 11, 20232 Meeting Date: July 11, 2023 Agenda Item #1 Informational Item 1 1 2 8 Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS 1. RAMS Presentation 2. Communication Letter 2022-23 3. RAMS Auditing Plan East Valley Water District For the year ended June 30, 2023 Pre-audit planning meeting July 11, 2023 Scott W. Manno, CPA, CGMA Partner Table of Contents •Audit Issues •General Audit Information •Audit Responsibilities •Audit Timing •Risk Assessment Procedures •Questions, Concerns, etc.? Audit Issues •Upcoming Pronouncements: •GASBS No. 91, Conduit Debt Obligations, FY23 •GASBS No. 94, Public-Private and Public-Public Partnerships, FY23 •GASBS No. 96, Subscription Based IT Arrangements, FY23 (similar to GASBS 87, Leases) •GASBS No. 99, Omnibus, Various •GASBS No. 100, Accounting Changes and Error Corrections, FY 24 •GASBS No. 101, Compensated Absences, FY 24 General Audit Information •Audit of District’s financial statements in accordance with: •US Generally Accepted Auditing Standards, •Government Auditing Standards, and •the State Controllers Minimum Audit Requirements for Special Districts •Single Audit, if required Audit scope •Opinion on audited financial statements •SAS 114 Post audit communication •Report on Internal Control and Compliance •Report of Compliance over Major Federal Programs (if Single Audit required) Audit deliverables Audit Responsibilities •Overseeing strategic direction of District •Oversight of District management •Accountability, including the financial reporting of District (Fiduciary) Governance •Provide auditor access to relevant information, additional information requested, and unrestricted access to personnel •A system of internal controls relevant to the preparation and presentation of the financial statements (including programs to prevent and detect fraud) •Preparation and fair presentation of District financial statements in accordance with GAAP Management •Perform audits in accordance with various standards •Reports to Governance •Report any significant deficiencies or material weaknesses (required) •Express opinion on managements financial statements •Reasonable (defined as a high level of assurance), not absolute assurance financial statements are free of material misstatements, as a whole, whether due to fraud or error Auditor Audit Timing Audit planning – continuous Interim audit – May/June Year-end audit - September Reporting - October Risk Assessment Procedures •Interviews with staff •Walkthroughs •Policy manuals Update understanding of internal control processes •Cash disbursements (including bank reconciliations, contracts, and Cal-cards) •Payroll •Billings (recalculate small sample) Test internal controls (as needed) •Improvements over processes, controls •Significant deficiencies •Material weaknesses Document and present any possible findings •Assess overall risk of material misstatement •Develop customized audit programs •Obtain sufficient appropriate audit evidence to render an opinion Substantive testing Risk Assessment Procedures (continued) Presumptive/inherent risks in all audits Revenue Recognition Management override of internal controls Questions, concerns, etc.? East Valley Water District Finance Committee Meeting July 11, 2023 Interim Fieldwork – week of May 29th (after Memorial Day holiday) •Interviews with staff to update understanding of processes: o Accounts payable/Cal-cards o Billing and collections o Payroll o Cash and investments o Journal entries and financial reporting •Various tests to ensure controls are operating effectively, based on our understanding obtained in interviews above o Reviewing invoices for proper approval o Testing Cal-card purchases o Payroll is properly approved, timesheets are reviewed o Segregation of duties within the various modules (IT) o Bank reconciliations are prepared and reviewed in a timely manner •Reading through the minutes of Board meetings to identify any significant contracts, transactions, etc. •Testing various contracts to determine whether purchasing policies were followed •Import of prior year trial balances and setup up groupings for financial statements Year-End Fieldwork – week of September 5th (after Labor Day holiday) •Various tests to ensure balances are not materially misstated: o Confirm cash, investment, debt balances with third parties o Agree receivables to subsequent collections/receipts o Ensure all material payables have been recorded as of June 30 o Perform analytical comparisons over revenues and expenses and drill into further details, if needed o Review support of additions and disposals of capital assets and CIP •Review of actuarial valuations for pension and OPEB liabilities •Prepare draft financial statements based on agreed-upon timeline with management (to be discussed during interim fieldwork) Agenda Item #2 July 11, 20231 Meeting Date: July 11, 2023 Agenda Item #2 Discussion Item 8 2 7 Regular Meeting TO: Committee Members FROM: Director of Administrative Services SUBJECT: Reclassification of Water Quality Coordinator to Water and Wastewater Compliance Supervisor RECOMMENDATION That the Finance & Human Resources Committee recommend that the Board of Directors approve the reclassification of the Water Quality Coordinator to the new classification of Water and Wastewater Compliance Supervisor. BACKGROUND / ANALYSIS When the Sterling Natural Resource Center (SNRC) comes online, and the District assumes wastewater treatment authority from the City of San Bernardino, the District will be required to establish and implement a source control program, which includes proactive inspection and monitoring of dischargers into the sewer collection system. Currently, inspection services are being performed by the City of San Bernardino Municipal Water Department’s Environmental Control Section. Following the transition of flows to the SNRC, the District must have someone dedicated to managing this program and the use of third party contracted inspectors. Managing this program will not require a full-time position, however, it will require someone that can dedicate ample time to ensuring proper inspections are occurring, reporting requirements are being met, and that the District is maintaining compliance with applicable regulatory requirements. The District’s current Water Quality Coordinator is the most qualified staff member to perform these duties and has taken proactive steps on becoming the in-house lead for the Source Control Inspection Program and is working with consultants to fully develop the District’s Fats Oils and Grease (FOG) program. He has also proactively attended conferences and training seminars on Pretreatment and Pollution Prevention and has hosted a California Water Environment Association (CWEA) Pretreatment Training at the SNRC. Over the past several months, staff has been working to evaluate the responsibilities of the new position to ensure it can be done by one full-time employee. The current Water Quality Coordinator can assume the enhanced duties while ensuring the District’s Water Quality Program continues to run efficiently and meets all requirements. Staff has Agenda Item #2 July 11, 20232 Meeting Date: July 11, 2023 Agenda Item #2 Discussion Item 8 2 7 created a new job classification, Water and Wastewater Compliance Supervisor, that accurately represents the duties, knowledge, skills, and abilities to effectively manage the Water Quality and Source Control Programs (see attached job classification). Staff is recommending that the Water Quality Coordinator classification be eliminated, and the current Water Quality Coordinator be reclassified to the Water and Wastewater Compliance Supervisor classification. Based on the results of market compensation analysis, and internal alignment within the Operations Supervisor classifications, it is recommended that the Water and Wastewater Compliance Supervisor be placed at range 49 on the District’s Salary Schedule. Range 49 is $49.07 - $59.63 per hour and would be a 5% increase to the current Water Quality Coordinator Range 47. The Water and Wastewater Compliance Supervisor will be a non-represented, non-exempt, general/confidential classification. AGENCY GOALS AND OBJECTIVES I - Implement Effective Solutions Through Visionary Leadership D. Encourage Performance Based Results through Staff Empowerment III - Deliver Public Service with Purpose While Embracing Continuous Growth C. Promote a Positive Organizational Culture FISCAL IMPACT The fiscal impact associated with this item, including salary and benefit increase, will be approximately $6,000. Respectfully submitted: ________________ Kerrie Bryan Director of Administrative Services ATTACHMENTS Water and Wastewater Compliance Supervisor Job Classification JULY 2023 FLSA: NON-EXEMPT GENERAL/CONFIDENTIAL WATER AND WASTEWATER COMPLIANCE SUPERVISOR DEFINITION Under general direction supervises, assigns, reviews, and participates in the work of personnel engaged in compliance for the drinking water quality, cross-connection control, hazardous waste, wastewater compliance reporting, and source control programs; directs and performs field inspections of construction work for developer and capital improvement projects related to drinking water quality, source water control, wastewater reporting, and industrial waste; develops and maintains policies and procedures for compliance with applicable regulatory requirements, and ensures work quality and adherence to established policies and procedures. SUPERVISION RECEIVED AND EXERCISED Receives general direction from the Operations Manager and provides technical support to the Water Reclamation Manager. Exercises general direction and supervision over assigned staff in the department and consultants. CLASS CHARACTERISTICS This is a working supervisory classification in the Operations Department. Incumbents provide supervision to journey level staff and may independently perform highly technical and specialized duties at a level beyond that found at a journey level. The position coordinates with other District personnel in ensuring compliance with District, regional, and regulatory requirements. The position is responsible for reviewing new and existing potable water projects, wastewater projects, the cross-connection control program, hazardous waste, and source control program. Supervisory duties include assigning daily tasks, ensuring completion and compliance with applicable standards, policies, and procedures, as well as providing technical assistance, training, writing, and conducting performance appraisals. EXAMPLES OF TYPICAL JOB FUNCTIONS (Illustrative Only) Management reserves the rights to add, modify, change or rescind the work assignments of different positions and to make reasonable accommodations so that qualified employees can perform the essential functions of the job. ➢Plans, schedules, evaluates and supervises the work assignments of the assigned staff that are engaged in the drinking water quality, cross-connection, wastewater reporting, and source control programs. ➢Plans, coordinates, administers, and supervises all work related to the inspection, sample collection, permitting, reporting, record keeping, notification and compliance of drinking water quality, cross-connection, hazardous materials, wastewater, and source control programs. Water and Wastewater Compliance Supervisor Page 2 of 4 ➢Coordinates with other District staff for the plan checking of proposed facilities related to these areas. ➢Coordinates with regulatory agencies, customers, contractors, and other District departments, regarding water quality, source control and cross-connection issues. ➢Maintains records concerning operations and programs; prepares reports on operations and activities; performs the more technical and complex tasks of the work unit including identifying, planning, organizing, and scheduling the daily and long-term recycled water and cross connection activities. ➢Establishes schedules and methods for providing water quality services; identifies resource needs; review needs with appropriate management staff; allocates resources accordingly. ➢Compiles and submits weekly, monthly, quarterly, and annual reports to regulatory agencies in accordance with all reporting requirements. ➢Supervises staff in accomplishing assigned tasks, exercises principles of supervision, training, and performance management. ➢Stays appraised of State regulatory agencies; recommends new and or revised processes and procedures to work assignments. ➢Assists with resolution of technical and complex issues. ➢Administers and maintains District NPDES and WDR discharge program. ➢Writes and conducts formal performance appraisals; participates in a variety of personnel actions including hiring, counseling, training, promotion, discipline, and termination. ➢Attends and participates in professional group meetings; stays abreast of new trends and innovations in drinking water, cross connection, wastewater, and source water control; directs the incorporation of new developments into program areas, as appropriate. ➢Assists with the development and administration of the department’s annual budget, including the development of annual goals and objectives. ➢Reads, understands, and ensures compliance with the EVWD safety policies; attends safety meetings, as required; reports all accidents, violations, or infractions. ➢Represents the District at a variety of technically related meetings/conferences and/or makes presentations to various organizations and groups. ➢Establishes and maintains effective working relationships with regulatory agencies, all District departments, and the public. ➢Performs other duties as assigned. QUALIFICATIONS The following generally describes the knowledge and ability required to enter the job and/or be learned within a short period of time in order to successfully perform the assigned duties. Knowledge of: ➢Current State and Federal laws and District rules and regulations pertaining to drinking water, cross connection, wastewater, and source control. The position requires in-depth knowledge of Titles 17 and 22 of the California Code of Regulations, as related to backflow and drinking water, and Title 40 of the Code of Federal Regulations respectively. ➢Processes related to the accurate review and evaluation of water quality and wastewater data. ➢Current regional and District regulations related to source water/pretreatment control. Methods of research, laboratory analysis and data analysis. ➢Effective oral and written communication skills including writing reports and business letters. ➢Industry best practices related to physical work activities and program management. ➢Relevant local, state, and federal laws, regulations, and guidelines. ➢Principles and practices of effective leadership and employee supervision, including training and performance evaluation. ➢Safety methods and regulations pertaining to all facets of utility work. ➢Principles and practices of organic, inorganic chemistry and microbiology. Water and Wastewater Compliance Supervisor Page 3 of 4 Ability to: ➢Supervise, assign, inspect, and evaluate the work of others. ➢Make independent technical decisions to maintain proper recycled water, cross connection, and source control systems. ➢Interpret new and current regulations and develop effective implementation plans for new regulations. ➢Diagnose complex operating problems and take effective courses of action. ➢Operate and maintain a variety of sophisticated analytical instruments. ➢Communicate effectively, both verbally and in written formats. ➢Effectively represent the department to outside individuals and agencies. ➢Motivate and evaluate staff and provide for their training and development. ➢Develop and implement work standards. ➢Prepares and records, reports, and other written materials. ➢Exercise independent judgment and initiative within established guidelines. ➢Establish and prioritize action items and multitask effectively. ➢Use creative thought to problem solve including the use of new and innovative technologies and techniques. ➢Participate in groups and committees that affect District operations, policies, and procedures. ➢Use Microsoft Outlook including accessing forms within public folders, send and receive email and use the calendar and scheduling functions effectively. ➢Operate a personal computer, printer and related software, word processing spreadsheets, databases, presentations, third party cloud-based databases, and internet research of technical publications. ➢Establish and maintain effective working relationships with those contacted in the course of the work. EDUCATION AND EXPERIENCE Any combination of experience and training that would likely provide the required knowledge and abilities is qualifying. A typical way to obtain the knowledge and abilities would be: Equivalent to completion of the twelfth (12th) grade supplemented by applicable college-level coursework and/or technical training in construction management, water utility construction inspection, or related field; or supplemented by college level coursework in chemistry, biology, environmental science, or water/wastewater technology. Possession of Associates of Arts degree or higher in related field is desirable. Licenses or Certifications: ➢Possession of a valid D3 Distribution System Operator Certificate issued by the State Water Resources Control Board (SWRCB). ➢Possession of a valid T2 Water Treatment Operator Certificate issued by the State Water Resources Control Board (SWRCB), with the ability to obtain a T3 Water Treatment Operator Certificate within 12 months. ➢Possession of a valid San Bernardino County Department of Public Health Certified Backflow Prevention Device Tester, or the ability to obtain within 12 months. ➢Possession of a valid Cross-Connection Control Program Specialist Certificate issued by the American Water Works Association, or the ability to obtain within 12 months. ➢Possession of a valid Grade 1 Environmental Compliance Inspector issued by the California Water Environment Association, or the ability to obtain within 12 months. ➢Possession of a valid California class C driver's license and satisfactory driving record. Water and Wastewater Compliance Supervisor Page 4 of 4 PHYSICAL DEMANDS Must possess mobility to work in various District buildings and facilities; strength, stamina and mobility to perform medium physical work, operate varied hand and power tools and related equipment; vision to read printed materials and a computer screen; color vision to identify electrical wires, pipes, engine and motor parts etc., and hearing and speech to communicate in person and over the telephone or radio. Finger dexterity is needed to access, enter and retrieve data using a computer keyboard or calculator and to operate above-mentioned tools and equipment. Positions in this classification bend, stoop, kneel, reach and climb to perform work and inspect work sites; lift, move, and carry materials and equipment weighing up to 75 pounds and heavier weights with the use of proper equipment. ENVIRONMENTAL ELEMENTS Employees work in buildings and facilities and are occasionally exposed to loud noise levels, cold and hot temperatures, inclement weather conditions, road hazards, vibration, confining workspace, chemicals, mechanical and/or electrical hazards, and hazardous physical substances and fumes. Employees may interact with upset staff and/or public and private representatives, and contractors in interpreting and enforcing departmental policies and procedures.